Diversification of the export market will help the Philippine economy bolster its resiliency and cushion itself from protectionist policies, even as it is largely domestically driven, an economist said on Wednesday.
Michael Ricafort, Rizal Commercial Banking Corporation chief economist, in a reply to e-mailed questions from the Philippine News Agency, said the various free trade agreements (FTAs) the Philippines have entered into, especially with Association of Southeast Asian Nations (ASEAN), "still has opportunities/potential to be optimized, in view of the need to diversify the country’s export markets and also export products/winners.”
Aside from ASEAN member countries, the Philippines has FTAs with Australia, New Zealand, Hong Kong, Japan, and South Korea.
In the pipeline are discussions with Chile, eyed to be formalized by 2026, and the European Union, among others, trade officials said.
Department of Trade and Industry (DTI) Undersecretary Allan Gepty told journalists on Monday that they aim to launch negotiations with Canadian counterparts in the first quarter of 2026.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that exports accounted for around 28.8 percent of the country’s gross domestic product (GDP) in the first three quarters of 2025.
Ricafort said exports from the Philippines are around three to five times smaller than those of its ASEAN neighbors.
"The Philippine economy is not that export dependent and lately domestically driven, wherein about 73 percent of the economy is accounted for by consumer spending that makes the local economy more insulated to (US President Donald) Trump’s higher tariffs, trade wars, and other protectionist policies," he said.
He said the US accounts for around 17 percent of the Philippines’ exports and it is better to diversify to other markets such as the Asia Pacific, the Middle East, and Europe.
Among the top exports of the Philippines is electronics, but Ricafort said agricultural products should be increased.
Asked about the impact of these diversification and more FTAs on foreign investors’ assessment of the Philippines as an investment destination, Ricafort said it is among the major considerations for foreign direct investments since this serves as an access to more export markets around the world.
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