By Antonio Colina IV
DAVAO CITY – Pilipino Banana Growers and Exporters Association (PBGEA) Executive Director Stephen Antig hopes President Rodrigo R. Duterte will negotiate for the lifting of the hefty tariff rate on the Cavendish bananas during his visit to South Korea for the Association of Southeast Asian Nations (ASEAN)-Republic of Korea Commemorative Summit from November 25 to 26.
(KJ ROSALES / MANILA BULLETIN FILE PHOTO)
Antig said on Monday that the major banana exporters here have already raised this concern with Agriculture Secretary William Dar when they met him in Davao City last August.
“I believe Secretary Dar was briefed about the concern. I really hope it will be taken up,” he said.
He added that South Korea remains to be the third biggest export market of the country, next to China and Japan “despite the stringent policies and high tariff” of up to 30 percent levied against the Cavendish bananas from the Philippines.
Antig said the banana players here were wary that the market share of the Philippines in South Korea might further shrink with the entry of more banana exports from the global competitors. The current market share of the Philippines stood at 77.8 percent as of 2018, lower compared to 99.8 percent in 2009.
In a briefer released by PBGEA, the tariff rate imposed upon Philippine Cavendish bananas currently stood at 30 percent. However, the South Korea imposes zero tariffs for bananas coming from Peru and United States of America, 15 percent for bananas from Vietnam, and six percent for bananas from Colombia under their respective free trade agreements (FTAs).
The negotiation for FTA between South Korea and Philippines is still under way, according to Antig.
He said the Philippines’ trade agreement with South Korea will be anchored on the ASEAN-Korea Free Trade Agreement, under which bananas, including plantains, whether fresh or dried would be classified under Korea’s Highly Sensitive List, which means “tariff for bananas is excluded from reciprocal agreements for reduction and elimination.”
Department of Trade and Industry (DTI) 11 director Maria Belenda Ambi said she hoped the government will secure a trade deal with South Korea on the elimination of the tariff.
“The banana industry has been asking for this since three years ago. It will benefit them in terms of more volume for exports/ more export sales because this would make Philippine bananas more affordable in South Korea with the lifting or reduction of tariff,” she said.
DTI 11 assistant regional director Edwin Banquerigo said the DTI officials have been been in the thick of things to negotiate for the lifting of this tax with its South Korean counterparts.
“If we can bring it lower, the better for the industry. It makes the Philippine product competitive which means expanded market, more exports, more investments, and jobs,” he said.