If there’s one clear indication that Philippine-American relations have not only been revitalized but also quite possibly reached even greater heights than before is the decision of the Biden administration to send a high-level trade and investment mission to the country from March 11-12.
The delegation, headed by US Secretary of Commerce Gina Raimondo and consisting of top executives of big US firms, such as Microsoft, Google, Visa, Mastercard, and Ultra Safe Nuclear Corp., among others, said they plan to invest over $1 billion in the country.
Microsoft Corp. is set to partner with the Technical Education and Skills Development Authority to train over 100,000 Filipino women in artificial intelligence and cybersecurity.
An electric vehicle education center will train Filipinos for jobs in the fast-growing industry, while investments in solar and nuclear projects will support the country’s energy and climate goals. United Airlines is planning a direct route from the US to Cebu to open up travel and tourism opportunities there.
US firms will also participate in the Marcos administration’s infrastructure projects and invest in priority sectors, including semiconductors, electronics, food and agriculture production, and green minerals.
Philippine officials also brought up during discussions with the delegation the renewal of the US Generalized System of Preferences program, which expired at the end of 2020.
The Philippines has been a beneficiary of the GSP, which allows duty-free entry for exports of certain products to the US.
What is significant about this visit is that it was initiated by US President Joe Biden himself to see what more can be done to facilitate trade and investment between the two countries.
For Trade Secretary Alfredo Pascual, the discussions with the US mission resulted in “actionable measures…to align our efforts and propel us toward stronger economic ties and shared prosperity.”
We see even more enhanced two-way trade and increased investments from the US.
At present, the US is the Philippines’ third biggest trading partner, with total trade reaching approximately $20 billion.
The US is also the largest export market for Philippine goods valued at $12 billion, and the fifth largest import market, amounting to almost $8.5 billion. In the last five years, the US has consistently ranked among the top five sources of foreign direct investments in the Philippines.
From January to November last year, the US was the fourth-largest FDI source for the Philippines, with amount exceeding $110 million.
All this clearly tells us one thing, as US Commerce Secretary Raimondo pointed out: “The US-Philippine alliance is ironclad…It is sustained over 72 years, and we remain steadfast friends and, increasingly, partners in prosperity.”