The Philippine government is modifying the fiscal incentives for the local banana industry in anticipation of the free trade agreement (FTA) with South Korea. Trade Undersecretary Ceferino S. Rodolfo highlighted these adjustments as part of several preemptive measures to ensure a smooth transition once the bilateral trade agreement is activated.
"We are also preparing, for example, our incentives regime for plantations. We are tweaking it now so that banana companies can then take advantage of it," Rodolfo stated. The initiative also involves technical cooperation with South Korea, particularly in mechanical equipment, facilitated by the South Korean embassy's active involvement. The FTA's ratification is expected by the middle of the year, with progress also being made on the Seoul side.
Additionally, Philippine exports of processed pineapple, currently facing a 36-percent import tariff, will benefit from a gradual tariff reduction over seven years.
Source: business.inquirer.net