The Philippine government is prepared to grant concessions to Japan in order to push for reforms to the Japan-Philippines Economic Partnership Agreement (JPEPA), particularly regarding high tariffs on banana exports.
Department of Agriculture Secretary Francisco Tiu Laurel said the Philippines has long urged Japan to review JPEPA, but so far without success. He noted that Japan has now shown openness to hold discussions on possible revisions in exchange for concessions. "They mentioned that it can be possible if we have something to offer," Tiu Laurel told reporters. "So I'll have to talk to DTI and our partner agencies in the Philippines to come up with a package that we can offer to them so that they can reopen the JPEPA bilaterals."
One of the main goals for the Philippines is to reduce tariffs on banana exports. Under JPEPA, Japan imposes an 18% tariff from April to September and an 8% tariff from October to March. Japan is the largest market for Philippine bananas, with a 75% share of exports in 2024. A decade ago, this share was around 90%, but it has gradually declined as competitors gained ground.
Japan applies zero tariffs on bananas from Mexico and Peru, and lower tariffs on Cambodia, Laos, and Vietnam. Vietnam, with a current tariff of 5.4%, increased its market share in Japan to 3.2% in 2024, up from 0.2% six years earlier. By 2028, Vietnam's tariffs will be reduced to zero under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The Philippines is not a member of the CPTPP, but Department of Trade and Industry Secretary Cristina Roque said the country is preparing its application. The bloc includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Vietnam.
Tiu Laurel said pushing for JPEPA reforms remains urgent to accelerate tariff reductions. He held talks with Japan Agriculture Minister Shinjiro Koizumi, and both agreed to "work together to find an amicable solution." Tiu Laurel added, "The Philippines will be preparing a position paper on that so that hopefully Japan can consider our request. The minister promised to look into it."
The Philippines intends to push for a gradual reduction of tariffs similar to Vietnam's preferential scheme. During his meeting with Koizumi, Tiu Laurel also discussed expanding market access for other agricultural products. Japan is seeking to increase grape exports to the Philippines, while the Philippines is aiming to broaden the market for pomelo in Japan. Both countries also examined trade opportunities in livestock and fisheries.
Source: Manila Bulletin
