Philippines won’t take sides in US-China trade war

PORT MORESBY – The Philippines won’t take sides in the trade war between its traditional ally the United States and top trading partner China but is hopeful that the two countries will settle their differences soon. 

Trade Secretary Ramon Lopez said the Philippines is “a friend to everyone and an enemy to no one” and has been working to strengthen ties with both countries. 

“Frankly, we don’t have to side with anyone. Both arguments have merits,” Lopez said in a press briefing yesterday here. 

“Nobody wins in a trade war. Ideally, both will go back to the negotiating table and settle their differences and agree on new trade terms that are mutually beneficial to the two countries,” he added. 

US President Donald Trump has announced plans to slap billions of dollars worth of additional tariffs on goods from China, which he accused of cheating on trade regulations and intellectual property theft. China responded by also imposing billions worth of tariff on American products. 

The tension between the two countries has cast a shadow on this year’s Asia-Pacific Economic Cooperation summit, with member economies expressing concern about its possible impact on regional growth and trade. 

Both the US and China are member economies of the APEC, which has been at the forefront of reducing tariffs and other trade barriers in the region. The tension between the two countries was felt during a gathering of APEC leaders last Saturday as Chinese President Xi Jinping and US Vice President Mike Pence sparred over the trade war. 

In his speech, Xi cited the need for APEC leaders to support free trade and a multilateral system and argued that unilateralism and protectionism would add uncertainty to the world economy. Pence responded by accusing China of “taking advantage” of the US for many years, forcing technology transfers and intellectual property theft. He said the US would not change course “until China changes its ways.” 

The trade war has been blamed for the trade slowdown in the APEC region, which accounts for about half of global trade.

Merchandise trade growth in APEC lagged behind the rest of the world in terms of value, with exports growing by 11.1 percent and imports by 12.7 percent in the first half of the year compared to 14.8 percent and 15.8 percent, respectively, for the rest of the world.

While trade expansion in the rest of the world doubled in the first half compared to the same period last year, trade growth in the APEC region only grew by less than half a percentage point.