TRADE talks between the Philippines and the United States could lead to a 17-percent reciprocal tariff being lowered to 10- to 15-percent, ANZ Research said.
A deal could be announced by the end of June, it added.
The 17-percent duty, part of a package announced by US President Donald Trump last April 2, was subsequently put on hold for 90 days after markets reacted negatively. Washington has said that the shelving was aimed at getting countries to negotiate.
A 10-percent base tariff, however, still went into effect.
The Marcos government, which initially said that the 17-percent duty would benefit the Philippines as it was much lower than those levied on neighboring countries, has formed a technical working group to conduct discussions with the US.
Following a trip to Washington last week, Trade Secretary Christina Roque and Frederick Go, Special Assistant to the President for Investment and Economic Affairs, said that talks had gone well.
“We are hopeful that these discussions mark the beginning of a process toward arrangements from both sides that will not only strengthen US-Philippines trade ties but also help diversify our country’s export markets,” Go said in a statement.
Details of the meeting were not disclosed but ANZ Research said that discussions focused on semiconductors and other electronics exports, which are the Philippines’ top exports to the US.
Other products that are part of the negotiations are coconuts — the country’s top agricultural export to the US, garments, furniture, food processing and automotive exports, it added.
Manila, ANZ Research said, has previously said that it was willing to increase purchases of US goods, particularly soybeans and frozen meat, and has also offered to reduce non-tariff barriers to trade with the US.