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US Tariff Exemption to Boost Philippine Farm Exports

Washington: The Department of Agriculture (DA) anticipates a substantial competitive advantage for Philippine farm exports in the United States following the decision to exempt more products from the 19 percent reciprocal tariff.

According to Philippines News Agency, DA Assistant Secretary Arnel De Mesa highlighted in a Bagong Pilipinas interview on Wednesday that the expanded exemption is set to benefit Filipino farmers and agricultural exporters directly. De Mesa mentioned that the exemption, covering over 200 categories of agricultural products, will lead to an increase in agricultural exports to the US. With the removal of the 19 percent tariff, there will be immediate relief for Filipino farmers and agri-product exporters.

De Mesa elucidated that the reduction in market entry costs would render Philippine products more appealing to US buyers. He also pointed out that there are no restrictions on the volume or value of exports that can take advantage of the tariff waiver.

In 2024, the Philippines exported goods worth USD12.12 billion to the US, with a significant portion comprising coconut-based products, which are now included in the newly exempted categories. The US government, in its announcement on Nov. 14, specified that the exemption includes 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.

Prior to this recent decision, Philippine agricultural products such as coffee, tea, cocoa and spices, oranges, tomatoes, beef, and select fertilizers were already exempted from the tariff.