Gov't vows to protect local industries as it finalizes US trade deal

THE GOVERNMENT on Thursday said that the details of the US-Philippines deal concerning the US reciprocal tariff are still being finalized but noted that the government will protect the interest of Philippine domestic industries.

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“The details are not yet final. The Philippines and the US will still have to negotiate the details of the agreement, including products that are covered by market access commitments on both sides,” Trade Secretary Ma. Cristina A. Roque said ina statement.

The statement was jointly issued by the Department of Trade and Industry (DTI) and the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).

The government will be working closely with stakeholders in finalizing the trade deal with the US.

“We are mindful of the sensitivities of our domestic stakeholders, and the same will be duly considered in the negotiations,” Ms. Roque said.

Special Assistant to the President for Investment and Economic Affairs Frederick D. Go said that the “concessions we will extend are strategic to the Philippines.”

“These are products that we do not locally produce and are critical inputs to reducing the cost of healthcare, for example,” he said.

The two officials had accompanied Philippine President Ferdinand R. Marcos, Jr. during his meeting with US President Donald J. Trump at the White House.

After the meeting, Mr. Trump announced a 19% tariff would be imposed on Philippine goods, while the Philippines will open its markets to US goods.

The 19% tariff rate is slightly lower than the threatened 20% but is higher than the 17% "reciprocal tariff" announced by Mr. Trump in April. The new tariff will be implemented starting Aug. 1.

"This revised tariff rate places the Philippines among the most competitive Southeast Asian economies trading with the US," the DTI and OSAPIEA said.

The Philippines' new US tariff rate is now the same as Indonesia, and slightly lower than Vietnam's 20%. Singapore faces the lowest US tariff rate of 10%.