FIFTEENTH CONGRESS OF THE REPUBLIC

OF THE PHILIPPINES First Regular Session

'10 DEC 15 P4 :21

SENATE

COMMITTEE REPORT NO. _-,,1~4,,--

Submitted jointly by the Committees on Agriculture and Food, and on Trade and Commerce

on ~DE=C,-1",-5---,2=01=O_

Re P.S. Resolution No .. '263, filed by Senator Teofisto L. Guingona III

Recommending the Adoption of this Report and the Implementation of its Recommendations

Sponsor Senator Pangilinan

MR. PRESIDENT:

The Committees on Agriculture and Food, and on Trade and Commerce, to which was

referred P.S. Resolution No. 263, filed by Senator Teofisto L. Guingona III, have considered the

same and have the honor to submit this Report to the Senate,

I. Finding that:

1. The Philippines is one of the biggest exporters of bananas worldwide;

2. There was no official ban 'on Philippine bananas to Iran, but the non-issuance of

import licenses by Iran, and the non-issuance of letters of credit by UAE banks in

view of economic sanctions imposed by the United States and the United

Nations, is a de-facto ban;

3. The non-issuance of import licenses and letters of credit, which redounded to a

decreased export sales both in volume and price, have crippled efforts of

Philippine banana growers to recover from an earlier drought that hit the

country;

4. It is a must to assist banana growers, especially the small ones, to be able to

recover from losses they incurred, especially in the areas of loan refinancing and

crop insurance; purchase of agricultural inputs such as fertilizers and pesticides;

and improving their production processes;

5. The Philippine Government must further improve its relations with Iran,

especially in the area of bilateral trade;

6. The Government does not have high-level official representatives in Tehran who

could directly and effectively discuss pressing economic issues with the

Government of Iran;

7. There is a need to further expand the list of products that can be traded

between the two countries;

8. Other countries, and their business groups, are still able to directly trade with

Iran despite the economic sanctions imposed by the United States and the

United Nations; and

9. There is a need to find new and alternative markets for Philippine bananas, to

address possible temporary closure of, and diminishing, existing markets and in

view of the expansion of production in terms of hectarage and yield.

II. Recommending that:

A. In the Short-Term /Immediate:

1. For the President of the Republic of the Philippines, upon recommendation of

the Department of Foreign Affairs, to appoint an Ambassador to Tehran;

2. For the Departments of Agriculture, Trade and Industry, and Foreign Affairs, to

send a high-level delegation that will strengthen economic ties with Iran and

ensure the unimpeded or steady entry of Philippine bananas to Iran;

3. For the Department of Agriculture to appoint an agricultural attache in Tehran;

4. For the Department of Trade and Industry to explore counter-trade between the

Philippines and Iran, on products such as liquefied petroleum gas, tractors, oil

derivative products, and generic medicines;

5. For the Department of Foreign Affairs to study: i) how Ecuador and other

countries cope and are able to export to Iran given the same situation, and ii) the

free trade agreement between Peru and South Korea, specifically on zero tariff

for certain products, such as bananas.

B. In the Long-Term:

1. For the Department of Agriculture, in collaboration with the Department of

Agrarian Reform, 8angl<o 'sentral ng Pilipinas, Department of Environment and

Natural Resources, Department of Science and technology, Department of Trade

and Industry, Land Bank of the Philippines, and other concerned agencies, to

support small banana growers by:

a. Reviewing the Charter of the Philippine Crop Insurance Corporation, to

include trade embargo as one of the conditions that will make small banana

growers qualify for ins.urance coverage, aside from drought and flood;

b. Opening-up the Agricultural Competitiveness Enhancement Fund for

financing of importation of fertilizers and other inputs at a lower price;

c. Establishing a Research and Development Program to improve their

productivity and quality;

d. With the partiCipation of big banana growers, install capability building and

mentoring programs; 'and

e. Ensure adherence to sanitary and phytosanitary standards through

compliance to Philippine Good Agricultural Practices (PhiIGAP) Certification

process, Global Gqod Agricultural Practices {GlobaIGAPl, and other

internationally-accePted certification processes.

