Philippines sees bright trade prospects under Trump 2.0

MANILA, Philippines — The Department of Trade and Industry (DTI) is hopeful the return of US president-elect Donald Trump will provide benefits to the Philippines, citing the two countries’ strong trade ties.

“We are very hopeful that Trump 2.0 will in fact be net positive for the Philippines,” Trade Undersecretary Ceferino Rodolfo said during the National Exporters’ Week.

The DTI’s optimism stems from the trade relations between the Philippines and the US and Trump’s actions during his first term as US president.

“Of all recent US presidents, it is Trump who has welcomed officially a bilateral free trade agreement (FTA) with the Philippines,” Rodolfo said.

He said that during Trump’s visit to the Philippines in November 2017, a joint statement was issued, welcoming the Philippines’ interest in a bilateral FTA.

In addition, he said Trump’s nominees for key government positions have a direct bearing on the two countries’ international economic relations.

He said Sen. Marco Rubio, nominated by Trump as his incoming Secretary of State, filed Senate Bill 4703 or the Philippines-US Strategic Partnership Act last July.

The bill seeks to enhance the partnership between the US and the Philippines.

Rodolfo said the bill aims to mandate the negotiation of a critical minerals agreement with the Philippines.

It also seeks to prioritize support by the US International Development Finance Corp. for projects in critical minerals and fossil fuels in the Philippines.

In addition, it identifies US agencies that can undertake investments in the Philippines, including the Office of Strategic Capital of the Department of Defense.

With the Trump administration’s focus on reducing the trade deficit, Rodolfo said the Philippines can leverage the balanced and healthy Philippines-US trade, which indicates a mutually beneficial trade relationship.

“In contrast, we believe that countries with which the US has a huge trade deficit – particularly those which worsened during the past four years – will be likely targets of additional US tariffs,” he said.

Earlier, National Economic and Development Authority Secretary Arsenio Balisacan expressed concern over Trump’s planned imposition of tariffs on US imports.

“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.

To raise revenues and protect American industries, Trump has proposed to impose up to 20 percent tariff on all US imports and a 60 percent levy on products from China.

Balisacan said Trump’s return, however, may also bring positive developments for the Philippines as the country has been focused on strengthening ties with the US and many other countries.