MANILA is hopeful for a positive response from Washington as negotiations continue over the 12.5% US tariff imposed on Philippine exports due to concerns over goods allegedly tied to forced labor imports.
At a news briefing ahead of the upcoming 58th ASEAN Economic Ministers’ Meeting held on Friday, Trade Undersecretary Allan B. Gepty said the government is awaiting the evaluation of the United States Trade Representative (USTR) on its recent joint administrative order (JAO) to investigate forced labor imports.
“Right now, we are awaiting the evaluation of the United States Trade Representative on whether or not this will suffice as far as addressing their concern,” he said.
“We are hopeful that they will positively respond because we have been very cooperative and we have been very open in engaging with them.”
In July, the Philippine government issued a JAO detailing the rules for the investigation and prohibition of importing goods produced wholly or in part through forced labor.
The joint order establishes a coordinated mechanism for investigation, information-sharing, and enforcement against imported goods suspected of being produced through forced labor, the Department of Finance (DoF) said in July.
“The JAO reflects the Philippines’ commitment to building an economy founded on responsible business conduct, ethical sourcing, and respect for human dignity,” it said earlier.
It also aligns with the Philippines’ obligations under international labor conventions, the DoF added.
The JAO also created an inter-agency committee that will investigate and curb forced labor imports in the Philippines. The panel is chaired the Department of Trade and Industry (DTI) and vice-chaired by the DoF. Other agencies part of the committee are the Bureau of Customs, Bureau of Investments, and Philippine Economic Zone Authority.
The order also seeks to ensure that consumers, workers, importers, exporters, and legitimate businesses are protected from the adverse effects of unfair and exploitative trade practices, the DoF said.
The order is expected to address the US’ concerns on the importation of products made with forced labor, Mr. Gepty said, which is seen as a vital step on negotiating on the 12.5% US tariff imposed on Philippine exports last July.
US President Donald J. Trump on July 24 slapped a 12.5% tariff Philippine exports to the US after the USTR ruled that the country failed to curb imports of goods made with forced labor.
The latest US import duty took effect after the earlier 10% baseline rate for the Philippines ended on July 24.
The baseline levy was imposed in February after the US Supreme Court ruled that Mr. Trump had exceeded his legal powers when he imposed reciprocal tariffs through the International Emergency Economic Powers Act.
About $6.25 billion worth of Philippine-made goods are subjected to the US’ latest 12.5% levy. These include exports of leather and travel goods, apparel, footwear, and toys, the DTI-Export Marketing Bureau noted.
Trade Undersecretary Ceferino S. Rodolfo told reporters that the Philippines has no issues regarding the entry of goods tied to forced labor, adding that these have been counter-checked with respect to the US Forced Labor Protection Act.
Despite this, the DTI said it continues to engage with its American counterpart in addressing issues related to forced labor imports, he noted.
The US remains the Philippines’ top export market as of end-July, with exports to the US up 18.5% to $10.14 billion during the period. — Beatriz Marie D. Cruz