2. For the Department of Trade and Industry, together with the Department of

Agriculture and the Department of Foreign Affairs to develop and secure

alternative markets, such as China, Australia, United States including Guam, New

Zealand, Korea, Russia, Ukraine, and South Africa thru Singapore.

SEN.

Chairman Committee on rade and Commerce

SEN.EDGARDOJ.ANGARA

Trade and Commerce

SEN. RAMON REVILLA, JR.

Trade and Commerce

SEN. LOREN B. LEGARDA

Trade and Commerce; Agriculture and Food

SEN. FERDINAND R. MARCOS, JR. Trade and Commerce

SEN. MIRIAM DEFENSOR SANTIAGO

Trade and Commerce

Respectfully Submitted:

1~<;t.......,.,~NGILINAN

Chairman Committee on Agriculture and Food

MEMBERS:

SEN. TEOFISTO L. GUINGONA III

Agriculture and Food

SEN. JUAN MIGUEL F. ZUBIRI

Agriculture and Food; Trade and Commerce

SEN. SERGIO R. OSMENA III

Agriculture and Food

SEN. RALPH G. RECTO Agriculture and Food

SEN. FRANCIS G. ESCUDERO

Agriculture and Food

2. For the Department of Trade and Industry, together with the Department of

Agriculture and the Department of Foreign Affairs to develop and secure

alternative markets, such as China, Australia, United States including Guam, New

Zealand, Korea, Russia, Ukraine, and South Africa thru Singapore.

R"spectfully Submitted:

SEN. MANNY VILLAR Chairman Committee on Trade and Commerce

SEN. EDGARDO J. ANGARA Trade and Commerce

------.-----.~~~:----.--~ -====-:::.:::=--=---2=~~=~=--~-, ~- -----" ~,

SEN. LOREN B. LEGARDA

Trade and Commerce; Agriculture and Food

SEN. FERDI ANDIl. MARCOS, JR. Trade and CommJ.ce

SEN. MIRIAM DEFENSOR SANTIAGO Trade and Commerce

. PANGILINAN Chairman Committee o' griculture and Food

MEMBERS:

SEN. TEOFISTO L. GUINGONA 11\ Agriculture and Food

culture and Food; Trade and Commerce

iJ~~ S~ERGIO R. OSMENA III

Agriculture and Food

SEN. FRANCIS G. ESCUDERO Agriculture and Food

•

/~ SEN. JOKER P. ARROYO Trade and Commerce; Agriculture and Food

f~·g.;t SEN. PI/S. CAYET 0

Trade and Com ree

Majority Leader

JUAN PONCE ENRILE . Senate President

SEN. MANUEl "LITO" M. LAPID

Agriculture and Food

EX-OFFICIO MEMBERS:

SEN.~E::O Minority Leader

FIFTEENTH CONGRESS OF THE REPUBLIC· OF THE PHILIPPINES

First Regular Session

SENATE

SubmiitW.d by the Committees on Agriculture and Food, and on Trade and Commerce on Ut.(.; l!l 2010

Re: P. S. Resolution No. 263 filed by Senator Teofisto L. GUingona 111

Recommending the Adoption of this Report and the Implementation of Its Recommendations

Sponsor: Senator Pangilinan

MR. PRESIDENT:

The Committees on Agriculture and Food, and on Trade and Commerce, to which was

referred P. S. Resolution No. 263, filed by Senator Teofisto L. Guingona 111, have considered the

same and have the honor to submit this Report to the Senate.

I. PREFATORY STATEMENT

On 10 November 2010, Senator Guingona 111 filed P. S. Resolution No. 263, entitled:

"Resolution Directing the Committee on Agriculture and Food to

Conduct an Inquiry In Aid of L·egislation on the Detrimental Effects of US

Economic Sanctions on Iran, and·to Recommend Ways and Means to Mitigate

Its Impact on the Philippine Banana Export Industry"

The Resolution stated that the Philippines is the second largest banana exporter in the

world, with annual earnings averaging US $720 Million. It averred that Iran consumes about 25

million boxes of bananas every year produced from 9,000 hectares of farmlands in Central

Mindanao.

