Crafting win-win trade deals
Amid dismal Philippine economic numbers, exports emerged as a rare bright spot in 2025, delivering a surprise growth that the Department of Trade Industry (DTI) said signaled “a stronger domestic industry capable of generating more local jobs and boosting family spending power.”
Led by electronics, receipts rallied by more than 20 percent for three straight months in the last quarter of 2025, bringing total exports to a record high $84.41 billion, 15.2 percent more than the previous year’s $73.27 billion.
This was despite the 19-percent “reciprocal” tariffs imposed by the Trump administration last year, though later modified to spare about half of the total exports to the United States, the Philippines’ largest export market.
“Building on this strong finish, the DTI will intensify efforts to help exporters reach more markets. Our goal is to make exporting simpler and more rewarding, ensuring that the wealth generated from global trade translates into more jobs and better opportunities for every Filipino family,” said Trade Secretary Cristina Roque.
Indeed, given the heady export numbers, the Marcos administration—which is desperately searching for economic growth drivers—rightly wants to build on the momentum by forging more free trade deals with larger economies such as the European Union and Canada.
Global supply chain
This will open up more and bigger avenues for local goods—including agricultural products and mineral products such as nickel used in producing stainless steel and electric vehicles—to become part of the global supply chain.
The government’s eagerness to forge comprehensive trade agreement has not gone unnoticed. A high-level delegation from the European Parliament’s International Trade committee, for example, arrived in the country on Feb. 16 to build on the “very good progress” in trade negotiations that kicked back into gear under the Marcos administration in 2024 after being stalled in 2017 over issues such as human rights during the Duterte administration.
Talks are entering a “critical” stage in March, according to Trade Undersecretary Allan Gepty, but if all goes well, then the talks that began back in 2015 will lead to the conclusion of a trade agreement by the end of the year, thus unlocking another $12 billion in export potential.
After the visit of the European Parliament mission, the Philippines will have no rest as it then begins the first round of talks for a bilateral trade pact with Canada with formal negotiations set from Feb. 18-20.
A two-way street
Canada and the Philippines announced in 2024 exploratory discussions for a potential free trade agreement, followed up by the face-to-face meeting between President Marcos and Canadian Prime Minister Mark Carney during their meeting in Kuala Lumpur, Malaysia in October 2025.
According to Gepty, Mr. Marcos has laid out a clear policy direction: to conclude as many trade negotiations as possible to diversify export markets and thus cushion the impact of sudden and unexpected trade shifts such as the sweeping Trump reciprocal tariffs that turned the global trade system on its head.
Just this year, the Philippines entered into a Comprehensive Economic Partnership Agreement with the United Arab Emirates, the first such trade part with a Middle Eastern country, thus widening market access for goods and services in the growing region.
It also aims to conclude talks for a similar pact this year with Chile, the first with a Latin American country that could lead to more deals with other countries in the region that is also attracted by the Philippine market that is open to buying goods from abroad.
This is where the government should also exercise caution. Trade, after all, is a two-way street where opening of foreign markets to local goods also means the opening of the large domestic market of the Philippines to products from abroad.
Competitive edge
Thus if domestic producers are not strengthened and prepared for the entry of competing goods from other countries, then the trade deals might end up doing more good than harm as local producers are pushed out of the local market.
Conversely, if locally produced goods are barred from entry for failing to meet the standards of other countries, such as phytosanitary and quality requirements, then the Philippines will be unable to take full advantage of the opened markets.
Government agencies should also judiciously use their budget allocations this year to sharpen the competitive edge of local industries, especially those in the farm sector that may be impacted negatively by the entry of agricultural products that other countries are also eager to send out to help their own constituents.
The government should make sure that it will go to the negotiating table with these countries with a singular intent of crafting the best possible deal that can result in wins for both sides, and not exploitative agreements where one party will get more at the expense of the Philippines.
