By Mon Abrea
The recent imposition of a 17% tariff on Philippine exports by the United States has triggered concern across sectors. While the immediate impact on trade may be evident, the broader question is how the Philippines should respond to such disruptive policies — not with reactive bureaucracy, but with strategic foresight and assertive diplomacy.
The Philippines: More Than Just a Trading Partner
In the midst of rising global protectionism, the Philippines holds a unique and powerful position. As a long-standing treaty ally of the United States and a key player in the Indo-Pacific, the Philippines is not just another trading partner—it is an indispensable strategic partner. Our geographic location, democratic institutions, and military cooperation agreements, including the Visiting Forces Agreement (VFA) and Enhanced Defense Cooperation Agreement (EDCA), reinforce our significance in regional security and global stability.
Economically, U.S. companies remain deeply tied to the Philippines through global supply chains, manufacturing hubs, and business process outsourcing (BPO). These economic interdependencies provide us with leverage — one that should be harnessed wisely to advance our national interest in trade and beyond.
This is not just about tariffs. It’s about reinforcing a strategic alliance in a shifting global order.
The Bureaucracy Trap
In moments of crisis, governments often default to creating new councils or task forces. But more bureaucracy rarely means better solutions. It risks delays, duplications, and political capture.
The Philippines already has capable institutions — the Department of Trade and Industry (DTI), Department of Finance (DoF), National Economic and Development Authority (NEDA), and Department of Foreign Affairs (DFA). What’s needed is not a new layer of governance, but sharper coordination, faster execution, and clearer strategic messaging.
Establishing another body under the Office of the President — especially one composed of select business interests — could unintentionally tilt policy-making in favor of corporate elites. This risks sidelining MSMEs, labor, and the broader public interest.
A Smarter Way Forward
To address global trade disruptions and reinforce economic security, the Philippines must focus on three key strategies:
Strategic Diplomacy
Engage the U.S. at the highest levels, not just through trade representatives. Our role in regional security, democratic resilience, and supply chain continuity should be central to our messaging.
ASEAN Solidarity
Protectionism undermines regional cohesion. By rallying ASEAN partners to take a united stand, the Philippines can amplify its voice and promote multilateral, rules-based trade engagement.
Institutional Agility
Instead of reinventing structures, strengthen existing ones. Mobilize inter-agency task forces, streamline trade responses, and ensure inclusive consultations — not dominated by corporate lobbyists, but reflective of national interests.
Turning a Tariff into an Opportunity
This 17% U.S. tariff is more than a trade obstacle — it’s a timely reminder for the Philippines to rethink its strategic posture. The response must be agile, inclusive, and internationally informed.
As we continue our international tax and investment roadshow across Asia, Australia, the Middle East, Europe, Canada, and the United States, we are engaging global investors and institutions with one message: the Philippines remains a strategic and sustainable investment destination — now more than ever.
In moments of global uncertainty, it’s not the loudest bureaucracy that leads — it’s the most strategic nation that prevails.
⸻
Mon Abrea, CPA, MBA, MPA is the Founder and CEO of the Asian Consulting Group (ACG) and the Philippines’ foremost advocate of genuine tax reform. A Harvard graduate who also completed an executive program on Climate Policy at Oxford, he advises governments, multinational corporations, and global institutions on tax policy, governance, and sustainable investment. He has delivered investment and tax briefings in over 50 countries and states across Asia, North America, Europe, Australia, and the Middle East. He also hosts the podcast Thought Leaders and Game Changers, where he speaks with global experts on taxation, sustainability, and innovation. Follow him: @askthetaxwhiz.