The Resolution asserted that the United States' economic sanctions to Iran under the

Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010, as part of the

campaign against the Iran Nuclear Progr·am, has a direct, substantial and adverse effect against

the banana export industry of the Philippines. It further stressed that, although Iran excluded

Philippine bananas in the list of banned products, the exporters still experience severe damage

to their bUSiness. The Resolution therefore urged the Committee to inquire, in aid of legislation,

on the matter and to find collaborative solutions to alleviate the detrimental effects on the

banana industry.

On 15 November 2010, the Senate referred the Resolution to the Committees on

Agriculture and Food, and on Trade and Commerce.

II. CO!VIMITTEES' ACTION

Pursuant to the said Resolution, the Committees on Agriculture and Food, and on Trade

and Commerce, conducted a committee public hearing on 02 December 2010, at the Grand

Regal Hotel in Davao City.

The resource persons who attended the hearing included: Assistant Secretary Virgilio

Reyes, Office of Middle East and African Affairs, Department of Foreign Affairs; Mr. Carlos

Mendoza, Regional Executive Director, Department of Agriculture Region XI; Mr. Lou Pasawa,

Provincial Director, Department of Trade and Industry - Davao; Mr. Geronimo Reyes, Deputy

Director, International Operations Department, Bangko Sentral ng Pilipinas; Former North

Cotabato Governor Manny Pinol; Mr. Alexander N. Valoria, President, and Mr. Stephen Antig,

Executive Director, Pilipino Banana Growers and Exporters Association Inc.; Mr. Francisco

Lorenzo, Vice-President, Lapanday Food!, Corporation; Mr. Ireneo dalayon, Mindanao Banana

Farmers Growers and Exporters; Mr. Renante Bangoy, Bangoy Farms, and President, 911

Movement Save our Sagingan; Ms. Kathr.yn Lopez, Product Manager for Agricultural Loans, One

Network Bank; Mr. Rodolfo Villanueva, President, Diamond Farms Agrarian Reform

Beneficiaries Multi-Purpose Cooperative; and Mr. Remigio Garcia, Adviser, SOS 911 Movement.

The Committees considered both the testimonies of, and the documents that were

submitted by, the resource persons to the Committees.

III. ISSUES

To fully appreciate and effectively address the concerns raised by the Resolution, the

Committees delved into the following areas:

A. What is the present condition of the Philippine Banana Export Industry?

B. What are the factors affecting or stalling the growth of the Industry?

C. What are the actions being pursued by the Industry to improve the situation?

D. What are the solutions being done and/or offered by the government?

IV. FINDINGS

The public hearing, the documents submitted to the Committee, as well as official

documents submitted by the different government agencies and private groups, revealed that:

A. The Philippines is the second largest banana exporter next to Ecuador

The Philippine Banana Industry has grown tremendously for the past five years. From a

total production of 6.2 million tons in 2006, it grew to more than 9 million tons in 2009.

The increase in production can be' attributed to both the expansion in hectarage planted

to banana as well as the increase in average yied per hectare. For the past five years, the

country has continuously expanded its .hectarage of lands being planted with banana, from

417,755 hectares in 2005, to more th~n 446 thousand hectares. Simultaneously with the

increase in hectarage, average yield per ,hectare likewise increased from 15.08 metric tons (m.

T.) to 20.19 m. t. for the same period, with the Davao Region having the highest yield per

hectare of 43.45 m. t. (Bureau of Agricultl!ral Statistics, Crops Statistics of the Philippines 2005-

2009, 7'h edition, p. 23).

