Philippines seeks more deals with Japan and US
MANILA: The Philippines wants top market Japan to cut tariffs on its banana exports as Manila pushes for deeper economic ties with Tokyo and Washington that include potentially joining a trilateral pact on critical minerals.

The South-East Asian nation must be “economically strong” to be an effective strategic partner, Trade Secretary Alfredo Pascual said in an interview yesterday.

“The United States and Japan recognise that. It’s not wise to have a lame duck as a partner,” he added.

The Philippines is seeking a review of an existing free trade agreement with Japan that Manila hopes would lead to the reduction of the export tariffs on bananas, currently at 8% and 18%, depending on the season.

The push to cut tariffs comes as the Philippines, facing growing tensions with Beijing over their competing claims in the South China Sea, bolstered relations with the United States and Japan during the first-ever trilateral summit by their leaders at the White House in April.

“We want to be able to ship more to Japan and to make sure that we have the alternative in case there are problems with the other countries we’re selling bananas to,” Pascual said.

The trade chief did not mention China, the second-largest market for Philippine bananas.

Beijing tightened quarantine rules on some Philippine banana shipments in 2012 around the same time that the two countries were feuding over a disputed shoal in the South China Sea.

The curbs were lifted in 2016, when then new President Rodrigo Duterte forged warmer ties with Beijing.

Tensions between the Philippines and China have flared up anew over the past year, as President Ferdinand Marcos Jr pushed back against Beijing’s expansive maritime claims in the South China Sea.

While trade relations with China remain business as usual, Manila has been expanding its economic ties with other countries in preparation for any potential fallout.

“The important thing is to work on the diversification of our markets and our sources of supply,” Pascual said. — Bloomberg
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The Philippines wants top market Japan to cut tariffs on its banana exports as Manila pushes for deeper economic ties with Tokyo and Washington that include potentially joining a trilateral pact on critical minerals.