The Management Association of the Philippines (MAP) is calling for the creation of an Economic Security Council under the Office of the President to look into the impact of the 17-percent tariff imposed by the United States (US) on Philippine imports.
MAP, which comprises the country’s tycoons and business leaders, expressed its concern over the potential economic impact of the tariff announced by US President Donald Trump.
During the so-called “Liberation Day” on April 2 (US time), Trump ordered a 10 percent baseline tariff on all imports into the US, with a higher reciprocal tariff on countries which America has a trade deficit with.
“This is a reality that will spread across many countries and will clearly have varied economic impact to each nation,” MAP President Alfredo Panlilio and the business group’s national issues committee chair Rene Almendras said in a statement on Friday, April 4.
With global trade at its most uncertain, MAP is pushing the Marcos administration to form the Economic Security Council to study the impact of “this new global order on the Philippines’ economic security.”
Based on its recommendation, the council will be composed of government agencies such as the Department of Finance (DOF), Department of Trade and Industry (DTI), Department of Foreign Affairs (DFA), Department of Labor and Employment (DOLE), National Economic and Development Authority (NEDA), Philippine Economic Zone Authority (PEZA), Anti-Red Tape Authority (ARTA), and National Security Council (NSC).
Members of the private sector and industry representatives will be part of the council.
“The Economic Security Council should be headed by and composed of individuals with extensive diplomatic, economic and industry expertise,” said MAP.
The group said the primary tasks of this council is to compile data and information related to recent trade developments, and their correlation and impact to the Philippine economy.
As an advisory body, it is tasked to recommend risk-mitigating measures for local industries affected by US tariffs and other potential shifts in global trade.
It will also provide “scenario modelling analysis” to support the government in negotiations with other countries in dealing with the new realities of international trade.
“It can also identify opportunities and alternative markets that these developments will provide for our own economy and businesses,” added MAP.
Based on the list of countries imposed with tariffs published by the White House, the Philippines is seen to receive relatively low tariffs compared to nearby countries in Southeast Asia.
Nearby countries, considered as competitors of the Philippines in trading with the US, such as Vietnam (46 percent), Thailand (36 percent), Indonesia (32 percent), and Malaysia (24 percent) were slapped with higher tariffs.
Trade Secretary Cristina Roque said on Thursday that this places the Philippines in a better position in the region, noting that the government must act fast to take advantage of this development.
MAP, for its part, noted that while the immediate impact may be less severe than others, necessary caution is a must.
“While our country at this time is seen as not as negatively affected as others, with the global economy being an integrated ecosystem, we cannot discount the possibility that as other countries are affected, it may prosper into a contagion that will eventually affect us,” it stressed.
With this, the group pointed out that it is necessary for the council to take on a “different paradigm and approach” to secure the Philippine economy.