AS ALWAYS, NEGOTIATIONS with foreign governments on trade, particularly involving agricultural products, are done without any consultations — genuine or token — with the sectors involved.
Which is why a farmers’ group — the Samahang Industriya ng Agrikultural (SINAG) said that it rejects any response that leads to a race to the bottom — slashing tariffs on key agricultural commodities, weakening labor protections or compromising environmental standards.”
It should be noted that the Philippine negotiating team that would negotiate for reduced tariffs on the country– led by (economic super czar) Secretary Frederick Go, the President’s adviser on investment– are leaving this week to meet with the economic team of US President Donald Trump to negotiate for better tariff concessions and trade deals.
SINAG said any tariff concessions extended to the US on agricultural goods will only favor “privileged importers” while harming the lowly workers and the environment, Business World noted.
“Trade policy must be shaped by the national interest, not by external pressure or short-term market gains of a few privileged importers,” it said.
‘[A]ny tariff concessions extended to the US on agricultural goods will only favor “privileged importers” while harming the lowly workers and the environment…’
RUSHING WITHOUT CONSIDERING
Economic officials of the Philippines are set to fly to the US this week (as advance team for the President) for negotiations to convince Trump not to impose a 20 percent tariff on imports from the Philippine exports starting Aug. 1.
Go said last week that the Philippines is pursuing a bilateral deal with the US, up to and including a free trade agreement.
SINAG noted that negotiators from the Philippines have failed to consult farmers.
“We strongly caution against rushing into such a deal without considering its broader implications for our domestic economy,” he said.
The proposed 20 percent US tariff rate for Philippine goods was higher than the 17 percent rate announced by Trump in April.
At that time, the Department of Agriculture (DA) said it was diversifying the markets for its agriculture exports in preparation for higher US tariffs.
INT’L ACCESS EXPANDS
In a July 7 statement, the DA noted that “international market access is expanding” for Philippine farm goods.
“Durian, mangoes, and avocados have secured new export approvals, while tamban (a type of sardine) has been officially recognized by the EU Codex, paving the way for broader sardine exports.”
The Philippines charges a 34 percent tariff on US goods. Its trade surplus with the US amounted to $4.9 billion in 2024.
Cainglet said Philippine exports that will be affected the most by the new US tariff rate are semi-processed goods like coconut oil, desiccated coconut, canned pineapple, and coconut water.
REDUCE TARIFF BARRIERS
The Philippine Coconut Authority (PCA) said in a statement on Sunday that it met on July 8 with chief executives of leading coconut processing firms, who “stressed the importance of continued negotiations with the US to reduce tariff barriers.”
“Major processors pledged to back PCA’s replanting initiatives, assuring international buyers that the Philippines can maintain a stable supply of high-quality coconut products,” it said.
While global demand for coconut products “continues to grow,” climate change and international trade regulations “present new challenges for producers,” it added.
“A unified strategy is key to protect farmer livelihoods and maintain the country’s dominant market position.”
Cainglet urged the government to prioritize the welfare of producers over that of importers and traders in its negotiations with the US.
“The US tariff should be viewed as a signal of how the US is protecting its own farmers, manufacturers, and domestic markets,” he said.
“Tariffs, when used strategically, can serve as essential tools to support local agricultural production, promote industrial growth, protect jobs, and preserve rural livelihoods.”
EXTENSIVE TRADE PACT
SINAG, an umbrella organization of 32 agricultural stakeholders, called the idea of an extensive trade pact with the US a “false narrative,“ arguing that it will instead favor importers and international traders over local producers, manufacturers, and workers.
Past trade agreements which focused on market access have undermined local industries, impaired food production capacity, displaced workers, and weakened rural economies, the group pointed out.
The government must otherwise think of a strategic use of tariffs to help boost local agriculture, support industry growth, and protect jobs, particularly rural livelihoods, Sinag said, noting that national interest should always be the priority.
“Trade policy must be shaped by national interest, not by external pressure or short-term market gains of a few privileged importers,” it emphasized.
Any future trade agreements should strengthen the country’s production capacity and support inclusive and sustainable economic growth, Sinag said.
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