Makati city: The competitiveness of the Philippines’ agricultural exports is anticipated to improve significantly following the recent announcement by the United States of tariff exemptions on several key products. The exemptions apply to a 19 percent reciprocal tariff, providing a boost to the agricultural sector.
According to Philippines News Agency, the US government announced on November 14 that products such as coconut oil, prepared or preserved coconuts, desiccated coconuts, fruit juices, processed pineapples, bananas (other than pulp), dried guavas, mangoes, mangosteen, frozen tuna fillets, rice wafer products, and confectionery products will now be exempt from tariffs. These items collectively generated over USD1 billion in export value in 2024, according to Department of Trade and Industry Secretary Cristina Roque, who discussed the development during a briefing in Makati City.
Prior to this decision, the US had already exempted other Philippine agricultural products, including coffee, tea, cocoa and spices, oranges, tomatoes, beef, and select fertilizers, from tariffs. Outgoing Special Assistant to the President for Investment and Economic Affairs Frederick Go highlighted that these exemptions could provide substantial benefits to the farming sector. He mentioned that discussions with US counterparts emphasized the necessity of these exemptions, given the limited capacity of the US to produce these agricultural items domestically.
Go expressed optimism about the new exemptions, underscoring their potential to enhance the competitiveness of Philippine agricultural exports, create jobs, and strengthen supply chains. This development represents a significant achievement for Philippine agriculture and the exporting community.
In addition to agricultural products, several semiconductor items from the Philippines are also already exempt from US tariffs. Trade Undersecretary and Board of Investment head Ceferino Rodolfo estimated that these exemptions could amount to USD4 billion annually. The US remains a critical trading partner for the Philippines, with bilateral trade reaching approximately USD20.3 billion last year.
