PH faces up to P6B in annual foregone revenues from US market access
According to Recto, the foregone revenues cover those collected from the importation of products that the Philippines has agreed to open to the US, which would ultimately benefit Filipino consumers.
'Unang estimate natin is P3 (billion) to P6 billion a year, depende kung lahat 'yan. Remember there's nothing final yet,' he told reporters on the sidelines of the Post-SONA Discussions in San Juan City.
'Assuming ibigay mo what we discussed with them like cars, soys, wheat, pharmaceuticals, soybeans, anywhere from P3 to P6 billion, pero wala pang final lahat 'yan,' he added.
(Our initial estimate is P3 to P6 billion a year, depending on the scope. Remember, there's nothing final yet. Assuming we grant what we discussed with them like cars, soys, wheat, pharmaceuticals, soybeans, anywhere from P3 to P6 billion but none of that is final yet.)
Just last week, US President Donald Trump announced a new 19% tariff rate for Philippine goods. This is lower than the 20% announced in a letter earlier this month, but higher than the 17% rate announced during the Liberation Day Tariffs in April.
Posting on his Truth Social media platform, Trump initially said the Philippines is going open market with the United States with zero tariffs, while the Philippines would pay a 19% tariff.
President Ferdinand 'Bongbong' Marcos Jr., who had a meeting with Trump before the 19% rate was announced, has since clarified that the zero tariffs on US products would only apply to certain markets such as automobiles.
'Not all imports will go down, so hihingin natin (so we will ask), especially those that do not compete with local industries and beneficial to consumers,' Recto said.
Overall, Recto said the 19% rate on Philippine exports is still beneficial to the country, given its comparative advantage to other countries that have been slapped with higher rates.
'We have one of the lowest tariffs in the world if you take a look, so beneficial sa atin dun (so that's beneficial for us). Siyempre tatamaan din 'yung exports natin (Of course, our exports will be hit) initially, but as a whole, it looks like we have a better deal than many other countries,' he said.
Economists earlier said the latest agreement will only have a limited impact on the country's economy given its low dependence on American demand compared with other Asian economies, with local exporters bearing the brunt. — RSJ, GMA Integrated News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
17 hours ago
- GMA Network
Trump fires US labor official over jobs data
US President Donald Trump speaks during a meeting with Democratic Republic of the Congo's Foreign Minister Therese Kayikwamba Wagner and Rwanda's Foreign Minister Olivier Nduhungirehe in the Oval Office at the White House in Washington DC on June 27, 2025. REUTERS/Ken Cedeno WASHINGTON/NEW YORK — US President Donald Trump on Friday fired a top Labor Department official on the heels of a market-shocking weak scorecard of the US job market, accusing her without evidence of manipulating the figures and adding to already growing concerns about the quality of economic data published by the federal government. In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve with which he clashes almost daily for not lowering interest rates opened much earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday afternoon. The two developments further rattled a stock market already reeling from his latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index .SPX sank 1.6% in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former President Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the Bureau of Labor Statistics, the statistical agency that compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the US economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said in a post on Truth Social. Data concerns A Trump administration official who requested anonymity said that while all economic data is noisy, the White House has been dissatisfied with how large the revisions have been in the recent data and issues with lower survey responses. The problem started during COVID and has not been addressed in the years since. "There are these underlying problems that have been festering here for years now that have not been rectified," the person said. "The markets and companies and the government need accurate data, and like, we just weren't getting that," the official said. The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3% in October 2020 to about 67.1% in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of US economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. "Politicizing economic statistics is a self-defeating act," said Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward. "Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well." Fed change sooner than expected Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed Chair Jerome Powell on the central bank's Board of Governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until January 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centered on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep rates on hold, saying he preferred to start lowering them now. Trump, as he was leaving the White House to spend the weekend at his Bedminster, New Jersey, estate, said he was happy to have the open slot to fill. "I would not read any political motivation into what [Kugler is] doing, although the consequence of what she's doing is she's calling Trump's bluff," said Derek Tang, an analyst at LH Meyer, a research firm. "She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot." — Reuters
GMA Network
18 hours ago
- GMA Network
PH, Japan mark 69 years of unbreakable bond
