Manila: The Philippine Chamber of Agriculture and Food Inc. (PCAFI) on Friday lauded the government's trade negotiators after they secured a 19 percent tariff for PH exports, down from the previous 20 percent. The development follows President Ferdinand R. Marcos Jr.'s meeting with US President Donald Trump, which the latter described as a 'beautiful visit' at the White House.

According to Philippines News Agency, the PCAFI commended the government's trade negotiators for protecting critical local agriculture industries during the negotiations. Although the new tariff is higher than the initial 17 percent reciprocal tariffs, the PCAFI still considers the reduction a 'positive development.' They highlighted that the negotiators managed to lower the tariff rate at minimal costs to the country, unlike other countries such as Vietnam and Indonesia, which had to make significant sacrifices, as noted by Special Assistant to the President for Investment and Economic Affairs Frederick Go.

Currently, the Philippines boasts the second-lowest tariff rate among Southeast Asian countries, next to Singapore's 10 percent, providing a competitive edge over regional exporters of similar agricultural goods. In the same negotiations, the US reduced tariffs on Indonesian exports from 32 percent to 19 percent and Vietnam's from 46 percent to 20 percent.

The PCAFI emphasized that the recent developments give the Philippines a tariff advantage against neighboring countries that produce and export similar agricultural products. However, the group expressed hope that the imposed tariff could be lowered further, as the trade deal between Manila and Washington, D.C. has yet to be finalized.

Earlier, Frederick Go clarified that the Philippines made two concessions, including wheat and soy products, which are not expected to disadvantage local industries and may help bring cheaper animal feed products. He assured that sugar, corn, rice, chicken, pork, and seafood were not part of the concessions.

Meanwhile, Agriculture Secretary Francisco Tiu Laurel Jr. noted that it remains 'too early to assess' the net benefit of the 19 percent tariff on the agriculture sector. In 2024, the Philippines posted a USD3.98 billion trade surplus with the US, although it still recorded a USD1.95 billion agricultural trade deficit, an improvement from the USD2.36 billion deficit in 2023.