PH Agriculture Chief Pushes for Banana Trade Pact Review with Japan

Agriculture Secretary Francisco Tiu Laurel Jr. has urged Japan to review its economic trade agreement with the Philippines due to the country’s declining banana exports, the Philippine Embassy in Tokyo reported Sunday.

Banana Industry Faces Challenges

During his meeting with Japan’s State Minister of Agriculture Hirofumi Takinami, Tiu Laurel emphasized that declining banana imports from the Philippines threaten the livelihood of thousands of farmers, particularly in Mindanao.

🗣️ “The banana industry is a lifeline for thousands of farmers and workers. To sustain and expand this industry, we must push for tariff reductions on our bananas. This will drive investment, poverty alleviation, and job creation,” he said.

The Philippines has proposed a review of the 2006 PH-Japan Economic Partnership Agreement (PJEPA) to secure fairer trade terms and regain market share.

Declining Market Share in Japan

🔻 The Philippines supplied 90% of Japan’s banana market in 2012.
🔻 By 2023, this fell to 79%, and further dropped to 75% in 2024.

One reason for the decline is Japan’s strict quality standards, which led the country to diversify its banana sources after the Philippines faced pest issues in previous years.

Japan also plans to eliminate tariffs on Vietnamese bananas by 2028, and the Philippines is seeking similar preferential treatment.

Japan’s Response & Next Steps

Japan has not yet committed to a bilateral trade review but suggested discussing the matter under the Regional Comprehensive Economic Partnership (RCEP). However, the Philippines prefers a direct trade agreement, as RCEP requires equal concessions for all member countries.

Tiu Laurel also met with the Japan Banana Importers Association (JBIA), which praised Philippine bananas for their superior quality and freshness.

Economic Impact & Trade Relations

🍌 The banana industry generates over $1 billion in export revenues and supports over 700,000 Filipinos.
📊 Japan remains one of the Philippines’ top trading partners, accounting for 28% of total investments in economic zones and $16.3 billion in exports in 2024.