RP presses talks with Australia on fruits

The Department of Agriculture (DA) expects to start bilateral talks with the Australian government this month on the ticklish issue of allowing the entry of Philippine bananas and pineapples in the Australian market before it elevates the matter to the World Trade Organization (WTO).

As this developed, the Philippine government already turned down Australia’s request to postpone the bilateral talks. The Australians asked for the talks to be deferred during the CAIRNS group meeting in Bolivia last week.

Agriculture Assistant Secretary Segfredo Serrano said the government already submitted two letters to Australian Ambassador to the WTO, David Herbert Spencer, raising questions on the quarantine laws and the measures affecting the importation of fresh pineapple fruit, fresh fruits and vegetables.

"We are taking the battle on two fronts. Aside from raising specific issues affecting the importation of fresh pineapples, we are also questioning the Australian government’s entire quarantine rules on the importation of fresh fruits and vegetables," said Serrano, adding "what we are questioning in both cases are not only the quarantine rules but also their legislation." This will be the first time Australia’s quarantine laws will be questioned by another country.

In both letters signed by Philippine WTO Ambassador Edsel T. Custodio, Serrano said Australia’s Quarantine Act is inconsistent with the obligations of Australia under the General Agreement on Tariffs and Trade, the agreement on the application of Sanitary or Phytosanitary Measures (SPS), and the agreement on import licensing procedures.

Serrano said the Philippine government decided to expand the scope of the bilateral talks by questioning Australia’s entire quarantine laws to strengthen its case.

"The traditional approach is to discuss this on a commodity basis, but limiting the talks on pineapples and bananas will be to our disadvantage because we will surely be bogged down by technicalities and dragged into this situation indefinitely," explained Serrano.

He said the Australian government will have to respond to the Philippines’ request for bilateral consultations by Oct. 28, otherwise it will direct its case to the WTO’s trade dispute settlement board.

However, if Australia agrees to negotiate, this will take at least 60 days. The next step is for the Philippines to charge Australia with unfair trade practices before the WTO if nothing comes out of their talks.

"Hopefully, we can work out something. If not, we will request the WTO to create a panel that will arbitrate our case," Serrano said.

Australia has been fiercely blocking the entry of Philippine pineapples, and said its acceptance rests on the country agreeing to de-crown the fruit and subject it to pre-shipment methyl bromide fumigation.

At the same time, Australia is also preventing Philippine bananas from penetrating its domestic market, saying this will cause infestation of its local banana plantations.