Local producers and exporters of bananas again urged the government to renegotiate Manila’s free-trade agreement
with Tokyo and push for the elimination of tariffs for bananas bound for Japan.
The Pilipino Banana Growers and Exporters Association (PBGEA) said bringing down tariffs for bananas to zero under the Japan-Philippine Economic Partnership Agreement would make Filipino exporters more competitive against producers from other major banana-producing countries.
“We are reiterating our request for the renegotiation to possibly reduce, if not eliminate, the tariffs on Philippine bananas, a move that is clearly supported by Japanese fruit importers, particularly the Japan Fresh Produce lmport and Safety Association, since four years ago,” PBGEA President Stephen A. Antig said in his letter to the departments of Agriculture (DA) and Trade and Industry.
The appeal came after several Japanese importers struck deals with suppliers in Mozambique, Vietnam, Costa Rica and Indonesia, consequently reducing Japan’s dependence on the Philippines to supply its fresh banana requirements.
Under bilateral and economic partnership agreements, fresh bananas exported from those countries enjoy zero tariffs for their pooled quotas of 1,000 tons per year, as opposed to the tariffs for Philippine banana that ranges from 8.5 percent to as high as 18.5 percent. There is no quota being imposed in the country, as well.
“It is only logical for Japanese importers to source part of their supplies from countries with zero tariffs to minimize business costs, hence, reducing their demand for Philippine bananas,” the letter read.
Quoting records from the Ministry of Finance of Japan, the PBGEA said Japan sourced bananas from 12 countries last year. These are the Philippines, Ecuador, Guatemala, Peru, Taiwan, Mexico, Colombia, Thailand, Costa Rica, China, Mozambique and the Dominican Republic.
The PBGEA noted that imports from Ecuador and Guatemala—two of the top exporters of fresh
bananas in the world—increased sharply.
Based on the same report, the volume of Philippine bananas imported by Japan was the lowest since 2005. This is despite excellent production volume in the Philippines, the PBGEA said.
“The gradual decrease in volume is some sort of an embarrassment to the quality of Philippine exports. [The government must] secure our position in the Japanese market and that the Philippine banana industry would continue to be the second top exporter of world-class bananas,” Antig said.
Data from the Philippine Statistics Authority showed that the total volume of fresh bananas exported in 2014 declined by 3 percent, to 3.17 million metric tons from 3.27 million MT recorded in 2013.
The country’s export earnings from fresh bananas increased by 18.06 percent to $1.14 billion last year, compared to $962.58 million earned in 2013, due to the increase in the price of bananas in the world market.
Japan is a major importer of farm products from the Philippines, such as bananas, okra and mangoes.
Meanwhile, the PBGEA also called on the DA to immediately address the industry’s concerns. For one, banana producers oppose House Bill 5161, which seeks to regulate agribusiness venture agreements in agrarian-reform areas.
Banana producers are also concerned over the legislative policy regulating aerial spraying in plantations, as well as local laws banning the expansion of banana and pineapple plantations in certain areas in Bukidnon and South Cotabato.
6 comments
Why pay much more if you can get cheap somewhere else right? Because of this tariff, we might lose market in Japan and Japan is one of our biggest importer. Just imagine how huge a loss this will be especially to those who are dependent on them,we are talking about thousands of people here. If the government doesn’t act now, these few thousands will lose their livelihood.
The positive impact of the Japanese banana market is it helps Filipinos reduce the incidence of poverty. If the government fails to take action quickly on its tariff rates we might lose the market leaving thousands of individuals jobless.
Doing without tariffs on our banana exports to Japan, or at least lowering it, is a small sacrifice to make in exchange for securing the country’s position as one of the top banana exporters in the world. Hopefully the Philippine government realizes this before it’s too late.
The volume of Philippine bananas imported by Japan has been gradually decreasing, and understandably so. Of course they will opt to secure these products from other countries with minimal or zero tariff. The DA and DTI should heed this call to eliminate tariff on bananas bound for Japan and make the proper adjustments with our trade deals if they don’t want to lose the Japan market altogether.
We will lose our footing in the global market if our export volume continues to decline. The DA should focus on getting a better trade deal with Japan if we want to remain a strong player globally.
Millions rely on the Philippine banana industry. We cannot simply sit back and watch as banana export volume continues to decline. There needs to be a change in our trade deal with Japan.