Agriculture stakeholders are raising concern over the potential impact of a 20-percent tariff the United States plans to impose on Philippine exports starting August.
In separate messages on Thursday, industry leaders urged the government to take a strategic stance in any trade negotiations that may follow.
Jayson Cainglet, executive director of the Samahang Industriya ng Agrikultura (SINAG), warned against granting concessions to the US, particularly on meat imports, which could further hurt local producers.
“We have yet to see the details, but we must avoid negotiating a lopsided trade deal that benefits importers and traders at the expense of local manufacturers and producers,” Cainglet said.
Raul Montemayor, national manager of the Federation of Free Farmers, said the US tariff could make Philippine exports less competitive, potentially lowering demand.
“On the import side, countries blocked from the US market might dump surplus products in markets like ours,” he added.
Danilo Fausto, president of the Philippine Chamber of Agriculture and Food Inc. (PCAFI), said the tariff may not have a major impact on agriculture exports, as the Philippines ships less farm produce to the US than it imports.
“We produce less than one percent of our dairy needs and import most of it from the US. Aside from coconut products, seaweeds, bananas, and pineapples, most of the affected exports are non-agri like semiconductors and computer parts,” Fausto said.
Chemrez Technologies president Dean Lao Jr. noted that Philippine coconut exports may still hold ground despite the tariff, pointing out that Indonesia faces a steeper 32 percent rate, while the Philippines and Vietnam are both at 20 percent.
“We have an edge over Indonesia, but none over Vietnam—so we expect tight competition,” Lao said.
Agriculture Undersecretary Roger Navarro acknowledged that coconut products would be affected, and warned that the US may also seek to expand its exports of chicken, wheat, soybean, and corn.
“This could disrupt farmers’ planting decisions and local commodity trade,” Navarro said.
He added that the Economic Development Council will convene to explore options, including reciprocal tariffs, and assured stakeholders that the Department of Agriculture will consult the private sector to assess impact and consider safety nets and mitigation strategies.
