RP may file unfair trade practice suit vs Australia

Agriculture Secretary Luis Lorenzo Jr. said yesterday the government is likely to pursue unfair trade practices against Australia before the World Trade Organization (WTO).

"We want to take a stronger stand on this and going to the WTO may just be the way to do it because we don’t think they (Australian government) are going to offer anything reasonable," said Lorenzo.

Australia has been fiercely blocking the entry of Philippine pineapples, and said its acceptance on its market 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.

Nothing concrete came out of the first bilateral talks held last year between the Philippine and Australian governments. Australia wanted the Philippines to start exporting pineapples using its pre-shipment requirements and fumigation methods and try this for a year before it completely amends its quarantine laws and totally opens up its market.

The Philippine government rejected this because this would mean exporters would be shipping pineapples to Australia at a loss. By the time the shipment reaches Australian ports, the product would already be in an advanced stage of deterioration.

While the Department of Agriculture (DA) is considering more bilateral talks with Australia, Lorenzo said he is inclined to bring up the issue before the WTO.

In the meantime, Lorenzo said exporters of Australian cattle, beef and milk, should already consider sourcing their requirements from other suppliers.

Late last year, the DA submitted two letters to David Herbert Spencer, Australian Ambassador to the WTO, 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 DA Assistant Secretary Segfredo 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.