From this increasing production; around 1.664 million metric tons, mostly Cavendish

bananas, are exported to different countries, the major destinations of which are Japan, Iran,

and South Korea. (Bureau of Agricultural Statistics, Crops Statistics of the Philippines 2005 -

2009, 7'h edition, p. 23).

Latest figures gathered from the Department of Agriculture shows that, as of October of

this year, more than 1.8 million metric tons of Cavendish bananas have been shipped

worldwide.

This makes the Philippines as one. of the big players in the global banana market. Since

2008, t is the second largest exporter in the world, next to Ecuador. The other top exporters are

Costa Rica, Guatemala, and Panama. (TSN, Catadman, 1/- 1, December 2, 2010, 10:00 a. m., p.

6).

The largest markets for Philippine bananas, based on volume, among others, are Japan,

Iran, China, Korea, Saudi Arabia, South Ko'rea, New Zealand, and Kuwait.

B. Factors/Challenges Affecting the Growth and Development of the Banana Export

Industry

1. "Iran Ban on Philippine Bananas"

For the past decades, the banana industry quietly grew to where it is now.

It was only in September of this year that the banana industry received and requested

so much media and government attention. This came as a result of the "ban" that was said

imposed by Iranian officials on several commodities, including Philippine bananas.

According to Mr. Stephen Antig of PBGEA, the "ban" was initially reported in Bloomberg

Televison on September 9, 2010 but they learned about it at the end of September 2010. (TSN,

Cotadman, 1/-1, December 2, 2010, 10:0'0 a. M., p. 4)

Sometime third week of October 2010, several media groups reported that Iran

imposed a "ban" on 48 agricultural products, of which Philippine bananas was said to be one of

them.

This conjecture of a "ban" was conceived due to the sudden decrease in Iran imports of

Philippine banana, and was eventually interpreted as a retaliatory move on the part of Iranian

authorities to countries that have supported the economic sanctions being imposed by the

United States on that country.

In July of this year, the United States approved the Comprehensive Iran Sanctions,

Accountability and Divestment Act (CISADA), in order to pressure Iran to give up its "nuclear

program." The Act, among others, prohibit companies to invest in Iran's energy sector and

imposes sanctions on companies found violating the law. By imposing a mandatory financial

sanction on the banned activity, foreign companies are then made to choose between doing

business in Iran or with the United States. (Part of the Summary of the Comprehensive Iran

Sanctions, Accountability, and Divestment Act, as presented in the American Israel Public Affairs

Committee website, http://www.aipac.orq/Publications( SourceMaterialsConqressionalAction(

Bill Summary Conference Report for Iran Sanctions Biil.pdQ.

It is also noteworthy to state that the United Nations Security Council has approved

since 2006 several resolutions that were aimed at discouraging Iran to pursue a nuclear

program. In June 2010, the UN Security Council approved UNSC 1929, which requires

strengthening restrictions on financial transactions. (See United Nations website, speCIfically

http:/(www.un.arq/News(Press(docs(20.10(sc9948.doc.htm).

The Department of Foreign Affairs, through the Philippine Embassy in Tehran, inquired

from the Iranian authorities, specifically'from the Ministry of Jihad-Agriculture, on the veracity

of such news reports. It was eventually established that there was really no ban on Philippine

bananas.

Despite the non-existence of a ban, in a document submitted by the DFA, the following

information were gathered:

" All tropical agricultural products including Philippine bananas are not included in the list of 'banned' agriculture products That Iran has not banned the entry of Philippine bananas That importers, particularly those based in the UAE (United Arab Emirates), may not be able to open letters of credit in their ban k transactions due to UAE's implementation of UN/US economic sanctions against Iran; and That the local markets are fully supplied with bananas"

However, the same document s'tates the "while there is no clear-cut ban on entry of

Philippine bananas to Iran, different factors such as the suspension of import permits of UAE

importers and UAE banks cutting ties with Iranian banks, have led to a situation wherein there

is a de-facto ban on Philippine Bananas to Iran."

