Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. said Wednesday it is still too early to determine how the newly-concluded US-Philippines trade agreement would impact the country’s agricultural exports.
This comes after US President Donald Trump announced that American goods would be allowed into the Philippines tariff-free, while Philippine exports to the US would face a 19 percent tariff, higher than the previously proposed 17 percent, but just below the 20 percent floated by the White House.
“Whether the Philippine agriculture sector stands to benefit from this deal remains uncertain, especially since many of our regional competitors are still negotiating for more favorable terms,” Tiu Laurel said.
The US already lowered tariffs on Indonesian exports to 19 percent from 32 percent.
Vietnam secured a 20-percent rate, down from the initially proposed 46 percent, though transshipped goods from Vietnam will still be taxed at 40 percent.
Thailand and Cambodia have yet to finalize their agreements and currently face a proposed 36 percent tariff.
Despite posting a $3.98-billion trade surplus with the US in 2024, the Philippines recorded a $1.95-billion agricultural trade deficit, though this marked an improvement from the $2.36 billion shortfall in 2023.
Coconut oil remained the Philippines’ top agricultural export to the US in 2024, generating $558.7 million.
The country’s main agricultural imports from the US included animal feeds, approximately $1.36 billion worth, cereals and cereal products at $838.1 million and other food and live animals at 384.1 million.
Tiu Laurel said that while the zero tariff on US agricultural imports might raise concerns for local producers, it could also help lower the cost of critical inputs, particularly for livestock production, and support President Ferdinand Marcos Jr.’s goal of achieving food security.
