NEGOTIATORS are still working to finalize a trade deal between the Philippines and the United States but a 19-percent tariff on exports to the US is final, a senior Trade department official said.
“The talks are still ongoing, we’ll have to wait and see on August 1,” Trade Undersecretary Allan Gepty told reporters on Thursday.
The US has set an Aug. 1 deadline for trading partners to reach agreements and markets are on edge after US President Donald Trump on Wednesday unleashed a barrage of tariff announcements.
The peso returned to the P58:$1 level on Thursday, weakening by 74 centavos to P58.32 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) also fell into 6,200 territory via a 65.50-point, or 1.04-percent drop, to 6,252.73.
“I can say that we’re working on the details,” Gepty said. “[T]he details, of course, cover other terms and conditions of the agreement, because it’s not just market access.”
He declined to provide other details, citing non-disclosure restrictions, but said that the 19-percent duty — down from the 20 percent threatened earlier in July but higher than the 17 percent announced in April — was final.
“Once we have agreed or finalized everything, definitely there will be some announcements to be made,” he said.
Gepty said that consistent engagement with the US was very important since the country is a major trading and investment partner and the Philippines is also seeking to seal a free trade agreement (FTA).
At the same time, he said the government was pushing to create more opportunities for Filipino goods and services through trade deals with other countries.
“Under the present administration, we’ll be having around 12 free trade agreements. And I think that is very important because it gives a signal to the global community that the Philippines is indeed ready,” Gepty said.
The Philippines is currently negotiating a free trade deal with the European Union as well as Chile. Gepty said a deal with India remained on the table and agreements with Canada and Israel were being explored.
The Comprehensive Economic Partnership Agreement with the United Arab Emirates has been concluded and is only awaiting a signing schedule, he added.
“On the regional front, we are very active in upgrading our various trade agreements with Asean,” Gepty continued.
“[W]e just concluded the Asean-China Free Trade Area and the Asean-Australia-New Zealand FTA, the Asean-Hong Kong FTA, and of course, the ongoing Asean-Canada FTA.”
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