Philippine exporters are entering 2026 with renewed optimism as the country moves closer to sealing multiple free trade agreements (FTAs) and secures significant tariff exemptions from the United States — developments expected to boost market access and competitiveness after a challenging 2025.
During the 4th Quarter General Membership Meeting of the Philippine Exporters Confederation, Inc. (PHILEXPORT), president Sergio Ortiz-Luis Jr. said new trade deals and tariff adjustments are poised to reshape the export landscape next year.
Ortiz-Luis confirmed that the Philippines and Canada are preparing to begin formal negotiations for a bilateral FTA by early 2026. In parallel, the ASEAN–Canada FTA remains on track for completion within the year, while the Philippines’ application to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is progressing, with member economies expected to take up the country’s bid soon. He added that the Philippines has concluded negotiations for its first Middle East FTA — the Comprehensive Economic Partnership Agreement with the United Arab Emirates — which is now awaiting signing. Talks with Chile are likewise moving forward, expanding the country’s access to growth markets in the Gulf and South America.
He also highlighted the impact of a recent executive order by US President Donald Trump, which exempts more than $1 billion worth of Philippine agricultural exports from the 19-percent reciprocal tariff. The measure covers coconut oil, processed fruits, coffee, cocoa, bananas, spices, tomatoes and beef, among other products. With this development, around 46 percent of Philippine exports to the US are now tariff free, strengthening the country’s competitiveness in one of its biggest export destinations.
Ortiz-Luis said the semiconductor and electronics sector — the country’s largest export contributor — is expected to grow between 5 and 7 percent next year. This expansion is anchored on global demand for artificial intelligence applications, electric vehicles, Internet of Things technologies and data centers. He said this could push electronics exports to between $45 billion and $47 billion and further reinforce the Philippines’ role in global value chains.
He noted that exporters have managed to survive the turbulence of 2025 despite weak global demand, shifting tariff policies, rising operating costs and slowing manufacturing activity. Filipino exporters, he said, responded by opening new markets, strengthening digital capabilities, expanding into non-traditional destinations and taking advantage of the peso’s competitiveness.
Ortiz-Luis also pointed out that developments under the Philippines’ ASEAN 2026 Chairmanship will directly improve the trading environment. These include the ASEAN Digital Economy Framework Agreement, along with the expansion of ASEAN FTAs with Canada, Korea, Australia and New Zealand, initiatives that aim to foster a more predictable, rules-based and digitally integrated regional market supportive of export growth.
He reported that Philippine goods exports reached $70.43 billion in the first ten months of 2025, while imports hit $111.75 billion, marking the second-highest level on record. As factories continue meeting orders, PHILEXPORT has sustained its advocacy efforts on issues involving financing access, governance, raw material shortages, tighter market requirements, supply chain disruptions and compliance burdens — challenges felt most acutely by MSMEs.
Ortiz-Luis reiterated the call for government to increase funding for export promotion and MSME support to help the country’s exporters compete more effectively in the global marketplace.