MANILA, Philippines — The Philippines must continue efforts to enter into more free trade agreements (FTAs) and diversify exports to strengthen the economy’s resilience amid returning US President Donald Trump’s promise to slap tariffs on imported goods, according to the National Economic and Development Authority (NEDA).
While it is too early to talk about the impact of Trump’s victory on the Philippines, NEDA Secretary Arsenio Balisacan said the planned imposition of tariffs, if implemented, would be a concern.
“If at all there is going to be any negative effects on the administration and it will push through with what the incoming president was saying about the imposition of tariffs…of 20 percent for non-China and 60 percent for China, that could have an impact on the global economy, and that’s what will worry us,” he said.
Trump has proposed to slap up to 20 percent tariff on all US imports and a 60 percent levy on products from China to raise government revenue and protect American industries from foreign competitors.
Balisacan said there are also positive developments as the Philippines has been building relationships with the US and many other countries.
“So I think that we will have to continue with our internal efforts, our internal reforms, to ensure that whatever the state of the global economy, our local economy will be able to adjust and take advantage of opportunities to protect the local economy from any adverse shocks if there will be one,” he said.
Even before the elections in the US, he said the Philippine government has been pushing for initiatives to reduce the vulnerability of the local economy to any external shocks, especially from major trading partners.
“We have been pushing, we have been more aggressive in opening up other channels, like our FTAs with other countries. And we want to see many more of these FTAs, bilateral and multilateral agreements, so that we can open up many more opportunities and in the process, diversify our exports,” he said.
In line with the government’s thrust to diversify export markets, the Philippines has been pursuing FTAs with various countries.
The Philippines has ratified its FTA with South Korea and is waiting for the latter to complete its ratification process for the trade deal to take effect.
In addition, the Philippines is in the final stages of negotiations for an FTA with the United Arab Emirates.
Last month, the Philippines and the European Union resumed negotiations for an FTA.
For his part, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis told reporters on the sidelines of the Pilipinas Conference, he does not expect Trump’s return to affect Philippine exports.
“Our trade with the US is only so much. Even if that’s cut by 10 percent [with] the protectionism, we will recover it elsewhere, especially with China,” he said.
Data from the Philippine Statistics Authority showed the US is the country’s top export market in the January to September period with a 16.5 percent share amounting to $9.18 billion.