The Philippine government is pushing to scale back a recently imposed 12.5 percent U.S. tariff on select domestic exports, aiming to bring the rate down to at least10 percent, Malacañang announced Thursday.
“Sa ngayon ay binigay sa atin na impormasyon ang target ay maibaba ito sa 10 percent (The information given to us for now is that the target is to lower it to 10 percent),” Palace Press Officer Claire Castro said when asked if Manila was pressing for a complete tariff removal or a partial reduction.
Castro noted that she did not have details regarding whether reciprocal concessions were being negotiated with Washington to secure the lower duty.
To address U.S. concerns over allegations of forced labor, which prompted the rate increase beyond the previous 10 percent baseline that expired on July 24, the government has submitted a joint administrative order framed by the Department of Trade and Industry, the Department of Labor and Employment, and the Department of Finance. The measure establishes a formal investigative framework to probe any export operations tied to labor exploitation.
Manila remains in close contact with the Office of the U.S. Trade Representative (USTR) as the agency evaluates the joint order. Through the DTI, Philippine officials are actively making the case that local laws stringently outlaw and penalize labor coercion.
“Marami po tayong batas na nagpapatunay na ito ay ipinagbabawal at ito ay may parusa kapag nahuli na nagkakaroon ang employers at nagpapatupad ng forced labor (We have numerous laws establishing that this practice is prohibited and punishable, specifically when employers are caught engaging in or enforcing forced labor),” Castro said.
“So ngayon, wala pang timeline na ibinibigay, pero patuloy po ang pakikipag-negosasyon at pakikipag-coordinate with the USTR (As of now, no specific timeline has been provided, but negotiations and coordination with the USTR are ongoing),” she added.
The International Labour Organization defines forced labor as any work or service exacted from an individual under threat of penalty and without voluntary consent.