The United States (US) has granted additional exemptions from its 19 percent reciprocal tariff on selected Philippine agricultural exports, easing concerns among local producers of key fruit and coconut products.
Agriculture Secretary Francisco Tiu Laurel Jr. said Wednesday that the expanded exemptions have helped ease industry concerns, particularly for exporters of bananas, pineapples and coconuts.
“I’m happy that the anxiety of our industries especially for fruits like bananas, pineapple, and coconut has calmed down,” he said in an interview on the sidelines of the second day of the Philippine Hydro Association Summit.
Anxiety issue
Tiu Laurel said the 19 percent tariff for Philippine exports was “basically an anxiety issue,” affecting investments as exporters were uncertain about “what lies ahead.”
“But now, everything is clear. Now that the path is clear, people can plan, invest, and expand. As far as we are concerned, we have to start planting more so that we can export more to the US,” he added.
Under the executive order, agricultural products covered by the exemptions include coconut (copra) oil, fruit juices, processed pineapples, desiccated coconuts, prepared or preserved coconuts, bananas other than pulp, dried guavas, mangoes, and mangosteen, frozen tuna fillets, rice wafer products and confectionery products.
Other goods
Other goods no longer subject to the 19 percent tariff include coffee and tea, cocoa and spices, oranges, tomatoes, beef and certain fertilizers.
However, the Samahang Industriya ng Agrikultura pointed out that “the suspension of tariffs covering 200+ agricultural products was not specific to the Philippines.”