00:00The Finance Department became more positive about the broad opportunity of the Philippines in the middle of the 17% annual tariff of the U.S.
00:10The government also emphasized how dependent the economy is on its own household or domestic consumption.
00:17Details of the news were reported by Alvin Baltazar of Radyo Pilipinas.
00:23Although the 17% annual tariff of the U.S. is not considered advantageous,
00:29Finance Secretary Ralph Rector said that there are still opportunities to enter the housing market in the country.
00:35According to him, the 17% tariff has no negative effect, but on the other hand, it also has a positive effect,
00:42especially for the Philippines, which has the lowest tariff.
00:47He said that this is one of the reasons why the leaders of the Philippines are looking for a higher tariff for their products.
00:55The tariff is cheaper, Rector said, although there was an increase, it is still an advantage for the investors.
01:17The Finance Chief added that the increase in the tariff of the Philippines has no negative effect compared to other countries in the region.
01:25He did not include export-led growth like many countries that we are with.
01:30The reason is that two-thirds of the Philippine economy is domestic consumption.
01:35This shows how dependent the economy is on its own household rather than export or foreign trade.
01:42Domestic consumption refers to the consumption or use of products and services within a country by its citizens.
01:50The good thing is that two-thirds of the Philippine economy is domestic consumption.
01:57We are not export-led growth like many countries within our region.
02:02For example, we will be affected less than other countries in the region, so to speak.
02:09He also highlighted the small tariff in the Philippines compared to other neighboring countries like Vietnam where the tariff is at 46%.
02:18The reason is that the Philippine trade surplus in the United States is not that large,
02:22which supports Rector's statement that the Philippine domestic consumption is larger than its export to the United States.
02:30The Philippine trade surplus in the United States is small.
02:34That is why it is not surprising to me why the tariff is so low.
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