MANILA — The Philippines is hopeful that Washington will respond positively as negotiations continue over the 12.5% US tariff on Philippine exports, which was imposed over concerns about goods allegedly linked to forced labor imports.

At a news briefing ahead of the 58th ASEAN Economic Ministers’ Meeting held on Friday, Trade Undersecretary Allan B. Gepty said the government is awaiting the evaluation of the United States Trade Representative (USTR) regarding the Philippines’ recent joint administrative order (JAO) on investigating forced-labor imports.

“Right now, we are awaiting the evaluation of the United States Trade Representative on whether or not this will suffice as far as addressing their concern,” Mr. Gepty said.

“We are hopeful that they will positively respond because we have been very cooperative and we have been very open in engaging with them.”

The Philippine government issued the JAO in July, setting out rules for investigating and prohibiting the importation of goods produced wholly or partly through forced labor.

The Department of Finance (DoF) said the joint order establishes a coordinated mechanism for investigating, sharing information about, and enforcing measures against imported goods suspected of being produced through forced labor.

“The JAO reflects the Philippines’ commitment to building an economy founded on responsible business conduct, ethical sourcing, and respect for human dignity,” the DoF said earlier. The order also aligns with the Philippines’ obligations under international labor conventions, it added.

The JAO created an inter-agency committee to investigate and curb forced-labor imports in the Philippines. The committee is chaired by the Department of Trade and Industry (DTI) and vice-chaired by the DoF. Its other members are the Bureau of Customs, Bureau of Investments, and Philippine Economic Zone Authority.

The order also aims to protect consumers, workers, importers, exporters, and legitimate businesses from the adverse effects of unfair and exploitative trade practices, according to the DoF.

The USTR’s assessment of whether these rules sufficiently address Washington’s concerns is the next step identified by Philippine officials in the tariff discussions. Mr. Gepty said the order is expected to address US concerns about the importation of products made with forced labor and described it as a vital step in negotiations over the 12.5% US tariff imposed on Philippine exports in July.

US President Donald J. Trump imposed the 12.5% tariff on Philippine exports to the US on July 24 after the USTR ruled that the country had failed to curb imports of goods made with forced labor.

The latest US import duty took effect after the earlier 10% baseline rate for the Philippines ended on July 24. The baseline levy had been imposed in February after the US Supreme Court ruled that Mr. Trump had exceeded his legal powers by imposing reciprocal tariffs through the International Emergency Economic Powers Act.

About $6.25 billion worth of Philippine-made goods are subject to the latest 12.5% levy, including leather and travel goods, apparel, footwear, and toys, the DTI-Export Marketing Bureau noted.

Trade Undersecretary Ceferino S. Rodolfo told reporters that the Philippines has no issues regarding the entry of goods tied to forced labor, adding that such goods had been counter-checked under the US Forced Labor Protection Act.

Despite this, the DTI continues to engage with its American counterpart to address issues related to forced-labor imports, he said.

The US remained the Philippines’ top export market as of the end of July, with exports to the US rising 18.5% to $10.14 billion during the period.

— Beatriz Marie D. Cruz

Source: BusinessWorld