Palace Optimistic on Reduction of US Forced-Labor Tariff

Manila: Malaca±ang on Thursday expressed optimism that the United States would reduce the 12.5 percent tariff imposed on Philippine exports, saying the government has demonstrated its commitment to combating forced labor through existing laws and a newly issued joint administrative order.

According to Philippines News Agency, Palace Press Officer Claire Castro stated that the government continues to coordinate with the Office of the United States Trade Representative (USTR) after submitting a joint administrative order (JAO) issued by the departments of trade and industry, labor, and finance. 'Lahat po ng kailangang ibigay na impormasyon na hindi po tayo lumalabag sa batas at hindi po tayo pumapayag sa forced labor (We have provided all the necessary information showing that we do not violate the law and that we do not tolerate forced labor),' Castro said during a Palace press briefing.

She emphasized that Philippine laws explicitly prohibit forced labor and provide penalties for employers found violating the law. 'Marami po tayong batas na nagpapatunay na ito ay ipinagbabawal at ito ay may parusa kapag nahuli na nagkakaroon ang employers at nagpapatupad ng forced labor (We have many laws proving that forced labor is prohibited, and employers who engage in or impose it face penalties),' Castro remarked.

Castro noted that there is no definite timeline yet for the USTR's review but stressed that coordination between the Philippine government and US authorities remains ongoing. When asked whether Malaca±ang expects the issue to be resolved before the end of the year, Castro expressed hope. 'Kailangan nating maging optimistic. Kailangan nating ipakita talaga na hindi tayo lumalabag sa batas (We need to be optimistic. We need to show them that we do not violate the law),' she said.

She further stated, 'With all the laws and the implementation in our country, we can say na (that) we can prove (to) them na (that) the accusations that we are into forced labor is wrong.' The government's current objective is to bring down the tariff rate to 10 percent.

The JAO establishes the rules and procedures for investigating and prohibiting the importation of goods produced wholly or partly through forced labor. It also creates an inter-agency committee tasked with evaluating complaints and recommending appropriate action. The US imposed the 12.5 percent tariff after a USTR investigation concluded that the Philippines imports goods produced through forced labor.