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The Department of Agriculture (DA) is positive that Japan will consider the Philippines’ proposal for reduced tariffs on banana exports in a bid to strengthen its market share on the popular commodity.
In a press briefing on Monday, March 17, DA Spokesperson and Assistant Secretary Arnel de Mesa said this was the agency’s primary concern during a visit to Japan last week.
Under the Philippines-Japan Economic Partnership Agreement (PJEPA), Japan imposes 18 percent tariff during the winter season and eight percent tariff during summer.
De Mesa said this tariff rate is evidently high compared to other countries in which Japan does not impose any tariff.
The Philippines leads the market share of bananas in Japan; however, reports said Peru and Ecuador are now gaining ground—these South American nations have zero tariffs.
In 2024, bananas from the country had a 75-percent market share in Japan. This, however, was as high as 90 percent more than a decade ago.
In a report by the Food and Agriculture Organization (FAO), it noted that higher tariffs are hold-overs from earlier times when revenue gains were sought, or domestic industries were to be protected.
De Mesa said the DA’s delegation to Japan, including Agriculture Secretary Francisco Tiu Laurel, met with officials from Japan’s legislative branch to discuss the prospect of lowering the tariff.
While Japan has not yet committed, the official said the Asian economic giant is prepared to review the country’s proposal.
He added that the agency has an amount in mind for the tariff, noting that this is a “very urgent” situation.
“Importante na mapababa ‘yung taripa na ini-impose ng Japan doon sa ating mga export bananas para masigurado na mas competitive ang presyo ng saging sa Japan at ‘yung ating mga exporters, mapalago pa lalo ‘yung industriya ng saging sa ating bansa,” he explained.
(It is important to lower the tariff imposed by Japan on our export bananas to ensure that the price of our bananas remains competitive in Japan and that our exporters can further grow the banana industry in our country.)
Alongside bananas, the Philippines also has a strong market share in various agricultural commodities such as pineapple, mangoes, Hass avocado, and desiccated coconut.
De Mesa said the DA is looking into boosting the export potential of the country’s produce to help strengthen the agriculture industry, as well as in pursuit of a stable food security.
