The Pilipino Banana Growers & Exporters Association, Inc. (PBGEA, Inc.) is calling for the Philippines Senate to approve an Free Trade Agreement (FTA) with South Korea. The move will eliminate the ban on bananas and thus increasing export possibilities and reducing the effects of Panama disease on the production level. In the Senate Foreign Relations Committee discussion on the FTA with South Korea, PBGEA and Dole Philippines consultant Melquiades L. Hernandez III expressed their concerns regarding the possibility of losing their share of the South Korean market without the agreement. The FTA that was signed in September last year will help improve trade relations between Philippines as well as South Korea by removing tariffs for a large portion of the products produced by both countries.

As part of the deal the banana tariffs are set to be lowered to zero within 5 years. Likewise, the tariffs for processed pineapples will be removed in seven years. Hernandez spoke of the efforts made in conjunction in collaboration with Department of Agriculture to combat the Panama disease. In the meantime, the Food and Agriculture Organization (FAO) has reported an increase of 3.4 percent growth in Philippine banana exports. They attribute the increase to investment into disease control and restoration of affected plantations. The FTA is also a means of removing of all tariffs on industrial items and a large amount of industries affected following the signing. In the Philippines, the Philippine Department of Trade and Industry is expecting the FTA’s approval in mid-year, subject to Senate approval according to constitution-specific conditions.

Source: BusinessWorld