The
Philippine Exporters Confederation is set to form a group that will look into
the possible closure of the Iran banana market to Davao banana exporters due to
the United States economic embargo on Iran.
“We
are not aware that our banana exports are no longer being sent to Iran but we
will surely look into this especially with the Mindanao Exporters Congress,”
Philexport XI Chairperson Domingo Ang said during Club 888’s media forum held
at the Marco Polo Davao Wednesday.
The
Mindanao Development Authority reported that banana is the number two dollar
earner of Mindanao next only to coconut, with a 14.94 percent share in the
total Mindanao export. Mindanao’s banana exports increased by 33.85 percent,
from $467.3 million in 2011 to $625.5 million in 2012.
Ang
said the problem will definitely be discussed during the Mindanao Exporters
Congress slated in the city on August 1 to 3, 2013. The Congress will focus on
topics like Improving Exports to Increase Philippine Competitiveness as well as
Strengthening the Enabling Environment for Mindanao’s Export Growth.
The
Philippine Banana Growers and Exporters Association (PBGEA) earlier expressed
its concern about the possible P4 billion losses that will be incurred by the
region’s banana industry as shipping companies stopped all shipments to Iran
this year, including the shipment of exported bananas from Region XI.
PBGEA
executive director Stephen Antig said Mercury Steamship Agencies, Inc., an agent
of the Pacific International Lines which ships bananas to Iran, has advised
them about the suspension of its operations. A letter sent to its valued
clients indicated the last acceptance of cargoes bound for Iran was last June
15, 2013. The Mercury officials said that they have suspended the shipment of
cargoes to Iran as of June 16 this year.
Antig
said the suspension of shipments to Iran was part of the commitment of the
shipping companies to foreign trade regulations in view of the economic
sanctions imposed by the US against Iran which happens to account for 50
percent of the banana market in the Middle East.
“We
have had difficulty in exporting bananas to Iran a long time ago but some
exporters have found a way to export bananas through the long way although that
is more expensive,” banana industry player and Cacao Industry Development
Association of Mindanao (CIDAM) President Ireneo Dalayon said.
Another
option, according to Antig, is the APL or the American Presidential Line which
is willing to load bananas and ship them to Iran bound for Iran if the exporter
has a license from the US Treasury.
