THE Philippines is reviving its long-standing ambition for a free trade agreement (FTA) with the United States, as both allies explore sectoral arrangements and tariff exemptions amid renewed diplomatic momentum under the Trump administration.
Philippine Ambassador to the US Jose Manuel Romualdez revealed that recent meetings with US Trade Representative Ambassador Jamieson Greer signaled openness to future FTA talks, despite earlier indications that such a deal was off the table.
“We said, we know the FTA is not at the table. And he [Greer] said, ‘No, no—we’re ready to consider it,” Romualdez recalled during the Manila Strategy Forum Tuesday.
While a full-fledged FTA remains aspirational, the Philippines is currently focused on securing exemptions from the 19-percent reciprocal tariff unilaterally imposed by the US on Philippine exports.
Romualdez confirmed that Special Assistant to the President for Investment and Economic Affairs Frederick Go has formally requested relief for priority sectors, including agriculture and semiconductors.
“We’re continuing to work with Commerce and the USTR,” Romualdez said. “We’re confident that, at the end of the day, we’ll be able to get what we feel would be a fair tariff.”
Former US Ambassador to the Philippines John Negroponte backed the push for both tariff reform and a future FTA, calling it a “fitting” step for the alliance and a way to address “unusually high tariffs” on Philippine goods.
“I hope what was agreed during President Marcos’ recent meetings in Washington is not the last word,” Negroponte said. “There should be flexibility going forward.”
The United States remained the Philippines’s top export market, accounting for US$12.1 billion or 16.6 percent of total Philippine exports. Electronic products dominated the outbound trade, followed by machinery, food preparations, and apparel. Despite this strong bilateral flow, Philippine exports overall contracted by 0.5 percent in 2024, with electronic shipments dipping 6.7 percent.
Romualdez emphasized that the current tariff rates are “not written in stone,” and that ongoing talks with the US Commerce Department and the Office of the US Trade Representative are focused on achieving fairer terms.
The Philippines is also preparing to host the Asean Summit next year, with President Marcos extending a formal invitation to President Trump—who, according to Romualdez, has committed to attend.
