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Philippines Pursues Favorable Trade Deal with U.S. Amid Tariff Talks

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Philippines Pursues Favorable Trade Deal with U.S. Amid Tariff Talks

by Daisy D.
04/29/2025
in Tariffs & Duties

The Philippines is optimistic about securing a favorable trade agreement with the United States, according to the presidential palace, as key officials prepare to travel to Washington to negotiate the 17% reciprocal tariff imposed on Philippine goods. The delegation, led by Trade Secretary Ma. Cristina A. Roque, will be in Washington from April 29 to May 2 to hold talks with the U.S. Trade Representative.

Secretary Roque expressed the country’s goal of reducing the tariff rate on Philippine exports to zero, although she acknowledged that the outcome would depend on the negotiations. She emphasized the importance of protecting local industries while pursuing enhanced market access for U.S. goods, including automobiles, dairy products, frozen meat, and soybeans.

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The U.S. tariffs on the Philippines, which were temporarily suspended until July, have been a source of concern, though they remain lower than those imposed on many other Southeast Asian countries. The Philippines, with its strong trade relationship with the U.S., remains hopeful that these negotiations could result in a reduction of the tariff rate.

During a briefing, Presidential Communications Office Undersecretary Clarissa Castro explained that the government is focused on the outcome of the talks but refrained from detailing specific negotiation strategies. She noted that the priority is achieving a favorable deal for the Philippines while maintaining a good relationship with the U.S.

While the Philippine delegation is prepared for the discussions, analysts suggest that the country may use its upcoming ASEAN chairmanship in 2026 to strengthen its negotiating position, particularly in relation to U.S. foreign direct investment.

Some experts, such as Josue Raphael J. Cortez from De La Salle-College of St. Benilde, believe that a potential free trade agreement between the U.S. and the Philippines could help reduce the tariff burden and improve economic cooperation. However, IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa cautioned that further tariff reductions might undermine domestic industries, particularly local farmers and manufacturers.

As the negotiations continue, the Philippines remains focused on achieving a balanced approach that supports local industries while seeking to expand trade opportunities with the U.S.

#TradeDeal #USTariffs #PhilippinesTrade #TariffNegotiations #GlobalTrade

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