The Department of Trade and Industry (DTI) welcomed the U.S. decision to lower its reciprocal tariff rate from 20 percent to 19 percent following President Marcos’ recent visit.

In a joint statement, Secretary Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, and DTI Secretary Cristina A. Roque highlighted that the development could encourage foreign companies aiming to access the U.S. market to relocate their operations to the Philippines rather than to other ASEAN countries.

The adjusted tariff rate positions the Philippines as one of the most competitive Southeast Asian countries trading with the U.S. At 19 percent, the country now holds the second-lowest tariff rate in the region, next only to Singapore’s 10 percent.

“Enhanced market access will enable the Philippines to become a more attractive destination for export-oriented investments—opportunities that might have otherwise gone to our neighbors," Sec. Go stated.

The outcome of the meeting serves as a strong start to maintain the country’s comparative advantage to the largest export market and, overall, one of the country's major trade and investment partners.

Trade and Industry Secretary Ma. Cristina Roque remarked that “the details are not yet final. The Philippines and the United States will still have to negotiate the details of the agreement including products that are covered by market access commitments on both sides.”

The Philippines is actively negotiating free trade agreements with other key trading partners, including Canada, the United Arab Emirates, and Chile. These agreements are set to create new opportunities, strengthen global trade partnerships, and maintain exporters' competitiveness amid the growing complexities of international trade.