Tereso O. Panga, director general of the Philippine Economic Zone Authority (PEZA), has called for the acceleration of the country’s logistics infrastructure development and digital transformation in light of the anticipated wild global supply chain disruptions following the imposition of sweeping punitive Trump tariffs on U.S. trading partners, including the Philippines.
Panga, who earlier proposed to the government for reciprocity in tariffs between the U.S. and the Philippines by reducing rates in both countries similar to Vietnam’s proposal, said improved logistics infrastructure and digital transformation will enable the Philippines to position itself as an alternative manufacturing investment destination in the region.
“This will enable the Philippines to become a global manufacturing and regional supply chain hub—and ultimately, as the preferred investment destination in the region,” he said in his Facebook post.
Another key strategy is the promotion of import substitution, encouraging relocating companies in the region to establish manufacturing operations in our ecozones to produce essential goods for local consumption. This will enhance self-sufficiency, reduce dependence on imports—especially for consumer goods and raw materials—and boost our domestic manufacturing sector through localized supply chains.
Foremost, Panga reiterated his earlier proposal that government secure an agreement with the U.S. for tariff lines at reduced rates for key ecozone exports to the U.S., such as EMS-SMS, machinery, transport equipment, automotive parts and select agricultural products (i.e., coconut, aquatic).
“This can be achieved under a bilateral free trade agreement (FTA) framework, focusing on preferential tariff agreements that promote mutually beneficial trade between the Philippines and the U.S.,” he said.
“The proposal to establish an Economic Security Council by the Management Association of the Philippines is crucial given the global business risks posed by U.S. tariffs, as well as the geostrategic considerations that the Philippines must now take into account in these still uncharted waters,” he said.
Meanwhile, he said, PEZA must craft a concrete roadmap to seize opportunities while mitigating the impact of tariffs on global trade.
