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The Philippines is ready to collaborate with the Association of Southeast Asian Nations (ASEAN) as the 10-member bloc moves to strengthen its trade partnership with the United States (US) following the 90-day suspension of reciprocal tariffs.
In a statement, Department of Trade and Industry (DTI) Secretary Cristina Roque said she met with fellow ASEAN economic ministers on Thursday, April 10, to discuss the region’s response to the tariff imposition.
Last week, US President Donald Trump announced a 10-percent baseline tariff on all foreign-sourced goods, along with a higher reciprocal tariff on countries with which America has a trade deficit.
However, in an unprecedented move, Trump decided to pause these tariffs until July, quickly reversing the downward trend of stock markets across the globe.
According to Trump, this was driven by more than 75 countries contacting the US government to negotiate a beneficial agreement. Notably, only tariffs against China were retained.
ASEAN, whose member nations were among those who were slapped with the highest tariffs, is now forging the region’s unified response since tariffs were suspended.
Roque noted that the regional coalition views the 90-day pause as a “positive, albeit temporary, development.”
“We recognized the necessity for a comprehensive impact assessment to fully understand the direct and indirect consequences of these tariffs on ASEAN member states,” she said.
The DTI chief said ASEAN is keen on formulating effective “mitigation strategies.”
She noted that such strategies should safeguard the interests of each member state, while maintaining investor confidence.
“A strong consensus emerged among us regarding the importance of open and constructive dialogue with the United States,” said Roque.
ASEAN and the US government have long built a robust relationship that goes beyond trade and foreign direct investment (FDI).
In 2022, both parties elevated their relationship to a comprehensive strategic partnership (CSP), expanding cooperation in various sectors, fostering inclusive economic growth, and advancing a free and open region, among others. This was overseen during the presidency of Trump’s predecessor, former US president Joe Biden.
“To strengthen this partnership with the US, ASEAN will enhance existing cooperation platforms such as the trade and investment facilitation agreement or TIFA and the expanded economic engagement or E3 workplan,” said Roque.
“Additionally, ASEAN will explore new agreements to bolster supply chain resilience and expand market access, demonstrating our commitment to proactive engagement with the US,” she added.
According to the Office of the US Trade Representative (USTR), America’s trade to ASEAN totaled $476.8 billion last year, with a trade deficit of $227.7 billion.
US goods exports to ASEAN stood at $124.6 billion, while imports from ASEAN were $352.3 billion.
With global trade at its most fragile state, ASEAN is expected to look into diversification and deepening of trade and investment ties with other countries.
According to Roque, the 10-member bloc is set to finalize the ASEAN trade in goods agreement (ATIGA) upgrade, which is set to facilitate greater flow of goods within the region, this year.
She said ASEAN is also advancing negotiations for the digital economy framework agreement (DEFA), a mechanism aimed at accelerating trade growth, enhancing interoperability, and increasing participation of micro, small, and medium enterprises (MSMEs).
“The Philippines remains dedicated to ASEAN and we are ready to collaborate with fellow member states to cultivate a stronger, more strategic global partnerships,” the DTI chief said.
Based on USTR data, ASEAN represents a market with a gross domestic product (GDP) of approximately $3.9 trillion, with a population of about 678 million people.
