Banana exporters fear losing Japan market

After losing China in 2024

MANILA, Philippines — The Philippines lost its crown as the top banana supplier to China last year. Will the country also lose the Japan market?

The Pilipino Banana Growers and Exporters Association (PBGEA) is concerned that the country may lose its hold on the Japan market as competition in key Asian markets continues to heat up, with lower tariffs benefitting more foreign suppliers including Vietnam.

“(Vietnam’s) market share in Japan has also been increasing with more areas planted with exportable bananas. The gradual reduction of its banana tariffs in Japan is attributed to its membership in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement led by Japan,” PBGEA said.

“The Philippines is not a member (of CPTPP). By 2028, Vietnamese bananas will have zero tariff (in Japan),” PBGEA added.

The STAR broke the story that Vietnam upended the Philippines’ 20-year reign as the top supplier of bananas to China due to growing production and better prices in Vietnam and worsening geopolitical tensions between Manila and Beijing.

PBGEA warned of increasing banana exports from Vietnam and Cambodia, which currently benefit from lower tariff rates, and South American producers like Mexico and Peru, which enjoy zero tariff on their bananas in Japan.

The group renewed its call for the government to negotiate for the reduction and, if possible, elimination of Japan tariffs on Philippine bananas to ensure an “even playing field.”

“Although the review of the Philippine-Japan Economic Partnership Agreement is long overdue, Philippine negotiators have yet to convince their Japanese counterparts to sit down and renegotiate,” PBGEA said.

Japan is one of the world’s top banana markets, being the fourth largest in terms of import value and sixth largest in terms of import volume.

Japan has imported an average of 1.04 million metric tons (MT) of bananas in the past two decades, based on International Trade Center (ITC) data, with the Philippines serving as its top supplier over the years.

However, the Philippines’ share in the Japan banana market has been on a downward trend since 2005 after foreign competitors gained ground due to lower tariffs.

Between 2005 and 2024, the Philippines lost at least 15 percent of market share in the Japan banana market, ITC data analyzed by The STAR showed.

Last year, the country accounted for three-fourths of the total volume of bananas imported by Japan. The Philippines used to have an average market share of 90 percent in Japan.

Ecuador, the world’s top banana exporter, now has an average market share of 10 percent in Japan, double than what it had a decade ago.

Furthermore, countries like Mexico, Vietnam and Cambodia, which all had virtually zero market share in Japan two decades ago, are consistently eroding the Philippines’ stronghold in the key Asian market.

In 2024, Mexico had a market share of six percent while Vietnam and Cambodia had 3.2 percent and 1.06 percent, respectively.

At present, Philippine bananas are levied by Japan with an eight percent tariff during the summer season (April 1 to Sept. 30) and 18 percent during the winter season (Oct. 1 to March 31).

“Production woes in the Philippines affected the steady quantities demanded by the market thus prompting other suppliers to fill the gap created. With lower or zero tariffs imposed on other suppliers, Philippine bananas will continue to lose their competitiveness,” PBGEA said.

PBGEA said Agriculture Secretary Francisco Tiu Laurel Jr. has committed to pursue “non-traditional but innovative” avenues in seeking tariff reduction in Japan.