Philippines looking to renegotiate with US to bring tariffs down to 15%: Ambassador

Key Concepts

• US-Philippines Trade Deal: Negotiations, tariffs, and potential renegotiation.
• Tariff Rates: 19% tariff rate announced by President Trump, aiming for 15%.
• Geopolitical Influence: US-China relations and their impact on the deal.
• Economic Cooperation: Identifying new areas for economic collaboration.
• Zero Tariffs: Agreement on zero tariffs for certain US goods like automobiles.
• Balanced Outcome: Achieving a deal that benefits both countries.
• Defense Ties: Strengthening defense cooperation alongside economic agreements.
• Filipino Migrants: Addressing issues of undocumented Filipinos in the US.
• Self-Deportation Program: Offering incentives for voluntary return to the Philippines.
• August 1 Deadline: Target date for finalizing tariff details.

1. Tariff Negotiations and Rates

• President Trump announced a 19% tariff rate for the Philippines, slightly below the initially threatened 20% but higher than the 17% set in April.
• The 19% rate aligns with what was given to Indonesia, while Singapore has a 10% rate.
• Ambassador Ramaldes indicated that renegotiation is possible, aiming for a 15% tariff, which Trump announced as the lowest he will go for any country.
• "President Trump said that I can't lower it lower than what I had already given to them. However, it is clear that we can still renegotiate."
• The August 1 deadline is a key date for finalizing tariff details.

2. Geopolitical and Security Considerations

• The Philippines is balancing strengthening defense ties with the US and addressing domestic economic concerns.
• The US-China relationship influences the Philippines' approach to negotiations.
• President Trump tried to differentiate tariffs from defense relations, but the Philippines considers their defense alliance an important part of the equation.
• Economic prosperity for the Philippines means economic security, providing resources to modernize their armed forces.

3. Specifics of the Trade Deal

• Manila will open its market to Washington, with zero tariffs on certain US goods, including automobiles.
• Details of the deal are still being finalized, with ongoing discussions about tariffs on agricultural products.
• "We've identified several of this uh uh uh items that we have spelled out during the trade talks and uh Ambassador Jameson Greer uh this was presented to him and like I said the details of this deal has not been completely disclosed and we are still going to be able to go over it and and still go one by one on the deals that or on the tariffs that will be uh given to the United States if there's any on certain items like I said mostly agricultural products but this as mentioned by President Marcos the automobiles are definitely one item that has already been agreed upon that we will be importing American cars to the Philippines without any tariff"
• The goal is to achieve a balanced outcome that benefits both countries.

4. Impact on Filipino Businesses and Economy

• The Philippines aims for a deal that is competitive with neighboring countries.
• Exports to the US comprise only 16% of the Philippines' total exports, with 86% going to other countries.
• The Philippines is actively seeking other markets to export their products.
• The Asian Development Bank (ADB) has slightly cut its economic growth forecast for the Philippines.

5. Defense and Economic Cooperation

• The US Congress approved an ammunition manufacturing facility in the Philippines, creating jobs and contributing to the economy.
• Agreements similar to the Cerberus deal at the Zubi shipyard combine defense and commercial aspects.
• These agreements aim to modernize the Philippines' armed forces.

6. Concerns about US Goods Flooding the Market

• Concerns exist that zero tariffs on US goods could harm local industries.
• The Philippines has identified areas, particularly in agriculture, where they will not allow free flow or no tariffs.
• The Philippines is protecting industries deemed important.

7. Addressing Filipino Migrant Issues

• Reports of Filipinos with valid visas being detained by ICE have surfaced.
• Approximately 3,700 Filipinos are being processed for deportation.
• The Philippines has agreed to accept all deported Filipinos, regardless of their criminal record.
• A self-deportation program offers $1,000 and a one-way ticket to the Philippines for those who voluntarily return.

8. Timeline and Clarity

• The Philippines hopes to finalize the details of the trade deal within the next two weeks, aligning with the August 1 deadline.
• Secretary Frederick Go, in charge of trade negotiations, will provide updates on the deal's progress.

9. Future of US-Philippines Relations

• The personal relationship between President Marcos and President Trump is seen as a positive sign.
• The two leaders plan to exchange telephone numbers, indicating a strong rapport.
• President Trump has stated that the Philippines is free to make its own choices, not forcing them to choose between the US and China.
• The mutual defense treaty with the US remains in place, and economic ties are strong.

10. Conclusion

The US-Philippines trade deal is still evolving, with ongoing negotiations to lower tariff rates and finalize specific details. While the 19% tariff rate is a point of contention, the Philippines is actively seeking a more favorable rate of 15%. The deal encompasses not only trade but also defense and security cooperation, with the Philippines balancing its relationship with the US and its economic interests. The situation regarding Filipino migrants in the US is also being addressed, with measures in place to ensure their safe return to the Philippines if deported. The next two weeks are crucial for finalizing the details and achieving a mutually beneficial agreement.