The United States announced on Tuesday (22) the formalization of a new trade agreement with the Philippines. By hit, US products will be exported to the Asian country with zero tariff, while the Philippine goods will pay a 19% tariff to enter the US market. The announcement was made after a meeting between the presidents of both countries in Washington.
The agreement replaces the initial proposal of the US government, which provided for the application of a 20% tariff on Filippine imports from August 1. Even with the reduction of a percentage point, the new rate represents a hardening compared to the 17% previously suggested in April, when the United States provisionally suspended tariffs to make room for negotiations.
In addition to the commercial area, the two countries also reinforced military cooperation. In a joint statement after the White House meeting, the leaders highlighted the importance of the partnership in regional security, especially in the Southern Sea of China. The United States have maintained a mutual defense treaty with the Philippines since 1951 and have been expanding its military presence in the region.
The Philippines are among the 25 countries that received formal notifications from the United States, warning the application of high tariffs if there were no bilateral agreements. The proposed rates ranged from 25% to 50%, the largest being destined for Brazil. Since the announcement of the measures in April, Washington has signed agreements with the United Kingdom, Vietnam, Indonesia and now with the Philippines.
According to the US Department of Commerce, American imports of Philippine products totaled $ 14 billion last year, especially electronics, processed foods and clothing. United States exports to the Asian country totaled US $ 9 billion, with a similar composition. The news of the new agreement had a limited impact on the financial markets: the Dow Jones index rose slightly, while Nasdaq fell.
