PHL seeks easier Japan access for banana exports

THE Philippine embassy in Tokyo said visiting Department of Agriculture (DA) officials have asked Japan to lower tariffs on Philippine bananas, citing the need to keep the industry afloat and aid in the development of Mindanao, the primary growing area.

The embassy, in a statement, said Agriculture Secretary Francisco Tiu Laurel, Jr. made the case for lowering tariffs imposed by Japan “to sustain and expand this industry.”

“This will not only attract greater investment in banana production but also drive poverty alleviation, job creation, and security in Mindanao,” he was quoted as saying.

In 2024, Philippine bananas had a 75% market share in Japan, the embassy said, though this was off the high of 90% more than a decade ago.

Philippine domestic production has also declined, as reflected in a decline in overall exports of 2.97% to 2.28 million metric tons (MT) in 2024, losing its position as the third-leading banana exporter.

China’s banana imports from the Philippines hit a 15-year low in 2024 of 463,306 MT, according to the International Trade Centre, an arm of the World Trade Organization.

Vietnam’s banana exports to China, meanwhile, rose 24% to 625,166 MT.

In Japan, Mr. Laurel met with Hirofumi Takinami, State Minister of Agriculture, Forestry and Fisheries, and Hiroshi Moriyama, the Liberal Democratic Party Secretary General and Japan-Philippines Parliamentary Friendship League Chairman.

Former Agriculture Undersecretary Fermin Adriano earlier told BusinessWorld that the Philippines was bound to lose its position as China’s largest supplier of bananas after China started improving rail links to mainland Southeast Asia, reducing logistics costs for banana suppliers like Vietnam.

“We already knew that this would happen in 2018 because China was then building a trans rail system passing through Myanmar, Laos, Cambodia, Thailand and Vietnam,” he said.

China in 2022 launched a new rail network connecting Chengdu and Chongqing to Hanoi, bringing shipment times down to five days from 20, according to ASEAN Briefing.

Laos and China in 2021 also opened a 414-kilometer rail line connecting Vientiane to its network.

Mr. Adriano said the DA has failed to invest significantly in banana research amid threats from Panama disease or fusarium wilt, first detected in Davao City in 2009.

“Our banana farms were hit by fusarium wilt or Panama disease, particularly small growers who cannot afford biosafety measures costs,” he said. “The DA did not heavily invest in banana research to respond to fusarium because all its focus and more than half of its budget goes to rice.”

Ties have also soured with China over territorial disputes, he said.

China is the Philippines’ largest source of imports and the second-biggest market for its exports, with total trade of $41 billion in 2023.

Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. President Cecilio Pedro said while market diversification moves are needed, the sheer size of the Chinese market cannot be ignored. — Kyle Aristophere T. Atienza