In a report by the Manila Bulletin, Trade Secretary Cristina Roque told reporters that they are aggressively trying to eliminate tariffs on Philippine bananas under the Philippines’ free trade agreement (FTA) with Japan.

Specifically, the Philippine Government is seeking zero tariffs on imported bananas. Currently, negotiations to update the Philippines-Japan Economic Partnership Agreement (PJEPA) are still ongoing, with Japan potentially eager to open an amendment to the new agreement.

In return for zero tariffs on PH bananas, the National Government is willing to lower tariffs on imported Japanese vehicles. Currently, the import tariff rate on Japanese imported cars with engine displacements of 3.0 liters or below is at 20 percent. The good news is, most of the Japanese-branded cars sold in the Philippines are already exempt from import duties based on the fact that most are produced locally or in our ASEAN partner regions like Vietnam, Malaysia, Indonesia, and Thailand. Coming from ASEAN plants means they are not affected by the 20 percent import tariff rate. Furthermore, if a vehicle is electrified, under EVIDA it would also be excluded from any import tariff fees.

However, there are still models that are built in Japan and imported here that are subject to the 20 percent rate. Brands like Subaru, which pride themselves on “Japan Made” cars, will greatly benefit should the new agreement be approved. Another brand that could benefit is Mazda who like Subaru, has a lineup mostly imported from Japan. Other notable cars that could see prices drop should the tariff be made zero are the Nissan Z, GR Yaris, and GR Corolla.

As a side note, the Philippines is currently the second-largest banana exporter in the world, with Japan being the largest country to consume PH bananas at around 80 percent of the country’s total foreign shipments.