AS THE GOVERNMENT is preparing its position for the negotiations with the United States on tariff and trade, local farmers shared their unease and asked the negotiators– who they earlier decried for not consulting them– to not sell them out in exchange for any trade deals.
The Federation of Free Farmers (FFF) has warned the government against sacrificing the country’s agricultural sector in ongoing trade talks with the United States, following Washington’s recent decision to impose a 20% tariff increase on certain Philippine exports, reported Bilyonaryo.
“We are worried that our agri-fisheries sector may (again) be used as a bargaining chip to convince the U.S. to reduce its tariffs,” said FFF national manager Raul Montemayor.
“This is not only unfair, but could be devastating to the country’s farmers and agricultural sector,” Montemayor declared.
PHL EXPORTS TO THE US
The FFF pointed out that Philippine agricultural exports to the U.S. make up only a third of what the country imports in return. From a purely agricultural standpoint, the Philippines runs a nearly $12 billion trade deficit with the U.S, he said.
Yet overall, the U.S. remains at a $5 billion trade deficit with the Philippines, largely due to strong electronics shipments such as integrated circuits and machine parts.
“Clearly, our agriculture sector cannot be blamed for the US trade deficit and should not be made to pay for it,” Montemayor emphasized.
RESIST MAKING EARLY CONCESSIONS
FFF urged Malacañang to resist the temptation of making early concessions, warning that once granted, these trade-offs would be difficult to undo even if the U.S. eventually lifts its retaliatory tariffs.
Unlike electronics exports, which depend heavily on imported components and basic assembly, agricultural products are produced locally and generate more value-added for the economy. They also contribute higher net export earnings, the group said.
“Even if the U.S. removes the reciprocal tariffs, we will still be at a disadvantage because other countries are more efficient and can supply cheaper and better quality goods than us,” Montemayor said.
Instead of chasing short-term trade wins, the government should focus on strengthening local farm productivity and improving global competitiveness, the FFF added.
“It is very possible that the US will ask for more market access and lower tariffs for its agricultural exports to the Philippines, particularly meats, grains and dairy products,” said Montemayor.
The Philippine negotiating team, led by Special Assistant to the President for Investment and Economic Affairs Frederick Go, left this week for the United States to negotiate a more favorable tariff deal with Washington.
The government earlier expressed its concerns over the 20-percent import duty on Philippine goods, which US President Donald Trump communicated to President Marcos in a letter dated July 9, noted Inquirer.
2ND LOWEST IMPORT DUTY
Although the import duty is the second lowest in the region, next to Singapore at 10 percent, it is higher than the 17 percent announced during the so-called “Liberation Day” in April.
The United States is the country’s leading export destination in 2024, accounting for $12.14 billion or 16.6 percent of the $73.27 billion in export sales, based on data from the Philippine Statistics Authority.
The FFF said it would be difficult to reverse any concessions offered prematurely in case the US government withdraws the reciprocal tariffs imposed on trading partners.
“Even if the US removes the reciprocal tariffs, we will still be at a disadvantage because other countries are more efficient and can supply cheaper and better quality goods than us,” Montemayor added.
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