The Philippines has opted to shield its agricultural and industrial sectors in recent trade negotiations with the United States, accepting 19 percent tariff on certain exports, trade officials said.
The decision means the government declined demands from Washington for full market liberalization in exchange for deeper tariff cuts. Other nations were willing to make more concessions.
“Japan got a lower rate of 15 percent but they gave everything, including a $550-billion investment in the US and full access to their agricultural sector,” Department of Trade and Industry Secretary Ma. Cristina Roque said.
“We didn’t give that, because we chose to protect our farmers and our industries,” she said.
Washington had sought zero tariffs on all American goods, a demand Manila did not meet, Roque said.
While the new 19 percent rate is a 1-percent improvement from the previous 20 percent, Roque conceded it might not satisfy all stakeholders.
“We gave our best offer, it’s all-out now. That’s the last offer,” she said.
“Zero tariff is not in our strategy now, or even in the future. We’re not looking to expose our sectors just to chase short-term benefits,” she said.
Roque suggested the current rate would likely be the Philippines’ final offer.
She said the DTI is increasing efforts to support potentially impacted industries.
The DTI operates 29 offices globally, including 21 trade posts, to assist Filipino businesses in establishing international connections. The agency offers direct support, such as business matching and trade missions, to help firms expand into markets beyond the U.S.
“This is also a wake-up call. We can’t rely on just one partner,” Roque said.
“DTI is ready to assist any company that wants to enter new markets. We’ve helped exporters reach buyers in the UAE, Japan, South America and more,” she said.
She said despite a limited budget, the DTI is considering increased funding to help exporters meet compliance standards in international markets.
The Philippines maintains relatively competitive tariff rates compared to several ASEAN peers.
“Japan is the only one currently with a better rate than us, and they don’t even export garments,” Roque said.
“We’re still lower than Vietnam, Cambodia and Thailand in some categories,” she said.
The DTI said it would focus on both expanding foreign markets and helping businesses maximize domestic opportunities.