During the public hearing, Assistant Secretary Virgilio Reyes further clarified that, in the

Fifth Bilateral Consultation Committee on Political, Economic and Cultural Cooperation

Between Iran and the Philippines, the Iranian Government clearly pointed out that there is no

ban but the problem lies on financial transactions that can facilitate the entry of Philppine

bananas to their country. (Agreed Minutes of the Fifth Bilateral Consultation Committee on

Political, Economic and Cultural Cooperation Between the Islamic Republic of Iran and the

Republic of the Philippines, Tehran, 27 - 29 November 2010).

2. Non-Issuance/Suspension of Import Licenses

Despite the official pronouncement that a ban was never imposed on Philippine

bananas, the same DFA document cites that there was a suspension of the issuance of import

permits, as reported by Fresh Fruits Co., the largest importer/exporter of fresh fruits and

vegetables in the Middle East Region.

Mr. Valoria also indicated the decrease in the number and volume of import licenses

that are being issued for Philippine bananas. He noted that, in October of the year, Iran has

completely stooped the issuance of im'port licenses. With the "continued pressure" of the

Philippine government, he noticed that Iran resumed issuance the licenses, but not in a smaller

volume as compared to what the Philippines was previously enjoying. (TSN, MRCatadman, 1/-

2, December 2, 2010, 10:40 a.m., pp. 2 - 3).

3, Non-issuance of Letters of Credit·

Corollary to the problem of non-issuance of import permits is the problem on securing

letters of credit.

Iranian companies importing P\lilippine bananas are based in Dubai, United Arab

Emirates, With the imposition of the sanctions under the CISADA and the UNSC 1929, UAE

trading with Iran has greatly diminished,. Dubai banks, in order not to antagonize the United

States, were seen to be refusing to issue letters of credit to Iranian importers. (See Statement of

DFA ASec. V. Reyes, TSN, HSGayapa, 1- 2, December 2, 2010, 10:30 a. m., p. 2).

Compounding the problem of issuance of a letter of credit is the fact that the Iranian

Rial is not a traded currency. It is not pa'rt of the 16 currencies that are accepted worldwide,

and which, at present, does not form part of the international reserves of the Philippines. (See

Statement af Mr. Geronimo Reyes of the Bangko Sentral ng Pilipinas, TSN, HSGayapa, I - 2,

December 2, 2010, 10:30 a. m., pp. 5- 6).

4. Climate Change/Drought, The "Ban" and Effects on the Operations of Both Big and

Small Banana Growers

The Committees also note that the problem on climate change, such as annual drought,

has exacerbated the problem not only among the big banana growers but, moreso, for small

banana growers.

Mr. Lorenzo pOinted out that banana growers suffered from an EI Nino that occurred

early this year. Farmers were optimistic to recover their investments with the expected surge in

export sales in the third and fourth quarter of the year. This, however, was negated by the

sudden drop in exports to Iran. The "ban" was imposed at a time when banana production was

at its peak. (TSN, RJOrtiz, 11/- 2, Decemb'er 2, 2010, 10:50 a. m., p. 2).

This is also one reason why farmers are now having a hard time meeting their monthly

amortizations for their loans from bankfng institutions. A condonation on the interest charges

and penalties, a moratorium on amortizations, a refinancing of their high-interest loans with

lower interest rates, were suggested. (See Statements of Mr. Da/ayan and Former Governor

Pinal, TSN, HSGayapa, 1- 3, December 2,: 2010,11:10 a. m., p. 3, and TSN, MRCatadman, ,,- 3,

December 2,2010,11:20 a. m., pp. 1 - 7).

5. Inability of Small Growers to Purchase Necessary Inputs to Achieve Greater Production

and Comply with Product 5tanda~ds

With the onslaught of drought, and the drop in export sales due to the Iran problem,

banana growers, especially the small farmers were unable to recoup their investments, and are

therefore having a hard time starting anew.

Such situation has disabled them, the small banana growers, to fully purchase the

necessary inputs, fertilizers, pesticides, and other necessary inputs to achieve higher yields and

in conformity with product standards. (TSN, MRCatadman, 11-3, December 2, 2010, 11:20 a.

m., p. 1).

