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Frederick Go clarifies U.S. trade deal: Consumers, not Phl, pay tariffs

During a press briefing in Malacanang, Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go clarified that it is not the Philippines who will bear the cost of the tariffs imposed by the United States, but the American consumers. He explained that when tariffs are applied, the additional cost is usually passed on to the buyers. In this case, it will be the consumers in the U.S. who will pay more, not Filipino exporters. He also emphasized that the reduction of tariffs to 19% is a significant development for the Philippines. This rate is now the second lowest in Southeast Asia. According to Go, this makes the country more attractive to foreign investors. It could encourage them to set up operations here and export their products globally.
During a press briefing in Malacanang, Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go clarified that it is not the Philippines who will bear the cost of the tariffs imposed by the United States, but the American consumers. He explained that when tariffs are applied, the additional cost is usually passed on to the buyers. In this case, it will be the consumers in the U.S. who will pay more, not Filipino exporters. He also emphasized that the reduction of tariffs to 19% is a significant development for the Philippines. This rate is now the second lowest in Southeast Asia. According to Go, this makes the country more attractive to foreign investors. It could encourage them to set up operations here and export their products globally. Photo by Yummie Dingding for DAILY TRIBUNE
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Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs (SAPIEA), provided clarifications on various aspects of the trade agreement between the Philippines and the United States.

"Mayroon po akong apat na gustong i-explain po sa inyo. Ang unang-una gusto kong ipaliwanag sa inyo na ito dahil kapag mababa ang ating taripa makakaattract po tayo ng mga foreign investors in the Philippines para magtayo ng mga pabrika magtayo ng mga negosyo sa Pilipinas para makapagexport ng kanilang mga produkto sa Amerika," Go explained.

Second, he explained that the tariffs will not be paid by the Philippine government, but by American importers and the buyers of products from different parts of the world. In the end, these costs will be shouldered by the consumers.

Third, he highlighted the 19 percent tariff imposed on Philippine exports, which is among the lowest in Southeast Asia — second only to Singapore, which has a 10 percent tariff. “Bakit po ito importante? Importante ito dahil kapag mababa ang ating taripa makakaattract po tayo ng mga foreign investors in the Philippines para magtayo ng mga pabrika magtayo ng mga negosyo sa Pilipinas para makapagexport ng kanilang mga produkto sa Amerika,” he added.

According to Go, if we don’t lower our tariffs, foreign direct investors might choose to set up their factories or businesses in other Southeast Asian countries instead.

Earlier, in a joint statement with Trade and Industry (DTI) Secretary Cristina Roque, they said that this could encourage foreign companies aiming to access the U.S. market to relocate their operations to the Philippines rather than to other ASEAN countries.

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