Manila: Finance Secretary Ralph Recto stated that the Philippine economy remains resilient amid global trade shifts. In a recent announcement, Recto emphasized the government's strategy to utilize the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to attract more investors to the Philippines.

According to Philippines News Agency, Recto's remarks follow United States President Donald Trump's announcement of an increased tariff on goods entering the US. The new tariffs include a 17 percent levy on Philippine exports, while Vietnam, Thailand, Indonesia, Malaysia, and Cambodia face even higher tariffs ranging from 24 to 49 percent.

Recto highlighted that despite the global trade challenges, the Philippine economy is primarily driven by domestic demand, which offers a buffer against international trade disruptions. However, he acknowledged the potential impacts of a decline in global trade, supply chain disruptions, and economic slowdowns. He expressed confidence that the CREATE MORE Act would enhance the Philippines' attractiveness to investors, especially with relatively lower tariffs on its exports to the US.

Moreover, Recto pointed out opportunities for the Philippines to become a strategic hub in global value chains, particularly in sectors such as electronics, textiles, food, and automobiles. He also noted the potential for expanding the market share of coconut-based products in the US and highlighted the advantages for Philippine garment exports as competitors face higher tariffs.

To further diversify its export markets, Recto mentioned ongoing efforts by the Philippine government to pursue new and expanded free trade agreements with countries including the United Arab Emirates, the European Union, Chile, and Canada.