Finance Secretary Ralph Recto is pushing for a free trade agreement (FTA) with the United States, noting that he is open to lowering the tariff of vehicles from the US if ever the deal pushes through.
“We know that President [Donald] Trump is interested to protect US auto makers and wants to export the same,” Recto said in a text message on Tuesday.
“For [the] Philippine side, we may want lower tariffs of our exports to the US and we be part of US supply chain, if ever,” he added.
Latest data from the Philippine Statistics Authority showed that the US was the top destination of Philippine exports last year.
Exports to the US during the period amounted to USD12.12 billion, or about 16.6 percent of the country’s total value of exports.
Recto said the possibility of the Philippines-US FTA was discussed during previous meetings with American government officials.
“There were discussions in the past. There’s always a possibility considering that we are an ally and both countries can expand our economic cooperation. Our trade with US is very small from their perspective,” Recto said.
Last week, Recto met with US Ambassador to the Philippines MaryKay Carlson to further strengthen trade and investment ties between Manila and Washington D.C., in line with the new Trump administration’s policies.
The Finance department earlier said that during the meeting, Recto highlighted the alignment of the country’s economic and development priorities with the Trump administration’s foreign policy.
Recto also provided the Philippines’ growth prospects this year and noted the country’s optimism in strengthening its development cooperation and trade relations with the US.
The DOF said Carlson reaffirmed that the countries’ bilateral trade relationship is in a good position and is aligned with the US’ prosperity agenda.
She also expressed the American investors’ bullishness on the Philippines, particularly on the potential investments in the Luzon Economic Corridor and other high-value industries such as semiconductor and manufacturing supply chains.
The envoy also commended the Philippines’ consistent improvement of its trade and customs facilitation measures. (PNA)
