SECRETARY Frederick D. Go said he expects the uncertainty arising from the tariff disruptions being resolved soon, citing the progress made in resetting the US tariff rates for Chinese goods.
While the US tariffs on its trading partners “definitely put a damper on our investors’ big moves,” Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), said the uncertainty “cannot last forever… At some point, it becomes clearer and clearer. And you can see there are announcements already coming out of the US that they lowered the tariffs on China from 145% to 30%, so you can see the uncertainty is clearing.”
Mr. Go was speaking on the sidelines of the BusinessWorld Economic Forum in Taguig City on Thursday.
US President Donald J. Trump early last month imposed reciprocal tariffs on its trading partners. The Philippines was assigned a 17% tariffs, the second-lowest rate in Southeast Asia.
These rates were subsequently put on hold until July, as individual countries sent delegations to Washington to negotiate lower tariffs.
Mr. Go added that he expects roadshows to pitch incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law to attract more investors.
“Definitely, that is the idea. But the US reciprocal tariffs created an environment where the timing was not great to go on the road. The best time, I think, is when there’s more clarity on these reciprocal tariffs,” he added.
Late next month, the roadshow will take the Philippine delegation to Europe, the US, Japan, China, and the Middle East.
“We were supposed to do the US (first). But because of the US tariffs, we had to revisit the schedule,” he added.
Meanwhile, he said that he is not worried about business sentiment in the wake of the cabinet resignations sought by President Ferdinand R. Marcos, Jr.
“I think the business sector will welcome this. In the private sector, what do you do with non-performing executives? You let them go. You ask them to resign. So, I think the private sector should understand that this is a good move,” he said.
On Thursday, Mr. Marcos called for the courtesy resignations of his cabinet following the midterm polls.
Alfredo S. Panlilio, president of the Management Association of the Philippines, said that just like in any corporation, the chief executive officer (CEO) has to make very difficult decisions.
“The CEO has to make very difficult decisions on what he thinks should happen… in this case, obviously, the President is running a country, so he’s the CEO of the country,” he said.
“It’s really more (a decision based on) performance, meritocracy… and who can implement his vision for the country. I guess we leave the decision to him. We understand the process; we are not surprised by it, because it happens in the real world,” he added.
BDO Capital & Investment Corp. President Eduardo V. Francisco said that the president’s willingness to overhaul the cabinet is a “good sign.”
“We will see (whose resignations) will be accepted. But the fact that he’s doing that is a good sign. I just hope that the replacements will be better and we will want to move fast … Because they really need to, in the next three years, see significant developments,” he said.
“If he is going for the secretaries, it should also include all political appointees … so that the president will have a clean slate,” he added.
Philippine Chamber of Commerce and Industry Secretary General Ruben J. Pascual said that he hopes that Mr. Marcos will decide quickly.
“Again, this is a source of uncertainty for foreign and domestic businessmen. I hope this is going to be very quick, that he will be able to make a decision immediately, especially on the key economic positions,” he said.
“We hope… there will be clear direction after this reshuffle… on what’s going to happen in the next three years,” he added. — Justine Irish D. Tabile
