RP to oppose free trade pact between Asean, Australia

The Philippines will likely oppose a free trade agreement (FTA) between the ASEAN and Australia following Australia’s final decision to impose stiff phyto-sanitary restrictions on Philippine pineapples.

Australia is also expected to impose restrictive conditions on Philippine banana fruit exports.

The Philippines’ possible opposition to an FTA between the ASEAN and Australia was revealed over the weekend by Trade and Industry Secretary Manuel Roxas II.

Roxas reported that he had met last week with Australian Ambassador to the Philippines Ruth Pearce who had informed him that in spite of the Philippines’ request for a reconsideration of the import risk analysis report of Biosecurity Australia, Australia is not likely to review and overturn the report.

Australia is imposing stiff phyto-sanitary conditions on the entry of Philippine pineapples to Australia.

Among these are the de-crowning of the pineapples and the use of methyl bromide as a fumigation agent.

Philippine pineapple growers have argued that de-crowning the pineapples would result in shorter shelf life and the use of methyl bromide has already been found to be damaging to the environment.

However, the phyto-sanitary conditions, more importantly, are considered non-tariff barriers in view of the strong objection of Australian pineapple growers to the entry of Philippine pineapple to their country.

Aside from pineapples, there is also strong opposition from Australia banana growers to the entry of Philippine bananas in Australia.

Initial findings of Biosecurity Australia have supposedly found that Philippine bananas are carriers of a certain species of fruit fly that could reportedly destroy the Australian banana industry.

Pearce, Roxas said, had admitted that the issue over entry of Philippine pineapples and bananas to Australia is a "shadow" over the Philippines and Australia’s trade relationship.

Roxas pointed out that Australia already enjoys a trade surplus over the Philippines amounting to $400 million. The Philippines imports about $700-million worth of Australian products, mostly milk and dairy products.

On the other hand, the Philippines exports only about $300-million worth of products to Australia, the bulk of which is Philippine fruits.

Pearce, Roxas reported, had indicated Australia’s continuing desire to invest in the Philippine mineral sector and to securing an FTA arrangement with ASEAN.

Roxas admitted that while the Philippines is only "once voice out of 10" in voting on the FTA with Australia, the Philippines would still review its position in light of Australia’s action against Philippine fruit exports. However, ASEAN normally has to vote unanimously on major policy decisions.

Roxas also reiterated the Philippines’ plan to bring its case against Australia to the World Trade Organization (WTO).