Philippine government trade negotiators said the country will continue to protect domestic manufacturing and agriculture industries, even as they agreed to grant enhanced domestic market access for U.S. products, potentially including healthcare, and other manufactured products that are not locally produced.
This was the broad joint statement issued today, July 24, 2025, by Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go and Trade and Industry Secretary Cristina A. Roque, who led Philippine negotiating team to Washington D.C. to lower the increased 20 percent reciprocal tariff. American officials, however, only agreed to reduce the tariff by a token one percent to 19 percent, higher than the 17 percent original reciprocal tariff announced earlier in April on all Philippine exports to the U.S. market.
In lieu of the 19 percent reciprocal tariff, the U.S. is given enhanced market access for some of its products, which earlier reports quoted President Marcos Jr., who also went to the U.S. to bolster the Philippine negotiating position, as saying these products include U.S.-made vehicles.
Both Go and Roque did not specify the American-made products, with the DTI secretary emphasizing, “We will continue to protect major domestic agricultural and manufacturing industries. They are not included in our concessions.”
Go, however, gave out a hint that the trade concessions could include U.S. pharmaceutical products. “The concessions we will extend are strategic to the Philippines. These are products that we do not locally produce and are critical inputs to reducing the cost of healthcare, for example,” he said.
Roque also said the trade deal is not yet final and details are yet to be finalized. “The Philippines and the United States will still have to negotiate the details of the agreement including products that are covered by market access commitments on both sides,” she said.
Roque assured to work closely with relevant stakeholders to finalize the remaining details of the agreement. “We are mindful of the sensitivities of our domestic stakeholders and the same will be duly considered in the negotiations.”
Both officials also noted that the Agreement on Reciprocal Trade with the U.S. is not just limited to tariffs as it includes other trade-related matters. Thus, the negotiators will work on the details to finalize the Agreement.
They emphasized that the U.S. is a valuable trade and investment partner globally and more so in the Indo-Pacific. “Our objective is to ensure that this bilateral deal will complement our existing international trade commitments as well as the capabilities and needs of our domestic industries.”
“As global trade dynamics evolve, we will actively pursue initiatives to improve market access of Philippine products globally so that Philippine businesses are able to diversify their markets and reduce exposure to external risks. We are focused on building resilient, sustainable and inclusive trade relationships with key trading partners that contribute to long-term economic growth and prosperity for all Filipinos” Roque added.
Competitive tariff rate
Both secretaries also defended the 19% tariff rate as against the reduced rates given to other ASEAN countries.
They explained that the revised tariff rate places the Philippines among the most competitive Southeast Asian economies trading with the U.S. Currently, the Philippines has the second-lowest tariff rate in the region at 19 percent, just behind Singapore’s 10percent. Other ASEAN countries face U.S. tariffs ranging from 19 to 40 percent. Because the Philippines benefits from lower U.S. tariffs on its exports, it becomes a more attractive destination for foreign direct investments (FDI). When the U.S. imposes relatively mild tariffs on Philippine goods compared to neighboring Southeast Asian countries, the Philippines gains a competitive edge as a manufacturing hub focused on the U.S. market. This encourages foreign companies targeting the U.S. to consider relocating their operations here, creating more investment and job opportunities for Filipinos.
Go stated that “Enhanced market access will enable the Philippinesto become a more attractive destination for export-oriented investments—opportunities that might have otherwise gone to our neighbors.”
The stated noted that the outcome of the recent meeting serves as a strong start to maintain the country’s comparative advantage to our largest export market and overall, one of our major trade and investment partners. It takes into account, among others, the positioning of the country as an investment destination, thus, the need to ensure the competitiveness of the Philippines in the region.
The Philippines is actively negotiating free trade agreements with other key trading partners, including Canada, United Arab Emirates, and Chile. These agreements will open new opportunities, strengthen global trade partnerships, and ensure Philippine exporters remain competitive in an increasingly complex international trade environment, the statement concluded.
