An official of the Department of Trade and Industry said yesterday the United States Trade Policy Agenda is aligned with the Philippines’ own, particularly on two important products: strategic goods and agriculture.
“I see a lot of alignment or complementarities in trade policies between the economies of the Philippines and the US,” DTI Undersecretary Allan Gepty said in a text message. He was asked to react to the US Trade Representative’s remarks on Monday.
Gepty said the US emphasizes the value and importance of security, which are also aligned with the Philippines’ priorities.
“It is our policy to take and enforce effective measures to establish domestic controls to prevent the proliferation of weapons of mass destruction and their means of delivery, and to maintain international peace and security,” Gepty said.
The Philippines is a strong advocate of a strategic trade regime where it regulates trade in dual goods or strategic goods, he added.
To promote economic growth, Gepty said the Philippines facilitates trade and investment through the responsible management of strategic goods and the provision of related services while ensuring the international supply chain is stable and secure.
One of the policies to this end is the Strategic Trade Management Act which, he said, facilitated the execution of multiple contracts regarding intangible transfers of technology from US companies to Philippine firms.
The DTI, in a briefing material posted on its website, said it is tasked to regulate the trade of strategic goods defined as products that, for security reasons or due to international agreements, are considered to be of such military importance that their export is either prohibited altogether or subject to specific conditions.
Gepty said the US is the top country of destination in terms of strategic goods exports. The other top markets are China, Singapore, Malaysia, Germany and Japan.
The Strategic Trade Management Office of the DTI in its annual report said export of strategic goods rose 4.8 percent to $15.2 billion in 2024 from $14.5 billion in 2023.
The agency also paved the way for robust manufacturing of dual goods such as semiconductors and electronic products in the country.
Data from the Philippine Statistics Authority showed the Philippines exported $61 billion worth of electronics and semiconductor products, with the US as the biggest buyer at $6 billion.
On digital trade, Gepty said the Philippines is also active in pursuing a stronger regime or policies in the digital economy.
“In our FTAs, (free trade agreements) we welcome rules and disciplines in this area. This is not to mention that ASEAN is also negotiating a Digital Economy Framework Agreement,” he said.
Noting US interest to export agricultural products, Gepty said it may be worth noting that US is the country’s major source of agricultural products accounting for around 20 percent.
PSA data showed the Philippines imported $5.5 billion worth of feeding stuff for animals, cereals and cereal preparations, food and live animals, and dairy.
“This means that the US is a reliable partner of the Philippines even in food security,” he added.
Gepty said the Philippines advocates fair trade and labor practices, just like the US, so that foreign investments in the country can be assured of a fair business environment.
“In sum, there is an imperative need to pursue a stronger Philippines-US economic relations not only to boost the respective production capabilities of the two economies fueled by innovation but to also ensure a stable and secure supply chain,” Gepty said.
The USTR website said US goods trade with the Philippines reached an estimated $23.5 billion in 2024. US goods exports to the Philippines in 2024 were $9.3 billion, up 0.4 percent ($38.8 million) from 2023. US goods imports from the Philippines amounted to $14.2 billion in 2024, up 6.9 percent ($912 million) from 2023.
The US goods trade deficit with the Philippines was $4.9 billion in 2024. **
