THE Philippines’ economic team will meet with counterparts in Asean to discuss their next course of action on reciprocal tariffs imposed by US President Donald Trump.
In a chance interview with reporters in Mandaluyong City on Wednesday, Trade Secretary Cristina Roque said the economic team met on Tuesday and agreed to meet virtually today, Thursday, with their counterparts in the 10-member regional bloc.
“Then from there we will discuss… we can either go together as a whole Asean,” Roque said, without elaborating on the agenda.
“Let’s see what we can agree on and what we can do to, at least, work hand in hand in Asean. We have to listen to (what our) Asean partners have to say,” she only said.
Roque said the economic team will also have to talk with President Ferdinand Marcos Jr. on “what our direction will be.”
“For now, it is good to listen and see how we can make the best out of this meeting,” she said when asked what the economic team would recommend to the president.
Given this, Roque said lowering Philippine tariff for imports from the US “would always be best” under a preferential tariff arrangement.
She pointed out, however, it is better “to look for the opportunity rather than to look at things that are not working out.”
When asked what concessions the economic team is willing to negotiate with the US, Roque replied: “We haven’t discussed anything about that yet. We just want to listen actually to what they (Asean ministers) have to tell us because we all work together as Asean.”
PH edge
But Roque cited the Philippines’ advantage in dealing with a lower 17 percent tariff imposed by the US on the country’s exports.
“We must use this low tariff to push Philippine products and also investments globally. At 17 percent, we definitely have an edge,” Roque said.
She cited examples of Philippine exports which can have a tariff advantage like coconut products where the country’s main competitor is Thailand whose tariff is 34 percent and dried mangoes where the biggest rival is Cambodia but which is slapped a tariff of 49 percent.
“We are at 17 percent, that gives us a good edge. We need to aggressively push these industries right now. We are still in a better place than our Asean neighbors,” Roque said.
Eyeing FTAs
Roque said the Philippines is looking to forge an FTA not only with the US but with other countries as well, noting the many benefits of such agreements.
She said the Philippines is also looking at other markets such as South America, the Middle East, Asia and others, especially for local products that are in demand.
In a separate interview, Secretary Frederick Go of the Office of the Special Assistant to the President and Economic Affairs confirmed that the Asean finance ministers will meet today, Thursday on the tariffs. He did not elaborate.
“The Marcos economic team met yesterday (Tuesday) on the tariffs and the Philippines’ response. Tomorrow there is a meeting of Asean finance ministers — still about the tariffs. Secretary Roque will attend,” Go said.
It was not clear if Finance Secretary Ralph Recto will also join the meeting. The 12th Asean Finance Ministers’ and Central Bank Governors’ Meeting and Related Meetings are being held in Malaysia’s capital Kuala Lumpur on April 8-10.
The Philippines is among the least hit of exporters to the U.S. based on the tariff table released by the White House on April 3.
2nd lowest tariff in Asean
At 17 percent, US tariffs on Philippine exports is the second lowest among the 10 Asean members, next to Singapore’s 10 percent.
The other members have the following tariff rates: Cambodia, 49 percent; Laos, 48 percent; Vietnam, 46 percent; Myanmar, 45 percent; Thailand, 37 percent; Indonesia, 32 percent; and Brunei and Malaysia, 20 percent.
