THE Philippine Exporters Confederation, Inc. (Philexport), said the export targets set by the Philippine Development Plan (PDP) will be difficult to achieve if the US imposes tariffs on semiconductors.
“The Philippine Export Development Plan (PEDP) was not achievable… so we adapted the PDP (target), which is lower,” Philexport President Sergio Ortiz-Luis, Jr. told reporters last week.
“That is the target we are now following; officially we haven’t changed the target, but that is what we are looking at, and even that is difficult to achieve … I am not even sure if we will meet it, because exports of electronics to the US will drop,” he added.
Under the PEDP, Philippine merchandise and services exports are projected at $163.6 billion in 2025. The corresponding PDP target was initially $113.42 billion, rising to $115.49 billion in the midterm PDP update.
This month, US President Donald J. Trump said he will be imposing a levy on semiconductors entering the US market in a bid to revive US chip production.
“We are very worried. We hope that there will be some breaks, but it is quite dim at the moment. We were hoping that electronics would save us, but I think our major competitors have lower tariffs, and that is the problem,” Mr. Ortiz-Luis said.
He said the hope is for Philippine chip exports to be exempt but noted that the Philippines has little leverage with nothing to offer the US.
“We might have to change our geopolitics because we are being left behind by our neighbors,” he added.
He said exporters have been trying to diversify their markets for the last 20 years but are failing due to lack of support.
“Our neighbors have complete support for research and development, policy, and promotions. If there are export exhibitions, our exporters won’t join because… our booths will look pathetic,” he said.
“Unless the government seriously says we will support exports and really puts money into it… I don’t see anything happening,” he added.
However, he said that the free trade agreements (FTAs) are helping cushion the impact of the US tariff.
“At least here in ASEAN, Korea, and Japan, the FTAs are helping somewhat, but we only have about four, and the others have more,” he said.
Aside from the US, he said that the other potential big markets for Philippine exports are Greater China and Japan. — Justine Irish D. Tabile