Ford Motor is urging the United States (US) government to seek the removal of tariffs on American vehicle exports to the Philippines to increase its market share in the country.

In a submission to the Office of the US Trade Representative (USTR), Ford said eliminating import tariffs could increase its vehicle exports to the Philippines. American automotive imports currently face a 30% tariff, despite an earlier commitment by the Philippines to remove the duties.

President Ferdinand Marcos Jr. said in July last year that he had agreed to remove automotive import tariffs as part of an agreement with US President Donald Trump to reduce tariffs on Philippine exports. However, the two countries have yet to finalise a reciprocal trade agreement to implement the removal of duties on imported automobiles.

Ford is also urging the Trump administration to negotiate with the Philippine government for the removal of excise taxes on large-displacement engines, which affect the prices of its flagship models. It is also seeking alignment of the country's vehicle certification requirements with the US Federal Motor Vehicle Safety Standards (FMVSS). According to Ford, accepting these standards would eliminate duplicate testing and certification requirements, facilitating the entry of its vehicles into the market.

"With these changes, Ford could pursue greater exports of the F-150, Explorer, Mustang, and Bronco to the Philippine market," the company said.

Ford, which operates in the country through Ford Motor Co. Philippines Inc., was the fourth best-selling brand in the Philippine market last year, with a 4.7% market share. It retained the position from January to September this year, recording a 3.49% share.

Ford said the US needs to secure more favourable trade terms with the Philippines as the country progresses towards a free trade agreement (FTA) with the European Union (EU).

"The European Union is pursuing a free trade agreement with the Philippines, suggesting that the EU may secure a meaningful degree of tariff-free market access soon," the automaker said.

The FTA is expected to strengthen bilateral trade and investment ties between the Philippines and the EU, giving European vehicle manufacturers greater market access and potentially affecting the competitive position of American automakers. The Philippines and the EU reached a "substantial agreement" in their FTA negotiations last September, with the trade pact expected to be signed in the coming year.