RP to buy Australian coal, will take Canberra to WTO over fruits
RP to buy Australian coal, will take Canberra to WTO over fruits
Agence France-Presse Manila
The Philippines said Monday it would by coal from Australian over the next two years but at the same time it is talking Canberra to the World Trade Organization (WTO) over a ban on its tropical fruit exports.
"The Philippines' National Power Corp. has agreed to purchase coal from Australia on a competitive bidding basis, with an assured quota of 975,000 metric tons for 2003 and 2004," President Gloria Arroyo said.
"This is in line with our diversification program for energy security. This will revive a trade that has been dying down over the years between Australia and the Philippines," she told a joint news conference with visiting Prime Minister John Howard.
State-run National Power has been buying coal almost exclusively from China and Indonesia in recent years because both producers can offer lower prices.
Arroyo also thanked Howard "for his positive response to our proposals to further open up the Australian market for our products especially the agricultural products coming from Mindanao" in the southern Philippines.
However in Canberra, Australian officials said Manila is to take Canberra to the WTO over its import ban on Filipino bananas and paw paw.
The Philippines has formally lodged an application with the WTO alleging Australia is unfairly using its quarantine laws to keep out the fruit, Trade Minister Mark Vaile said.
The two countries have been holding talks over three years on the fruit, which Australia maintains is unsafe to bring into the country because of certain diseases endemic in the Philippines.
Meanwhile, Howard announced in Manila on the first day of his official visit that the two governments agreed to convene a "joint forum" to "discuss the areas of difference" regarding Filipino agricultural products.
"We've had some areas of difference in areas such as matters of quarantine and the Australian view is, that (the ) quarantine rules and procedures are utterly based on science and from time to time some countries have a different view and that is perfectly legitimate.
"We have made some progress in some areas and the view is that if we can establish a mechanism that can bring all of these issues together, we can get better outcomes for everybody," he added.
Arroyo said: "The general message that I received from Prime Minister Howard is that this is not a matter of trade barriers but rather of scientific precautions where we can together work out what is the mutually acceptable precautionary measures."
She said the two sides have "already moved forward" because Australia has agreed that Filipino pineapple exports can be inspected in Australia.
"Now as to the type of inspection, that's something that can be the subject of additional talks."
Howard welcomed Manila's announcement on the coal quota purchases. "That will be warmly applauded by Australian coal companies," he said.
He also said he told Arroyo he would be "encouraging an intensification of the interest by mining companies in Australia" in the Philippines.
"We have great expertise in that area and that is something where we can provide additional assistance."