ASEAN-China Early Harvest Program forecast to triple farm exports of RP

2005-12-19 From Manila Bulletin

The Philippines participation in the ASEAN-China Early Harvest Program starting January next year is expected to triple its agriculture exports by shipping directly to the mainland instead of passing through Hong Kong.

Philippine Agriculture attaché to the People's Republic of China (PROC) William S. Co said the country's exports pass through Hong Kong because of quarantine issues and the different standards employ by China.

Co said that the EHP under the ASEAN-China free trade agreement (FTA) is going to facilitate the Philippine exports of agriculture to the mainland.

The Philippines is pushing for the exports of mangoes to China in addition to bananas and pineapples.

Co, however, noted that even if growth in exports of agricultural products to China increased over three times higher than the present the country?ˉs agricultural exports would still remain low in terms of total value compared to the electronics exports to China.

Electronics exports accounts for the bulk of the Philippines total exports to China.

Philippine-China bilateral trade has been growing about 55 percent annually since 2002 and the two countries are targeting an annual $30 billion in trade by 2009 with the Philippines enjoying a trade surplus.

Trade between the two countries reached $13.33 billion in 2004, up 41.8 percent from 2003 with Philippine exports to China amounting to $9.06 billion and imports from China amounted to $4.27 billion, up 43.6 percent and 38 percent, respectively.

Aside from semiconductor devices, other major export products to China include machinery and mechanical appliances and their parts, copper cathodes, mineral oils and fresh bananas.

During a meeting between President Gloria Arroyo and Chinese Premier Wen Jiabao in Beijing, both countries have agreed to expand two-way investments with cooperation agreements in agriculture and infrastructure development, among others.

Philippines ranked 4th as China?ˉs biggest trading partner in 2004. (BCM)