Agri chief raises banana issue with Japan, calls for trade pact review –PH Embassy
GMA News Online - 16 March 2025
Agri chief raises banana issue with Japan, calls for trade pact review –PH Embassy
By Michaela del Calar
Agriculture Secretary Francisco Tiu Laurel Jr. met with Japanese officials in Tokyo where he raised the Philippines’ concerns on the decreasing market share of the country’s bananas and asked for the immediate review of their economic trade pact to resolve the issue, Manila’s embassy in Japan said Sunday.
Tiu Laurel met with Japan’s State Minister of Agriculture Forestry and Fisheries Hirofumi Takinami last week to sort out obstacles to the two countries’ trade, including tariffs, as he noted that the decreasing Philippine imports of the fruit would affect the livelihood of many Filipinos dependent on the banana trade.
“The Secretary presented the Philippines’ proposal for a general review of the Philippines-Japan Economic Partnership Agreement (PJEPA), emphasizing the need for a fairer trade environment amidst evolving global economic conditions,” the embassy said.
Highlighting the banana industry’s broader impact, Tiu Laurel stressed to Takinami that the banana industry “is a lifeline for thousands of farmers and workers, especially in Mindanao, where it serves as a major economic pillar.”
“The Philippines takes great pride in being the leading supplier of fresh bananas to Japan. To sustain and expand this industry, we must push for tariff reductions on our bananas. This will not only attract greater investment in banana production but also drive poverty alleviation, job creation, and security in Mindanao,” Tiu Laurel said.
The banana industry plays a vital role in the Philippine economy, particularly in Mindanao, where the majority of banana farms and plantations are located. It generates an average of more than $1 billion in export revenues and provides livelihood for over 700,000 Filipinos.
The Philippines has proposed a review of its 2006 free-trade agreement with Japan to regain a bigger Japanese market share for its bananas, a staple fruit among many Japanese, Dita Angara-Mathay, the Philippine Embassy’s commercial counsellor in Tokyo, told GMA News Online in a previous interview.
Philippine banana exports decreased in the past due to pest problems, prompting Japan, with its very stringent quality standards, to diversify its sources of the popular fruit, which is a staple to the Japanese diet, Angara-Mathay said.
The Philippines used to supply about 90% of Japan’s banana market in 2012, but that dropped to 79% in 2023 and 75% in 2024, raising concerns from Filipino producers and officials.
Japan also plans to enforce zero tariffs on bananas from Vietnam and other exporting countries by 2028 and the Philippines will seek the same preferential treatment, she said.
There has been no commitment so far from Japan on the proposal to review PJEPA.
Japanese officials, Angara-Mathay said, have proposed to discuss the issue under the ambit of the Regional Comprehensive Economic Partnership (RCEP), a regional free trade bloc that groups 15 countries, including the 10-nation Association of Southeast Asian Nations, which includes the Philippines, along with China, Australia, New Zealand, South Korea and Japan.
The Philippines prefers a bilateral discussion because in RCEP, “if you give concession to one, you have to give concession to all. Countries do not have the same needs,” she said.
Tiu Laurel, who also led a delegation composed of officials from the Department of Agriculture, Philippine Embassy, and the Philippine Trade and Investment Center-Tokyo, held roundtable consultations with banana exporters and importers in Tokyo.
The discussions focused on strengthening the Philippines’ position as the top banana supplier to Japan, enhancing quality standards, and addressing tariff concerns, the embassy said.
The Japan Banana Importers Association (JBIA) said it recognizes Philippine bananas for their exceptional quality, citing the country’s close proximity to Japan, which ensures superior freshness and taste.
Bananas were also a centerpiece in the Philippine Pavilion at FOODEX Japan 2025, where 32 Filipino companies specializing in food, beverages, and ingredients showcased a diverse array of high-quality, export-ready products to the Japanese market.
Philippine Ambassador Mylene Garcia-Albano underscored the importance of deepening economic ties with Japan, saying Tiu Laurel’s visit “reaffirmed the Philippines’ commitment to strengthening agricultural trade relations.”
Tiu Laurel’s high-level discussions emphasized Manila’s efforts to increase opportunities for Philippine industries in Japan and “promote fair trade.”
Japan has long been a leading trading partner of the Philippines. It’s the largest investor of the Philippine Economic Zone Authority, contributing a 28% share in total investments, which generated P798 billion ($16.3 billion) in exports and created 342,845 direct jobs in nearly 900 PEZA-registered business enterprises, according to 2024 figures.
Under former President Joe Biden, Japan and the Philippines forged a trilateral bloc to boost security, economic and investment engagements. Such alliances would help Japan and the Philippines, which both face similar territorial disputes with China, diversify their trading engagements as a buffer in case the disputes spill into the economic front.
