The Philippines maintains a dominant position in Japan's banana market, supplying nearly 75% of the bananas consumed in 2024. This translates to three out of four bananas in Japan being sourced from the Philippines. However, the market share has decreased from over a decade ago when it was 94%. The decline benefits countries like Vietnam, Cambodia, and Peru, which export bananas to Japan at zero tariffs under bilateral trade agreements.
The Pilipino Banana Growers and Exporters Association Inc. (PBGEA) highlights the competitive edge enjoyed by these countries due to zero tariffs. Filipino exporters face challenges as competitors gain ground, potentially affecting future orders from Japan. The PBGEA calls for tariff reductions or eliminations under the Philippine-Japan Economic Partnership Agreement (PJEPA) to mitigate these challenges.
Efforts by Manila and local growers to persuade Tokyo to lower tariffs on Philippine bananas have been ongoing. Tariffs currently stand at 8% in summer and 18% in winter. Discussions have been proposed to improve market access for Philippine fruits, while Japan may seek lower tariffs on industrial products and vehicle imports.
Article 161 of the PJEPA mandates a general review of the agreement every five years, with the last review in 2011. Given the evolving trade environment and geopolitical shifts, accelerating the review process could benefit both Philippine agriculture and Japanese industries.
Source: Business Mirror