The Philippines is accelerating its trade diplomacy to counter a widening goods deficit and tougher global conditions, officials said at the Industry-Trade Policy Dialogue on January 26. The push centers on expanding market access, shoring up exports, and diversifying partners as protectionism rises.
DTI Undersecretary Allan Gepty said negotiators are advancing priority agreements to lift competitiveness and attract investment.
The urgency is underscored by a USD45 billion goods trade deficit in 2025, even as services trade stayed in the black with a USD9.8 billion surplus, highlighting the growing role of professional and digital exports.
A marquee win is the Philippines–UAE Comprehensive Economic Partnership Agreement, which removes tariffs on 95 percent of Philippine exports and opens wider doors for Filipino professionals in healthcare, engineering, and architecture.
Talks with the European Union are also gaining momentum, with officials estimating a potential USD12 billion in unrealized trade if a deal is sealed. Beyond tariffs, the proposed FTA spans procurement, digital trade, sustainability, and labor standards.
Manila is likewise eyeing a CEPA with Chile—its first prospective FTA in Latin America—to secure copper supplies vital for electric vehicles, data centers, and AI-linked industries.
Gepty flagged external risks, including a 19 percent reciprocal tariff rate from the United States and added duties on steel, auto parts, and select semiconductors.
Business groups broadly welcomed the agenda but warned of compliance costs, procurement commitments, sector sensitivities, and low awareness of existing FTAs.
To translate deals into gains, Gepty said targeted technical assistance, clearer rules, and stronger SME support will be decisive.
Officials stressed coordination with industry, faster customs, skills upgrading, and export financing to help firms scale, comply, and compete across volatile markets under new trade rules globally.
