By Justine Irish D. Tabile, Reporter
DEVELOPING countries could harness the Asia-Pacific Economic Cooperation (APEC) in diversifying their markets in the face of the disruption resulting from the US reciprocal tariffs, an analyst said.
Raphael J. Cortez, a diplomacy instructor at De La Salle–College of Saint Benilde, said APEC plays a role in supporting developing countries in dealing with global economic shifts.
“APEC serves as an avenue for the Philippines and other developing countries to further their respective trade diversification efforts, cognizant of the need to not merely focus on trading with one or two markets, but to approach it from a multilateral perspective,” he told BusinessWorld via Messenger.
“In the case of the US reciprocal tariffs, APEC can safeguard in a way its member economies that are facing ballooning tariffs,” he added.
He said the reciprocal tariffs can be “perilous” to the economic interests of developing countries, which is why the APEC should be used to facilitate dialogue.
“APEC (could become) a negotiating platform — as it involves both the US and China — not just to guarantee economic order between the two superpowers, but also to devise solutions on how such high tariffs can be alleviated through joint action,” he added.
He said that APEC’s commitment to climate action and digitalization will help the Philippines in its climate change-related goals as it assumes the Association of Southeast Asian Nations chairmanship.
“It may also provide the necessary support for our policy toolkit for us to effectively address climate change-related and digital transition-related gaps,” he said.
“As a country known for its labor force, such issues may undoubtedly cause disruptions in terms of our economic development, hence working with APEC countries on these facets will be very much pivotal,” he added.
APEC is a regional economic forum established in the late 1980s to leverage the growing interdependence of the Asia-Pacific.
It comprises 21 economies — the US, Canada, Mexico, Peru, Chile, South Korea, Japan, Chinese Taipei, Hong Kong, the Philippines, Brunei Darussalam, Papua New Guinea, Indonesia, Australia, New Zealand, Russia, China, Vietnam, Thailand, Malaysia, and Singapore.
Hansley A. Juliano, a political science lecturer at the Ateneo de Manila, warned that US President Donald J. Trump’s reciprocal tariffs are “sabotaging” the system APEC has put in place.
“APEC has been a longtime space the Philippines participates in, which is also worrisome considering that the US is basically sabotaging the system due to its domestic politics,” he told BusinessWorld via Messenger.
“The US is actively sabotaging global free trade due to its own leaders’ economic illiteracy, (which) compromises not only its own domestic economy, but also ruins the investment and economic opportunities of longtime allies like us,” he added.
“In my view, APEC can perhaps address its Northern Hemisphere centrism by pushing for more multilateral representation and abandoning uncritical neoliberal policy mandates to participating states,” he said.
“It is one thing to willy-nilly impose tariffs on everyone the way the US does, but it is also wrong to go on with the push for removing all tariffs even for countries whose domestic products will be overrun by bigger economies like China and European Union member states,” he added.
The US imposed sweeping tariffs on its trading partners, including a 19% tariff on Philippine goods entering the US market.
On Oct. 26, US Trade Representative Jamieson Greer said that Mr. Trump secured agreements on reciprocal trade with Malaysia and Cambodia.
Meanwhile, Mr. Trump also reached frameworks of agreements on reciprocal trade with Thailand and Vietnam.
“These landmark deals demonstrate that America can maintain tariffs to shrink the goods trade deficit while opening new markets for American farmers, ranchers, workers, and manufacturers,” Mr. Greer said.
Asked to comment, Trade and Industry Undersecretary Allan B. Gepty said the Philippines and the US are still negotiating their tariff deal.
“Hindi pa tayo tapos, ongoing pa. Malaysia and Cambodia ang tapos na (We’re not done yet, talks are ongoing. It’s Malaysia and Cambodia that have wrapped up talks),” he said via Viber.
At the Department of Trade and Industry Senate budget hearing earlier this month, Mr. Gepty said that it will be difficult to conclude the negotiations within the year, adding that a final agreement is expected next year.