Trade Undersecretary Ceferino S. Rodolfo said the Philippines would benefit from a substantial increase in trade and investments from the United States when the Trump administration imposes sanctions on Asean countries it has huge trade deficit with, a list that does not include the Philippines.
Rodolfo yesterday said he was anticipating more US companies to set up shop in the Philippines, a positive development that might arise from the backlash that neighboring countries would receive once US President Trump started slapping trade sanctions.
While Washington is yet to determine what kind of sanctions to impose, Trump signed an executive order at the end of March that called for a review of US’ bilateral trade partners, weeding out ones that it had significant deficits with in 2016 and the factors behind those deficits.
US ended last year with a trade deficit with the Philippines. However, this fell far below the $10-billion threshold that the Trump administration imposed in determining which deficit had a significant gap, Rodolfo said.
The expected shift in the focus of US companies back to the Philippines, he said, would boost the country’s share in the direct investments infused by the US into the region.
He said the Philippines accounted for 5 to 10 percent of the US’ FDIs in Asean.
“The Asean is often highlighted as a market, when we should also highlight it as a production chain. If you’re a US company, and the last touch [of your production chain] is Vietnam but Vietnam gets slapped with remedy measures, then you would want to turn to the Philippines,” he said in Filipino.
Based on the website of the United States Census Bureau, the US has a trade deficit of $1.78 billion with the Philippines. —ROY STEPHEN C. CANIVEL