Phl to gain from US trade sanctions on other countries

Potential US trade sanctions on major Asian economies are seen to significantly benefit the trade and investment relationship of the Philippines with the world’s largest economy, a trade official said.

China, India, Indonesia, Japan, Malaysia, South Korea, Taiwan, Thailand and Vietnam have earlier been identified as US trade partners which had significant trade deficit in goods in 2016.

The US is currently assessing the major causes of the trade deficit with the identified countries, particularly if the trading partner is “directly or indirectly imposing unequal burdens on, or unfairly discriminating in fact against, the commerce of the United States by law, regulation, or practice and thereby placing the commerce of the United States at an unfair disadvantage.”

Should trade sanctions be slapped on these countries, Trade Undersecretary Ceferino Rodolfo said this may “substantially increase” investments coming from the US as well as boost trade between the two countries.

Rodolfo said only five to 10 percent of total US investments being poured into the Association of Southeast Asian Nations are going to the Philippines.

“US investments here are already mature but a country like Vietnam is a virgin territory for them. If you’re an American company and you are looking for a global value chain, your last touch is usually Vietnam. But since it is facing trade remedy measures from the US, then how will you export back your products to the US? So it is the Philippines that should be your last touch,” Rodolfo said.

“That is why we’re very bullish with our relationship with the US,” he added.

In a China-Philippines business matching seminar for entrepreneurs yesterday, Rodolfo also presented the country’s case as a good gateway to the US market for Chinese companies should trade sanctions be imposed on China.

“The Philippines is also a good location if you’re looking at the US market because 70 percent of the exports of the Philippines to the US market already enter at zero percent duty,” he said.