THE Philippines expects stronger export growth after avoiding a US trade investigation targeting countries with large trade surpluses, giving the country a potential tariff advantage over regional competitors, a senior Board of Investments (BOI) official said.
Speaking on the sidelines of the Visayas leg of the Board of Investments’ 2026-2028 Strategic Investment Priority Plan (Sipp) Roadshow in Cebu on Friday, July 31, 2026, BOI managing head and Trade Undersecretary Ceferino S. Rodolfo said the country’s exports to the United States—particularly semiconductors and electronics produced by Philippine Economic Zone Authority (Peza) locators—have been a key driver of record export growth.
“The US market has been a significant contributor to our export expansion, particularly for semiconductor and electronics products,” Rodolfo said.
He said the Philippines was excluded from the United States’ “excess capacity” investigation, which covers countries accused of unfairly competing with American industries through large trade surpluses. Indonesia, Malaysia, Thailand and Vietnam are among the countries included in that probe.
The Philippines, however, was included only in a separate investigation on forced labor involving around 60 countries.
Rodolfo clarified that the US investigation does not allege the existence of forced labor in the Philippines. Instead, it examines whether countries have adequate safeguards to prevent the importation of goods or components allegedly produced using forced labor abroad.
Following the investigation, the US imposed a 12.5 percent tariff on Philippine exports under the forced labor review, while a handful of countries received a 10 percent rate.
Joint administrative
To address Washington’s concerns, the Departments of Trade and Industry, Finance, and Labor and Employment signed a joint administrative order prohibiting the importation of goods produced through forced labor. The measure has already been transmitted to US authorities for evaluation.
Rodolfo said the US government indicated it could revise the tariff at any time should it find the Philippine measures sufficient.
“We are in a situation where we could potentially lower that 12.5 percent tariff to 10 percent,” he said.
More importantly, he said, the Philippines’ tariff exposure is effectively capped at 12.5 percent, with the possibility of falling to 10 percent, while competing exporters remain vulnerable to additional duties under the ongoing excess-capacity investigation.
According to information received by Philippine trade officials, the results of the US excess-capacity investigation are expected soon, with some affected countries potentially facing tariffs of as much as 25 percent.
“If that happens, it will further improve the Philippines’ competitive position,” Rodolfo said, adding that Cebu and the Visayas stand to benefit given the region’s strong semiconductor and electronics manufacturing base.
Roadshow
The 2026-2028 Sipp was approved by the Board of Investments in coordination with the Fiscal Incentives Review Board and the investment promotion agencies.
It has a more structured approach to investment promotion and includes the New Modern Basic Needs category, which consolidates priority activities across manufacturing, agriculture, services, infrastructure, logistics, healthcare, and energy.
The Cebu roadshow gathered government officials, local government units, business organizations, investors, diplomatic representatives and development partners to present the government’s updated investment priorities and incentives.
In his opening remarks, Rodolfo said the new Sipp serves not only as an investment promotion tool but also as a roadmap for developing industries that will drive the country’s next phase of economic growth.
“Through this roadmap, we aim to attract investments that will help build the industries that drive innovation, competitiveness and long-term economic growth,” he said.
The roadshow highlighted Cebu’s role as a major investment hub in the Visayas, citing its strengths in semiconductors, electronics, advanced manufacturing, engineering and technology-enabled services, supported by a skilled workforce and strong global connectivity.
Finance Secretary Frederick D. Go, in a recorded message, underscored the Sipp’s role in advancing the country’s long-term industrialization agenda.
The Cebu roadshow followed the Luzon leg held in July and will be followed by a final leg in Davao as the BOI continues its nationwide campaign to encourage investments under the newly approved 2026-2028 SIPP. / KOC