The Federation of Philippine Industries (FPI) urged government negotiators to strike a balanced, fair, and locally anchored deal when Philippine and US technical working groups sit down to finalize the terms of the 19-percent tariff imposed by Washington on Philippine exports.
Elizabeth Lee, newly elected FPI chair, said the group is ready to work with the Department of Trade and Industry (DTI) and other concerned agencies to ensure that “economic openness does not compromise national industrial resilience.”
“We appreciate the clear stand of Secretary Frederick Go and Trade Secretary Cristina Roque — that our key local agricultural and manufacturing sectors are not part of the tariff concessions. That’s a strong step toward protecting our own industries,” Lee said Thursday, referring to the newly announced trade agreement with the United States.
Go, who serves as special asssistant to the president for investments and economic affairs, said during a Malacañang briefing that talks with US counterparts are ongoing. “We still have a lot to discuss; we are not done yet,” he said.
He explained that the concessions granted to the US cover goods either not produced locally or with very limited domestic output — including automobiles, medicines, soybeans, and wheat. Wheat, for instance, is used in bread production, while both wheat and soybeans are key ingredients in animal feeds, which can help lower the cost of pork, chicken, and fish.
Go added that major agricultural products such as rice, sugar, corn, pork, chicken and seafood were excluded from the concessions.
In a separate message, Trade Undersecretary Allan Gepty said the talks may be elevated to the secretary level depending on the issues involved.
Lee emphasized that most zero-tariff imports covered under the agreement are critical materials not manufactured locally, such as healthcare inputs.
“If handled right, this could help certain sectors lower costs without putting local producers at risk,” she said.
She also called for structured consultations with industry stakeholders and full transparency on which products are covered under the deal. This, Lee stressed, would help mitigate unintended consequences and allow for the timely activation of safeguard mechanisms to protect vulnerable industries.
RCBC chief economist Michael Ricafort backed the need for a cautious approach, warning that cheaper US imports could place pressure on domestic producers, particularly in agriculture.
“Imports such as frozen meat and grains could compete directly with local farmers,” Ricafort said. While some industries may benefit from reduced input costs, “there may also be a need to respect the spirit of reciprocity, given the reduced US tariff on Philippine exports.”
“Sensitive industries such as agriculture need to be provided with safety nets, just like in the past,” he added. (With a report from Jocelyn Reyes)
