The US Chamber of Commerce asked the Philippines to look at the trade opportunities with the United States.
US Chamber of Commerce director for Southeast Asia Program Javiera Gallardo said the Philippines recorded a significant increase in travel goods exports to the US, including computer accessories and power cords since the imposition of additional duties on Chinese exports to the US.
“However, the data shows that the Philippines has yet to fully maximize the advantages brought by the section 301 tariffs. We found out in our study that the Philippines has an average tariff advantage of 19 percent over Chinese exports coming to the US,” she said Thursday at the a virtual economic briefing “PH-US at 75: Strengthening Ties through Sustainable Recovery.”
Section 301 of the Trade Act of 1974 grants power to the US Trade Representative to investigate and take action to enforce US rights under trade agreements, especially to certain foreign trade.
This law was used by the Trump administration to impose retaliatory tariff of an additional 25 percent on a number of Chinese goods entering US territories since 2018.
Gallardo said there were no indications yet that the Biden-Harris administration would lift the tariffs anytime soon.
She said the US Chamber of Commerce would soon share a study on the impact of Section 301 tariffs on China and its effect on neighbors in the ASEAN region.
Philippine Ambassador to the US Jose Manuel Romualdez said the US consistently ranked among the top three trading partners and top 10 sources of foreign direct investments in 2020. It was also the fourth main input source with semiconductors and integrated circuits as top products traded.
“The US accounted for a third of the total foreign pledges. Investments from the US saw substantial growth from 2019, amid a general downward trend. We are proud that many US companies including those in the Fortune 500 have found their home in the Philippines, and we hope that many companies would look to us, as they diversify and reconfigure their supply chains,” he said.
He thanked the US government for supporting global and regional initiatives to scale up vaccine production and distribution of vaccines throughout the COVAX facilities.