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GLOBAL TRADE is \u201cthriving\u201d thanks to Washington\u2019s move to ease tariffs, but there\u2019s still a cloud of uncertainty as Manila pushes for a reduction in the 19% reciprocal duty on its exports, says the Department of Economy, Planning, and Development (DEPDev).<\/span><\/p>\n \u201cI believe that global trade has been positively impacted in many countries,\u201d DEPDev Secretary Arsenio M. Balisacan shared with reporters after a Senate hearing on November 18.<\/p>\n \u201cHowever, this doesn\u2019t mean that the uncertainty has vanished. It’s still around.\u201d<\/p>\n Even with most of its agricultural exports getting a green light under US President Donald J. Trump’s recent executive order, the Philippines is still advocating for a lower reciprocal tariff, Mr. Balisacan stated.<\/span><\/p>\n While many products from the Philippines face a 19% reciprocal tariff on entering the US, Trump’s latest executive order exempted hundreds of agricultural items starting from November 13.<\/p>\n The Department of Trade and Industry previously noted that this new order means more than $1 billion in Philippine agricultural exports are now free from the 19% US reciprocal tariff.<\/span><\/p>\n Key agricultural products that are now exempt include copra oil (both crude and non-crude), fruit juices, processed pineapples, desiccated coconuts, preserved coconuts, bananas, dried guavas, mangoes, mangosteens, frozen tuna fillets, rice wafer products, and various confectionery items.<\/p>\n Mr. Balisacan mentioned that this exemption will enhance the productivity of coconut farmers and bolster their export capabilities.<\/span><\/p>\n Executive Secretary and former Finance Chief Ralph G. Recto expressed optimism, stating that these tariff exemptions are a significant leap for Philippine exports and agriculture, and they could fuel economic growth.<\/span><\/p>\n \u201cThis is good news for us. I think President Trump realized that putting tariffs on agriculture increases inflation, so he took them off. That\u2019s a win for us,\u201d he commented during the Senate meeting.<\/span><\/p>\n \u2018EXPORT MORE\u2019 \u201cThe way forward is clear. Now folks can plan, invest, and expand. This is great news! Our goal at the DA is to encourage more planting so we can export even more to the US,\u201d Agriculture Secretary Francisco P. Tiu Laurel, Jr. shared with reporters at the 3rd Philippine Hydro Summit.<\/span><\/p>\n Mr. Laurel mentioned that the US order has relieved the worries of exporters of coconuts, bananas, and pineapples.<\/span><\/p>\n He added that the 19% US reciprocal tariff, which kicked in from August, had initially caused confusion in the industry.<\/span><\/p>\n \u201cBut now everything is clear\u2026 The President\u2019s instructions were to support all our export products, and that will be our priority next year,\u201d he stated.<\/span><\/p>\n According to the Philippine Exporters Confederation, Inc. (Philexport), these exemptions for Philippine products like coconuts, pineapples, bananas, and mangoes are expected to \u201cboost demand, stabilize prices, and directly benefit exporters, farmers, and communities all over the Philippines.\u201d<\/span><\/p>\n \u201cThis is a great result of our ongoing collaboration with key partners to highlight the need for certain exemptions and keep Philippine exports competitive, especially for products not made in the US,\u201d commented Sergio R. Ortiz-Luis, Jr., Philexport’s president and CEO.<\/p>\n Philippine Chamber of Commerce and Industry President Enunina V. Mangio added that these exemptions offer \u201cmuch-needed relief to exporters, protect jobs, and enhance the competitiveness of Philippine products.\u201d<\/span><\/p>\n On the other hand, University of Asia and the Pacific Associate Professor George N. Manzano suggested that the Philippines should keep negotiating with the US for a lower reciprocal tariff.<\/p>\n \u201cHowever, we are still not in a better position compared to the time before President Trump implemented these tariffs. Hence, we should pursue a reduction of the 19% reciprocal tariff,\u201d he advised via Viber.<\/p>\n Mr. Manzano emphasized that while the removal of the reciprocal tariff is a step forward, it doesn\u2019t mean Philippine exports are free from duties, as the original Most Favored Nation tariffs will still apply.<\/p>\n If the US decides to extend the tariff rollback to all trading partners, it would make no difference in the Philippines\u2019 relative competitiveness, he added.<\/p>\n \u201cThis US tariff exemption is a game-changer for Philippine exporters! Over $1 billion worth of goods, especially coconuts, coffee, cocoa, and processed fruits, can now enter the US without duties,\u201d said Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., in a Viber message to BusinessWorld<\/i> on Wednesday.<\/p>\n He recommended that producers act fast, ensure quality, and maintain reliable supply since this opportunity may not last long.<\/span><\/p>\n \u201cMy advice? Move quickly, uphold quality, and secure dependable supply \u2014 this window won\u2019t stay open forever,\u201d he stressed.<\/span><\/p>\n On a different note, Foundation for Economic Freedom President Calixto V. Chikiamco cautioned that the exemption is \u201cself-serving\u201d and may benefit the US more than the Philippines.<\/p>\n
<\/b><\/span>In the meantime, the Department of Agriculture (DA) is all set to assist Filipino farmers in boosting their exports to the US.<\/span><\/p>\n