The Philippines will reduce tariffs on banana exports to South Korea under the Free Trade Agreement, aiming to regain competitiveness against other countries offering zero-rated tariffs. The 30% tariff will be reduced by 12 percentage points over five years, starting with a 6% decrease by year-end and another 6% by January 1. This move is expected to boost Philippine banana exports, which have declined significantly due to the tariff disadvantage.
THE tariff reduction on banana exports to South Korea will reduce the country’s competitive exclusion from other countries, according to a Department of Trade and Industry official.
DTI Export Marketing Bureau Director Bianca Pearl Sykimte explained that South Korea held the third largest export market for Philippine bananas with a 13.5-percent share in 2023. This was next to Japan at 46.1 percent and China at 29.5 percent. DTI Secretary Cristina Roque earlier explained that the Philippine banana exports dropped due to the tariff rate.
Under EO 80 dated 23 December 2024, but only released to the media last Saturday, the chief executive ordered the implementation of the Philippine schedule of tariff commitments under the Philippine-Korea Free Trade Agreement , which was proposed by the National Economic and Development Authority .
Philippines South Korea Banana Exports Tariffs Free Trade Agreement
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