MANILA, Philippines—Sanctions against Iran are disrupting Philippine banana exports to the Islamic republic, a key foreign market, Philippines Trade Secretary Gregory Domingo said Tuesday.
The sanctions, imposed over Tehran’s controversial nuclear program, have made it harder for Iran to purchase imports as it is now more difficult for Tehran to conduct international financial transactions.
“Right now, our banana industry exports the bulk of its output to Japan, China and Iran. Iran is the third-largest (market),” Domingo told reporters.
“Limiting (markets) to three countries basically is risky, because a disruption will have a very big impact on the industry,” he added.
With total shipments worth $470.96 million last year, bananas are the Philippines’s second-largest agricultural commodity export after coconuts, according to National Statistics Office data.
The data did not indicate the amount of banana exports to Iran for the year.
Domingo said he had been meeting with banana exporters to discuss the problem.
“I would expect this disruption in the payments system is temporary, and that this will be resolved in the next few weeks or months,” he said.