Philippines seeks uniform import tax for agriculture

TOKYO – The Philippine government is negotiating with Japan to impose a uniform import tax rate of eight percent on Cavendish bananas and other agriculture products the country exports here, Agriculture Secretary Emmanuel Piñol said.

Speaking with reporters on the sidelines of President Duterte’s three-day official trip here, Piñol expressed confidence the government’s request would be acted soon to help boost the country’s agricultural exports.

“We are exploring other products such as avocado because the Department of Labor and Employment (DOLE) has started planting avocado in General Santos City,” he said.

Avocado can be used for watershed protection and agriculture protection, Piñol noted. Cristina Mendez

“We are looking at products that can protect watersheds because watersheds are important to agriculture,” he said.

“If they lower the tariff year-round, (that) could mean income for banana growers... it would mean expansion,” Pinol added.

Tarrif rates for fruits in Japan range from 8 to 18.5 percent.

“Right now, we are only capturing 75 percent of the banana market in Japan,” he said, noting Ecuador has also been penetrating Japan also.

But the Philippines’ bananas are sweeter than other countries. “Ecuador is coming in because of low cost of fuel that allows them to transport even from that far, to Tokyo, at a competitive price,” he said. “But the problem of Ecuador (bananas) is they’re not as sweet as our bananas. That’s their problem – the quality of their bananas because so far, the market says, the best bananas come from the Philippines,” Piñol said.

He said the agrarian reform beneficiaries and rebel returnees would also be integrated in the agricultural projects.

During the President’s official visit, Japanese firm Farmind Corp. is eyeing to develop and buy 20-million boxes a year of Cavendish bananas under an agreement signed in the last official visit. There were seven letter of intent and five memorandum of agreements which are expected to generate $1.85 billion in new investments.