‘US tariffs a clear violation of WTO rules’
Freshly Brewed
By Andrea E. San Juan
W
ASHINGTON’S imposition of reciprocal tariffs against its trading partners is a “clear violation” of the World Trade Organization’s (WTO) Most-Favored Nation (MFN) principle, the rule that goes against discrimination between trading partners, according to a former Philippine Tariff Commissioner. “The reciprocal tariffs are clearly a violation of the WTO rules, particularly the MFN clause,”
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Former Tariff Commissioner George N. Manzano told the BusinessMirror in a Viber message. However, Manzano said the dispute settlement mechanism of the WTO, which “mediates” on these matters is currently “crippled.” Hence, the former Tariff Commissioner told this newspaper: “Not much WTO can do at this stage.” Under the WTO agreements, countries cannot normally discriminate between their trading partners. “Grant someone a special favor [such as a
lower customs duty rate for one of their products] and you have to do the same for all other WTO members,” WTO noted on its website as it explained the MFN principle. Meanwhile, Manzano unveiled the culprit behind the malfunctioning dispute settlement mechanism of the WTO. He said one of the pillars of the dispute settlement body of the WTO is the Appellate body— one that actually “mediates” in trade disputes. “But it has not been functioning since 2020 or so [even under Biden’s term], thus crippling
the dispute settlement body,” the former Tariff chief explained.
US blocking judges
ACCORDING to Manzano, the appellate body is not functioning mainly because the US is blocking the appointments of judges to the appellate body. Because of the lack of judges, he said, “The appellate body cannot constitute a quorum to pass ‘judgments’ on cases on trade disputes.” See “US,” A2
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H1 DEBT PAYMENTS DIP OF 40% SEEN AS A ‘BLIP’ www.businessmirror.com.ph
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Monday, August 4, 2025 Vol. 20 No. 294
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
T
HE national government shelled out P768.109 billion to pay for some of its debt in the first semester, with interest payments eating up the lion’s share. DEBT PAYMENTS DIP: JUST THE TIP OF THE ICEBERG →Debt Service
(Jan-June 2024 vs 2025) P1.282 T
P768.109 B
▼40.12%
→National Government Debt (2024 vs 2025)
P15.483 T
P17.27 T
▲11.5%
Latest data from the Bureau of the Treasury (BTr) showed the January to June debt payments represent a decline by 40.12 percent from the P1.282 trillion in the same period a year ago. The decline, however, is not seen to be sustainable, with some economists calling it just a “blip,” given what are deemed to be features of the debt profile that warrant concern. About 54 percent of the debt service was allocated for interest payments, while the remaining 46 percent was for amortization. On one hand, the government’s interest payments grew by 9.96
❝The decline in debt service in the first semester is a temporary blip rather than a sustainable trend. The Philippines may be entering a more critical phase where debt sustainability becomes a genuine sign of significant crisis.... The window for gradual adjustment may be closing rapidly. The government needs to act decisively now while it still has market access and policy space.❞— Leonardo A. Lanzona, Ateneo economist
BM Graphics: Ed Davad | Source: Bureau of the Treasury
Total national debt continues to rise despite lower payments
percent year-on-year to P414.821 billion as of the first half of the year from P377.228 billion. Domestic lenders obtained the bulk of interest payments, which rose by 11.85 percent to P299.827 billion from last year’s P268.040 billion. Broken down, the government settled the interest for P193.678 billion in fixed-rate Treasury bonds, P79.260 billion in retail T-bonds and P21.850 billion in Treasury bills. Interest owed to foreign creditors amounting to P114.994 billion was also paid by the government in the See “H1 debt,” A2
PHL KEEPS 2ND TOP SPOT AMONG WORLD’S PINEAPPLE EXPORTERS By Ada Pelonia
T
@adapelonia
HE Philippines maintained its streak as the world’s second largest pineapple exporter in 2024 as shipments posted a double-digit growth on the back of booming demand from key Asian markets, according to an international report. The Food and Agriculture Organization of the United Nations (FAO) said pineapple shipments from the Philippines expanded by 14.1 percent to around 680,000 metric tons
