Government vows to protect agricultural, manufacturing

With US trade deal

MANILA, Philippines —  The Philippine government vows to protect the country’s major agricultural and manufacturing industries and to work with stakeholders in finalizing details of the reciprocal trade agreement with the US.

In a joint statement yesterday, Special Assistant to the President for Investment and Economic Affairs Frederick Go and Trade Secretary Cristina Roque said that following the engagement with the US, which led to a reduction in the reciprocal tariff rate imposed on Philippine goods to 19 percent from 20 percent, the negotiators will be working on the details to finalize the agreement.

Roque said the Philippines and the US still have to negotiate the details of the agreement including products covered by market access commitments on both sides.

“We will continue to protect major domestic agricultural and manufacturing industries. They are not included in our concessions,” she said.

“The concessions we will extend are strategic to the Philippines. These are products that we do not locally produce and are critical inputs to reducing the cost of health care, for example,” Go said.

Go and Roque said the government will also be working with domestic stakeholders as the details of the agreement with the US are finalized.

“We are mindful of the sensitivities of our domestic stakeholders and the same will be duly considered in the negotiations,” Go and Roque said.

Federation of Philippine Industries chair Elizabeth Lee said in a statement yesterday that the group welcomes Go and Roque’s clear stand to exclude key local agricultural and manufacturing sectors from tariff concessions.

“That’s a strong step toward protecting our own industries,” she said.

She said both Go and Roque have also made it clear that the imports getting zero-tariff treatment are mostly critical materials not being produced by the Philippines like inputs for health care.

“If handled right, this could help certain sectors lower costs without putting local producers at risk,” she said.

She said structured consultations with industry stakeholders and transparent disclosure of products covered by the agreement can help mitigate potential adverse impacts.

Both measures are seen to support the timely activation of appropriate safeguard mechanisms for sectors at risk.

“We stand ready to collaborate with DTI (Department of Trade and Industry) and relevant agencies to ensure that economic openness does not compromise national industrial resilience. The Federation will continue to champion the interests of Philippine manufacturers, protect workers and foster long-term competitiveness,” Lee said.

While details of the reciprocal trade agreement with the US, which will include other trade-related matters, still have to be finalized, Go and Roque welcomed the reduction in the reciprocal tariff imposed on the Philippines as the new rate makes the country a more attractive destination for foreign direct investments.

The new levy of 19 percent is the second lowest tariff in Southeast Asia, just behind Singapore’s 10 percent.

Go and Roque said investors targeting the US market will now be encouraged to consider the Philippines for their operations, which would then create more investment and job opportunities for Filipinos.

“Enhanced market access will enable the Philippines to become a more attractive destination for export-oriented investments — opportunities that might have otherwise gone to our neighbors,” Go said.

As the US is a valuable trade and investment partner globally and in the Indo-Pacific, Go and Roque said the government aims to ensure that the bilateral deal will complement the country’s existing international trade commitments, as well as the domestic industries’ capabilities and needs.

“As global trade dynamics evolve, we will actively pursue initiatives to improve market access of Philippine products globally so that Philippine businesses are able to diversify their markets and reduce exposure to external risks,” Roque said.

She said the government is focused on building resilient, sustainable and inclusive trade relationships with key trading partners that will support the country’s long-term economic growth and help all Filipinos prosper.