By Mon Abrea
The recent imposition of a 17% tariff on Philippine exports by the USA has triggered concern across sectors. While the immediate impact on trade could also be evident, the broader query is how the Philippines should reply to such disruptive policies — not with reactive bureaucracy, but with strategic foresight and assertive diplomacy.
The Philippines: More Than Only a Trading Partner
Within the midst of rising global protectionism, the Philippines holds a novel and powerful position. As a long-standing treaty ally of the USA and a key player within the Indo-Pacific, the Philippines isn’t just one other trading partner—it’s 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. firms 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 which must be harnessed correctly to advance our national interest in trade and beyond.
This isn’t nearly 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 recent councils or task forces. But more bureaucracy rarely means higher 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 isn’t a brand new layer of governance, but sharper coordination, faster execution, and clearer strategic messaging.
Establishing one other 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 handle global trade disruptions and reinforce economic security, the Philippines must give attention to three key strategies:
- Strategic Diplomacy
Engage the U.S. at the best levels, not only through trade representatives. Our role in regional security, democratic resilience, and provide chain continuity must 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
As an alternative 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 greater than a trade obstacle — it’s a timely reminder for the Philippines to rethink its strategic posture. The response should be agile, inclusive, and internationally informed.
As we proceed our international tax and investment roadshow across Asia, Australia, the Middle East, Europe, Canada, and the USA, we’re engaging global investors and institutions with one message: the Philippines stays a strategic and sustainable investment destination — now greater than ever.
In moments of world uncertainty, it’s not the loudest bureaucracy that leads — it’s probably the most strategic nation that prevails.
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Mon Abrea, CPA, MBA, MPA is the Founder and CEO of the Asian Consulting Group (ACG) and the Philippines’ foremost advocate of real tax reform. A Harvard graduate who also accomplished 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.
