The US remains open to a free trade agreement with the Philippines, but Manila is in no rush to seal the deal.
Philippine Ambassador to the US Jose Manuel Romualdez said Washington has kept the door open to a potential FTA, even as the Philippines prioritizes other trade negotiations and works to stabilize existing tariff arrangements.
Romualdez recalled that the idea of an FTA resurfaced during earlier discussions with US officials, particularly amid talks on tariffs. At the time, he said, the Philippine side made clear it was not ready to move forward.
“When we mentioned a free trade agreement the last time, we just said that perhaps this is not the time,” Romualdez said, referring to negotiations led then by Presidential Investment and Economic Affairs Secretary Frederick Go.
Despite Manila’s cautious stance, US officials signaled receptiveness. “They said that they’re open,” Romualdez said. “But I don’t think we’re prepared to go into discussions on that one until we have more or less solidified our agreement on the tariffs.”
The US position mirrors earlier momentum during the first Trump administration, when both sides came close to launching formal FTA talks. For now, however, Romualdez stressed that an FTA is not an immediate priority. “There are other more important agreements,” he said.
Trade relations between the two countries have steadied following the imposition of a 19-percent tariff on Philippine exports. Romualdez said discussions with the US Trade Representative have yielded favorable results, with most requested exemptions granted.
These exemptions, he noted, have helped balance trade and ease pressure on key sectors. Ongoing talks cover industry-specific concerns, particularly in semiconductors, where US industry groups are working to limit disruptions. Many of the affected exporters, Romualdez pointed out, are American firms operating in the Philippines.
He added that the business process outsourcing sector has already been cleared from taxation concerns.
“So, bottom line, it’s pretty stable,” Romualdez said. “At the end of the day, I think we’re quite happy.”
