RP, Australia still at odds over trade issue

The Philippine and Australian governments remain at loggerheads over the former's proposal that it be allowed to export mangoes, bananas, and pineapples.

For some time now, the Department of Agriculture has made it extremely difficult for Australian meat product exports into the Philippines to secure the necessary import permits.

This was in retaliation for Australia's refusal to allow the entry of Philippine tropical fruits. The Philippines has already notified the World Trade Organization of its intention to sue Australia for unfair trade practice and is just going through the motions of negotiation with Australia for an 'out-of-court settlement' -- a WTO requirement before the dispute settlement option can be utilized.

Agriculture Assistant Secretary Ma. Cecilia Fernandez told The STAR that the Australian government has already sent to the Philippines a copy of the agreement covering the entry of Philippine mangoes into Australian territory. But Fernandez said the government will not sign because of Australia's continued refusal to give a firm commitment as far as the entry of Philippine bananas and pineapples is concerned.

Fernandez said that what the Australian government committed is to 'sequentially' process the applications for the export of bananas (within 26 months) and pineapples (another 18 months). This was contained in a letter sent to the Philippine government last April 6.

"What Secretary (Edgardo) Angara wants is simultaneous and not sequential processing. And as we look at our experience with our mango export application, 18 months took nine years," Fernandez noted.

She also revealed that Australia's trade minister is coming over within the month and wants to meet with Angara. It is expected that one of the points of discussion is the continuing trade dispute between the two countries.

Local importers of Australian agricultural products -- mainly beef and live cattle -- have committed not to buy Australian products until such time that the Australian government lifts the ban on Philippine tropical fruits.

Angara said that the Philippine government has adopted a trade policy of not buying from countries 'that do not buy from us.' This is aimed at narrowing the huge trade gap between the Philippines and Australia as well as with other countries.