The Philippine Chamber of Agriculture and Food Inc. (PCAFI), an umbrella group of 48 agricultural industry associations, welcomed the recent reduction in US tariffs on Philippine goods, but expressed hopes for further cuts.
The new US tariff rate of 19 percent on Philippine agricultural products, while still higher than the previous reciprocal rate of 17 percent, is a “step in the right direction” from 20 percent, PCAFI said in a statement.
“We still hope that the US tariffs can be reduced further for the benefit of our agricultural exporters,” the group said.
PCAFI said the Philippines now has the second-lowest tariff rate among Southeast Asian countries, which it said gives local agricultural exports an edge over regional competitors.
“We commend the government’s trade team for safeguarding the interests of critical local agriculture sectors,” the PCAFI said.
It said the Philippines secured better terms without significant concessions, unlike Vietnam and Indonesia, which it said had to give up more in similar agreements.
Negotiators successfully excluded essential agricultural products, including sugar, corn, rice, chicken, pork, and seafood, from concessions, preserving existing tariff protections for these key sectors, the group said,
The two main concessions, on wheat and soy products, pose no substantial risk to local industries, PCAFI said.
“In fact, they may bring benefits in the form of lower-cost animal feed inputs. These products are not produced domestically and already account for a large share of agricultural imports from the US,” PCAFI said.
