Philippines Pushes FTA Trade Deal with Trump
The Philippines is actively pursuing a bilateral free trade agreement (FTA) with the United States. Trade Undersecretary Ceferino Rodolfo confirmed this push, citing past US interest in such a deal. He emphasized that the Philippines must seize the opportunity while the Trump administration remains open to negotiations.
President Donald Trump had previously expressed willingness to engage in an FTA with the Philippines. During his 2017 visit to Manila, both countries released a joint statement affirming this possibility. Unlike past US administrations, which approached the matter cautiously, Trump showed enthusiasm. Rodolfo expects Trump’s second term to strengthen economic ties between both nations.
Key figures in Trump’s administration also support a trade deal with the Philippines. Jamieson Greer, Trump’s nominee for US Trade Representative, previously worked under Bob Lighthizer. In 2018, Lighthizer acknowledged the Philippines as a potential FTA partner. Rodolfo remains optimistic that Trump’s team will maintain a favourable stance.
Philippines US FTA could influence EU trade deal
A successful FTA with the US could influence ongoing trade negotiations with the European Union. Talks between the Philippines and the EU resumed in October after years of delays. The European Chamber of Commerce of the Philippines (ECCP) supports these discussions. ECCP President Paulo Duarte believes an FTA would strengthen cooperation between Europe and the Philippines.
To attract more foreign investment, the Philippines is implementing trade & business-friendly policies. President Ferdinand Marcos Jr. recently signed the Corporate Recovery and Tax Incentives for Enterprises (CREATE MORE) law. This law reduces corporate income tax rates and extends fiscal incentives for strategic investments. Foreign direct investment inflows remain lower than in neighbouring countries. However, these reforms aim to position the Philippines as a more attractive investment hub.
With Trump back in office, the Philippines must move quickly to finalize trade agreements that will benefit its economy. However, only time will tell if it actually does.