By Justine Irish D. Tabile, Correspondent
THE Philippine administration expressed its assurance that it will manage to establish a “mutually beneficial” agreement with the US prior to trade negotiations with American counterparts next month.
“We are assured that, through our robust economic and diplomatic relationships, we can discover arrangements that are mutually beneficial,” stated Special Assistant to the President for Investment and Economic Affairs of the Philippines Frederick D. Go in a remark on Wednesday.
Mr. Go made the declaration after the discussions his office held with the Department of Trade and Industry (DTI) and prominent export leaders.
Mr. Go is set to head a delegation to Washington to address the tariffs imposed on Philippine products with the US Trade Representative.
Presidential Communications Undersecretary and Palace Press Officer Claire A. Castro announced on Monday that the meeting is scheduled for the first week of May.
Earlier this month, US President Donald J. Trump implemented a 10% broad tariff on all its trading partners but deferred a plan to enact higher reciprocal tariffs on certain nations for 90 days.
Philippine exports to the US encounter a 17% tariff, the second lowest among Association of Southeast Asian Nations member nations following Singapore’s baseline rate of 10%.
The DTI noted that the discussions with export leaders were intended to “gather perspectives and devise strategic initiatives to bolster bilateral trade with the US amidst the recently enacted US reciprocal tariffs.”
The DTI reported that exporters provided their observations on the prevailing market conditions in the US.
“They clarified the strategic possibilities and challenges that the current scenario presents… The talks centered on how the government and the private sector can collaborate in showcasing the Philippines as a reliable and trusted trade partner amidst uncertainties in global commerce,” it continued.
The DTI conveyed confidence that the Philippine government is capable of collaborating with the US to pinpoint opportunities that will benefit their respective economies.
“The consultative process has fostered a deeper mutual understanding and alignment regarding shared objectives,” remarked Trade Secretary Ma. Cristina A. Roque.
The Trade chief mentioned that the discussions “aim to ensure that the perspectives and interests of various sectors are acknowledged as the government strives to secure the most advantageous outcomes for the Philippines in our trade relations with the US.”
In a prior statement, Ms. Roque indicated that the Philippines intends to engage with the US to promote enhanced market access for Washington’s primary export interests, including automobiles, dairy goods, frozen meat, and soybeans.
CHALLENGES AT THE PORTS
Meanwhile, United Portusers Confederation of the Philippines, Inc. President Nelson M. Mendoza indicated that the US tariffs pose a significant challenge for the shipping sector.
“At present, even the exporters are not in a favorable situation because many of their orders, while not canceled, are on hold,” Mr. Mendoza informed reporters on Wednesday.
“Those orders are being delayed due to the tariff. Now, given the 90-day moratorium, those may be moved initially. But after 90 days, we cannot predict what will transpire,” he added.
Mr. Mendoza mentioned that export orders for 2025 were made in 2024 when prices and costs were lower.
Simultaneously, he noted that imports will also be impacted, as products coming from the US will be costlier.
“As shipping lines have stated, their vessels’ routes will be irregular for some time. Personally, I can estimate this will last at least four years, as Trump will be in office for that duration,” he said.
“We are merely hopeful that the negotiations between the US and other nations will help to at least alleviate the situation a bit,” he added.
However, Mr. Mendoza indicated that the new tariff policy might also create opportunities, such as Chinese companies ramping up their production in the Philippines.
“They may export from the Philippines with a lower tariff compared to China. They might not necessarily relocate here, but they may increase their production,” he remarked.
“Nevertheless, it is crucial that we enhance our ease of doing business so that many of them will move to us. Currently, we are not competitive in terms of establishing businesses compared to other Asian nations,” he concluded.
