Negosyante News

March 26, 2025 2:55 pm

Agri Chief Tiu Laurel Urges Japan to Cut Tariffs on Philippine Bananas

Agriculture Secretary Francisco Tiu Laurel Jr. is urging Japan to reduce tariffs on bananas from the Philippines, citing the disparity in tariff rates compared to other countries like Cambodia, Laos, Mexico, and Vietnam, which enjoy zero or preferential rates.

Japan remains the Philippines’ top banana export market, yet under the current Japan-Philippines Economic Partnership Agreement (JPEPA), Filipino bananas are taxed 18% from April to September and 8% from October to March. In contrast, rival exporters face little to no tariffs.

“The banana industry is a lifeline for thousands of farmers and workers, particularly in Mindanao,” said Tiu Laurel. He emphasized that lowering tariffs would boost investments, generate more jobs, and help reduce poverty in the region.

The Philippines supplies 75% of the bananas consumed in Japan, which imports over a million metric tons annually. However, the country’s competitiveness has been waning, prompting the Department of Agriculture to press for a JPEPA review.

Tiu Laurel recently met with Japanese officials, including Agriculture State Minister Hirofumi Takinami and LDP Secretary-General Hiroshi Moriyama, to advocate for more favorable trade terms. “We aim to reach a shared solution to strengthen our banana exports and benefit both nations,” he said.

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