Lifting of tariffs on bananas sought

Trade Secretary Ramon Lopez formally asked the Japanese government to lift tariffs on Philippine bananas during the state visit of President Duterte to Japan this week.

According to Lopez, Philippine bananas are slapped a tariff of 2 percent from April to September and 18 percent for the rest of the year, or from October to March.

Japan slaps higher duties on products like bananas during those months when these are “in season” or are being produced there.

“We will try to work on the possible reduction or elimination of tariffs on bananas. We supply about 86 percent of Japan’s banana imports,” Lopez said in a text message to reporters.

The possible reduction or elimination of tariffs on bananas is being sought under the framework of the Philippines-Japan Economic Partnership Agreement (Pjepa).

In the last administration, trade officials lobbied for the removal of quotas and tariffs on the country’s key agricultural exports such as bananas and pineapples as well as chicken so that local exporters can ship more to Japan.

Meanwhile, Lopez also disclosed that the Philippine Department of Trade and Industry and its counterpart, Japan’s Ministry of Economy, Trade and Industry, had committed to undertake the Philippine-Japan Industrial Cooperation Action Plan (ICAP), which is expected to boost two-way trade.

“The Philippines has also committed to further improve the business environment as Japan is also expected to give full support to the Asean economic integration and the Philippines’ Asean chairmanship in 2017,” Lopez added.

This Action Plan was signed in July last year, as an expression of Japan’s support to Philippine efforts in developing an Industrial Development Roadmap and elevating the country into Asean’s manufacturing and human resources development (HRD) hub.