Philippines' trade deals to mitigate impacts of US reciprocal tariffs

The country’s participation in the Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (ASEAN) and the impending renewal of the European Union Generalised Scheme of Preferences Plus (EU GSP+) will help exporters to navigate the possible impacts of the 17-per cent reciprocal tariff on Philippine goods entering the United States, he said.

The Philippines has FTAs with Japan, South Korea and European Free Trade Association countries such as Iceland, Liechtenstein, Norway and Switzerland, and is also a beneficiary of the UK Developing Countries Trading Scheme.

Panga said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) will also facilitate investments into the country, according to a domestic news agency.

As the Philippines has the second lowest US reciprocal tariff in the ASEAN region, Panga said the country has solidified its position under a ‘China+1+1’ strategy, which encourages businesses to maintain operations in China while diversifying their supply chains by expanding into the Philippines, he added.

ALCHEMPro News Desk (DS)