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ADB Suggests Philippines Utilize RCEP to Offset Impact of U.S. Tariffs
The ADB advises that the Philippines can mitigate the adverse effects of U.S. tariffs by enhancing regional trade through active participation in RCEP, aiming to strengthen economic ties within Asia and attract foreign investment.
The Asian Development Bank (ADB) has highlighted that the Philippines can mitigate the impact of recent U.S. tariffs by leveraging its participation in the Regional Comprehensive Economic Partnership (RCEP). Cristina Lozano, ADB Philippines Office's acting country operations head, emphasized that the current situation reinforces the importance of regional integration for Asian economies, noting that the Philippines' active involvement in RCEP presents an opportunity to strengthen trade ties within the Asia-Pacific region.
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U.S. Tariffs: The U.S. has imposed a 17% tariff on Philippine exports, making them more expensive and potentially reducing demand.
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Philippines' Strategy: To counteract these tariffs, the Philippine government is encouraging foreign investors to expand or relocate their businesses to the country, leveraging the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
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RCEP Benefits: RCEP aims to reduce trade barriers among member countries, which could help the Philippines integrate better into regional value chains and attract investments into its industries.
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