MANILA, Philippines - Trade Secretary Ramon Lopez is seeing similarities in the economic priorities of the incoming administration of US president-elect Donald Trump with those of President Duterte.
“Trump, viewed by many as someone who talks straight and authentic, gets things done and does what is good for his countrymen has attributes that sound familiar,” said Lopez who is in Davos, Switzerland attending the World Economic Forum.
In one of the early sessions that discussed the outlook of the Trump administration, Lopez observed that the US’ new economic priorities show congruence with Duterte’s thrust to spur economic growth from domestic stimulus due to planned cuts in corporate and personal income tax, to encourage reinvestments in research and development and innovations, other tax reform measures, public and private investment in infrastructure, and increased participation of small and medium enterprises.
“Main concerns are on perceptions that he would go back to a trade protectionist stance. US leaders believe it is not protectionism per se, but leveling the playing field and adopting fair and market-based trade,” Lopez said.
The trade chief said participants who know Trump well believe that US will not go to the path of anti-globalization, but will aim to level the playing field by countering undue trade practices.
According to him, the new administration would put emphasis on trade enforcement as opposed to negotiating new trade agreements.
US indicated plans to withdraw from the Trans-Pacific Partnership and would like to review progress and effectiveness of the North American Free Trade Agreement.
“The US cannot simply cut itself off from the rest of the world as this will hurt not only its trading partners around the world, but also the US itself, since world economies are so integrated,” Lopez said.
“Participants believe it is not a zero sum game. Policies cannot be one sided only because it impacts the whole world. We have an interconnected and integrated world economy,” he added.