MANILA: The Philippines has voiced concerns over the United States’ decision to impose a 20% tariff on its exports but will continue negotiations to seek a favorable resolution.
Economic Affairs Secretary Frederick Go stated the country remains committed to pursuing a comprehensive trade agreement with the US, including a potential free trade deal.
“We remain committed to continuing negotiations with the U.S. in good faith to pursue a bilateral, comprehensive, economic agreement, or if possible an FTA,“ Go said during a media briefing.
Philippine officials are set to meet with their US counterparts next week before the new tariff takes effect on August 1.
Jose Manuel Romualdez, Manila’s ambassador to the US, confirmed efforts to lower the tariff rate, which remains among the lowest reciprocal duties in Southeast Asia. “We are still planning to negotiate that down,“ Romualdez said in a message.
The US is a crucial export market for the Philippines, accounting for nearly 16% of total exports in the first five months of 2024. Go emphasized the need for economic reforms and diversification through new trade agreements to strengthen the country’s competitiveness.
Trade data from the US Trade Representative shows bilateral goods trade between the two nations reached $23.5 billion in 2024. US exports to the Philippines rose slightly to $9.3 billion, while imports from the Philippines surged 6.9% to $14.2 billion, widening the US trade deficit to $4.9 billion. – Reuters
