Gov’t told: Don’t copy Vietnam offer to US
The country’s largest exporters’ group is advising the government against matching Vietnam’s reported offer of zero tariffs to the United States, saying it could hurt local businesses by making Philippine-made products less competitive.
Philippine Exporters Confederation Inc. (Philexport) President Sergio Ortiz-Luis Jr. told reporters last week that such a move could undermine the ability of local industries to compete, as it would force them to lower their prices to unsustainable levels.
“Our exporters will go under because they will lose money,” he said on the sidelines of the general membership meeting of the Philippine Chamber of Commerce and Industry (PCCI) in Makati.
Vietnam had offered to remove tariffs on US goods following the announcement of new tariffs by the Trump administration on April 2. Trump later announced a temporary pause on implementation, opening the door for further negotiations with affected countries, including the Philippines.
If the new system proceeds, the Philippines will face a 17-percent tariff; Vietnam, 46 percent; Thailand, 36 percent; Indonesia, 32 percent; Malaysia, 24 percent; and Cambodia with the highest at 49 percent.
Only Singapore among members of the Association of Southeast Asian Nations will benefit from a lower rate of 10 percent.
Other pressing matters
The Philexport official said they were still seeing an opportunity given the lower tariff rate imposed on the Philippines vis-a-vis other economies.
There were other pressing matters that industries needed to face head on, he added.
“But even with the lower tariff, maybe it won’t be enough to counter the corruption issues, red tape and political instability. Those are [the] worst,” he said.
Ortiz-Luis said in December the country’s merchandise and service exports earnings were projected to reach only $110 billion this year, cutting by a little over a fifth the original estimate.
