Philippine Ambassador to the United States Jose Manuel Romualdez said Tuesday that pursuing a bilateral free trade agreement with Washington is not a priority at this time as both sides remain focused on tariff-related negotiations.
Ambassador Romualdez said overall trade relations between the two countries remain stable. He said most of Manila’s requested tariff exemptions have been granted, including relief for the semiconductor sector, which is a key Philippine export industry largely composed of American-owned firms operating in the country.
“We’ve had a number of conversations with the U.S. Department of Trade, and we’ve been very happy with the exemptions that we’ve requested because almost all have been granted. That has already stabilized our basic request for our trade to be more balanced,” Romualdez said during the annual Philippine briefing hosted by the US-Philippines Society.
He said that earlier proposals to impose a 19-percent tariff on certain industries prompted discussions with US industry groups, including the Semiconductor and Electronics Industry of the Philippines, inc. (SEIPI). These discussions helped push for exemptions to avoid disruptions in global supply chains.
The agricultural sector has also seen significant gains. Romualdez said as of late 2025, more than $1 billion worth of Philippine agricultural exports enjoy zero tariff access to the US market.
The exemption followed a Nov. 14, 2025 US executive order that removed a proposed 19-percent reciprocal tariff on key Philippine products. These products include coconuts, bananas, pineapples, tuna and tropical fruit juices.
“Bottom line, it’s pretty stable. We’re still continuing to talk about other issues here and there, but at the end of the day, we’re quite happy,” Romualdez said. He said the Department of Trade and Industry is leading regular engagements with US counterparts.
While the United States has expressed openness to a bilateral free trade agreement (FTA), Romualdez said the Philippines is not yet prepared to enter formal negotiations.
“Perhaps this is not the time. We want to solidify our current agreements on tariffs first,” he said. He recalled that exploratory discussions on a potential FTA date back to the first Trump administration.
Romualdez said recent legislative reforms in the Philippines could support a future FTA. These reforms include extended land lease terms and measures easing certain labor restrictions, though he emphasized that other trade priorities remain more urgent.
