The Philippines is in talks with the United States to exempt certain local products from tariffs, according to Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).
Go confirmed that discussions are ongoing under a non-disclosure agreement. The government is seeking to protect products that the US does not produce domestically, making them potential candidates for exemption.
“We’re working on getting several of our exports exempted,” Go said, adding that US firms are expected to continue outsourcing local assembly, testing and packaging.
“We’re hoping they view the work we do here as part of the production chain that they don’t want to do in America,” he said,
Go said the US government has yet to be clear on how it plans to implement the proposed 100-percent tariff on electronic exports.
“Up to today, it’s still a gray space. We are still seeking clarification from the US and lobbying for our semiconductor exports to be exempted if there is such,” he said.
He said that other countries are making similar exemption requests and acknowledged the slow pace of communication with US authorities, with over 150 countries seeking clarification.
Go said the government’s goal is to secure a predictable business environment despite the possible imposition of a 19-percent tariff.
He said a level playing field would allow the country to compete based on its strengths, including a skilled workforce, the CREATE MORE Act, the PPP Act and expedited “green lane” investment procedures.
Go said while no major deals have been sealed yet, he pointed to the country’s latest 5.5-percent GDP growth as a sign of resilience amid global uncertainty.
“In an environment of unpredictability, 5.5-percent GDP growth is quite remarkable. It’s very difficult for businesses to make long-term investment decisions, but we are holding our ground,” he said.
