MANILA – The Philippine Chamber of Agriculture and Food Inc. (PCAFI) on Friday lauded the government’s trade negotiators after they secured a 19 percent tariff for PH exports, down from the previous 20 percent.
The development follows President Ferdinand R. Marcos Jr.’s meeting with US President Donald Trump, which the latter described as a “beautiful visit” at the White House.
“We commend the government’s trade negotiators for protecting critical local agriculture industries in the negotiations,” the PCAFI said in a statement.
Although higher than the initial 17 percent reciprocal tariffs, the PCAFI said that the recent reduction may still be considered a “positive development.”
“They were able to lower the tariff rate at minimal costs to the country compared to other countries like Vietnam and Indonesia that had to sacrifice a lot, as what Special Assistant to the President for Investment and Economic Affairs Frederick Go mentioned,” it added.
Currently, the Philippines holds the second-lowest tariff rate among Southeast Asian countries, next to Singapore’s 10 percent, giving it a competitive edge over regional exporters of similar agricultural goods.
In the same negotiations, the US slashed tariffs on Indonesian exports from 32 percent to 19 percent, and Vietnam’s from 46 percent to 20 percent.
“The silver lining of the recent developments is the fact that the Philippines has the second-lowest tariff rate among Southeast Asian countries, giving us a tariff advantage against neighboring countries that produce and export almost the same agricultural products as ours,” the PCAFI said.
The group, however, expressed hope that the imposed tariff can be lowered further as the trade deal between Manila and Washington, D.C. has yet to be finalized.
Earlier, Go clarified that the Philippines made two concessions, including wheat and soy products, which are not expected to put the local industries at a disadvantage, as they may help bring cheaper animal feed products.
He also assured that sugar, corn, rice, chicken, pork, and seafood are not part of the concessions.
Meanwhile, Agriculture Secretary Francisco Tiu Laurel Jr. said it remains “too early to assess” the net benefit of the 19 percent tariff on the agriculture sector.
In 2024, the Philippines posted a USD3.98 billion trade surplus with the US, though it still recorded a USD1.95 billion agricultural trade deficit, an improvement from the USD2.36 billion deficit in 2023. (PNA)