Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said Wednesday that the Philippines’ expected growth this year is unlikely to be significantly affected by the 19 percent United States–imposed tariff.
“Not really that much,” he said when asked whether it will affect the gross domestic product projection, citing diversified export markets.
“[B]ecause much more exports go to many other countries, and [w]hat happens to those exports with all this reconfiguration of tariffs [m]atters more. Also, how a [country’s imports] are affected by the tariffs, [i]t's those that are really more significant in terms of quantitative impact,” he told reporters on the sidelines of an Israeli agribusiness forum in Makati City.
Meanwhile, he noted that the country would want to improve the terms of what it can get as much as possible with the U.S.
“But insofar as the government targets, for example, our GDP, that would have...no effect,” he noted.
Moreover, he said the country needs to diversify its export market and improve productivity and infrastructure.
“But the focus should really be on addressing the constraints to grow, faced by businesses, entrepreneurs, including startups in the country,” he said.
'FTA with Israel needs to be studied'
Meanwhile, Balisacan said the government has to study the free trade agreement (FTA) with Israel.
“We'll study, but anything that will improve the free flow of our exports and imports should benefit the country. If we can get cheaper products from Israel, cheaper than what we can get in other countries, then, of course, even if we import from them, we'll be better off,” he said, looking forward to the exchange of innovation.
“But I think the greater benefits of that would be in the form of innovations that we can do, [i]t's those benefits. I would like to see those more than just the direct value of imports and exports,” DEPDev chief added.
This came after both countries signaled willingness to begin FTA talks.
On Tuesday, a summary of discussions between the Philippines and Israel was signed. This came after the inaugural Philippines-Israel Joint Committee meeting held on 1 July 2025 where trade officials from both countries discussed developments in agriculture, innovation, and trade cooperation.
Philippine trade chief Cristina Roque said that they still have to start consultations with different stakeholders and industries.
“We hope to push for this FTA with Israel, and we want to accomplish it before the term of PBBM ends” she said.
Meanwhile, Israeli Minister Barkat said Israel is a believer in an FTA, citing confidence in the relationship between the two countries.
Israel has over 16 FTAs.