A couple of weeks ago, a report came out that the Philippines is trying to leverage a new trade deal with Japan. This specific deal will affect Philippine-grown bananas exported to Japan and Japanese cars imported to the Philippines.
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.
Words by Pablo Salapantan
Kei ICE cars and kei EV cars in exchange for bananas
ReplyDeleteat least japan will buy bananas. another country calls us primates guess who while driving byd
ReplyDeleteIm working in a banana export company. I heard from the top executives that China isn't buying bananas...
DeleteThe Japanese can also be pretty racist but at least they are better at keeping it quiet. They also have tried their best to erase their WWII history by being good neighbors but not by actually showing remorse and teaching their children like what Germany has done.
DeleteThis should help distance the Prado's pricing from the LC300, and finally make room for the 2.8 diesel Prado. I believe that the reason the 2.8 diesel Prado was not brought to the Philippines is that it would reach LC300 pricing due to JPEPA. If they scrap the displacement rule, the Prado would be priced better to compete with the Thai-made Pajero.
ReplyDeleteThis is good news especially to those who love made in Japan cars as well as sports cars enthusiasts.
ReplyDeleteAnother example of poor strategy. We dont need cheaper luxury cars. We need the Japanese to manufacture more vehicles in the Philippines especially hybrids.
ReplyDeleteNo. We need more MADE IN Japan cars. Their engineering and precision is unmatched.
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