Philippines hopes to conclude tariff negotiations with US by 2026

MANILA, Philippines — The Philippine government is hopeful it can conclude ongoing tariff negotiations with the United States by next year, according to the Department of Trade and Industry (DTI).

During the Senate committee on finance hearing on the DTI’s proposed budget, Trade Undersecretary Allan Gepty said the government hopes to conclude the ongoing negotiations with the US in relation to the 19 percent tariff being imposed on Philippine exports by next year.

“Based on our last discussion, we’re looking at by next year, this will be completed. As to when next year, of course I could not give a definite period,” he said.

The 19-percent tariff took effect on Aug. 7.

Earlier, Trade Secretary Cristina Roque said the Philippines is seeking an exemption for coconut exports from the 19 percent tariff imposed by the US.

The Philippines is also seeking to be exempted from the US’ planned imposition of tariffs on its semiconductor imports.

If the US decides to impose a levy on its semiconductor imports, Gepty said around $2.5 billion to $3 billion worth of Philippine exports would be affected.

Philippine semiconductor exports to the US are currently not covered by the 19 percent tariff.

In the same event, Roque said the Philippine government expects to sign the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in November.

She said the signing of the FTA has been tentatively set on Nov. 24.

Once signed, the CEPA with the UAE will be the Philippines’ first free trade deal with the Middle East.

Gepty said the CEPA would cover the Philippines’ products of interest such as banana, pineapple, other tropical fruits, electronics and machineries, as well as transport equipment.

He said the Philippines has also applied for accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The multilateral trade agreement sets high standards for its member countries.

Currently, the CPTPP is composed of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United Kingdom.

The Philippines is also working on other FTAs.

Gepty said there are ongoing negotiations for an FTA with the European Union, as well as with Chile.

There are also ongoing talks for the Association of Southeast Asian Nations - Canada FTA.

Gepty said the Philippines is also working on a bilateral FTA with Canada and Israel.