Palace eyes ‘favorable’ trade deal with US as PHL officials negotiate tariffs

By Justine Irish D. Tabile and Chloe Mari A. Hufana, Reporters

THE Philippines expects to close a favorable deal with the United States, the presidential palace said on Monday, as key officials travel to Washington on April 29 to negotiate the 17% reciprocal tariff imposed by President Donald J. Trump as part of a global trade war that puts economic growth, jobs and wages at risk.

Trade Secretary Ma. Cristina A. Roque on Monday said the Philippine delegation will aim to bring down the US tariff rate on Philippine goods to zero.

“Of course, we’ll aim for zero tariff. But it depends on what they tell us. Because in every negotiation, there’s always the other side, right?… It’s either we get it in one go or like other countries, [go through] negotiations,” she told reporters.

Presidential Communications Office Undersecretary Clarissa “Claire” A. Castro said Special Assistant to the President for Investment and Economic Affairs Frederick D. Go had instructed them to wait for the dialogue’s outcome.

“His instructions were to just wait and see what the outcome of the talks and negotiations would be,” she said in Filipino during a news briefing at Malacañang.

She did not elaborate on the country’s negotiation strategy or the level to which they hope to bring down the 17% tariff rate.

“Let’s just see what’s good for the Philippines and for our relationship with the US,” she said.

Ms. Roque and Mr. Go will be in Washington from April 29 to May 2 for tariff talks with the US Trade Representative.

Ms. Roque said the Trade department’s strategy is to offer enhanced market access to key US exports to the Philippines such as automobiles, dairy products, frozen meat, and soybeans.

“In any negotiation, we cannot just take and take… But when we get into a negotiation, we’ll always try to protect what’s here. It’s useless to negotiate if we kill (our own industries),” she said.

However, Ms. Roque said they will prioritize local industries despite their openness to improve market access for US goods.

“When we go there, we first have to protect the interests of the people here… Because it has to be win-win for all. We cannot have a scenario where one sector wins over the others,” she added in mixed English and Filipino.

The US imposed a 17% tariff on the Philippines, although this has been suspended until July. It was the second lowest in Southeast Asia, after Singapore.

“Of course, we expect that in one go we can already get what we want because we’re starting at a low percentage, not like other countries. And we also have good relations with the US, so we’re hoping that it would not be a problem for them to lower the tariff,” she said.

Asked if the Philippines should wait for the outcome of other countries’ negotiations, Ms. Roque said the Philippine delegation is ready for the meeting.

“Let’s wait until we get there. This is a negotiation. They also need the market. Remember, the Philippines is big, and we have a good relationship with the US. And then just by looking at our tariff, which is already low, it says a lot of things also,” she added.

Sought for comment, Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde, the Philippines may leverage its chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2026 during the trade talks.

He said the US may maximize this opportunity to gain further solid ground within the regional market vis-à-vis China.

“With the US as the region’s largest source of foreign direct investment, we can further expand our regional partnership — the Trade and Investment Facilitation Agreement,” he said in a Facebook Messenger chat.

The Trade and Investment Framework Agreement, signed in 2006, aims to further partnership between the US and ASEAN, collectively the world’s fifth-largest economy.

Mr. Cortez said the Philippine delegation may successfully negotiate to lower the 17% tariffs if the US feels it can also gain more flexibility in trade.

“For the negotiation, we can include lower tariffs for US imports from us, such as semiconductors. At the same time, we could also leverage our service providers, like business process outsourcing (BPOs), who comprise an integral part of both the country’s and the US’ service sectors,” he said.

A US-Philippines free trade agreement is “undoubtedly the most viable way,” he added.

However, IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa called the Philippine government’s offer to further lower tariffs on US goods a capitulation rather than a negotiation.

“It is a surrender of economic sovereignty, dressed up as diplomacy to continue an imagined strong relationship with the US,” he said in a Viber message.

While the US is raising tariffs to protect its economy, Mr. Africa said the Marcos administration is weakening the Philippine economy by continuing to believe in “free trade.”

He warned that further tariff cuts will hurt local farmers and manufacturers and called for a more independent, domestically driven development strategy.

The Philippines should also prioritize protecting its domestic industries and pursue national industrialization, like the US is doing, according to Mr. Africa.

Federation of Free Workers President Jose Sonny G. Matula said the Philippines is gradually building strengths in key policy areas that align with US interests.

In terms of intellectual property, the labor leader noted that the Philippines upgraded its enforcement under the Intellectual Property Office of the Philippines (IPOPHL) and signed several treaties.