3 days Ago
THE Department of Trade and Industry said banana exports are set to improve due to the free-trade agreement (FTA) with South Korea. Trade Secretary Ma. Cristina A.
Roque made the remarks during a market visit. “Jan. 1 is the start of the Korean FTA, which we have signed, so the banana tariffs will go down,” Ms.
Roque added. According to Food and Agriculture Organization, the Philippines has lost its place as the second-largest banana exporter even after shipments rose 3% to 2.3 million metric tons (MT) in 2023.
On Tuesday, National Economic and Development Authority Board approved the release of an executive order that will implement the tariff commitments under the Philippines-South Korea FTA. “When other countries had the same tariffs as ours, our exports of bananas were like $300 million, now, bumaba na siya ng (they fell by) $160 million because other countries no longer have tariffs on bananas, as we still do with South Korea,” she said. She added that as the FTA comes into force, export price for Philippine bananas will fall gradually.
South Korea currently levies a 30% import tariff on bananas from the Philippines, according to the DTI. Under the agreement, tariffs will be reduced annually in equal increments until they fall to zero on the fifth year of effectivity. Bananas are the Philippines’ top agricultural export, followed by pineapples, avocados, and coconuts.
— Adrian H. Halili.
