Zero tariffs on some US exports possible
Freshly Brewed
By Samuel P. Medenilla and Reine Juvierre S. Alberto
W
ITH less than a month left before the new 20 percent United States tariff on Philippine goods take effect, President Ferdinand Marcos is flying to Washington D.C. this week to join negotiations to alleviate the impact of the “severe” higher duties to the country’s economy.
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“We will see how much progress we can make when it comes to the negotiations with the United States concerning the changes that we would like to institute so as to be able to alleviate the effects of a very severe tariff schedule on the Philippines,” the chief executive said in his predeparture speech at the Villamor Airbase in Pasay City on Sunday. This, as the finance secretary,
Ralph Recto, said the Philippines is open to eliminating tariffs on select American goods from the United States—a move that could make the US reconsider and lower the tariffs it imposed on Philippine exports. President Marcos said the economic team led by Special Assistant to the President for Investment and Economic Affairs Frederick D. Go is already in the US to prepare the groundwork for
his talks with US President Donald Trump. “I intend to convey to President Trump and his Cabinet officials that the Philippines is ready to negotiate a bilateral trade deal that will ensure strong, mutually beneficial and future-oriented collaborations that only the United States and the Philippines will be able to take advantage of,” Marcos said. See “Zero,” A10
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DEBT SERVICE BURDEN UP TO $4.914B IN 4 MOS www.businessmirror.com.ph
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Monday, July 21, 2025 Vol. 20 No. 281
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
T
HE country’s debt service burden (DSB) increased slightly in the January to April period of 2025, according to the Bangko Sentral ng Pilipinas (BSP).
DEBT WEIGHT
PHL’s External Debt Burden Intensifies in Early 2025 n Jan–Apr 2024 n Jan–Apr 2025
→Total External Debt $128.692B
2024
→Despite an increase in external debt, the ratio of debt service to GDP and GNI declined.
BSP data showed the DSB increased to $4.914 billion in the January to April period of 2025. This was 1.34 percent higher than the $4.849 billion posted in the same period last year. The DSB is composed of principal and interest amounts. In January to April 2025, the principal payments reached $2.42 billion while interest payments reached $2.494 billion. BSP said the principal payments increased 6.23 percent from the $2.278 billion in January to April 2024. Interest payments contracted 2.99 percent from the $2.571 bil-
$146.737B
2025
Total external debt amounted to $146.737 billion in 2025, a 14.02-percent increase from the $128.692 billion in the same period in 2024.
BM Graphics: Ed Davad | Source: BSP
→Debt Ratios
lion in the January to April last year. The country’s DSB to GDP ratio was 2.8 percent in the January to April 2025 period, lower than the 3.1 percent posted in the same period last year. As a percentage of the country’s Gross National Income (GNI) reached 2.4 percent in the January to April 2025 period, also lower than the 2.7 percent posted in the same period in 2024. BSP said the debt service burden represents principal and interest payments after rescheduling. DSB data consists of principal See “Debt,” A2
MISSED SHOT AT GLORY Mario Barrios ducks a punch from Manny Pacquiao during their WBC Welterweight title bout in Las Vegas. The 46-year-old Filipino icon’s comeback ended in a majority
NEW ERC CHAIR JUAN LISTS 5 AREAS OF FOCUS IN AGENCY By Lenie Lectura
F
@llectura
RANCIS SATURNINO JUAN’s appointment as the new Chairman of the Energy Regulatory Commission (ERC) came as a surprise to him, as he was eyeing just one of the slots vacated by two ERC commissioners, not the agency’s top post. “I just applied as commissioner. That’s the only vacancy when I applied. I was informed that I will be assigned to lead the ERC. I was happy because I will
be able to serve my fellow Filipinos as part of the ERC. I was also excited because of the responsibility assigned to me to lead the ERC. I was also surprised because my plan was just to be a commissioner,” Juan said in Filipino during a radio interview. The ERC is composed of one chairperson and four commissioners. Two of them recently retired and were replaced by Atty. Amante Liberato and Atty. Paris Real. Juan, Liberato, and Real now join commissioners Floresinda See “New,” A2
draw, allowing Barrios to retain his title. In Sampaloc, Manila, fans watched the live broadcast with pride and heartbreak, many hoping for one last victory from their boxing hero. Both fighters expressed willingness to face off again in a rematch. Story on Sports B8. TOP PHOTO BY AARON FAVILA/AP; WATCH PARTY PHOTOS BY ROY DOMINGO/BM
PHL still the 3rd largest banana exporter
T
By Ada Pelonia
HE Philippines maintained its status as the world’s third-largest banana exporter last year despite the persistent spread of Panama disease, according to an international report. The Food and Agriculture Organization of the United Nations (FAO) said the Philippines exported 2.3 million metric tons (MMT) of bananas in 2024, lower than the 2.35 MMT shipped in 2023. This is the second consecutive year that the country has ranked third on banana exports globally. FAO revised its preliminary report released in January, where
it indicated that Colombia was the third-largest exporter after it overtook the Philippines, which shipped an estimated 2.28 MMT of bananas last year. Based on the FAO’s official tally, Ecuador remained the world’s top exporter of bananas, with shipments reaching “just below” 6 MMT in 2024. Costa Rica trailed behind with 2.4 MMT of banana exports. Guatemala shipped 2.2 MMT of bananas last year, which tallies with the outbound shipments in Colombia. The FAO report also said the spread of the Banana Fusarium Wilt Tropical Race 4 (TR4) disease continued to affect Philippine output. “Supplies from the Philippines, the
main exporter from [Asia], reportedly continued to be affected by the spread of TR4 in the country,” the FAO said in its latest report. Citing industry reports, the organization noted that over 40 percent of the 89,000 hectares for banana cultivation in Mindanao, the key producing region in the country, remain affected by the disease. Meanwhile, the FAO said key Asian markets, such as China and Japan, also saw a reduction in their banana purchases from the Philippines. The organization noted that based on trade data by origin, Chinese imports of Philippine bananas dropped by 32 percent in 2024. “Chinese import demand was re-
duced by a higher availability of domestically produced bananas, alongside declining consumer interest in bananas from the Philippines amid geopolitical tensions,” the FAO said, citing industry sources. Trade data also showed a decline in import quantities into Japan from the Philippines by 4 percent, which was offset by higher imports from Cambodia, Ecuador, and Vietnam. “While demand for bananas in the country remained relatively stable, higher growth in import quantities was hampered by the production shortages experienced in the Philippines, from where Japan typically sources some 75 to 80 percent of its banana imports,” the FAO said.
PESO EXCHANGE RATES n US 57.1240 n JAPAN 0.3846 n UK 76.6547 n HK 7.2785 n CHINA 7.9550 n SINGAPORE 44.4406 n AUSTRALIA 37.0392 n EU 66.2581 n KOREA 0.0410 n SAUDI ARABIA 15.2294 Source: BSP (July 18, 2025)