SOURCE: Lois Calderon, CNN Philippines
Japanese investors met with Trade Secretary Alfredo Pascual to flag what they said was the less-than-desirable quality of Philippine pineapples and bananas amid climate change, coupled with Manila’s traffic congestion that added to supply chain woes.
The dialogues were held on Monday as a delegation from the Japan Chamber of Commerce and Industry descended on Manila to sign a memorandum of understanding with their counterpart, the Philippine Chamber of Commerce and Industry (PCCI).
That pact allows the two business chambers to exchange information on how to increase trade and expand investments.
PCCI President George Barcelon said the cooperation in the near term would be on big-ticket infrastructure and renewable projects, agriculture, and industrial estate.
But there are kinks that need ironing out.
Hiroshi Oshima, president of Japanese conglomerate Sembikiya Fruit Co., said company officials met with Pascual on Monday to flag climate change’s impact on the supply of Philippine bananas and pineapple.
Due to climate change, Philippine bananas’ and pineapples’ “quality is not desirable,” he said in Japanese as translated by an interpreter during the event on Tuesday at The Peninsula Manila in Makati City.
Sembikiya buys Philippine pineapples from Del Monte and Dole, Oshima said, as well as cavendish bananas.
Approximately 30% of the menu using pineapple at Sembikiya’s fruit parlors are produced in the Philippines, according to Oshima’s PowerPoint presentation.
The Japanese company buys Ecuadorian bananas to plug the gap.
It says it wants a “stable supply throughout the year” of pineapples and bananas from the Philippines, and expects the Philippine government to address both the climate change and logistics issues.
Trade Undersecretary Ceferino Rodolfo said the Board of Investments is finalizing a policy for the modernization of agricultural plantations including the introduction of new varieties resilient to climate change to boost local output and meet global standards.
The policy will be out as early as November, the trade official said.
“Very important yung modernization of our plantations for these crops, in particular, for bananas,” Rodolfo said. “Also in preparation for the entry into force of the Philippine-South Korea FTA.”
“Currently, most of the registrations that we are processing in the BOI are with respect to mere plantations,” he added. “Specifically if you have a plot of land, you will register that for plantation. But we recognize the need that even for existing plantations, you need to modernize.”
The new policy primes the agriculture sector for the implementation of the free trade agreement with South Korea.
“South Korea has already committed to eliminate tariffs for bananas to zero percent duty within a period of five years,” Rodolfo said, adding it was crucial to consider supply development.
“We have this policy but very important are also projects to promote the supply-side development. Aanhin mo yung policy, aanhin mo yung market access kung wala kang isu-supply,” he said.
[Translation:We have this policy but very important are also projects to promote supply-side development. What use is the policy and market access if there is no supply?]
Separately, the visiting Japanese businessmen raised concerns over Manila’s clogged roads.
PCCI’s Barcelon echoes their plea.
“As PCCI we are encouraging government agencies that are tasked to do the overall planning like NEDA, it’s about time we do moving out of key sectors outside Metro Manila,” he said.
“Other countries are doing it,” Barcelon explained. “If you think of Indonesia, they are moving the central government outside of Jakarta. We cannot solve this congestion in any way no matter how innovative we are. The more Skyway we build, they are still landing on the same place. It doesn’t help.”