Manila: Trade Secretary Cristina Roque expressed optimism regarding the possibility of reducing the 19% tariff currently imposed on Philippine exports to the United States, as announced by US President Donald Trump.
According to Philippines News Agency, the current rate, although lower than the 20% figure announced a few weeks prior, remains higher than the 17% rate stated in April. Roque mentioned that trade officials from both countries are in the process of finalizing the specifics of the 19% tariff, set 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," she stated during a recent media interview. While Philippine authorities are eager for a lower tariff, Roque emphasized that they cannot make any demands but are contemplating a potential free trade agreement in the future.
Despite the 19% tariff on exports to the US and zero tariffs on US imports such as medical equipment, automotive, and soya, Roque assured that the Philippines would not need to make reciprocal concessions that could harm local industries, particularly agriculture. As such, agricultural products like rice and sugar are excluded from the concession to safeguard Filipino farmers.
In contrast, Indonesia secured a similar 19% tariff reduction on its exports to the US by opening its entire market to American goods. Roque remarked, "For us, we did not give the agriculture because it might hurt the farmers. It might hurt the agriculture industry."
The protection afforded to the agricultural and manufacturing sectors was praised by Elizabeth Lee, chair of the Federation of Philippine Industries, who described it as "a strong step toward protecting our own industries." She highlighted that the zero percent tariff on non-domestically manufactured materials could potentially reduce costs for certain sectors without jeopardizing local producers.
Roque further noted, "Conducting structured consultations with industry stakeholders, coupled with transparent disclosure of products covered by the agreement, can help mitigate potential adverse impacts. These measures may also support the timely activation of appropriate safeguard mechanisms for sectors at risk."
She concluded by emphasizing the importance of growth that is "balanced, fair, and locally anchored."
