PH to Lower Tariffs on US Goods – Recto
Philippines Open to Tariff Reductions with US to Secure Favorable Trade Deal
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MANILA – In a strategic move to bolster its trade relations and mitigate the impact of potential U.S. tariffs, the Philippines is signaling its willingness to reduce tariffs on select American products. This initiative is part of a broader effort to secure reciprocal zero or lower tariffs from the United States on Philippine exports.
A Calculated Approach to Trade Negotiations
Finance Secretary ralph Recto recently revealed that the Philippines has identified a specific set of products for potential tariff reduction. “Not for all products but we have identified a set of products,” recto stated in an informal press chat, emphasizing a targeted approach rather than a blanket reduction.
The primary objective behind this strategy is to cushion the blow of a proposed 20 percent U.S. tariff on Philippine exports. Recto assured that the economic implications of lowering tariffs on certain U.S. goods have been thoroughly calculated. “But we’ve calculated that and gave our input to (Special Assistant to the President on Investment and Economic Affairs) Secretary Deck (Go) on what we can negotiate. All of that has been computed. And it’s safe to say that we’re okay in terms of losses,” he explained.
Prioritizing Export Growth and Market Expansion
The Philippines is keen on negotiating a favorable outcome that minimizes any negative impact on its export sector. “I think we already have a great plan for the negotiation. We want to reduce whatever duties they impose on our products,” Recto added.
Recent data from the Philippine Statistics authority highlights the significance of the U.S. market for the Philippines. In May of this year, the United States accounted for the largest share of Philippine exports, valued at USD 1.115 billion, representing 15.3 percent of the country’s total exports. This underscores the importance of maintaining and enhancing trade ties with the U.S.
Pursuing Broader Free Trade Agreements
beyond bilateral negotiations with the U.S., the Philippines is actively advocating for the establishment of Free Trade Agreements (FTAs) with other major economies. “We prefer that. We want to have an FTA. Not only with the US but with Europe and many other countries,” Recto emphasized.
The vision is to foster a more open and expansive global trade habitat. “More trade should be done.We have to expand our markets.Get more investments in manufacturing so that we can export more,” he concluded, highlighting the long-term goal of strengthening the Philippine manufacturing sector and increasing its export capacity. This proactive stance reflects the nation’s commitment to economic growth through diversified and robust international trade partnerships.