With respect to inputs, banana growers are faced with expensive fertilizers, pesticides

and other farm inputs. Government assistance, in the form of cheaper credit, or access to the

Agricultural Competitiveness Enhancement Fund, for the importation of lower-priced fertilizers

and pesticides were raised. (TSN, HSGayapa, 1- 3, December 2,2010,11:10 a. m., p. 5; and TSN,

MRCatadman, 11- 3, December 2, 2010, 11:20 a. m., pp. 1 - 7).

Compliance, therefore, to increasingly stringent sanitary and phytosanitary standards

has become a challenge for both big anq especially small banana growers. Mr. Antig raised this

in his initial presentation to the Committees (TSN, RJOrtiz, 111-1, December 2, 2010, 10:10 a.

m., p. 1).

6. Actions taken by the Industry/Private Sector

The private sector, including the PBGEA and its members, the agrarian reform

beneficiaries, and small growers, have put much investments to make the banana industry

achieve the stature that it has now.

To immediately address the ban issue, they immediately sought the attention and

assistance of government agencies that can help overturn the damaging effects of a ban on

Philippine bananas in Iran. They have turned to the Departments of Agriculture, Trade and

Industry, and Department of Foreign Affairs, to clarify the existence of a ban, and continuously

persuade Iran to issue import licenses fo~ their products. (TSN, MRCatadman, /I - 1, December

2, 2010, 10:00 a. m., p. 5, and TSN, RJOrtiz, 1/1-3, December 2, 2010, 11:30 a.m., p. 1).

They have also acknowledged that an expansion of their share of the global banana

market depends on "the entry of Philippine Cavendish bananas to non-traditional destinations

like the US and Canada." The European Union, United States and Canada "account for 68

percent of the world's banana imports.". They also realized that "(E}establishing a foothold in

these markets is one task that necessitates all-out partnership between the industry and the

government." (TSN, RJOrtiz, /II -1, December 2,2010, 10:10 a. m., p. 2).

Trade missions to Iran and other,'markets are being done individually and by groups of

banana growers.

7. Actions Taken by the Government

The Departments of Foreign Affairs, Agriculture, and Trade and Industry, immediately

responded to address the concerns of the banana growers. As early as October 12, 2010, the

Agricultural Attache in the United Arab Emirates, Mr. Gil Herico, clarified that the Philippine

banana was not included in the list of agricultural products that were banned. (TSN, Catadman,

1/-1, December 2,2010,10:00 a. m., p. 5).

As reported by DFA Assistant Secretary Reyes, and in the document submitted to the

Committees, the DFA requested the Iranian Ambassador to the Philippines to clarify the

supposed "ban" on two separate meetings in 15 and 22 October 2010.

The same document provides information on the consistent inquiries and continuing

talks made by the Philippine Embassy in Tehran and the Philippine Consul-General office with

Iranian authorities to ensure that Philippines bananas are not included in the list of banned

agricultural products.

In the Fifth Bilateral Talks of the DFA with Iranian Officials, as contained in the Minutes

of the Bilateral Talks, Iran formally informed the Philippines that it is willing to expand trade

with the Philippines through direct exch.,nge of national currencies and direct trading. Iranian

products, tractors, medicines, among others, are proposed for possible exports to the

Philippines in exchange for Philippine products like bananas and tropical fruits.

