MANILA – Philippine Finance Secretary Ralph Recto is actively pursuing a free trade agreement (FTA) with the United States, indicating a willingness to lower tariffs on American vehicles as part of the potential deal. This move aims to bolster economic ties between the two nations and capitalize on the US market.
"We know that President [Donald] Trump is interested to protect US auto makers and wants to export the same," Recto stated in a recent communication. "For the Philippine side, we may want lower tariffs of our exports to the US and be part of the US supply chain, if ever."
The United States stands as the Philippines' top export destination, with Philippine Statistics Authority data showing exports reaching USD 12.12 billion in the previous year, representing 16.6 percent of the country's total export value.
Recto revealed that discussions regarding a potential FTA have taken place in prior meetings with US government officials. "There were discussions in the past. There's always a possibility considering that we are an ally and both countries can expand our economic cooperation. Our trade with the US is very small from their perspective," he noted.
Last week, Recto engaged with US Ambassador to the Philippines MaryKay Carlson to deepen trade and investment relations, aligning with the Trump administration's evolving policies. During the meeting, Recto emphasized the synergy between the Philippines' economic priorities and the US foreign policy agenda. He also highlighted the Philippines' promising growth prospects and its eagerness to strengthen development cooperation and trade relations.
The Department of Finance (DOF) reported that Carlson affirmed the robust state of bilateral trade and its alignment with the US prosperity agenda. She also conveyed American investors' optimism regarding the Philippines, particularly in potential investments within the Luzon Economic Corridor and high-value sectors like semiconductor and manufacturing supply chains. Carlson further commended the Philippines' ongoing improvements in trade and customs facilitation.
Recto's push for an FTA underscores the Philippines' strategic focus on enhancing its economic partnership with the United States, seeking to leverage mutual benefits through expanded trade and investment opportunities.
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