President Ferdinand Marcos Jr. must push for zero tariffs on bananas exported to Japan to prevent a “life and death” situation for the country’s banana sector, the country’s second-largest agricultural product, a legislator said Sunday.
Economist-lawmaker Joey Salceda stressed that disease and climate change pose existential risks to the markets, but relatively high tariffs in the nation’s major banana markets, high input costs, and competition from other players are slowly but steadily strangling the sector.
“If we don’t act on the problems of the sector, we will lose our dominance over bananas in Asia by 2030,” said the Albay solon.
The most crucial reform under the President’s control, according to Salceda, was to advocate for zero tariffs on Philippine bananas in Japan — the country’s biggest export market and a leading state ally.
“There is one single, most important, most immediate effort for the country’s domestic banana sector: Zero tariffs for Philippine bananas in Japan, our strategic partner,” said the vice chairperson of the House committee on agriculture and food.
Zero tariffs
The veteran solon even cited that Japan has slashed tariffs to zero for Mexico, Peru, Cambodia and Laos.
He likewise said that Laos and Cambodia are already becoming emerging sources of banana exports after Filipino farmers were “pirated” in these farms.
Meanwhile, Vietnam’s tariff is now at 8 percent and will be zero by 2028.
The effective tariff rate for the country’s bananas is still 8 to 13 percent.
“There are less typhoons in all of these competitors. And these countries are arguably less important as a geostrategic partner for Japan than the Philippines is,” he said.
Agricultural exports, according to the lawmaker, are also a lifeline for the Philippines during current currency and balance-of-payments issues.