By Justine Irish D. Tabile, Reporter

ANY DEAL lowering tariffs between the US and the Philippines is not expected to flood the Philippines with imports, though the leading source countries for key commodities are likely to change, the Department of Agriculture (DA) said.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the interests of Philippine industries will not be sacrificed as the Philippines negotiates lower tariff rates with the US.

“I think wala sigurong dapat ikatakot ang ating mga industries (industries have nothing to fear) because it is not about adding the amount to be imported. It is just a shifting of preference,” Mr. Laurel said on the sidelines of the Sustainable Agriculture Forum 2025.

“Meaning, kung dati malakas ka bumili sa Brazil, dahil ngayong may ganitong move ang America, baka pagbigyan sila na mas makuha ng mas malaking share, mabawasan naman ’yung sa Brazil. Parang ganon (Purchases from Brazil, for instance, could fall because of the negotiations, which could result in Philippine concessions that give US goods a larger share),” he added.

A Philippine delegation led by the Office of the Special Assistant to the President for Investment and Economic Affairs and the Department of Trade and Industry (DTI) is currently in Washington, DC to negotiate for lower tariffs.

The Philippine delegation is set to meet US Trade Representative Jamieson Greer on Friday. He met with Japan, Guyana, and Saudi Arabia on Thursday, Reuters reported.

“In my discussion with Secretary Frederick D. Go, I said that we have to protect the local industry. So that is the way we will try to negotiate … It is the shifting of (sourcing) that we are looking at, not adding more imports,” he said, referring to the Special Assistant for investment.

Philippine goods were initially assigned a 17% tariff by the US, second lowest in Southeast Asia next to Singapore’s 10% baseline rate. The reciprocal tariffs have since been suspended for 90 days, with most US trading partners paying 10% for the time being.

“It is very hard to say what America wants from us … But I think 17% is more of an advantage,” Mr. Laurel said.

However, he said the overall goal is to secure improved access for Philippine exports, particularly agricultural products, including coconuts, tilapia, and white shrimp.

“In any negotiation, we want the minimum (rate). So, I will leave it up to Secretary Go, as I am very confident in his ability to get something that is fair for the Philippines,” he said.

“We are all hanging and monitoring, and we just have to be patient and react accordingly,” he added.

The DTI Export Marketing Bureau reported that the US was the Philippines’ top export market last year, accounting for $12.12 billion, or 16.55%, of all exports.

It was also the Philippines’ fifth-largest source of imports with a 6.41% share or $8.17 billion.

The US is the Philippines’ third-largest trading partner with two-way trade of $20.29 billion.

THE PHILIPPINES is set to submit its formal application to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade official said.

“The first step is to file your formal application … So, this year we intend to submit our application to accede,” Trade Undersecretary Allan B. Gepty told reporters this week.

“As part of the process, informally you have to engage with CPTPP parties … We are doing that right now; we actually met a lot of them,” he added.

He said that the Philippines has been expressing its interest in joining the CPTPP even when it was still called the Trans-Pacific Partnership (TPP) Agreement.

The TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, Vietnam, and the US. However, the US withdrew its membership in 2017.

The free trade agreement (FTA) later evolved into the CPTPP, and in July 2023, the remaining signatories signed an accession protocol with the United Kingdom (UK).

He said that the DTI has conducted an evaluation and assessment of the FTA and has commissioned a study on the advantages and benefits of joining the CPTPP.

“There are two things: market access and rules. Now in terms of market access, of course the value add would be market access to Mexico, Canada, Peru, Chile, and now of course the UK,” he said.

“Actually, with the entry of the UK, it gave us more reason to join CPTPP because the UK is one of our biggest trading partners,” he added.

On rules, he said that the standards of the CPTPP are higher, making foreign investors who are very particular on certain rules welcome the country’s accession.

Meanwhile, Mr. Gepty said that the Philippines and Chile will be holding their first in-person round of negotiations in July.

“But in May, we have to meet virtually to at least start the talks … because our schedule is tight. It is already May, and in June we have the negotiations with the European Union,” he said.

“And then we have a joint economic commission (JEC) with Canada on June 6,” he added, noting that the JEC will also cover exploratory talks for an FTA.

In a statement, the Tariff Commission said it will be holding a public consultation regarding participation in the ASEAN-Canada Free Trade Agreement negotiations.

The consultation is scheduled for May 7. — Justine Irish D. Tabile

THE Philippine Economic Zone Authority (PEZA) is looking to proclaim a second pharmaceutical economic zone (pharma zone) within the year.

“Some people are vying from other areas. But obviously they would want to see the performance of this park first,” PEZA Director General Tereso O. Panga told BusinessWorld on the sidelines of the official launch of the Victoria Industrial Park late Wednesday.

“But there is one in Tarlac, the one under Lloyd Laboratories. That might be our second pharma zone in the country because the compliance for its proclamation requirements is already ongoing,” he added.

He said that the second pharma zone is targeted for proclamation within the year, as it already has an American partner.

“They will be manufacturing APIs (active pharmaceutical ingredients) and drugs. As you know, Lloyd Laboratories is already in India,” he added.

On Wednesday, the country’s first pharma zone, the Victoria Industrial Park, was officially launched.

“This move is in response to the marching orders of President Ferdinand R. Marcos, Jr. to make medicine more accessible and affordable, to empower Filipino manufacturers, to be self-sufficient, and to be the hub in ASEAN for the pharmaceutical industry, thus strengthening our own local supply chain,” Mr. Panga said.

The 30-hectare park in Victoria, Tarlac is poised “to become a dynamic hub for investment, innovation, medical research, and inclusive progress.”

“We are likewise pleased to highlight that the construction of a satellite laboratory of the Food and Drug Administration has commenced on-site, which will further strengthen our supply chain and advance our healthcare and industrial capabilities,” he added.

He said the FDA laboratory will help in streamline companies’ compliance with FDA-related permits and requirements.

During the event, 13 memoranda of agreement and understanding were signed, reflecting growing interest from investors to locate in pharma zones.

These include agreements with Lifestrong Marketing, Inc., ACP Heavy Industries, Greenstone Pharmaceutical, Goodfield, Ethosperic, Inc., Solstice ECOventures, Inc., Triumphus Ventures, Inc., Medinext, Inc., Revitalix, Inc., Kweens Ventures, Inc., K Food, Verdant Dreams Hong Kong, and Creative Ecohub for Philippine Artistry.

Meanwhile, he said that PEZA is also in talks with Japanese and Chinese-American companies to locate in Victoria Industrial Park.

“We have an incoming big-ticket American investment into nitrile gloves … They will scout around, but we will nominate Victoria Industrial Park,” he added. — Justine Irish D. Tabile