Korea may cut tariff on RP bananas — Roxas

Trade and Industry Secretary Manuel Roxas II said yesterday that Korea may reduce its tariff on Philippine bananas.

Roxas, who is in Los Cabos, Mexico, attending the Asia Pacific Economic Cooperation (APEC) meeting, held informal bilateral talks with his South Korean and Australian counterparts.

During the informal talks, Roxas took the opportunity to press the Philippines’ case for increased market access of Philippine fruits to South Korea and Australia.

Following the meeting with South Korean trade officials, Roxas reported that Korea is planning to review its tariffs by December.

"There may be a chance for a reduction of tariffs on our banana exports to that country (Korea)," Roxas said. Korea accounts for almost 90 percent of the country’s banana shipments, Roxas said.

"A reduction of the high tariff, could generate better business," he said.

Korea currently slaps a 50-percent tariff on Philippine bananas. The 50-percent tariff is composed of a 30-percent basic tariff and another 20-percent adjustment tariff.

Roxas explained that banana is the only fruit subjected to the adjustment tariff which is imposed usually on luxury goods that have exceeded the quantity restriction that the Korean government has set.

As for his talk with his Australian counterpart, Roxas said that he took up with Australian Trade Minister Mark Vailie the restrictive Import Risk Analysis (IRA) finding on Philippine pineapples and bananas.

Roxas described the meeting as "cordial," with the Philippines reiterating its concern about the continued ban on the entry of Philippine pineapples and bananas to Australia.

"The Philippines still hopes that Australia will find the political will to arrive at a favorable conclusion, based on a reasonable, allowable level of protection," Roxas said.

Roxas said Australia is aware that the Philippines has already taken the matter to the World Trade Organization (WTO).

The Philippines believes that the restrictive phyto-sanitary restrictions of Australia against Philippine pineapples and bananas is merely a form of non-tariff barrier which is not allowed under WTO rules.