U.S. goods getting zero tariff mulled

The government is open to a zero tariff on some imported goods from the United States as a trade-off for the US to lower the 20 percent reciprocal levy on exports.

“Definitely, [we’re open to this] but not for all products,” Finance Secretary Ralph Recto said in a meeting with the media last week in Pasay City.

The Marcos administration is negotiating with the US on better terms ahead of the August 1 start of the new trade regime.

Recto said that the deep relations in various socio-economic sectors between the two countries should guide government officials toward a fair trade agreement.

“I think we already have a great plan for the negotiator,” he said.

“Our relationship with the US is not only about trade but also security. I’m sure they’re giving that some importance as well,” Recto continued.

Aside from the tariffs, Recto said free trade agreements (FTA) with the US and other countries should help strengthen the economy against global challenges.

Free trade preferred

“We prefer FTA not only with the US but also with other countries. We need to expand our markets,” Recto said.

According to the Philippine Statistics Authority, the bulk of the country’s shipments, or 15.3 percent, were sent to the US.

The Philippines’ four other major export markets included Hong Kong, Japan and China, which also represented more than 10 percent shares, while Singapore accounted for 4.1 percent.

Meanwhile, China was the top supplier of goods to the Philippines during the same period, accounting for 29.7 percent of its total imports.

This was followed by Indonesia, Japan, South Korea, and the US, which all registered shares of less than 10 percent.

According to the Department of Trade and Industry, the Philippines is still in the process of completing negotiations for five FTAs in various forms. They involve the European Union, India, the United Arab Emirates, Canada and Chile.