The United States is keen on expanding its farm exports to the Philippines once nontariff barriers—as committed by the government—are removed this year.
In its 2019 Trade Policy Agenda and 2018 Annual Report, the Office of the US Trade Representative (USTR) reminded the Philippines of its commitment to better facilitate the entry of imports, particularly farm goods from the US. Manila last year vowed to look into issues aired by Washington on tariff concessions, cold chain requirements, customs valuation and geographical indications (GIs).
The report raised the long-standing US petition to extend the lowered Philippine duty rates on certain agricultural products, which the government committed to assess and consider.
It also noted the mutual intent of the Philippines and the US to collaborate on the development of cold chain requirements and best practices. This partnership will take into account international guidelines and codes of practice regarding food hygiene adopted by the Codex Alimentarius Commission.
Washington has long demanded Manila to remove its two-tiered system for regulating the handling of frozen and freshly slaughtered meat for sale in local wet markets.
The USTR report also reminded the Philippines it confirmed its intent to enforce domestic laws, regulations and policies, which require World Trade Organization-consistent customs valuation for duty collection purposes. It added the customs chief himself last year instructed his men to abide by what is stated under the law.
“As part of this effort, the Philippine Customs Commissioner issued a directive to all customs inspectors reiterating their obligation to comply with the existing legal requirements on customs valuation,” the report read.
The Philippines was also urged—as committed—to exercise transparency, due process and fairness in trade by respecting prior trademark rights and not restricting the use of common names. Further, Washington reminded Manila of its resolve not to provide automatic GI protection.
According to the World Intellectual Property Organization, a GI is a sign used on products that have specific geographical origin and possess qualities that are only due to that origin.
Last year US exports of food and agricultural products to the Philippines amounted to $2.8 billion, according to estimates from the USTR. This is expected to go up once the Philippine nontariff barriers are restructured, if not removed.
In a Global Agricultural Information Network (Gain) report published last year, the US Department of Agriculture Foreign Agricultural Service in Manila noted that the improvement in the purchasing power of Filipinos would drive higher consumption of farm products from the US.
“The US continues to be the Philippines’s largest supplier of agricultural products, and the Philippines is its 10th-largest global market,” the report read.
The Gain report noted that consumer-oriented food and beverage products would remain as one of the most lucrative commodities for US exporters.