MANILA – Trade tensions between China and the United States could benefit the Philippines in the short-term, but the long-term implications are not good, the Department of Finance (DOF) said.
“In the long-run, yes, if these trade issues don’t yet result in a way that’s sensible, in the long-run we will be affected by it,” Finance Secretary Carlos Dominguez III said in an interview with global debt watcher Fitch Ratings in mid-August.
Officials of the world’s two biggest economies met earlier this month to address a deepening trade conflict, with the possible implementation of stricter tariffs on each other.
The United States Customs and Border Protection, according to a report by Reuters, confirmed earlier that it would begin collecting additional 25-percent duties on Chinese imports, valued at $16 billion.
“In the short-run though, I think steel prices are going to soften because the markets in the United States are basically going to be closed, and since we are spending a lot on infrastructure, that should benefit us,” Dominguez noted during the interview Fitch released on Monday.
“But again, it’s going to be very short-term,” he said.
The Duterte administration plans to spend over P8 trillion on its “Build, Build, Build” infrastructure program until 2022, largely funded by tax revenue.
This year alone, the Philippines plans to roll out over 70 big-ticket projects, cumulatively valued at $35.5 billion or P1.1 trillion.
“We are hopeful that in the medium-term, there will be a good settlement of these trade issues that are happening,” said Dominguez. (GMA News)
