go through Aubrey Rose A. Inosante and Chloe Mari A. Hufana, reporter
Philippines open LowResponsibilities for selecting imports From the United States to zero as part of the tariff Negotiations with WashingtonNance Secretary Ralph G. Recto said.
When asked if the government could impose zero tariffs on U.S. goods – a similar approach to Vietnam, Mr. Recto replied: “Absolute.”
“Not all products, but we’ve identified a set of products,” he told reporters last week.
This is Philippine President Ferdinand R. Marcos (Jr).
Mr. Marcos is expected to propose a 20% U.S. tariff on the Philippines export rate during his July 22 meeting with Trump.
In his departure speech at Villamore Air Force Base in Pasay City, Mr. Marcos said the Philippines is ready to engage in a trade agreement with the United States to promote “strong, mutually beneficial and future-oriented cooperation” that will support the country’s economic growth.
“The top priority of my visit is to drive greater economic participation, especially through trade and investment between the Philippines and the United States,” he said.fice.
“I intend to communicate to President Trump and his cabinetfThe Philippines is ready to negotiate a bilateral trade agreement that will ensure strong, mutually beneficial and future-oriented cooperation that only the United States and the Philippines can leverage. ” he added.
Mr. Marcos’ visit to the United States is the head of state for the Association of Southeast Asian Nations (ASEAN) since Mr. Trump took office in January.
Mr. Marcos stressed that while defense and security discussions will be held during the meeting with Mr. Trump, business and economic opportunities will dominate the agenda.
“I hope to meet with business leaders to explore business opportunities that will help grow our economy,” he said.
Members of his economic team are already preparing for investment and trade negotiations before Washington arrives.
Mr Recto said the economic team had “great plans” for negotiations with the United States. He expressed optimism about the optimism that negotiations could lead to lower tariff rates.
“I think our relationship with the United States is not only about trade, but also about security. I’m sure they will give some attention, too,” he said.
Mr. Trump earlier charged 17% tariffs on Filipino goods, the second lowest rate among ASEAN members. Although Philippine negotiators lowered the tariff rate earlier, this was raised to 20%. If no deal is concluded, the 20% tariff will come into effect on August 1.
The Philippines is now facing pressure to lower tariff rates than Indonesia and Vietnam, and they have all completed negotiations with the United States.
The United States has lowered tariffs on goods from Indonesia from 32% before.
“If they were 19% for them, that would be 10% for us. The lowest is 10%, right? 11% is good.”
Vietnam currently has a 20% export tax on the United States and a 40% levied on goods passing through the country. This is significantly lower than the previously announced U.S. tariffs of 46%.
Thailand earlier said it proposed to remove tariffs on 90% of U.S. goods so as to negotiate a tariff below the previously announced 36%.
Cambodia also faces the same interest rate of 36%, but a final deal has not yet been reached.
Free Trade Agreement
Meanwhile, Mr. Recto said the Free Trade Agreement (FTA) with the United States was also part of the negotiations.
“We like this more. We want to have an FTA. Not only in the United States, but with Europe and many other countries. Trade should be better,” Recto said.
“We have to expand their market. Get more manufacturing investment in the Philippines so we can export more. Then, let’s look at the final tariffs later.”
The Philippines is also pushing to maintain zero tariffs on semiconductor exports, a key component of its highest exported goods, namely the electronics sector.
“We want to reduce any responsibilities they impose on our products. We want it to be zero if possible. [on semiconductors],” said Mr. Recto.
Analysts say the Philippines’ proposal of zero tariffs on goods from the United States is unlikely to affect the Trump administration.
“This is not enough in itself, it can reduce U.S. tariffs by 20%,” John Paolo R. Rivera, a senior researcher at the Philippine Development Institute, said in a Viber message.
He said the proposal would be seen as a “strong gesture of goodwill” and demonstrated the country’s willingness to participate constructively.
“The Philippines must supplement this proposal with a clear value proposition, such as enhancing supply chain partnerships, especially in key areas such as semiconductors and agricultural processes,” he said.
Jonathan L. Ravelas, senior consultant for Reyes Tacandong & Co., said the key element of obtaining lower export taxes is “reciprocity.”
“We need to take advantage of American agriculture. Especially wheat and soy. These are used on feed. If we can import cheaply this will help food security.”
Josue Raphael J.
But, he warns that such a path presents risks amid today’s geopolitical fluctuations, citing rising tensions in the South China Sea.
“Political security and economic aspects may be interrelated, but our current approach shows that we place a high emphasis on security partnerships with the United States, but we cannot rely solely on one partner,” he said in a Messenger chat.
Mr Cortez said the Philippines could strengthen economic security by expanding partnerships in areas with strategic advantages such as semiconductors and through the sustainable use of mineral resources such as nickel, which is crucial for electric vehicle batteries.
Ibon Foundation executive director Jose Enrique A. Africa said the government’s negotiation leverage was weaker because manufacturing is now at the smallest share of the economy in 75 years.
“The delegation proposed by the delegation aimed at opening up the economy will be self-deception and dangerous to reduce U.S. tariffs more.”
“The Philippines will weaken if it succumbs to the rules imposed by the United States, then weakening it has little leverage. balance. ” he added.
