The Pilipino Banana Growers & Exporters Association, Inc. (PBGEA, Inc.) has called for the Philippine Senate's approval of a Free Trade Agreement (FTA) with South Korea. This move aims to eliminate tariffs on bananas, thereby enhancing export opportunities and offsetting the impact of the Panama disease on production levels. During a Senate foreign relations committee hearing on the FTA with South Korea, PBGEA and Dole Philippines consultant Melquiades L. Hernandez III expressed concerns over losing the South Korean market without the agreement. The FTA, signed in September of the previous year, intends to bolster trade relations between the Philippines and South Korea by removing tariffs on a significant portion of products from both nations.
Under the agreement, tariffs on bananas will be reduced to zero within five years, and tariffs on processed pineapples will be eliminated in seven years. Hernandez highlighted efforts in collaboration with the Department of Agriculture to combat the Panama disease. The Food and Agriculture Organization (FAO) reported a 3.4% increase in Philippine banana exports, attributing this growth to investments in disease management and the rehabilitation of infected plantations. The FTA also encompasses the elimination of tariffs on industrial goods, with a substantial number of lines affected immediately upon the agreement's enforcement. The Philippine Department of Trade and Industry anticipates the FTA's ratification by mid-year, pending Senate approval as per constitutional requirements.
Source: BusinessWorld