PH to Japan: Wider banana market for automotive products
Published Jun 7, 2023 08:25 am
The Philippines has requested Japan to consider enhanced market access for cavendish bananas in exchange for Japan’s interest for market access of its automotive products.
Trade and Industry Secretary Alfredo E. Pascual raised this quid pro quo during a meeting with Minister Yasutoshi Nishimura of Japan’s Ministry of Economy, Trade, and Industry (METI) following their participation at the ASEAN-Japan Business Week 2023 on Monday, June 5, in Tokyo, Japan. During the meeting, Pascual conveyed the Philippines’ readiness for officials to discuss at the earliest opportunity the finalization of the General Review of the Philippines-Japan Economic Partnership Agreement (PJEPA). Pascual requested Japan to consider enhanced market access for key Philippine exports such as cavendish bananas. In exchange, Pascual mentioned that the Philippines is likewise ready to consider Japan's interest in key sectors such as automotive products. The Philippines would like Japan to eliminate the current tariffs on Philippine bananas, one of the priority products for exports to Japan under the PJEPA. The Philippine banana is currently charged with seasonal tariff, 18 percent during winter and eight percent during the summer. The Philippines has been asking Japan to consider its requests on agricultural access, but talks have not made significant progress. But Japan is likely to negotiate in the PJEPA general review for greater access for its industrial products, particularly some tariff lines on petrochemicals and steel, and its automotive products. In the general review, Japan will likely negotiate for zero tariff for its vehicles below 3,000 cc (engine displacement) from the current 20 percent duty. For vehicles 3,000 cc and above, those already have zero duty. The Philippines and Japan already started the general review of the PJEPA in March 2021 amid the coronavirus disease 2019 (COVID-19) pandemic. The FTA came into force over a decade ago. Nonetheless, both officials agreed to further deepen Philippines-Japan bilateral relations especially with the implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreement. They noted the strong economic complementarities between the two countries, particularly in the areas of investment, energy, critical minerals, carbon neutrality, innovation and digital trade, among others. This strong economic relations can be further strengthened by the Indo-Pacific Economic Framework (IPEF) which currently is under negotiations. Japan serves as one of the Philippines' major trade partners. In 2022, the country ranked as the 2nd largest trading partner of the Philippines despite the still ongoing pandemic. Reciprocally, the Philippines has emerged as a crucial market for Japanese exports. Meantime, in his message during the opening session of the ASEAN-Japan Business Week 2023, Pascual stressed that ASEAN countries and Japan can complement each other through the presence of young and vibrant Filipino workforce that will empower Japan's aging population and in return, Japan's advanced technological capabilities will help the Philippines transition into an economy powered by high-tech and future-ready machineries and equipment.
Trade and Industry Secretary Alfredo E. Pascual and Minister Yasutoshi Nishimura of Japan’s Ministry of Economy, Trade, and Industry (METI) during the ASEAN-Japan Business Week 2023 on Monday, June 5, in Tokyo, Japan.
Trade and Industry Secretary Alfredo E. Pascual raised this quid pro quo during a meeting with Minister Yasutoshi Nishimura of Japan’s Ministry of Economy, Trade, and Industry (METI) following their participation at the ASEAN-Japan Business Week 2023 on Monday, June 5, in Tokyo, Japan. During the meeting, Pascual conveyed the Philippines’ readiness for officials to discuss at the earliest opportunity the finalization of the General Review of the Philippines-Japan Economic Partnership Agreement (PJEPA). Pascual requested Japan to consider enhanced market access for key Philippine exports such as cavendish bananas. In exchange, Pascual mentioned that the Philippines is likewise ready to consider Japan's interest in key sectors such as automotive products. The Philippines would like Japan to eliminate the current tariffs on Philippine bananas, one of the priority products for exports to Japan under the PJEPA. The Philippine banana is currently charged with seasonal tariff, 18 percent during winter and eight percent during the summer. The Philippines has been asking Japan to consider its requests on agricultural access, but talks have not made significant progress. But Japan is likely to negotiate in the PJEPA general review for greater access for its industrial products, particularly some tariff lines on petrochemicals and steel, and its automotive products. In the general review, Japan will likely negotiate for zero tariff for its vehicles below 3,000 cc (engine displacement) from the current 20 percent duty. For vehicles 3,000 cc and above, those already have zero duty. The Philippines and Japan already started the general review of the PJEPA in March 2021 amid the coronavirus disease 2019 (COVID-19) pandemic. The FTA came into force over a decade ago. Nonetheless, both officials agreed to further deepen Philippines-Japan bilateral relations especially with the implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreement. They noted the strong economic complementarities between the two countries, particularly in the areas of investment, energy, critical minerals, carbon neutrality, innovation and digital trade, among others. This strong economic relations can be further strengthened by the Indo-Pacific Economic Framework (IPEF) which currently is under negotiations. Japan serves as one of the Philippines' major trade partners. In 2022, the country ranked as the 2nd largest trading partner of the Philippines despite the still ongoing pandemic. Reciprocally, the Philippines has emerged as a crucial market for Japanese exports. Meantime, in his message during the opening session of the ASEAN-Japan Business Week 2023, Pascual stressed that ASEAN countries and Japan can complement each other through the presence of young and vibrant Filipino workforce that will empower Japan's aging population and in return, Japan's advanced technological capabilities will help the Philippines transition into an economy powered by high-tech and future-ready machineries and equipment.