Despite being on opposing sides during World War II, the Philippines and Japan have come a long way since the normalization of diplomatic ties in 1956. Nowadays, the two countries' partnership is stronger than ever—spanning culture, trade, people-to-people ties, development, and now on security cooperation. This deepening connection was commemorated in Osaka, Japan, during the 69th anniversary of the Philippines-Japan Friendship Day. The event, organized by the Tourism Promotions Board of the Department of Tourism in coordination with the Philippine Consulate General in Osaka, showcased the rich Filipino culture and the strength of bilateral ties through music, fashion, and sincere tributes. Bayang Barrios led other Filipino performers in lighting up the scene with songs and dances that celebrated the spirit of unity. Singer Bayang Barrios (rightmost) perform with dancers. IAN CRUZ/GMA Integrated News The festivities continued with a stunning fashion show featuring designs by Furne Amato, a Dubai-based Cebuano designer renowned for sophisticated craftsmanship highlighting the spirit of Filipino artistry on the global stage. Filipino artistry is shown in the designs of Pinoy designer Furne Amato. IAN CRUZ/GMA Integrated News Dubai-based Cebuano designer Furne Amato and Tourism Promotions Board COO Maria Margarita Montemayor Nograles at the fashion show segment. IAN CRUZ/GMA Integrated News Ambassador Koji Haneda, commissioner general of Expo 2025, recognized the deep partnership of Japan and the Philippines. 'As we approach the 70th anniversary of diplomatic normalization and the 15th anniversary of our strategic partnership in 2026, moments like this remind us that Japan and the Philippines are not merely neighbors connected by the ocean but partners connected by shared values, common aspirations, and mutual respect,' said Haneda, a former ambassador of Japan to the Philippines. Tourism Promotions Board COO Maria Margarita Montemayor Nograles and Japanese officials celebrate PH-Japan ties. IAN CRUZ/GMA Integrated News Tourism Promotions Board COO Maria Margarita Montemayor Nograles shared the same view as the Japanese envoy. 'We honor a friendship that has stood for 69 years—woven not only by diplomacy and treaties but by shared experiences, mutual respect, and enduring ties between our peoples,' Montemayor Nograles declared. While the occasion was joyous, it also carried a message of empathy. Tourism Secretary Christina Garcia Frasco, through the COO of the Tourism Promotions Board, expressed solidarity with Filipinos affected by the recent string of typhoons and flooding enhanced by the Southwest Monsoon (Hanging Habagat). 'Tonight our hearts and thoughts are with those facing difficult times. We hold you in our hearts even as we gather here today. It is in moments like this that we are reminded of our strength found in unity and the enduring friendship between the Philippines and Japan.' Consul General Voltaire Mauricio in an interview with GMA Integrated News emphasized the importance of disaster preparedness as a shared priority between the two countries. 'Ito po ang ating ginagawa ngayon kapag bumibisita kami sa mga governors ng ibang probinsiya dito sa Japan, kung anong best practices na matutunan natin pagdating sa kanilang ginagawa pagdating sa tsunami, sa bagyo, sa landslides, sa lindol. Ano 'yung ginagawa natin at ano naman ang pwede nating ibahagi sa kanila pagdating sa lakas natin sa mga ganung klaseng sakuna,' the head of the Philippine Consulate General in Osaka explained. (This is what we do when we visit the governors of provinces in Japan. We find out their best practices that we can learn when it comes to response to tsunamis, storms, landslides, and earthquakes. What are we doing and what can we in turn impart to them when it comes to disaster response?) The Philippines has received numerous official development assistance (ODA) from Japan for major infrastructure projects and is one of the first countries to receive official security assistance (OSA) aimed at strengthening maritime security capabilities and improving monitoring and surveillance capabilities The Philippines and Japan established diplomatic relations on July 23, 1956. The celebration coincided with the continuous success of Expo 2025 in Osaka, where the Philippine Pavilion has become one of the important attractions. With its theme 'Nature, Culture, and Community Woven Together for a Better Future,' the pavilion features indigenous textiles, interactive installations, and daily performances. The Philippine Pavilion has welcomed about 600,000 visitors. Ambassador Haneda announced that the expo continues to welcome large crowds every day. From April to the end of July, the Expo has received over 30 million visitors. The Expo located on Yumeshima Island of Osaka will run until October 13. —KG, GMA Integrated News
GMA Network
a day ago
- GMA Network
SWS: 49% of Filipino families consider themselves poor in June
Forty-nine percent of Filipino families viewed themselves as poor in June, which is one point lower than the previous survey in April, according to the Social Weather Stations (SWS) on Friday. SWS said the June figure represents 13.7 million Filipino families, down from 14.1 million in April. ''The one-point decline in the nationwide Self-Rated Poverty between April 23-28, 2025 and June 25-29, 2025 was due to declines in the Visayas and Balance Luzon (or Luzon outside Metro Manila), combined with increases in Mindanao and Metro Manila,'' SWS said. Of the families who identified as poor, 34.8% never experienced being non-poor (''always poor''), 6.4% were non-poor five or more years ago (''usually poor''), and 7.8% were non-poor one to four years ago ("newly poor"). The June 25-29, 2025 survey also found the percentage of borderline families at 10%, up 2 points from the record low of 8% in the April 23-28, 2025 poll. Forty-one percent of the 1,200 respondents said they were not poor, which is 1% less than the record high 42% in April. SWS said 41% of families rated themselves as food-poor, 10% as food borderline, and 49% not food-poor. The median family expenses in June remained the same (house rent at P3,000, transportation to work and school at P2,000, and internet at P800) except for mobile phone load, which decreased from P400 to P300. For the June survey, SWS conducted interviews with respondents in Metro Manila, Balance Luzon (or Luzon outside Metro Manila), the Visayas, and Mindanao. There were 300 respondents in each geographical area. The sampling error margins are ±3% for national percentages and ±6% each for Balance Luzon, Metro Manila, the Visayas, and Mindanao. —VBL, GMA Integrated News
