Agriculture Secretary Francisco Tiu Laurel Jr. said the review of the Japan-Philippines Economic Partnership Agreement (JPEPA) could create opportunities for reducing tariffs on Philippine bananas.
The JPEPA currently imposes seasonal tariffs on Philippine bananas exported to Japan, with rates of 8 percent from April 1 to Sept. 30, and 18 percent from Oct. 1 to March 31.
Manila is pushing for the removal of the seasonal tariff on bananas exported under JPEPA, as the high costs have led to a loss of market share to competitors such as Ecuador, Peru, and Mexico.
In addition to bananas, Manila is hopeful about the potential re-entry of fresh Davao mangoes into the Japanese market.
Agriculture Attaché Aleli Maghirang, stationed at the Philippine Embassy in Tokyo, expressed hope that the re-entry of fresh Davao mangoes into the Japanese market will inspire "greater confidence among our exporters to maintain their supply to Japan."
Laurel has directed the immediate improvement of testing laboratories to align the Philippine food code with those of importing countries like Japan, and the enhancement of farming practices and production of good quality planting materials for expansion and replanting.
DA optimistic on potentials of banana exports in JPEPA review
At a glance
The Department of Agriculture (DA) said the review of the free trade agreement between Manila and Tokyo could create opportunities for lowering tariffs on Philippine bananas.
In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said the review of the Japan-Philippines Economic Partnership Agreement (JPEPA) aligns with the DA’s objective of expanding access to Japan’s food market.
Specifically, Laurel said the review presents a favorable opening “to discuss the Philippines’ appeal for lower tariff on bananas.”
The DA is now working with the Department of Trade and Industry (DTI) to get better tariffs for the Philippines in Japan, where bananas from other countries have an advantage due to lower or zero tariffs.
At present, JPEPA imposes seasonal tariffs on exported bananas to Japan, set at eight percent from April 1 to Sept. 30, and subsequently raised to 18 percent for imports between Oct. 1 and March 31.
Earlier, Dita Angara-Mathay, the DTI commercial counselor and special trade representative in Tokyo, said Manila was seeking to eliminate the seasonal tariff on bananas exported under JPEPA.
Angara-Mathay noted that the seasonal tariff on Cavendish bananas has caused the Philippines to lose market share to Ecuador, Peru, and Mexico.
She particularly cited Mexico, the Philippines' main competitor, benefits from a year-round zero tariff in Japan.
Signed in 2006, JPEPA was Manila's first bilateral free trade agreement.
In addition to bananas, Manila is optimistic about the potential re-entry of fresh Davao mangoes into the Japanese market.
Agriculture Attaché Aleli Maghirang, who is assigned at the Philippine post in Tokyo, said the re-entry of fresh Davao mangoes into the Japanese market will inspire “greater confidence to our exporters to continue supplying to Japan.”
Laurel has directed the immediate improvement of testing laboratories to align Philippine food code with those of importing countries like Japan, and the enhancement of farming practices and production of good quality planting materials for expansion and replanting.
Japan is the second largest market for Philippine agri-food exports, enjoying a trade surplus of $824 million in 2022.
At the end of the third quarter last year, Philippine agricultural trade with Japan showed a $596.4 million surplus in favor of Manila.