Phl to benefit from cut in China’s import tariff

China’s decision to slash by more than half the import tariffs on 1,500 consumer products starting July 1 stand to benefit the Philippines, the country’s trade chief said.

China recently announced it will cut import duty payable on almost 1,500 consumer products by almost 60 percent starting July 1. Its Ministry of Finance said the average tariff rate on the products imported from most favored nations (MFN) will be lowered to 6.9 percent from 15.7 percent.

“We will definitely benefit as MFN means all of whom they trade. But since we have an ASEAN-China free trade agreement (FTA), we will have to check per product which ones are in the FTA and in this general reduction of MFN rates. Any common products would mean no need for rules of origin. For the rest not in FTA, that means we will enjoy lower tariffs,” Trade Secretary Ramon Lopez told

Lopez lauded China’s decision as part of its efforts to beef up imports and open up its economy.

“It shows China is serious in helping balance trade with other countries, promoting this time imports into their country in the same way they are mounting an Imports Expo this November,” he said.

China will host in November the first ever China International Import Export Expo in Shanghai, an expo which will feature only foreign exhibitors.

China emerged as the Philippine’s top trading partner in 2017, the first full year of the Duterte administration, with total bilateral trade valued at $23.82 billion, an increase from $21.9 billion in 2016.

The balance of trade between the two countries, however, still heavily favored China since the Philippines imported more products from the world’s second largest economy.

China was the country’s fourth biggest export market and its top import source last year.

With improving political and economic relationship between the two countries, Chinese Ambassador to the Philippines Zhao Jianhua earlier said China has the potential to be the number one importer of Philippine products.

In 2017,China was the fourth largest importer of Philippine products behind Japan, US and Hong Kong.

The top products China imported from the country last year included storage units ($1.26 billion), digital monolithic integrated circuits ($1.12 billion), nickel ores and concentrates ($494.35 million), semiconductor devices ($329.74 million) and coal ($296.14 million).