DA chief: Phl should boost US sales with lower tariffs than ASEAN

Agriculture Secretary Francisco Tiu Laurel Jr. said the government should push for more exports to the United States following a lower tariff compared to other ASEAN member states (AMS).

In a press conference in Quezon City Thursday, Laurel said, “As far as agriculture is concerned, among the country’s competitors for exporting to the US are Indonesia, Vietnam, and Thailand.”

“Based on the tariff rates I’ve seen, we have the lowest. We are among the lowest among our neighbors. So, it just means that we should push for more sales to the US of our products,” he added.

On 2 April (US time), US President Donald Trump announced “Liberation Day” tariffs, which include a 10 percent baseline on all nations. Under this tariff, 11 AMS are imposed with tariffs, with Cambodia having the highest at 49 percent, followed by Laos at 48 percent and Vietnam at 46 percent.

Meanwhile, Myanmar had 44 percent, Thailand 36 percent, and Indonesia 32 percent.

Brunei and Malaysia had a 24 percent tariff, followed by the Philippines at 17 percent. Timor-Leste and Singapore had the lowest tariff imposed at 10 percent.

When asked if this is good news, the Agri chief said, “It depends on the commodity.”

“Because there are commodity exemptions that we need to look into. [S]o, please give me one week and we will give you a definite positive and negative,” he added.

‘Positive than not’

Moreover, Laurel said the lower tariff compared to AMS, in general, is positive.

“Technically, if you look at it from a general perspective, this is positive for us. We have lower tariffs compared to others. But of course, we need to look at it per commodity,” he noted.

He used the example of tilapia, noting that if the tariff on the fish filets or whole tilapia is only 17 percent in the US, while Vietnam, a major supplier, faces 46 percent, and Thailand faces 34 percent, the Philippines has an advantage.

Laurel said he had given instructions to assess the entire range of products being exported and determine which would be affected.

“But in general, I think it's more positive than not,” he said.

Data from the Department of Trade and Industry show that the US accounted for 17 percent of Philippine exports last year, with electronic products comprising 53 percent of the total exports to the US.