MANILA, Philippines — The South Korean government is now considering lower tariff on agricultural exports from the Philippines following the bilateral meeting between the two countries, the Department of Agriculture (DA) said.
Agriculture Secretary Emmanuel Pinol said the Korean government would look into the Philippines’ request for lower import duties on fresh and processed fruit exports, particularly bananas.
“Korean President Moon Jae-In said his government would look into mechanisms that will allow lower tariff for Philippine agriculture products,” Pinol said.
“No figure has been mentioned yet but Korea will find the way to implement the tariff adjustment,” he added.
Before leaving for Korea, Pinol said the government was lobbying for at least 10 percent tariff on all agricultural exports to South Korea if the zero-levy scheme would not be approved.
Korea slaps a 30 percent levy on Philippine fruit exports, particularly bananas and pineapples.
The Philippines accounts for almost 90 percent of bananas imported by South Korea annually.
According to Pinol, Moon said the Regional Comprehensive Economic Partnership (RCEP) could be a possible instrument for the lowering of duties.
The RCEP is a free trade agreement forged by ASEAN member-countries which include Korea, China, Japan, India, Australia and New Zealand.
“But, according to Finance Secretary Carlos Dominguez, trade facilitation through RCEP is a slow process. We will instead propose bilateral preferential trade agreement between the Philippines and South Korea,” Pinol said.
The bilateral meeting also paved the way for the introduction of new agricultural produce such as okra and avocado to South Korea.
“Easily grown in tropical countries and given the proximity to the Philippines of health conscious markets such Korea, okra shines as the next hot item for Filipino farmers,” Pinol said.
The two countries have forged an agriculture cooperation pact aimed at promoting sustainable development that will help raise living standards in the farm sector.
The MOU will also cover the exchange of information on agricultural and rural development policies and technical partnership and exchange of experts to promote the agriculture sector.
Likewise, it will involve cooperation in technology and skills development on irrigation and drainage systems, mechanization of agriculture, agricultural research and enhancement of post-harvest management and distribution system.
Both countries also committed to strengthen farmer organizations linkage with community production and processing technology and disaster risk reduction and management.
The Philippines and South Korea agreed to establish a joint committee on agriculture that will develop detailed cooperation programs and monitor its implementation.
The MOU will be in effect and valid for the next five years and may be extended for five more years by mutual consent of both countries.