Manila to put forth ‘requests’ to US under Trump; advanced plans urged

By Kyle Aristophere T. Atienza and John Victor D. Ordoñez, Reporters

THE PHILIPPINE government will propose trade agreements to the US government under President Donald J. Trump, a key economic official said, as the Southeast Asian nation remains hopeful about the future of its trilateral ties with America and Japan.

“We certainly want to bring forward to the new Trump administration our various requests,” Frederick D. Go, head of the Office of the Special Assistant to the President for Investment and Economic Affairs, said on the sidelines of a signing ceremony for a new Philippine tax law.

“We have of course a few trade agreement requests that the Philippines would like to push that will enhance trade between the Philippines and the US. The Board of Investments and the Department of Trade and Industry are compiling these matters that we would like to bring to the Trump administration,” he added.

Mr. Go said the proposed Luzon Economic Corridor, which was announced after Mr. Marcos’ meeting with outgoing US President Joseph R. Biden and then Japanese Prime Minister Fumio Kishida in July, would proceed.

“It’s all systems go. Right now, it’s for the Subic-Clark-Manila-Batangas rail,” he said when asked to give an update on the proposed economic corridor.

The project seeks to focus on “high-impact” infrastructure such as rails and ports and strategic investments involving semiconductors, clean energy and supply chains.

“The Asian Development Bank (ADB) is finalizing the terms of the study. They also have identified specific projects within the corridor that I think I’m not at liberty right now to discuss,” he said, noting that the Philippine side and the ADB recently finished their second steering committee meeting.

“We already had our second steering committee and we have our third one coming up,” he said. “We have another steering committee meeting on Nov. 21.”

Asked whether the proposed corridor has a high chance of being pursued under the Trump administration, Mr. Go said: “Well, that’s what the trilateral partners are telling us. This is a trilateral G7, which includes the US and Japan and there are other countries who want to join the corridor project.”

The US has consistently cited its “ironclad commitment” to the Philippines amid China’s intrusions into its exclusive economic zone in the South China Sea, which has become one of the major geopolitical hotspots in recent years.

It was Mr. Trump, who is leading the US presidential race, who promoted the concept of a “free and open Indo-Pacific,” mentioning it during the Asia-Pacific Economic Forum in the Philippines in 2017.

Mr. Biden has widely supported the concept, launching Indo-Pacific Economic Framework in 2022 with a dozen initial partners. Manila joined the informal economic grouping in the same year and signed a supply chain agreement along with other members in 2023.

Mr. Trump has vowed to impose 60% or higher tariffs on all Chinese goods and a 10% universal tariff.

Amid the possibility of increased US-China competition under the Trump presidency, Finance Secretary Ralph G. Recto said on the sidelines of the same event that the Philippines could leverage the new law further cutting corporate income tax to 20% from 25% to attract Chinese investors who want to sell to the US.

“It’s very timely, incidentally, under a new Trump administration,” he said, referring to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which President Ferdinand R. Marcos, Jr. signed on Monday.

“So you want to invite more investments to the Philippines, maybe coming from China, coming from Taiwan, that can locate in the Philippines so that they can sell to the United States, among others. That’s a possibility.”

Mr. Recto said the Philippines wants to improve ties with the US on the economic front under the Trump presidency since the two nations are security allies.

“We hope we can improve that. We are a national security ally of the United States,” he said. “I’m sure they’re well aware that our economic security, if our economy does better, then we can be a more dependable ally.”

During his presidency, Mr. Trump withdrew from various global institutions including the Paris Climate Agreement and the Trans-Pacific Partnership.

Mr. Marcos on Tuesday said he looks forward to working with Mr. Trump on a wide range of issues that “will yield mutual benefits to two nations with deep ties, shared beliefs, a common vision and a long history of working together.”

PLANNING AHEAD
Meanwhile, Philippine senators said the Philippines should boost its own defense sector and cut reliance on its foreign allies for equipment ahead of a Trump presidency, citing the need to brace for a shift in US policies.

In a statement, Senate President Francis “Chiz” G. Escudero said the government should start drawing up plans on trade, defense and other scenarios. “Donald Trump is a major macroeconomic assumption,” he said.

“From trade to security to immigration, what he said he plans to do, some on day one of his administration, would certainly impact us.”

The Senate president also cited the need for the government to look into how these high tariff walls would affect the Philippine economy.

Senator Maria Imelda “Imee” R. Marcos in a separate statement said the government could not solely rely on the US and other foreign allies to beef up its defense sector, citing the need for more local manufacturers.

“In the end, no matter how many and how strong our allies are, we can only depend on ourselves, the Filipinos, to defend the Philippines,”

Mr. Marcos last month signed into law a bill requiring the government to pursue a defense posture reliant on local manufacturers.

“The Philippines must act now to secure our people, strengthen our defenses and ensure we’re prepared for any shifts in global dynamics,” Ms. Marcos, the President’s sister, said. “The world is changing fast, and we can’t afford to be caught unprepared.”

The Philippines, one of the weakest in the world in terms of military capability, is important to Washington’s efforts to push back against China, which claims the South China Sea almost in its entirety.

Ms. Marcos also urged the government to ensure the protection of more than 200,000 undocumented Filipinos who may face deportation under Mr. Trump. “We need a plan for these families who may be forced to come home.”

There are about 310,000 undocumented Filipinos in the US, based on US Census Bureau data.

“There is no reason for the Philippine government to be caught flatfooted and stand helpless as the ground beneath it caves in,” Mr. Escudero said.