PH sees substantial hike in investment and trade from US

The Philippines expects substantial boost in investments and trade following the US government's move to probe its trading partners, including 4 ASEAN countries, where it suffered huge trade deficit.

Trade and Industry Secretary Ceferino S. Rodolfo told reporters after a speech at the Guangxi (China) – Philippine Business Matching Seminar in Makati the Philippines can easily substantially improve its investment and trade figures.

ASEAN countries identified by the US that may be subjected to trade remedy measures because possible unfair trade practice of its huge trade deficit include Thailand, Indonesia, Malaysia, and Vietnam.

It is not yet known what sanctions the US will impose to remedy its huge trade imbalance but it could include higher duties on exports from these countries. This makes other countries in ASEAN such as the Philippines benefit from this situation.

Rodolfo said there is no estimate as to how this US policy can benefit the Philippines, but said they are very bullish.

For instance, American investments in the Philippines only account for 5 to 10 percent of its total investments in ASEAN. This is because the Philippines is already a mature market for the US while Vietnam is a virgin territory for them.

In terms of trade, the Philippine export to the US is only at a level of $1.7 billion as against over $10 billion of other ASEAN countries.

During his speech, Rodolfo told the Chinese delegation that the additional attraction of the Philippines is that 70 percent of its exports enjoy zero duty under the US-Generalized Scheme of Preferences. Because of the new US policy against countries where it suffered huge trade deficit , Rodolfo asked the Chinese businessmen, " Where will you go?" Already, the country's exports to the US increased by 14 percent in the first quarter this year.

Other ASEAN countries are also preparing for the Trans Pacific Partnership, which the Trump administration junked.