On Friday 6 May, the first review of the Philippines-Japan Economic Partnership Agreement (Pjepa) will take place. At this review, the Philippines plans to seek the removal of quotas and tariffs on its key agricultural exports, such as bananas and pineapples.
“We will seek additional concessions. We will push for the removal of tariffs on bananas, pineapples, yakitori, tuna and skipjack. Most of these products are of relevance to Mindanao, meaning they are largely produced in the region. These products are currently covered by the agreement but the preferential tariffs we got [under the] Pjepa are more inferior compared to the latest FTAs signed by Japan,” Trade Undersecretary Ceferino S. Rodolfo said in a briefing Monday 2 May.
According to Rodolfo, the Philippines would urge the removal of quotas on pineapples, which are subject to a quota, and bananas, which are slapped with seasonal tariffs.
Seasonal tariffs means Japan slaps higher duties on products such as bananas during the months that these are “in season” or are being produced there. Lower tariffs are granted in other months.
Rodolfo had said that the Philippines was already breaching the quotas set under the Pjepa. Since the demand for local produce has seen significant increases over the past years, the export volumes have risen as well and are already starting to breach the prescribed quotas.
It is hoped that this review will further boost the country’s trade surplus with Japan.
According to Rodolfo, the Philippines’ trade surplus with Japan stood at $1 billion in 2009 when the Pjepa entered into force. This trade surplus grew to about $7 billion last year.
