The only way South Korea can reduce the tariffs on Philippine banana exports is through the forging of the ambitious Regional Comprehensive Economic Partnership (RCEP). South Korean Ambassador to the Philippines Han Dong-man said that the conclusion of the RCEP remains the best avenue for Seoul to cut tariffs on Manila’s banana exports, which are currently levied with 30-percent duty.
“We will try to reduce the tariff with the accomplishment of RCEP. If they conclude the RCEP, then we can have a free-trade agreement [FTA] where we can reduce such tariffs,” Han said during the recent BusinessMirror forum in Makati City.
In June Manila sought a preferential trade agreement (PTA) with Seoul to cut tariffs on its fruit exports -including bananas- to 5 percent, but to no avail. South Korea could not have a PTA with the Philippines as World Trade Organization (WTO) member-countries could red-flag it.
