The Philippine Chamber of Commerce and Industry (PCCI) said Thursday it welcomes the 1-percent reduction in US tariffs on select Philippine exports, from 20 percent to 19 percent, as a positive, though modest, move toward stronger bilateral trade relations.
“Every percentage point counts. This reduction, while small, can help improve the competitiveness of Philippine products in the US market, especially for micro, small and medium enterprises [MSMEs] looking to enhance profit margins and pricing flexibility,” said PCCI president Enunina Mangio.
The PCCI, however, tempered its expectations, saying that the tariff cut alone is unlikely to create a major surge in export.
“The impact will mostly benefit sectors already shipping affected goods to the US. Broader constraints like logistics costs, global demand, production capacity, and regulatory hurdles continue to pose bigger challenges,” Mangio said.
The business group called on government to sustain efforts to secure more comprehensive tariff relief, push for the removal of non-tariff barriers (NTBs) such as sanitary and phytosanitary (SPS) measures and pursue deeper trade engagements through frameworks like the Indo-Pacific Economic Framework (IPEF) and renewed discussions on trade preference programs like the Generalized System of Preferences (GSP).
The Federation of Free Farmers (FFF) raised concern over possible concessions granted during the recent trade discussions. FFF national manager Raul Montemayor questioned the lack of clarity on the full scope of commitments made by the Philippines, particularly in light of conflicting statements from US and Philippine officials.
While President Ferdinand Marcos Jr. and key economic officials assured that sensitive agricultural products such as pork, poultry, rice and corn remain protected, the FFF warned that the absence of a formal US confirmation leaves room for broader liberalization demands later on.
Montemayor also cautioned against potential trade-offs, including increased minimum access volumes, relaxed quarantine rules, and continued low tariffs on farm imports.
On its part, the Philippine Chamber of Agriculture and Food Inc. (PCAFI), an umbrella group of 48 agricultural industry associations, welcomed the reduced 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.
