Philippines Secures 19% Tariff on Exports to US, Prioritizes⁣ Domestic Agriculture

MANILA – Philippine trade Secretary Ramon M. Lopez expressed optimism regarding further reductions in tariffs on Philippine exports to the United States, noting the current rate stands at 19 ⁣percent, as announced by US President Donald Trump. This rate represents a slight decrease from the previously announced ⁣20 percent, though it remains higher than the 17 percent initially communicated in April.

Lopez confirmed in a media interview that trade officials are in the⁣ final stages of discussions with their US counterparts to iron⁤ out the specifics of the 19 percent tariff, which is slated to take effect on August ⁣1.

“For now, since ⁤it was already announced by President Trump, then it’s final.But⁣ of course, we’re really hoping ⁢we can bring it down,” Lopez stated.

While the Philippines aims for a lower tariff rate, Lopez clarified that direct demands are not being made. However, the ⁣nation is actively considering a free trade agreement with the US in the future.

He elaborated that despite the 19 percent tariff on Philippine exports to the US, and the zero tariff on US imports such as medical equipment, automotive parts, and soya, the Philippines has strategically chosen not to offer reciprocal concessions⁤ that‍ could jeopardize domestic industry sectors, notably agriculture. This protective measure‍ ensures that sensitive agricultural products like rice and sugar are excluded from any trade-in.

In contrast, Indonesia secured a 19 percent tariff for its exports to the US, a reduction from the earlier 32 percent, but in exchange, opened its entire market to US goods.

“For us, we did ⁤not give the agriculture because it might hurt the farmers. It might hurt the agriculture industry,” Lopez explained.”Kasi kung ibababa lang ng konting percent,it’s not commensurate to ⁤what⁢ we’re ‍going to lose. So, that’s the reason for why sa kanila they gave all. Us,we did not.” (If the rate is reduced by only a little, it’s not commensurate to what we’re going to lose. So that’s the reason why the other countries gave it all. Us, ⁢we did not.)

The Federation⁢ of Philippine Industries (FPI) chair,⁣ Elizabeth Lee, lauded the government’s decision to protect the agricultural and manufacturing sectors. She described the move as “a strong step toward protecting our own ⁤industries.” Lee also highlighted the potential benefits of the zero percent tariff on materials not manufactured in the Philippines, stating that “if handled right, could help certain sectors lower costs without putting local producers at risk.”

Lopez emphasized the importance⁢ of a structured approach to managing these trade agreements. “Conducting structured consultations with industry stakeholders, coupled ⁢with transparent disclosure of products covered by the agreement, can definitely⁣ help mitigate potential adverse impacts. These measures may also support the⁤ timely activation of appropriate safeguard mechanisms for sectors at risk,” he said.

Concluding his remarks, Lopez reiterated the⁤ nation’s economic aspirations: “Ultimately, we all⁤ wont growth, but it has to be‍ balanced, fair, and locally anchored.”