Agri exports to Japan seen to rise

The country’s agricultural exports to Japan are expected to increase with the completion of a framework establishing the Japan-Philippines Economic Partnership (JPEC).

Agricultural officials said the draft framework that outlines the extent of the "free trade" arrangement between the Philippines and Japan is likely to be finished and signed by year’s end.

At this early stage, Japan has indicated that it is open to reducing tariffs on Philippine agricultural products.

The JPEC, according to agriculture officials, will allow the Philippines to have greater access to the Japanese market for such agriculture exports as seafood, vegetables and tropical fruits.

Earlier this year, the Japanese government expanded the coverage of its Generalized System of Preferences (GSP) that cut existing tariff lines to as much as zero percent.

Topping the list of products included in Japan’s GSP list are coconut oil whose tariff was cut down to zero percent from 4.5 percent, papaya, zero percent from two percent; fruit stones, kernels and other vegetable products, zero percent from three percent; vegetable planting materials, zero percent Agri exports from three percent and yeasts, zero percent from 3.8 percent.

On the other hand, the tariff on prepared bananas, avocadoes, mangoes other than those packaged in airtight containers, currently pegged at 9.6 percent, was trimmed to 4.8 percent.

Prepared mangoes and guavas with a high tariff of 15 percent, will enjoy shortly, a tariff cut of 7.5 percent.

Preserved papayas‚ tariff will be reduced to six percent from 10 percent; prepared papayas; 3.8 percent from six - 7.5 percent; vegetables, fruit nuts prepared in sugar, nine percent from 12.8 - 18 percent, and prepared cashew nuts, five percent from six - 10 percent.

The Department of Agriculture is hoping Japan will cut the tariffs on pineapples, currently pegged at 20 percent.

Agriculture Assistant Secretary Segfredo Serrano said Japan’s GSP introduced a set of criteria that will determine if a specific agricultural product is qualified for inclusion in its list of commodities that will receive preferential treatment.

For one, these products, should not directly compete with products already being produced by Japanese growers.

Thus, in cases where there are rapid surges in the importation of preferred products, Japan will suspend the GSP privilege.

Since 1977, Japan has stopped giving preferential treatment to nations with "high income status" in favor of developing and less competitive nations.

Agriculture Secretary Luis Lorenzo Jr. on the other hand, asked the Japanese government to further expand the coverage of agricultural products included in its GSP list to include fresh mangoes, bananas, pineapples, okra, asparagus and other high-value crops.