Despite these efforts, Assistant Secretary Reyes himself noted that government efforts

need to be further bolstered by:

1. Appointment of an ambassador to Tehran, who can immediately, directly and

effectively discuss and negotiate with Iranian authorities;

2. Sending of a high-level delegation, including the Secretary of Trade and Industry

and/or the Secretary of Agriculture, to Iran that will promote and ensure entry of

Philippine bananas;

3. Appointment of an agricultwral attache in Tehran, instead of relying with the

agricultural attache in Dubai, who still have to secure a visa to be able to go to Iran;

4. Studying what other countries (e. g. India, Italy, and South Korea) have done since

they are stili able to trade with Iran; and

5. For the Department of Trade·and Industry to monitor and explore the possibility of

another country being the gateway to be able to trade with Iran, as an alternative to

the UAE;

V. CONCLUSION

Based on the foregoing, the Committees conclude that:

1. The Philippines is one of the b'iggest exporters of bananas worldwide;

2, There was no official ban on Philippine bananas to Iran, but the non-issuance of

import licenses by Iran, and the non-issuance of letters of credit by UAE banks in

view of economic sanctions imposed by the United States and the United Nations, is

a de-facto ban;

3. The non-issuance of import "licenses and letters of credit, which redounded to a

decreased export sales both in volume and price, have crippled efforts of Philippine

banana growers to recover from an earlier drought that hit the country;

4. It is a must to assist banana growers, especially the small ones, to be able to recover

from losses they incurred, especially in the areas of loan refinancing and crop

insurance; purchase of agricultural inputs such as fertilizers and pesticides; and

improving their production processes;

5. The Philippine Government must further improve its relations with Iran, especially in

the area of bilateral trade;

6. The Government does not have high-level official representatives in Tehran who

could directly and effectively discuss pressing economic issues with the Government

of Iran;

7. There is a need to further expand the list of products that can be traded between

the two countries;

8. Other countries, and their business groups, are still able to directly trade with Iran

despite the economic sanctions imposed by the United States and the United

Nations; and

9. There is a need to find new and alternative markets for Philippine bananas, to

address closure of existing markets and in view of the expansion of production in

terms of hectarage and yield .. ;

VI. RECOMMENDATIONS

Wherefor, in view of all the foregoing, the Committees hereby recommend the

following:

A. In the Short-Term /Immediate:

1. For the President of the Republic of the Philippines, upon recommendation of

the Department of Foreign Affairs, to appoint an Ambassador to Tehran;

2. For the Departments of Agriculture, Trade and Industry, and Foreign Affairs, to

send a high-level delegation that will strengthen economic ties with Iran and

ensure the unimpeded or steady entry of Philippine bananas to Iran;

3. For the Department of Agriculture to appoint an agricultural attache in Tehran;

4. For the Department of Trade and Industry to explore counter-trade between the

Philippines and Iran, on products such as liquefied petroleum gas, tractors, oil

derivative products, and generic medicines;

5. For the Department of Foreign Affairs to study: i) how Ecuador and other

countries cope and are able to export to Iran given the same situation, and ii) the

free trade agreement between Peru and South Korea, specifically on zero tariff

for certain products, such as bananas.

B. In the Long-Term:

1. For the Department of Agriculture, in collaboration with the Department of Agrarian

Reform, Bangko Sentral ng,' Pilipinas, Department of Environment and Natural

Resources, Department of Science and technology, Department of Trade and

Industry, Land Bank of the ~hilippines, and other concerned agencies, to support

small banana growers by:

a, Reviewing the Charter of the Philippine Crop Insurance Corporation, to include

trade embargo as one of the conditions that will make small banana growers

qualify for insurance coverage, aside from drought and flood;

b. Opening-up the Agricultural Competitiveness Enhancement Fund for financing of

importation of fertilizers and other inputs at a lower price;

c. Establishing a Research and Development Program to improve their productivity

and quality;

d. With the participation qf big banana growers, install capability building and

mentoring programs; and'

e. Ensure adherence to sanitary and phytosanitary standards through compliance

to Philippine Good Agricultural Practices (PhilGAP) Certification process, Global

Good Agricultural Practices (GlobaIGAP), and other internationally-accepted

certification processes.

2. For the Department of Trade and Industry, together with the Department of

Agriculture and the Department of Foreign Affairs to develop and secure alternative

markets, such as China, Australia, United States including Guam, New Zealand,

Korea, Russia, Ukraine, and South Africa thru Singapore.