Roxas said he has sent a team of negotiators to settle amicably the dispute with fellow Association of Southeast Asian Nations (ASEAN) member Singapore.
Under the ASEAN Free Trade Area-Common Effective Preferential Treatment (AFTA-CEPT) scheme, the Philippines was to have lowered the tariffs on petrochemical products to five percent. But the government in December last year submitted a list of 11 petrochemical products whose tariffs would be maintained at seven to 10 percent.
Singapore responded by asking for compensation for damages reportedly suffered by its exporters due to the high Philippine tariffs and warned the government it could also withdraw concessions on its products.
Singapore, one of the Philippines’ top export markets, also said that the Philippines’ refusal to adhere to the ASEAN tariff reduction schedules is hurting the group’s reputation as a cohesive trade bloc.
Roxas said the Philippines remained committed to "ASEAN solidarity."
"But we have national interest to consider. The Philippines deems the petrochemical industries to be a strategic sector," Roxas said.
"I want to be sure that if it must come down to a trade war, the burden should not fall on uninvolved sectors like Philippine electronics exports to Singapore," he added.
The DTI chief also said that for many countries, including the Philippines, "the creation of new jobs and the consumer welfare effect of liberalization is to slow compared to the interim loss of jobs."
Singapore is the country’s biggest export market in Asia after Japan.
Local trade officials said Singapore was contemplating on withdrawing equivalent tariff concessions on other Philippine exports.
The Philippines hardly exports petrochemicals to ASEAN member countries.