ASEAN exploring joint response to US tariffs

TRADE Secretary Ma. Cristina A. Roque is set to meet her counterparts in the Association of Southeast Asian Nations (ASEAN) on Thursday to discuss a possible collective response to the US tariffs.

“We have a meeting on Thursday with the ministers from all over ASEAN. That is when we are going to discuss what the stance of everyone is,” she told reporters on the sidelines of the National Food Fair.

“Of course, as ASEAN, we have to (stick) together,” she added, noting that the meeting will be virtual.

Malaysian Prime Minister Anwar Ibrahim on Sunday called for a united ASEAN response to the US tariffs.

He said Malaysia, as ASEAN chair, is ready to lead efforts to “ensure ASEAN’s collective voice is heard clearly and firmly on the international stage.”

The US imposed some of the highest tariffs on ASEAN countries on Wednesday. Cambodia is facing a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).

The Philippines’ 17% tariff is among the lowest in the region, second only to Singapore, whose goods will be charged a “baseline” rate of 10%.

Since US President Donald J. Trump’s tariff announcement on April 2, countries have started to individually approach the US to seek a compromise.

Vietnam has said that it is open to bringing down tariffs on some categories of US goods to zero.

Ms. Roque said the government has not yet discussed what it is willing to offer as a concession to the US.

“Wala pa kaming napag-usapan tungkol doon. (Nothing has been discussed) We just want to listen, actually, to what (ASEAN ministers) have to tell us because we all work together,” she said, adding that the Philippines’ 17% rate is deemed an “advantage.”

According to Ms. Roque, the Philippine economic team met on Tuesday to discuss its response to the tariffs.

“We discussed the possibilities for strengthening trade just in case it remains at 17%,” she said.

“We accepted the tariff as 17%, and then we’ll see how it goes from there. I really need to talk to my (US) counterpart to clarify things,” she added.

She said the Philippines does not intend to impose retaliatory tariffs on the US.

On Monday, Ms. Roque said that the DTI is open to lowering tariffs on US goods.

On Tuesday, PCCI Chairman George T. Barcelon said that the government should consider lowering tariffs as have other countries.

“That is something that the government should consider in consultation with the private sector,” he said.

“President Trump knows that each country will individually approach the US, and they will come to some sort of a compromise … I think that is the best way,” he added.

However, he said that the Philippines should study how it can take advantage of its relatively low tariff.

“With a lower rate, that automatically gives us the comparative advantage. But we have to do our homework and see what sectors can benefit from this,” he said.

“If we think that a certain sector will be more competitive and get more buyers, we have to build up capacity there,” he added.

Meanwhile, Ms. Roque said that the Philippines still hopes to secure a bilateral free trade agreement with the US.

“We are still optimistic, and another thing we are looking at is to push for FTAs not just with the US but with a lot of countries because there are really a lot of benefits that we can generate from FTAs,” she said.

She said that the other markets the DTI is looking at include South America, the Middle East, and elsewhere in Asia. — Justine Irish D. Tabile