Philippines, SoKor discuss tariff cuts on banana exports

MANILA, Philippines — The Philippines is in talks with South Korea to further reduce the tariff rate for its banana exports.

Trade Secretary Ramon Lopez recently met with the South Korean trade minister wherein the lower tariff on Philippine banana exports was discussed.

“Open discussion and we are considering options on a better process moving forward, either bilateral through a preferential trade arrangement or under ASEAN-Korea Free Trade Agreement,” he said.

At present, the Philippines is the largest supplier of bananas to South Korea, accounting for 85 percent of the market.

Lopez said other countries are trying to increase their supply of bananas to South Korea.

Banana exports from the Philippines are slapped a 30 percent tariff when they enter South Korea.

Agriculture Secretary Emmanuel Piñol said the Philippines is asking for the lowering of tariff to 10 percent.

Earlier, the Pilipino Banana Growers and Exporters Association (PBGEA) said the country may lose South Korea as a top export market if the government is unable to reach a bilateral agreement removing the 30 percent duty.

The group also said the group could lose about P8 billion in revenue from bananas if the duty is not scrapped.

PBGEA executive director Stephen Antig said cheap banana imports from Central America have already started to eat into the Philippines’ share of bananas in South Korea.

Under the free trade agreement entered into by Central American countries Costa Rica, El Salvador, Honduras, Nicaragua and Panama with South Korea earlier this year, duties will be eliminated on about 95 percent of goods and services including bananas.