PEZA leverages US tariff for Japan funds

The Philippine Economic Zone Authority (PEZA) is capitalizing on the threatened 19 percent United States (US). tariff rate on Philippine goods, presenting it as a key incentive to draw in much-needed Japanese investments amid their recent decline.

- BY DEXTER BARRO II

The Philippines is set to face a 19 percent reciprocal tariff on its US-bound goods starting Aug. 7, six days after the initial deadline.

This is the second-lowest tariff rate in Southeast Asia, tied with Indonesia and only behind Singapore, which has a 10 percent rate.

PEZA Director General Tereso Panga said the relatively low tariffs make the country more favorable to investors, compared to other countries in the region with higher tariffs.

Panga said this will boost the competitiveness of the Philippines as a hub for foreign direct investments and exports.