South Korea has announced its 2025 Economic Policy Directions, revising tariff rates and import quotas on ten fruit types, including bananas, mangoes, pineapples, and durians. This policy aims to streamline trade while maintaining a structured import framework.
Starting January through June 2025, bananas, pineapples, mangoes, grapefruits, avocados, and mangosteens from the Philippines will have duty-free access to South Korea. This change may enhance Philippine fruit exports to the region.
Tariffs on durians have been lowered from 45 percent to 15 percent, mandarins from 144 percent to 20 percent, and citrus pulp from 30 percent to 15 percent. Oranges will see a 20 percent tariff reduction, applicable only for January and February 2025.
All ten fruit categories face specific import quotas. For instance, the revised policy permits 200,000 tons of bananas and 46,000 tons of pineapples. Oranges, mandarins, and durians will also have set import quantity limits.
Fruits exceeding quota limits may still receive preferential tariffs under the Philippines-Korea Free Trade Agreement (PH-KR FTA). This is anticipated to bolster trade relations between the Philippines and South Korea, offering broader market access for Filipino fruit exporters.
The PH-KR FTA became effective on December 31, 2024. Under this agreement, South Korea will allow preferential duty-free entry on 11,164 Philippine products, representing USD 3.18 billion or 87.4 percent of total Korean imports from the Philippines. Korean companies are expected to support job creation through expanded investments in advanced manufacturing sectors.
Source: SunStar