Ralph Recto
Finance secretary Ralph Recto is championing a free trade agreement (FTA) with the United States and has even hinted at the possibility of reducing tariffs on US vehicles if such a deal is reached.
“We understand that President [Donald] Trump is keen on protecting US automakers and boosting their exports,” Recto said via text on Tuesday. He continued, “On our part, lowering tariffs on our exports to the US could allow us to integrate more fully into the American supply chain.”
Recent data from the Philippine Statistics Authority reveals that the United States was the leading destination for Philippine exports last year. Exports to the US totaled approximately $12.12 billion, accounting for about 16.6% of the nation’s overall export value.
Recto noted that the potential for a Philippines-US FTA has been part of earlier discussions with American government officials. “There have been previous talks. Given our status as allies, there’s always the possibility of deepening our economic cooperation. From their perspective, our trade is relatively modest,” he explained.
Last week, Recto met with US Ambassador to the Philippines MaryKay Carlson to strengthen trade and investment relations between Manila and Washington, D.C., in line with the policies of the new Trump administration. During the meeting, the Finance Department mentioned that Recto emphasized the alignment between the country’s economic and development priorities and the administration’s foreign policy.
Recto also shared the Philippines’ growth prospects for the year and expressed optimism about enhancing development cooperation and trade ties with the US. The Department of Finance noted that Ambassador Carlson affirmed the strong state of bilateral trade, aligning with America’s prosperity agenda.
She also highlighted the bullish sentiment among American investors regarding the Philippines, especially in relation to potential investments in the Luzon Economic Corridor and other high-value industries such as semiconductors and manufacturing supply chains.
Additionally, she commended the country’s ongoing efforts to improve trade and customs facilitation measures.
