MANILA, Philippines – Philippine Ambassador to the United States Jose Manuel Romualdez thinks there is a “good chance” of securing a bilateral free trade agreement (FTA) with the US in the second Trump administration.
“I think we would be able to, we’ve had some discussions with the first Trump administration on how we will proceed on the FTA but that obviously was abbreviated and so we have a chance now to renew that,” Romualdez said in a press briefing on Tuesday, February 11.
In a November 2017 statement, President Donald Trump’s administration “welcomed the Philippines’ interest in a bilateral free trade agreement.” The matter was supposed to be taken up via the US-Philippines Trade and Investment Framework Agreement.
But Romualdez on Tuesday said he was advised by former commerce secretary Wilbur Ross — who served under the first Trump administration — to pursue a “sectoral” deal instead.
Romualdez pointed out this would highlight booming sectors such as the minerals and semiconductor industries in the Philippines.
“To me, this is an opportunity for the Philippines to finally really find a way to be independent in terms of our economic dependence on other countries,” Romualdez said.
The country has been identified as one of Washington’s seven trusted allies that could help diversify its semiconductor supply chain as it moves away from China.
The world relies on Taiwan, South Korea, and China for chips. Semiconductors are the backbone of modern electronics used in a wide range of devices, including transistors, diodes, integrated circuits, solar cells, and more.
Electronic products remain as Manila’s top exports in terms of value, according to December 2024 data released by the Philippine Statistics Authority. It posted total earnings of $2.8 billion or 49.6% of the country’s total exports.
Meanwhile, the envoy also highlighted the need for the country to pursue a deal to protect and better price its minerals.
“We’ve been pursuing the critical minerals agreement with the United States even during the Biden administration and we will pursue it even more vigorously this time,” Romualdez said. “Again, it will be mutually beneficial for both the United States and the Philippines.”
The US currently has FTAs with 20 countries, including Singapore and South Korea. It has a free trade deal focusing on critical minerals with Japan.
In April 2024, a BusinessWorld report noted that then-Trade Secretary Alfredo Pascual brought up the country’s interest in joining the US-Japan Critical Minerals Agreement. Pascual had noted that the Japanese were “open to it” while then-US commerce secretary Gina Raimondo said it would be brought up with their government.
Romualdez on Tuesday said that China buys over 90% of the country’s minerals “because it’s so cheap.”
“They even dictate the prices. We want to change that,” he said. – Rappler.com
