PHL lobbies US for removal of 12.5% forced-labor tariff

The US has already received the Philippine government’s joint administrative order (JAO) to investigate the import of goods made with forced labor, in a bid to get Washington to reconsider the 12.5% tariff imposed in its exports, a trade official said. “We are in close coordination with the USTR (US Trade Representative) in terms of their evaluation of the JAO with the view of removing the tariffs under Section 301,” Trade Undersecretary Ceferino S. Rodolfo told reporters on the sidelines of an event late Tuesday. He said the official copy of the JAO has been transmitted to the US government. As Washington reviews the Philippine submissions, Mr. Rodolfo said he is “reasonably optimistic” that the US will consider removing the 12.5% levy on Philippine exports. The JAO created an inter-agency committee that will receive, evaluate and investigate complaints and information involving imported goods suspected of having been produced with forced labor, and recommend appropriate action. It also established the rules for investigating and prohibiting the import of goods produced wholly or partly through forced labor. The JAO was signed by the Secretaries of Trade and Industry, Labor and Employment, and Finance in July. Last month, the US imposed a 12.5% tariff on Philippine-made goods after a USTR probe ruled that the country is importing goods made with forced labor. This replaced the 10% baseline tariff imposed on Philippine exports, which expired on July 24. About $6.25 billion or 34.28% of the country’s exports to the US, such as leather and travel goods, apparel, footwear, and toys, are exposed to the new levy. — Beatriz Marie D. Cruz