Trade diversification, key on reinforcing PH economic growth — British Chamber

In an interview, the British Chamber of Commerce Philippines (BCCP) Executive Chairman Chris Nelson emphasized trade diversification as a significant strategy that the Philippines must adopt amid US tariffs, having the second-lowest tariffs in the region at 17%.

The Philippines, being among the fastest growing economies, remains an attractive investment destination for foreign investors and British businesses. 

Nelson began by recognizing the present investor sentiment around the world after US President Donald Trump announced his reciprocal tariffs on 2nd April 2025.

He noted that, “As a Chamber of Commerce, we always believe in free trade and open markets. Of course, we are not in favor of seeing tariffs going up and we are not in favor of trade being disrupted. Also, I think that it is moving at such a fast pace that it is causing disruptions. And the number one thing that most businesses will always say they want is the ability to plan and this makes it extremely difficult.” 

Nelson further added that businesses and countries like the Philippines may recalibrate its trading strategies by looking at expanding their trade network.

“Now, saying that, I think with what is going on between the US and China, and the US and the rest of the world, I clearly think there is an impetus for countries to look at other trading areas. And certainly from our perspective, it would be to see what UK companies can do in the Philippines and in Southeast Asia,” Nelson said. 

Several existing trade agreements were cited including the Regional Comprehensive Economic Partnership (RCEP), which is the largest free trade area that lifts around 90% of tariffs on imports among the signatory countries such as the Philippines.

Nelson also reiterated its support for the Philippines’ interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he added that, “The Philippines already is a member of RCEP, so I think that’s an area they can look into and further develop. The other one that we’ve had discussions with is CPTPP, which the UK has joined. If the Philippines joins that, that actually makes a large trading area along with RCEP.”

The inaugural UK-Philippines Joint Economic and Trade Committee (JETCO) meeting also signalled a positive momentum in terms of the latter’s bilateral economic relations.

This has established cooperation under government-to-government and government-to-business activity basis with a key focus on multiple sectors including agriculture, energy, technology and infrastructure.

Meanwhile, the Philippine Economic Zone Authority (PEZA) is also set to host an investment mission in the UK on June 25 to 27 2025 to welcome and assist new British companies to do business in the Philippines.