UP FOR THE CHALLENGE Students from various schools gather at UP Manila to take the University of the Philippines College Admission Test (UPCAT), administered nationwide on August 2 and 3 across 117 testing centers in all regions. The UPCAT, first introduced in 1968, is known as one of the most competitive college entrance exams in the country, serving as the gateway to the premier state university. To ensure access to quality education for underprivileged but deserving students, those who pass the 2026 UPCAT may receive financial assistance through the Lingap Iskolar Program, backed by the Land Bank of the Philippines. The aid was formalized after LandBank and UP signed a memorandum of understanding on Friday, reinforcing UP’s mandate of democratizing higher education. NONIE REYES
(MT) last year. Citing available trade data by destination for 2024, the international organization said exports of the fruit in key Asian markets registered year-on-year increases. For one, the FAO noted a 9.4-percent increase in shipments to China, “the leading recipient of pineapples from the Philippines at a share of some 40 percent.” The FAO said the import growth in China was bolstered by the rise in demand for high quality fresh pineapples. See “PHL,” A2
PHL rice imports to breach 4MMT in ’25 By Ada Pelonia
T
@adapelonia
HE Philippines’s rice imports will breach 4 million metric tons (MMT) this year as its output is projected to fall 17 percent short of demand, according to the Department of Economy, Planning, and Development (DepDev). Citing data from the Department of Agriculture and other agencies including the Philippine Statistics Authority, DepDev said the projected import volume will plug the estimated production shortfall of 2.653 MMT for the year. DepDev said imports for this year will also enable the Philippines to have an ending stock of 3.918 MMT, which will form part of its supply for 2026. The agency estimated that local
production by the end of the year will reach 12.888 MMT while demand is estimated at 15.54 MMT. Imported rice arrivals reached 2.3 MMT as of July 10, based on latest data from the Bureau of Plant Industry (BPI). Of the total volume, 1.76 MMT of rice came from Vietnam, which maintained its spot as the country’s top supplier. This was followed by Myanmar at 306,702.33 MT, which dislodged Thailand as the second-largest supplier. The Philippines also purchased rice from other countries, such as Thailand (134,163.33 MT), Pakistan (74,964.02 MT), and India (19,521.91 MT). In addition, the agency approved and issued 3,636 sanitary and phytosanitary import clearances (SPSICs) for the purchase of 3.18 MMT of imported rice.
Earlier, Agriculture Assistant Secretary Arnel de Mesa made an assurance that the country’s purchases of the staple grain would be below the 2024 record-high volume. “It will be lower than last year’s 4.8 MMT,” De Mesa told reporters in a previous press briefing. He had noted that the “reasonable” level of rice imports this year would range from 3.8 MMT to 4 MMT. DA officials projected that rice imports will decline this year due to the expected rebound in local palay production. With the all-time-high output of paddy rice in the first semester, the DA expressed confidence that the country could surpass its 2025 target of 20.46 MMT. This is higher than the 20.06 MMT record set in 2023. “Palay and corn production for the January-June semester gives
us hope for a better year for agriculture despite the challenges we now face,” DA Secretary Francisco Tiu Laurel Jr. said in a statement. “Mother Nature permitting, and with the help of President Ferdinand Marcos Jr. and lawmakers, we are cautiously optimistic that we could post a record harvest this year.” Data from the Philippine Statistics Authority (PSA) indicated that palay production in the first semester stood at 9.08 MMT, from 8.53 MMT in the same period last year. The last time unmilled rice production breached the 9-MMT mark in the first half of the year was in 2023, when it reached 9.026 MMT. In 2024, PSA data showed that paddy rice production fell by 4.8 percent to 19.087 MMT, from the 20.059 MMT recorded in 2023.
PESO EXCHANGE RATES n US 58.1860 n JAPAN 0.3861 n UK 76.8521 n HK 7.4131 n CHINA 8.0816 n SINGAPORE 44.8447 n AUSTRALIA 37.3903 n EU 66.4368 n KOREA 0.0418 n SAUDI ARABIA 15.5122 Source: BSP (August 1, 2025)