The Department of Agriculture (DA) of the Philippines, in collaboration with the Department of Trade and Industry (DTI), is pursuing a preferential tariff rate for its banana exports to Japan, a significant export destination for Philippine bananas. The DA, in a statement, expressed concerns about competition from Cambodia, Laos, Mexico, and Vietnam, which currently benefit from zero or preferential tariffs for their banana exports to Japan.
The DA highlighted the importance of Philippine bananas in the Japanese market, where they constitute 22% of the Japanese food basket. The Philippines’ geographical proximity to Japan allows for the cost-effective delivery of bananas and other tropical fruits that meet Japanese food standards.
Agriculture Secretary Francisco Tiu Laurel Jr. mentioned that the Philippines is considering reviewing the Japan-Philippines Economic Partnership Agreement (JPEPA) to discuss potential reductions in banana tariffs. JPEPA, a comprehensive bilateral trade and investment agreement signed in 2006, currently sets a tariff of 8% on Philippine bananas from April 1 to September 30, increasing to 18% from October 1 to March 31.
The DA is also focused on re-establishing the Japanese market for Philippine mangoes, which experienced a decline in exports after Japan implemented stricter sanitary and phytosanitary standards in 2011. At the Association of Southeast Asian Nations-Japan Summit in December 2023, Tiu Laurel Jr. marked the re-entry of Philippine mangoes into the Japanese market.
Agriculture Attaché Aleli Maghirang, based at the Philippine Embassy in Tokyo, expressed optimism about the renewed entry of Davao mangoes into Japan, anticipating a boost in confidence among Filipino exporters.
Tiu Laurel has directed improvements in testing laboratories to align the Philippine food code with international standards and enhance farming practices for high-quality production. The DA has also planned the first meeting of the Philippines-Japan Joint Committee on Agriculture in the upcoming quarter, following last year’s meetings in Japan where Tiu Laurel engaged with Japanese officials and businessmen to explore broader export opportunities for various Philippine agri-food products.
The meeting aims to continue discussions on agricultural trade and market access and explore technical and project collaborations under the memorandum of cooperation signed in February last year and the MIDORI Cooperation Plan. Signed by ASEAN members in October 2023, the MIDORI plan seeks to promote projects utilizing Japanese technology to foster resilient and sustainable agriculture and food systems.
Japan is a vital market for Philippine agricultural products, with the Philippines enjoying a trade surplus of US$824 million in 2022 and a $596.4 million surplus as of the third quarter of that year.
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