The Philippines is poised to enhance its position in the South Korean market following a trade agreement that will see a phased reduction of tariffs on banana exports starting January 1, 2025. Trade Secretary Ma. Cristina Roque underscored the agreement's role in bolstering the competitiveness of Philippine bananas in South Korea. "This agreement will open doors for our banana exporters by gradually lowering tariffs, allowing us to better compete and meet the demands of the South Korean market," she stated.
Currently, South Korea imposes a 30 percent tariff on Philippine bananas, a rate that will be gradually reduced to zero over five years under the new agreement. Despite a rise in export volumes to 2.3 million metric tons in 2023, the Philippines has faced challenges in expanding its market share due to stiff competition and higher tariffs compared to other banana-exporting nations. Secretary Roque expressed optimism about the agreement, noting, "This agreement is an opportunity for us to regain our competitive edge and drive growth in our banana export industry."
The implementation of this tariff reduction, through an executive order, signifies the Philippines' commitment to fostering international trade relations and supporting its agricultural sector. The initiative is anticipated to increase trade revenues and contribute to the country's economic development by improving access to the South Korean market.
Source: ITC