Special Assistant to the President for Investment and Economic Affairs Frederick Go on Thursday defended the Philippines’ reduced US tariff rate and assured the public that the new arrangement will boost investments, protect local agriculture, and ease consumer prices.
The announcement follows President Ferdinand ‘‘Bongbong’’ Marcos Jr.’s successful negotiations with US officials that led to a drop in the universal tariff rate on Philippine exports from 20% to 19% after his recent visit to the United States. ’’This tariff is not unique to the Philippines; it’s a universal rate imposed by the United States on many countries,’’ Go clarified during a virtual press briefing with Presidential Communications Office Undersecretary Claire Castro.
‘‘More importantly, US consumers’’ not the Philippines’ will be the ones paying this tariff,’’ he added.
Go said the reduced tariff positions the Philippines as one of the most favored US trading partners in Southeast Asia, second only to Singapore, which enjoys a 10% rate. In contrast, Vietnam faces tariffs as high as 40% on certain re-exported goods, while Indonesia also has a 19% rate but with full market access to the US unlike the Philippines.
‘‘We’re the only ones who got 19% without giving everything away,’’ Go said, noting that the Philippines retained more economic safeguards than its neighbors.
The Department of Trade and Industry (DTI) welcomed the development, calling it a step forward in enhancing the country’s trade position and appeal to foreign investors. ‘‘Enhanced market access will enable the Philippines to become a more attractive destination for export-oriented investments opportunities that might have otherwise gone to our neighbors,’’ Go said.
Trade Secretary Ma. Cristina Roque emphasized that the details of the deal are still being finalized. “The Philippines and the United States will still negotiate the specifics of the agreement, including products that are covered by market access commitments on both sides,’’ she said.
Both DTI and the Office of the Special Assistant to the President for Investment and Economic Affairs assured that domestic stakeholders will be consulted and key sectors safeguarded. “All critical sectors sugar, rice, corn, poultry, pork, and seafood are protected,’’ Go said.
He also clarified that the Philippines did not offer tariff cuts on sensitive local products and instead extended zero-tariff treatment to items such as pharmaceuticals, automobiles, wheat, and soy commodities not produced locally but essential to reducing food and healthcare costs.
‘‘Medicine prices in the Philippines are too high. Lifting tariffs will make them more affordable,’’ Go said. ‘‘As for vehicles, we don’t have a domestic car manufacturing industry to protect, so opening the auto sector doesn’t hurt us.’’
Go added that removing tariffs on wheat and soy will benefit bakers, farmers, and ultimately consumers, helping to bring down the cost of bread, animal feeds, and even meat and fish.
While the new tariff rate is already in effect, Go said technical working groups are still coordinating with their US counterparts to finalize the full scope of the agreement. He also addressed social media misinformation, stressing the government’s commitment to transparency: ‘‘We are not giving away our industries. We are protecting our people while attracting investment and lowering costs. That is the heart of our trade policy,’’ he said.
Meanwhile, the Federation of Philippine Industries (FPI) voiced support for the government’s assurance that key local industries will remain protected. FPI chair Elizabeth ‘‘Beth’’ Lee welcomed the joint statement from OSAPIEA and DTI, saying it clarified that agricultural and manufacturing sectors were excluded from the concessions.
‘‘We appreciate their clear stand. Our key local sectors are not part of the tariff concessions. That’s a strong step toward protecting our industries,’’ Lee said.
She also noted that the zero-tariff imports focus on essential inputs like healthcare materials not produced locally, potentially lowering costs without undermining local producers.
However, Lee urged the government to hold structured consultations and maintain full transparency regarding product coverage to avoid unintended consequences. She said timely safeguard mechanisms are crucial to protecting vulnerable sectors and that FPI remains committed to supporting Philippine manufacturers and ensuring fair, balanced, and inclusive economic growth.
‘‘We will continue to champion the interests of Philippine manufacturers, protect workers, and foster long-term competitiveness,’’ Lee said.
Roque added that the Philippines is also pursuing free trade agreements with Canada, the United Arab Emirates, and Chile, as part of its efforts to expand market access and ensure the global competitiveness of Philippine exporters.
‘‘As global trade dynamics evolve, we will actively pursue initiatives to improve market access for Philippine products. Our focus is on building resilient, sustainable, and inclusive trade relationships that support long-term growth and prosperity for all Filipinos,’’ Roque said.
