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By Aubrey Rose A. Inosante <\/b>and\u00a0 <\/span><\/i><\/span>Chloe Mari A. Hufana, <\/b>Reporters<\/i><\/p>\n THE PHILIPPINES is receptive to <\/span>reducing<\/span>taxes on certain imports<\/span> from the US to zero as a part of tariff <\/span>discussions with Washington, Finance Secretary Ralph G. Recto stated.<\/span><\/p>\n When queried if the administration might propose zero tariffs on US products \u2014 akin to Vietnam\u2019s strategy, Mr. Recto answered: \u201cCertainly.\u201d<\/p>\n \u201cNot for every product, but we have pinpointed a collection of items,\u201d he informed reporters last week, without elaborating.<\/p>\n This happens as Philippine President Ferdinand R. Marcos, Jr. on Sunday left for an official trip to the US, where he is set to meet with US President Donald J. Trump.<\/span><\/p>\n Mr. Marcos is anticipated to discuss the proposed 20% US tariff on Philippine exports during his meeting with Mr. Trump on July 22.<\/p>\n In his send-off address at Villamor Airbase in Pasay City, Mr. Marcos mentioned that the Philippines is prepared to negotiate a trade arrangement with the US to foster \u201cstrong, mutually advantageous, and forward-looking collaborations\u201d that will facilitate the country\u2019s economic development.<\/span><\/p>\n \u201cMy primary focus for this visit is to advocate for increased economic collaboration, particularly through trade and investment between the Philippines and the United States,\u201d he articulated, according to a memorandum from his off<\/span>ice.<\/p>\n \u201cI aim to convey to President Trump and his Cabinet off<\/span>icials that the Philippines is prepared to negotiate a bilateral trade arrangement that will ensure strong, mutually beneficial, and forward-looking collaborations that only the United States and the Philippines will be able to benefit from,\u201d he elaborated.<\/p>\n Mr. Marcos\u2019 visit to the US marks the first by a head of state from the Association of Southeast Asian Nations (ASEAN) since Mr. Trump took office in January.<\/p>\n Mr. Marcos highlighted that while defense and security matters will be addressed during his meeting with Mr. Trump, commercial and economic opportunities will take precedence in the discussions.<\/p>\n \u201cI anticipate meeting with business leaders to investigate business prospects that will further stimulate our economy,\u201d he stated.<\/p>\n Members of his economic team are already in Washington ahead of his arrival to arrange for investment discussions and trade negotiations.<\/p>\n Mr. Recto mentioned that the economic team has a \u201csignificant strategy\u201d for the negotiations with the US. He expressed hope that the discussions could result in reduced tariff rates.<\/p>\n \u201cI believe our relationship with the US encompasses not only trade but also security. I\u2019m confident they\u2019ll prioritize that as well,\u201d he remarked.<\/p>\n Mr. Trump had previously imposed a 17% tax on Philippine goods, which is the second lowest rate among ASEAN nations. This was increased to 20%, despite prior attempts by Philippine negotiators to decrease the tariff rate. If no agreement is reached, the 20% tax will take effect on Aug. 1.<\/p>\n The Philippines is currently under pressure to secure a lower tariff rate than Indonesia and Vietnam, both of which have finalized negotiations with the US.<\/p>\n The US has decreased the tariff on goods from Indonesia to 19% from 32% previously.<\/p>\n \u201cIf it\u2019s 19% for them, it ought to be 10% for us. The minimum is 10%, right? 11% is acceptable,\u201d Mr. Recto stated shortly after news of the Indonesia-US agreement was made public.<\/p>\n Vietnam presently encounters a 20% tariff on its exports to the US, coupled with a 40% charge on goods transshipped through the country. This is considerably lower than the initially declared US tariff of 46%.<\/p>\n Thailand previously indicated it is willing to abolish taxes on 90% of US goods in an attempt to negotiate a lower tariff than the previously announced 36%.<\/p>\n Cambodia is also facing the same 36% rate and still lacks a finalized agreement.<\/p>\n FREE TRADE AGREEMENT \u201cWe favor that. We aspire to establish one FTA. Not just with the US, but with Europe and several other nations. Increased trade should be advantageous,\u201d Mr. Recto noted.<\/span><\/p>\n \u201cWe must broaden their markets. Attract more investments in manufacturing in the Philippines so that we can ramp up exports. Then we can revisit the final tariffs later.\u201d<\/p>\n The Philippines is equally advocating to uphold the zero tariffs on semiconductor exports, a crucial element of its leading export commodity, the electronics sector.<\/p>\n \u201cWe aspire to minimize any duties they impose on our products. Ideally, we want it to be zero [on semiconductors],\u201d Mr. Recto expressed.<\/p>\n Analysts remarked that the Philippines\u2019 proposal to apply zero tariffs on goods from the US is unlikely to influence the Trump administration.<\/p>\n \u201cIt may not be sufficient on its own to reduce the 20% US tariff,\u201d John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies communicated in a Viber message.<\/p>\n He indicated that the proposal would be perceived as a \u201cstrong goodwill gesture\u201d and demonstrate the nation\u2019s eagerness to engage constructively.<\/p>\n \u201cThe Philippines needs to supplement this proposal with a clear value proposition, such as enhancing supply-chain alliances, especially in critical areas like semiconductors and agri-processing,\u201d he articulated.<\/p>\n Jonathan L. Ravelas, a senior advisor at Reyes Tacandong & Co., mentioned that a crucial factor to obtain a lower export levy is \u201creciprocity.\u201d<\/p>\n \u201cWe must leverage US agricultural products. Specifically, wheat and soybeans. Which are primarily used in feeds. If we can import these at lower costs, it will bolster food security,\u201d he stated in a Viber message.<\/p>\n Josue Raphael J. Cortez, who teaches diplomacy at De La Salle-College of St. Benilde\u2019s School of Diplomacy and Governance, mentioned that the Philippines can maintain a healthy equilibrium between satisfying its security obligations to the US and pursuing economic independence by continually advocating for an independent foreign policy.<\/p>\n However, he cautioned that such a course bears risks amid the current geopolitical instability, pointing to the US reciprocal tariffs and escalating tensions in the South China Sea.<\/p>\n \u201cThe political-security and economic aspects may be interconnected, but our current approach appears to indicate that we highly value our security collaboration with the US while recognizing that dependence on a single partner is not advisable,\u201d he explained in a Messenger chat.<\/p>\n Mr. Cortez articulated that the Philippines can enhance economic security by expanding partnerships in sectors where it holds strategic advantages, such as semiconductors, and by sustainably exploiting mineral resources like nickel, which is vital for electric vehicle batteries.<\/p>\n IBON Foundation Executive Director Jose Enrique A. Africa indicated that the administration has limited negotiating power as manufacturing currently constitutes the smallest fraction of the economy in 75 years.<\/p>\n \u201cThe delegation proposing to further liberalize the economy in exchange for reduced US tariffs will ultimately be counterproductive and perilous,\u201d he expressed in a Viber message.<\/p>\n
\n<\/b>Meanwhile, Mr. Recto stated that a free trade agreement (FTA) with the US is also involved in the negotiations.<\/p>\n