July 15, 2025
 

Philippines, US tariff talk: Higher import quotas reconsidered for US pork, poultry and corn

The Philippine government is hopeful that it can still negotiate for a lower US tariff rate ahead of the August 1 deadline as President Ferdinand R. Marcos, Jr. heads to the US next week.

At the same time, analysts said the Philippines may consider increasing import quotas for US pork, poultry and corn during negotiations.

"Actually, with the 20%, we are still lower than the neighboring countries. It is not something that we expected, but we are still at the negotiating table," said Trade Secretary Ma. Cristina A. Roque in a July 11 interview that will be aired on Thought Leaders with Cathy Yang on One News on July 17.

"It is hard for us to speculate at this time. We cannot give any information yet because there's really nothing yet until we get to talk to our counterparts," she added.

Roque and other trade officials will return to Washington this week to hold further negotiations on tariffs. President Marcos is scheduled to visit Washington from July 20 to 22.

This after US President Donald J. Trump hiked the planned tariff on Philippine goods to 20% from the 17% previously announced in April.

"Having the president there is always something positive and something that we can really look forward to… We still have to wait and see how everything will unfold," Roque said.

Asked if the Philippine government is still targeting zero tariff, Roque said it is difficult to discuss ahead of this week's negotiations.

"Our team is really fighting for all our exporters, and we really hope to get the job done."

Roque said, "everything is on the negotiating table," including a free trade agreement (FTA) with the US.

"Any FTA is always good for the country, especially because it would really encourage and strengthen the trade between the US and the Philippines," she said.

Former Tariff Commissioner George N. Manzano said the US may ask the Philippines to raise quota allocations for pork and poultry imports.

"We will have to open. We have to buy more from the US. The US will ask us to give them a higher quota allocation to pork and poultry imports," he told BusinessWorld via phone interview over the weekend.

As of April, the latest data from the Department of Agriculture showed the country imported a total of 14.03 million kilos of pork from the US. The Philippines also imported 43.36 million kilos of chicken, 18,544 kilos of duck and 29,088 kilos of turkey.

Pork imports under the minimum access volume allocation system enjoy a lower tariff of 15% compared to the regular rate of 25%.

Calixto V. Chikiamco, president of the Foundation for Economic Freedom, urged the government to abolish quotas and tariffs on US goods, arguing that they benefit criminal syndicates and inflate food prices.

"For example, why impose a quota on US corn and slap them with 50% tariffs if they are out quota? Let US corn come in here at minimal tariff to lower the price of chicken and pork,"  Chikiamco said.

Meanwhile, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said President Marcos should prioritise tariff relief for key exports like electronics, garments, and agri-based goods.

"Just as important is making the case that the Philippines is a reliable US partner in critical supply chains like semiconductors and clean energy where trade cooperation should be strengthened, not penalised," he said.

Rivera urges President Marcos to push for clearer, rules-based trade treatment to restore investor confidence and avoid future shocks.

Meanwhile, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., pointed out that "reciprocity" is crucial to secure a lower tariff from the US.

"We need to take advantage of US agriculture. Particularly, wheat and soybeans. Which are used primarily on feeds. If we are able to import cheaper this will help his food security," Ravelas said in a Viber message.

-      BusinessWorld Online