The Philippine government on Thursday assured the public that domestic industries will be protected under the evolving reciprocal trade arrangement with the United States, even as both sides continue to hammer out the final details of tariff commitments.
In a joint statement, Special Assistant to the President on Investment and Economic Affairs Secretary Frederick Go and Trade Secretary Cristina Roque said the Department of Trade and Industry (DTI) will work closely with relevant stakeholders to ensure that “sensitivities of local industries are duly considered.”
“The concessions we will extend are strategic to the Philippines,” Go said. “These are products that we do not locally produce and are critical inputs to reducing the cost of healthcare, for example.”
Roque added: “We will continue to protect major domestic agricultural and manufacturing industries. They are not included in our concessions.”
The two officials emphasized that the details of the Agreement on Reciprocal Trade with the United States are not yet final, with market access commitments on both sides still under negotiation.
President Ferdinand Marcos Jr. announced on Wednesday that his meeting with US President Donald Trump in Washington DC on July 22 resulted in a slight drop in the US tariff on Philippine exports—from 20 percent to 19 percent.
The joint statement pointed out that this revised rate places the Philippines as the second-most competitive Southeast Asian economy trading with the US, behind only Singapore’s 10 percent. Other Asean countries face US tariffs ranging from 19 to 40 percent.
“Enhanced market access will enable the Philippines to become a more attractive destination for export-oriented investments—opportunities that might have otherwise gone to our neighbors,” Go said.
He clarified that major agricultural products such as rice, sugar, corn, pork, chicken, and seafood are not part of the concessions. The zero-tariff privilege granted to the US only covers items not produced locally or in very limited supply, such as wheat, soybeans and pharmaceuticals.
“These allow us to increase supply and lower costs for goods such as pork, chicken, fish, and healthcare products,” he said.
Go also addressed criticism that the US tariff cut was too small. “I don’t know why some believe many will be hurt by this. The sectors we opened up don’t include any industries that could be significantly harmed,” he said.
He added that Vietnam and Indonesia face steeper trade demands despite receiving similar or higher tariff rates from the US. “Vietnam had to open up its entire market and even commit to purchasing 50 Boeing aircraft—yet their tariff remains at 20 percent,” he pointed out.
Go stressed that the 19-percent rate is still subject to ongoing negotiations and is part of a broader US policy, not a targeted move against the Philippines.
Roque added that the reciprocal trade agreement will also cover other trade-related areas beyond tariffs. “Moving forward, the DTI will actively pursue initiatives to improve market access of Philippine products globally,” she said, citing ongoing free trade talks with Canada, the UAE and Chile.
Marcos brings home $63M ODA
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He said the visit reaffirmed the “breadth and depth” of the PH-US alliance, covering defense, economic, and geopolitical cooperation.
He also invited Trump to attend next year’s Asean summit in Manila, which will coincide with the 80th anniversary of PH-US diplomatic ties and the 75th anniversary of the Mutual Defense Treaty.
