Negotiations between the Philippines and the United States on reciprocal tariffs are taking a turn past market access to include non-tariff issues that impact trade, a senior trade official said on Thursday.
“We’re working on the details, which cover other terms and conditions of the agreement,” Trade Undersecretary Allan Gepty said.
The scope of the negotiations must include “a set of rules” that address regulatory and structural trade barriers, Gepty said.
“The US is not just interested in market access. They’re also focused on measures that affect trade — so we need to address those, including non-tariff barriers,” he said.
Both sides have been carrying on with the talks, with a view of the August 1 (US time) deadline for the Trump-era tariffs on Philippine exports to take effect.
Gepty emphasized that details of the discussions remain covered by a non-disclosure agreement.
Asked whether the 19-percent tariff would automatically take effect on August 1, he said: “That would really depend on the announcements to be made. Definitely, there will be announcements.”
He declined to disclose the timing or source of those announcements.
“The most I can share is that we’re still finalizing key details and negotiating rules,” Gepty said. “Once everything is finalized, we’ll issue updates. Once there’s a set of agreed-upon parameters, we’ll proceed.”
On non-tariff parameters, Gepty pointed to the US National Trade Estimate (NTE) report as a reference.
In its April 1 release, the NTE flagged both tariffs and sanitary and phytosanitary standards in the Philippines that restrict US agricultural exports.
Among the key concerns was the high in-quota tariffs under the Philippine tariff-rate quota (TRQ) system — also known as the Minimum Access Volume (MAV) — applied to sugar, corn, coffee, potatoes, pork, and poultry. These in-quota rates range from 30 to 50 percent.
The Department of Agriculture formed a working group in 2023 to revise MAV guidelines, but the United States Trade Representative (USTR) noted in its December 2024 update that no new guidelines had been issued.
The USTR also cited uncertainty around the implementation of an executive order that imposes a uniform 15 percent tariff on rice imports. While the order mandates a review every four months, the lack of clarity on potential adjustments has raised concerns about market stability.
“I don’t want to preempt what will happen after August 1,” Gepty said. “What’s important is that we continue to engage with the US, which remains a major trading and investment partner of the Philippines.”
He reaffirmed the country’s strong push for a full-fledged free trade agreement with the US.
