SOURCE: Department of Trade and Industry (DTI)
MANILA - An air of optimism swept through the Malacañan Palace on the 11th of March as Department of Trade and Industry (DTI) Secretary Fred Pascual welcomed United States Commerce Secretary Gina Raimondo and the US Presidential Trade and Investment Mission (PTIM) delegation. This was no ordinary visit; it signified a high-level U.S. delegation visit that is expected to yield concrete action plans, strengthening the economic ties between the Philippines and the U.S.
The PTIM, following the meeting of President Ferdinand Marcos Jr. and U.S. President Joe Biden in May 2023, had a clear mission: to attract U.S. investment in key Philippine sectors. Among these sectors, innovation, renewable energy, critical minerals, and food security stood out as key areas of focus. Secretary Pascual expressed confidence in actionable measures resulting from these discussions, emphasizing the mission's potential to propel the nations toward shared economic prosperity.
Secretary Pascual underscored the Philippines' potential to emerge as a key player in the critical metals sector during the meeting with the PTIM delegation. With significant reserves of nickel, copper, and cobalt, the Philippines aspires to lead the global value chain for energy storage and electric vehicle (EV) production. The country's recent amendments permitting 100% foreign ownership of renewable energy sources only serve to make this prospect more enticing.
The meeting also saw Secretary Pascual inviting investments in lab-scale wafer fab facilities. He highlighted the country’s skilled workforce and established foundation in software development as major advantages for U.S. companies. Additionally, he called for swift implementation of U.S. government support in workforce development as part of the CHIPS Act.
The Philippine government seized this opportunity to seek assistance from the U.S. Department of Commerce on trade issues like detained apparel exports and shrimp paste shipments. They also raised the current situation of Philippine electronics companies unable to bid on U.S. government contracts due to a requirement in the U.S. Trade Agreements Act.
Secretary Pascual stressed the importance of regular open communication in strengthening the relationship between the Philippines and the U.S., stating, “I am positive that this regular open communication of opportunities and obstacles will strengthen our relationship as long-standing and dependable allies.”
Secretary Pascual also emphasized an economically strong Philippines makes a dependable regional partner. This collaborative approach ensures mutual benefits, encompassing increased trade opportunities, improved diplomatic ties, and shared defense interests.
President Marcos Jr. took the opportunity to reaffirm the Philippines’ strong economic position and the government’s efforts to establish a conducive business environment during the PTIM delegation's courtesy call. He reiterated the Philippines’ commitment to supporting American businesses and invited continued collaboration with the U.S.
The United States holds a significant position as the Philippines’ third-largest trading partner globally, with total trade values reaching approximately USD 20 billion. The U.S. is the largest export market for Philippine goods, valued at USD 12 billion, and the fifth-largest import market, amounting to almost USD 8.5 billion.
Over the past five years, the United States has consistently ranked among the top five sources of foreign direct investments (FDIs) in the Philippines. Based on the latest figures from January to November 2023, the United States emerges as the fourth-largest FDI source for the Philippines, with a total value exceeding USD 110 million.
The visit of the PTIM delegation marks a significant step forward in the U.S. - Philippines economic partnership, laying the groundwork for increased cooperation, improved trade relations, and shared economic prosperity.
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