PH misses out on trade gains

While the Philippines would be insulated from the tariff wars initiated by United States (US) President Donald Trump, it cannot reap the potential benefits from the supply chain restructuring of affected businesses in targeted countries.

- By BEN ARNOLD DE VERA

This highlights the need for the Philippines to enhance the competitiveness of its manufacturing sector in order to better compete with its neighbors, economists said.

“The Philippines is much less exposed to Trump’s tariffs, certainly relative to the likes of China, India, and Vietnam. Nonetheless, the flipside is that the Philippines is unlikely to benefit from continued supply chain diversification due to higher tariffs on China, given the structure of its export basket,” MUFG Global Markets Research senior currency analyst Michael Wan said in a March 28 report.