Coconut, garments expected to benefit if Philippines negotiates favorable US tariffs – BusinessWorld Online
THE Department of Trade and Industry (DTI) said it sees the coconut and garment industries as among the main beneficiaries if the Philippines locks down a favorable tariff deal with the US.
“Coconut is a huge market, which our neighboring countries used to dominate. But if our tariff is lower, of course, we can dominate that,” Trade Secretary Cristina A. Roque said.
“I was able to talk to a big coconut company, and they said that they are prepared just in case there’s a surge in orders,” she added.
The US was the country’s top export destination for food and non-food coconut products last year, accounting for 25.68% of the total.
Last year, the Philippines exported $556.3 million worth of coconut products to the US, up 65.6%.
Philippine goods were assigned the second-lowest tariff in Southeast Asia of 17%, after Singapore’s 10%, from the reciprocal tariffs imposed by the US on its trading partners earlier this month.
The Philippine delegation to negotiate the tariffs will be led by the DTI and the Office of the Special Assistant to the President for Investment and Economic Affairs.
Aside from coconut exports, Ms. Roque said the timing is right to strengthen the garments industry as competitors face higher rates.
“In the past, when there was a Garments and Textile Export Board, our exports were really big. So definitely, we can revive the industry because we have existing factories and skills … (given the history of the industry) it is not like we are going to do it out of nowhere,” she added.
Major garment exporters like Vietnam and Cambodia, face some of the highest US tariffs — 46% and 49%, respectively. — Justine Irish D. Tabile