Lorenzo urges tough stance in trade talks

Newly-appointed Agriculture Secretary Luis Lorenzo is advocating more "forcefullness and resolve" in negotiating tariff issues with developed countries.

In a speech during the 28th Philippine Business Conference hosted by the Philippine Chamber of Commerce and Industry, Lorenzo stressed the country must "seek fair trade and not just free trade."

He urged government nogotiators to "take bolder steps to ensure that developed countries implement the same tariff reduction policy that they so garrously impose on developing countries such as the Philippines."

Lorenzo specifically cited Australia, China, the European Union and the US.

Australia, for instance, Lorenzo pointed out, has enjoyed an average trade surplus of $600 million with the Philippines over the last few years, majority of which have come from agricultural products such as meat, livestock and dairy products.

However, Lorenzo complained, Australia’s policy on imports has prevented the entry of Philippine bananas and pineapples, which are considered world-class.

The Australians, Lorenzo went on, use the Import Risk Analysis (IRA) procedure to protect their own industries without legal or scientific basis.

"We must take a stronger, proactive stand and demand immediate results," Lorenzo said, adding that "if these issues are resolved, we will...respond by restricting the importation of Australian meat and seek alternative sources of such imports."

In fact, Lorenzo said, the country may end up finding a cheaper source of safe, quality meat, livestock and dairy products in other developing countries.

Lorenzo also accused China, the EU and the US for maintaining protectionist policies.

"China charges a uniform tariff of 42 percent on Philippine bananas yearound," Lorenzo said.

The EU and the US, Lorenzo disclosed, have yet to accede to the Philippine’s plea to bring down their heavy tariffs on Philippine tuna.

The US imposes a 35 percent tariff on canned tuna from its "most favored nations list while the EU charges 24 percent on Philippines and Thailand, Lorenzo said.