WHY WE NEED A CABINET CLUSTER FOR TRADE, CLIMATE & COMPETITIVENESS

WHY WE NEED A CABINET CLUSTER FOR TRADE, CLIMATE & COMPETITIVENESS

When former U.S. President Donald Trump rolled out sweeping tariffs on a wide range of imports, the world reacted with both alarm and curiosity. Was it protectionism? Was it leverage? Or was it just politics?

Whatever the intent, the result was clear: a disruption in global trade. For countries like the Philippines, it became a double-edged sword. On one side, we risked losing markets for our exports. On the other, we found an opening—an opportunity to step in where others faltered. But to seize this opportunity, we need more than wishful thinking—we need coordinated strategy at the highest level.

This is why I now propose the creation of a Cabinet Cluster for Trade, Climate, and Competitiveness—a permanent, high-level body that can assess global trade shocks, climate risks, and technology-driven opportunities, then convert them into national advantage.

From TWG to Cabinet Cluster: Why the Upgrade?

Previously, I proposed a Technical Working Group (TWG) to analyze the twin challenges of climate change and shifting trade dynamics. That was a good start—but not enough. In today’s volatile global environment, a TWG doesn’t have the authority or reach to realign policy, shift national priorities, or fund major innovations. Only a Cabinet Cluster, chaired by a senior economic manager or even the President himself, can integrate policy, budget, diplomacy, agriculture, and innovation in real time.

What’s at Stake?

Let’s take a real-world scenario. Suppose a major coffee-exporting country is hit by U.S. tariffs and by climate-induced droughts. That’s a double whammy—a blow from both trade policy and the environment. But if the Philippines, with its microclimates and untapped highland farms, steps in and increases coffee output—we get a double rally: one in production, the other in exports.

But we can’t just plant coffee or cacao or whatever crop is trending on the global market. We must know:

  • What to plant
  • Where to plant
  • When to plant
  • For which export market

This demands data, forecasting, AI, and strategic leadership—the kind only a Cabinet Cluster can coordinate.

Who Should Be Involved?

The proposed Cabinet Cluster for Trade, Climate, and Competitiveness should include:

  • Presidential Management Staff (PMS) – to coordinate political and policy directions
  • Department of Economy, Planning, and Development (DEPDEV) – for macroeconomic and sectoral planning
  • Department of Trade and Industry (DTI) – to align industries with emerging global opportunities
  • Department of Agriculture (DA) – to pivot production based on forecasted demand
  • Department of Environment and Natural Resources (DENR) – to locate idle land and convert it into productive use, such as food forests
  • Department of Science and Technology (DOST) – to bring in the science
  • Department of Information and Communications Technology (DICT) – to provide the digital infrastructure and AI tools
  • Department of Foreign Affairs (DFA) – for economic diplomacy and trade negotiations
  • Philippine Statistics Authority (PSA) – for timely and accurate data
  • Technical Education and Skills Development Authority (TESDA) – to retrain the workforce for agro-industrial needs
  • Philippine Chamber of Commerce and Industry (PCCI) and other private sector leaders – to ensure that strategies align with real business conditions

The Missing Piece: Data and AI

During the time of former President Ferdinand Marcos Sr., the Presidential Management Staff, the Presidential Economic Staff (now DEPDEV), and the National Computer Center (now DICT) often worked together. Today, they should be reunited—this time with artificial intelligence in the mix.

Imagine if we could overlay climate projections, global demand data, tariff shifts, and shipping routes to pinpoint our export edge. That’s no longer science fiction—it’s policy intelligence. AI can tell us where to plant coconuts for future biofuel demand, or when to scale up abaca production as other countries shut down their fiber farms.

Replacing the Double Whammy with Double Gains

Other nations may be losing factories due to climate risk or tariff burdens. Why not invite them to relocate here? We already have Freeport zones. If we offer strategic incentives—green energy, competitive labor, export tax breaks—they might say yes. And our workers win.

Let’s also stop exporting raw logs, raw ores, and raw everything. Value-added exports should be the rule. Why send out raw cacao when we can export chocolate? Why export raw coffee beans when we can export roasted blends?

The Bottom Line

This is not just about trade or agriculture. It’s about how we position the Philippines in a rapidly changing global economy—a world defined by climate instability, supply chain disruptions, and protectionist shocks.

If we act now, we can be a supplier of choice, a host for relocated industries, and a model for sustainable competitiveness. But if we hesitate, we risk becoming a casualty of global forces we failed to anticipate.

Let us not be caught flat-footed.

Let us transform the double whammy into a double opportunity—with the help of a Cabinet Cluster that’s ready to lead, plan, and act.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

09-14-2025

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