The competitiveness of the country’s agricultural exports is expected to be bolstered after the US announced last week exemptions of several products from the 19 percent reciprocal tariff.
Included in the exemption, based on the US government announcement on Nov. 14, are coconut oil, prepared or preserved coconuts, and desiccated coconuts; fruit juices; processed pineapples; bananas, other than pulp; dried guavas, mangoes, and mangosteen; frozen tuna fillets; rice wafer products; and confectionery products.
“These products generated over USD1 billion in export value in 2024 and are a lifeline for many communities across the Philippines,” Department of Trade and Industry Secretary Cristina Roque said in a briefing at their office in Makati City on Tuesday afternoon.
Before the latest US decision, Philippine agricultural products that are already exempted from the tariff are coffee, tea, cocoa and spices, oranges, tomatoes, beef, and select fertilizers.
Outgoing Special Assistant to the President for Investment and Economic Affairs Frederick Go said the exemption of these agricultural products from tariffs would benefit the farming sector.
He said they have discussed with their US counterparts the necessity to exempt these products from the tariff since the US has little capacity or none at all to produce these items.
“It makes sense for them to exempt these products. And we’re very glad today that we’re bringing good news that these products are now exempted,” Go said during the same briefing.
“Their exemption from the 19 percent tariff will enhance the competitiveness of our agricultural exports, and increase jobs, and strengthen supply chains. This is a significant win for Philippine agriculture and our exporting community.”
Aside from several agricultural products, the officials said several semiconductor items from the Philippines are already exempted from tariffs.
Trade Undersecretary and Board of Investment head Ceferino Rodolfo estimated the exemption of these Philippine products at USD4 billion annually.
The US is the Philippines’ third-largest trading partner, with bilateral trade amounting to about USD20.3 billion last year. (PNA)