The Philippines could stand to benefit from the opportunities presented by a looming trade war between the United States and its trading partners, the National Economic and Development Authority (NEDA) said.
Undersecretary Rosemarie Edillon told reporters in a briefing at the presidential palace on Monday the country could position itself as a “very attractive alternative source of exports to the US.”
“So, amid external uncertainties and the looming trade war, the country can actually benefit as an alternative product source by strengthening relevant sectors such as, let’s say, the chip and the semiconductor industry among others,” she added.
The country’s existing free trade agreements and bilateral accords with different countries such as Canada, Mexico and other regional partners may also come in handy when it comes to increasing foreign trade, the NEDA official said.
“We can gain a lot in our regional free trade agreements. So we’re assuming na in case na ‘yung Canada, and let’s say Mexico, baka ang gagawin nila i-ma-maximize nila ‘yung mga regional free trade agreements, and this is where we can really benefit (We can gain a lot in our regional free trade agreements. So we’re assuming that in the case of Canada, and let’s say Mexico, decide to maximize their regional free trade agreements, this is where we can really benefit),” she said.
US President Donald Trump has threatened to implement a 25 percent additional tariff on imports from Canada and Mexico amid ongoing immigration and deportations issues. This would be besides the recently imposed 10 percent tariff on imports from China.
Edillon, meanwhile, said the current trade war is not expected to have an impact on the employment of Filipinos, but it might indirectly affect the peso exchange rates and interest rates.
She said the high tariffs imposed by the US could lead to higher inflation in America, prompting the world’s largest economy to tap its Federal Reserves. This could impact interest rates globally, including the Philippines.
“So, iyon ang magiging epekto sa atin through the interest rates and then through the exchange rates, ganoon siya. Pero in terms of employment, wala naman kaming nakikita offhand (So, that would be the effect on us, interest rates and then the exchange rates. But in terms of employment, offhand, we do not see any impact),” Edillon added.
Amid these developments, the Philippines would continue to push the administration’s economic transformation agenda and ensure the Philippine economy remains robust by enhancing growth drivers through innovation, technology, and strategic investments.
USAID-funded studies
On the suspension of the works and programs of various American agencies, such as the US Agency for International Development (USAID), pending a review of its mandate and performance by the Trump administration, Edillon said it has not directly impacted the current programs and studies funded by the US.
Edillon said USAID-funded studies by NEDA are still ongoing.
“We will have to wait until ma-resolve nila iyong isyu na iyon. But with respect to the ongoing na mga technical assistance, we are actually still continuing. So, kunwari sa amin may mga studies, we are still continuing with the studies (We will have to wait until they resolve their issues. But with respect to the ongoing technical assistance, we are actually still continuing. So, for example, the studies we have, we are still continuing with the studies),” she said.
Out of their “goodwill” people from the USAID and similar agencies are continuing to provide inputs that sustain the ongoing studies.
