PH-US trade ties

Ample proof that bilateral ties between the Philippines and the United States have been on the upswing since the Marcos Jr. administration assumed office in mid-2022 is the reported decision of the Biden administration to dispatch a high-level trade and investment mission to the country.

This mission will be headed by US Commerce Secretary Gina Raimondo.

The delegation would be in Manila from March 11 to 12 as part of the United States’ commitments under the 123 Agreement that US President Joe Biden signed with President Marcos in November last year.

The 123 Agreement allows the transfer of information, nuclear material, equipment and components directly between the two states to enhance the contributions of US companies to the Philippine economy through connective infrastructure, clean energy transition, critical minerals sector, and food security.

This comes close on the heels of the announcement of Philippine Ambassador to the US Jose Manuel Romualdez that Washington has offered assistance to bankroll the stalled Mindanao Railway Project.

This project was supposed to have been funded by China during the previous administration but the deal fell through for one reason or another.

At any rate, Albay Rep. Joey Salceda, chair of the House of Representatives committee on ways and means, has welcomed the White House announcement of the trade mission.

This, he said, was a “demonstration of the United States’ commitment that it must back its promises of friendship with real economic opportunities for the Filipino people.”

The trade mission, the lawmaker noted, is the “direct result of President Marcos’ assiduous cultivation of stronger United States-Philippines ties.”

The US offer of financial assistance to the Mindanao Railway Project through the Development Finance Corporation is significant, coming as it does on the heels of the Chinese government’s withdrawal of its earlier commitment to fund the project.

For Salceda, the DFC as a financing source would “revitalize” Washington’s Official Development Assistance program and the Philippines can avail itself of concessional loans and equity investments.

“The United States’ renewed role in promoting prosperity in our region is a vital aspect of our common security interests,” the lawmaker said as he welcomed US investment and trade in such areas as aerospace and defense, pharmaceuticals, transport and energy, since their funds usually come with technology transfer.

We welcome ramped-up trade and investments between the Philippines and the United States as we see this as a concrete manifestation of enhanced bilateral relations since 2022 that can significantly propel our own economic growth in the years ahead.

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