Philippines may lose P30B from zero-tariff deal on US goods

THE PHILIPPINES risks losing as much as P30 billion in revenues if the government implements a zero-tariff scheme on selected American goods, the Bureau of Customs (BoC) told congressmen on Tuesday.

- Kenneth Christiane L. Basilio

Customs Commissioner Ariel F. Nepomuceno said the agency projects P27 billion to P30 billion in collections from US imports such as vehicles, pharmaceuticals and soybeans this year. That revenue, however, would be foregone should tariffs be scrapped as part of trade talks with Washington.

"The reduction of tariff from our US imports... will impact our collections," he told a House of Representatives hearing.

The discussions come as the US seeks wider trade concessions from Manila. US President Donald J. Trump earlier announced a 19% tariff on Philippine exports to the US, slightly lower than the 20% floated in August. In turn, the Philippines agreed in principle to exempt US cars, wheat, soybeans and medicines from domestic tariffs.

The Philippines had initially faced a 17% tariff in April.

Trade Undersecretary Allan B.

Gepty said last month zero tariffs on American goods had not been formally granted, stressing that negotiations were continuing. Finance Secretary Ralph G. Recto also said in July that foregone revenues could reach about P6 billion should the country agree to a narrower set of exemptions.