DAVAO CITY — Key banana industry players in Davao Region have called on the government to address issues affecting the industry to sustain its position in the international market.
Stephen Antig, executive director of the Pilipino Banana Growers and Exporters Association (PBGEA), voiced concerns that the state of the banana industry in the global market is “getting serious.”
Antig said key players will be submitting again to the government a list of issues and concerns for the government to address and protect the market.
Citing the state of the industry report of Dole Asia Holdings president and chief executive officer David Delorenzo during last week’s Banana Conference in Davao City, Antig said it should serve as a wake-up call for the industry.
In his presentation during the conference, Delorenzo, Antig said, stressed on competition which is no longer between companies but country to country. This scenario needs the intervention of the government.
Antig said that during that conference Agriculture Secretary Emmanuel Pinol who was the guest speaker was represented by Assistant Secretary Evelyn Lavina.
“Lavina told us that we come up with a roadmap for the government to know what are their priorities,” Antig bared, hoping that representatives of cocerned government agencies will sit down with the banana players.
Although, the banana sector already submitted several related documents, Antig said the players will again comply and “we will submit that roadmap plus our resolutions and the presentation of Delorenzo because this matter is of utmost importance.”
“We are hoping that government will act on our concerns this time,” Antig said.
One of the issues is tariff. Delorenzo had emphasized that “what must be done first and foremost is on trade initiative to reduce the duties in Japan and Korea”.
He said it is important that players must act as one because every other product in the Philippines is going to push to get relief from their tariffs.
“We must make sure that the government keeps very clear focus on this probably because it is the most important single barrier in the Philippines,” he said.
Delorenzo said this act must be done to keep banana at the top of the trade list and not fall to the bottom that has happened in the past.
The Duterte administration has been very open and helpful towards the banana industry. As this developed, the industry players make sure that the government supports the sector.
With the Duterte administration, Delorenzo told industry players they have the first opportunity ever to get the tariffs eliminated and it is important to get them eliminated.
The past government has little incentive or little desire to help the banana industry in Mindanao.
The President, he said, has already voiced an agreement and support but “we have to keep this issue up front and center because there are lots of associations who would lobby to put their products ahead of bananas”.
He said there are 230 other products alongside the list other than banana that are also asking for their tariffs be reduced.
Antig said their group is working on it urging government to also help them achieve a reduction of the duties if not zero tariff.
“Getting the tariffs and duties reduced is not easy that’s why we need to support the government even if we have two knowledgeable and powerful advocates, President Duterte and Trade Secretary Ramon Lopez,” he said.
He added industry players are hoping government gets bilateral agreement between Japan, Korea and the Philippines otherwise the banana industry will just be part of its regular trade mission.
Based on Delorenzo presentation, Antig said the Philippines is the number two largest producer of banana in world behind Ecuador but it has been dropping dramatically in the last 5 to 6 years and it is losing 50 million boxes yearly which is a big blow to the economy in Mindanao.
“We have to recover a big loss of market share and in the Asian market for Philippine banana. We have to gain that back and we need the support of the government as we are competing with Latin American countries where their government is very supportive in the industry,” Delorenzo said.
“Our competition in Latin America has already been negotiated with the reduction of those tariffs in Korea and it will end up causing the Philippines to lose the Korean market if our trade negotiators will not be able to match what the Central America aimed,” he added.
Delorenzo said that the Central American block already reach an agreement with the Korean government to reduce their duties to zero in 3 years against what Filipino banana exporters are paying at 30 percent.
“And if we do nothing it is inevitable that we will lose completely to Korean market,” he said.
Antig said they need to put their acts together as an industry to preserve the 345,000 jobs directly dependent on it and a million others on indirect employment. (Digna D. Banzon/PNA)
