PEZA sees US tariff as trade opportunity

The Philippine Economic Zone Authority (PEZA) views the US's new 17% tariff on Philippine goods as a potential opportunity for increased trade and investment, seeing it as a chance to strengthen economic ties.

PEZA Director General Tereso Panga stated that while the 17% tariff will make Philippine exports more expensive, this rate remains among the lowest in Southeast Asia.

Neighboring countries face significantly higher tariffs, with Vietnam at 46%, Thailand at 36%, Indonesia at 32%, and Malaysia at 24%, making the Philippines a more competitive option for foreign investors.

The agency acknowledges the challenges posed by the increased tariff, particularly for major US export sectors like electronics and IT-BPM.

PEZA is actively promoting the "China+1+1" strategy to encourage businesses to maintain operations in China while expanding into the Philippines.

Coupled with recent positive developments like the Regional Comprehensive Economic Partnership and the CREATE MORE Act, PEZA believes these measures will mitigate the tariff impact and enhance the Philippines' attractiveness as an investment destination.