DTI: Philippines diversifying trade deals amid US tariff threats
MANILA, Philippines — The United States (US) is not the Philippines’ lone market, Department of Trade and Industry (DTI) Secretary Cristina Aldeguer-Roque said on Thursday, with trade deals with the United Arab Emirates (UAE) and the European Union (EU) possibly mitigating the effects of President Donald Trump’s tariffs.
In a Senate hearing to determine the scope of the tariffs’ possible effects on the Philippines, the DTI acknowledged that the US is a big partner in terms of trade. It tops the list of Manila’s top trading partners.
Trade with the US amounted to $20.3 billion, with the trade balance estimated at $4 billion in favor of the Philippines.
The DTI said that as the US enacts policies to address trade deficits and strengthen local manufacturing, the Philippines will act to address the possible fallout from the tariffs.
“The US is not the only market. The world is the market,” Aldeguer-Roque said.
The Philippines is currently working on several international agreements to increase its export market.
“The Philippine government is also expanding the country’s FTA (free trade agreement) network to provide preferential and alternate markets. We will soon be signing the UAE CEPA (Comprehensive Economic Partnership Agreement), which is anytime now. It’s actually ready already, we’re just getting the schedules of both parties to sign,” she said.
The CEPA covers beneficial trade deals in goods and services, as well as investments and digitalization efforts.
Once signed, this CEPA with the UAE will be the first free trade agreement (FTA) between the Philippines and a Middle Eastern country.
Aldeguer-Roque also said that an FTA with the European Union will be finalized by 2026.
Trump’s tariffs have sent countries into a tailspin in efforts to readjust exports into the US.
The US has imposed a 19% tariff on Philippine goods coming into its country, despite Manila’s efforts.
Government officials said that discussions with US counterparts are still ongoing, but nothing is final.
- Latest
- Trending
