US President Donald Trump lamented the high tariffs being imposed on American automobiles being sold in the country, as President Rodrigo Duterte suggested the conclusion of a free trade agreement between the two countries.
Despite Trump’s protectionist policies, Presidential Spokesman Harry Roque said trade between the United States and Southeast Asia is worth $206 billion.
“President Trump singled out the issue of tariffs being imposed on US automobiles while these tariffs are not being imposed on Japanese cars,” Roque told reporters.
The Philippines said it appreciated being included in the US Generalized System of Preferences and suggested that free trade agreement also be concluded between the two countries.
Roque added that Trump observed that business process outsourcing has become very important to the Philippines.
The Philippines continues to apply high tariffs on finished automobiles and motorcycles, according to the 2017 National Trade Estimate Report on Foreign Trade Barriers by Washington’s Office of the United States Trade Representative.
According to the report, Manila continues to slap a 30 percent tariff on passenger cars; tariffs of 20 percent to 30 percent on vehicles for the transport of goods; and tariffs of 15 percent to 20 percent on vehicles for the transport of persons, depending on vehicle weight.
The report, however, noted that newer vehicle imports from Asean countries and Japan “benefit from preferential tariffs under the Asean.”
Motor vehicle production is a priority sector under the Philippine Motor Vehicle Development Program.
Trump’s policy directions with regards the automotive trade is part of hisefforts to boost the American automotive industry.
Also on Monday, Duterte commended the Asean–Business Advisory Council and its members for their efforts in harnessing private sector feedback.
“The Asean leaders recognize the role in pushing forward Asean Economic Community Agenda for a freer trade relations and more intra-Asian investments,” President Duterte remarked during the Asean leaders’ interface with ABAC. John Paolo Bencito, with PNA
President Duterte also expressed his support to ABAC’s strategy of strengthening and integrating one cohesive approach in empowering micro, small and medium industries (MSMES).
“I believe that mentorship, money, and markets are pre-requisites in ensuring the success and sustainability of any business enterprise,” he said.
The President added that the Philippine government is eager to work and partner with the council to prepare the MSMEs as a bridge to open pathways toward global value chains.
President Duterte also noted ABAC’s effort to forge alliances with big businesses, both at the national and across Asean to champion inclusive business.
“MSMEs are considered game changers as they can offer more options in the market and their presence also eliminates monopoly of trade and fosters healthy competition in the industry,” he said, adding that the global leaders stand in close partnership with the council in reenergizing the Asean Economic Community.
“We urge the Asean secretariats and all the consultative working committees under the economic pillar of ASsean to work closely with the Asean-BAC and its partners to fast track ASC reforms, especially the so-called low-hanging fruits,” President Duterte said.
“We commit our deep resolve in putting our collective leadership behind your strategic action agenda,” he concluded.