DTI negotiates to improve the US-imposed tariff

The country’s top negotiator for trade talks is now in negotiations with the United States government to further lower the 19 percent tariff imposed by US President Donald Trump on the Philippines.

According to Trade Undersecretary Ceferino Rodolfo, fellow DTI official, Undersecretary Allan Gepty is currently negotiating with his counterpart in the US.

However, when asked to provide a list of products included in the tariff concession, Rodolfo did not provide details as they are a signatory to a non-disclosure agreement (NDA).

“It’s covered by an NDA while we are still negotiating. Usec. Allan is negotiating,” Ceferino told reporters in a Viber message.

Earlier, Special Assistant to the President for Investment and Economic Affairs, Undersecretary Frederick Go, said agricultural products such as sugar, corn, rice, pork, and chicken meat are not included in the zero percent concessions that they gave out to the US, but only soybeans, wheat, pharmaceuticals, and automobiles, however, noted that negotiations are not yet done.

“Our technical working groups will continue to work with their counterparts from America to finalize the details of this arrangement. Marami pang kailangang pag-usapan, so hindi pa po tayo tapos,” he said.

The negotiating team should double its efforts if it wishes to lower the tariffs, as the 1 August deadline for its implementation is nearing. 

19 percent for now

Meanwhile, Trade Secretary Cristina Roque, during an ambush interview at the launch of Bagong Pilipinas National Trade Fair at the SM Megamall in Mandaluyong City, said the 19 percent tariff for the Philippines, for now, is final.

“For now, since it was announced by President Trump, then, it’s final. But of course, we are (really) hoping to bring it down, that is what we are hoping for, but I don’t think there is a possibility because it was already announced by Trump,” she said.

She stressed that other countries, particularly Japan, received a better deal in concessions because they gave up everything for the US.

Japan gets 15 percent reciprocal tariffs with the US.

“They got 15 percent because they gave everything. They gave $550 billion investment to the US, which we did not do. We did not give up our agricultural sector, and we still opted to protect our farmers,” Roque explained.

She revealed that the original request of the US was for the Philippines to give all the products that they want for imports, but they did not comply, which reason why the negotiating team did not secure the reciprocal tariffs they are eyeing.

Roque stressed that the government is preparing contingency measures for those sectors affected by the 19 percent tariff, and the 0% import concession with the US.

“Never put our eggs in one basket. I mean, the US is one market, but we have the whole world as the entire market. We cannot just rely on one; we should be supplying to the world so that whatever happens to one, we have other options. That is why the DTI is very aggressive, all our 29 trade offices, in doing expos, road shows, to attract more investors,” according to Roque.

European Chamber of Commerce of the Philippines Executive Director, Florian Gottein, earlier told the DAILY TRIBUNE that the recent imposition of the 19 percent tariff gives a strong signal for the Philippine government to consider other markets, especially the European Union (EU).

“It is an opportune time for the Philippine government to further strengthen trade ties with other countries. The EU remains a strategic and high-potential destination for Philippine goods, especially with the EUGSP+ in place and ongoing negotiations on the EU-Philippines Free Trade Agreement,” he said. (RAFFY AYENG)