The BGA Philippines Team, led by Managing Director Victor Andres Manhit, wrote an update to clients on U.S. commerce secretary’s delegation to the Philippines.

Context

  • U.S. Commerce Secretary Gina Raimondo led a delegation of senior executives from 22 U.S. businesses and nonprofit organizations on a presidential trade and investment mission to the Philippines from March 11-12. Delegates included leaders from Microsoft, Google, FedEx, Mastercard and Visa. The mission was aligned with U.S. President Joe Biden’s commitment during the May 2023 visit of Philippine President Ferdinand Marcos to Washington, D.C., which aimed to strengthen collaboration and advance economic ties between the United States and the Philippines. Raimondo was accompanied by U.S. Ambassador to the Philippines MaryKay Carlson, U.S. Ambassador and Director of the Asian Development Bank Chantale Wong and Commander of the U.S. Indo-Pacific Command Adm. John Aquilino.
  • Raimondo highlighted the significance that the United States attributes to a strong bilateral trade and investment partnership with the Philippines. She lauded the Marcos government for its recent legal and regulatory reforms aimed at liberalizing key sectors, including renewable energy, railways, airports, expressways and telecommunications, to allow 100 percent foreign ownership. She also urged the U.S. and Philippine private sectors along with the Philippine government to seize new opportunities in clean energy, digital transformation, the innovation economy and supply chain resilience.

Significance

  • Delegates who joined the mission announced more than $1 billion of recently completed or anticipated U.S. investments in the Philippines that are expected to generate educational and career opportunities for more than 30 million Filipinos. The investments are aimed at making a significant impact in important areas such as renewable energy, transportation infrastructure, information and communications technology, cybersecurity and cross-border data management. The goal is to promote sustainable economic development, enhance regional connectivity and bolster cybersecurity to safeguard digital resources. The delegation plans to offer education and training in digital technologies such as artificial intelligence (AI) to prepare the future Philippine workforce.
  • The Philippines’ Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go affirmed that like other strategic investments in the country, the Philippine government guarantees red carpet treatment for crucial investments from U.S. companies.

Implications

  • The trade and investment mission represented a significant step toward strengthening the economic relationship between the United States and the Philippines. It highlighted the importance of private sector engagement in driving economic growth and underscored the shared commitment of both nations to deepen their ties and promote regional prosperity.
  • Philippine Trade and Industry Secretary Alfredo Pascual emphasized that his country has a big opportunity in the metals industry due to its abundant nickel, copper and cobalt resources. The goal is to use these resources to become a leader in making batteries for energy storage and electric vehicles (EVs). Recent changes in the law allow foreign investors to fully own renewable energy projects, making the country more appealing to investors. For example, Google has announced investment in an innovation hub for EV training. Pascual invited investment in small-scale semiconductor manufacturing facilities, emphasizing the skilled workforce and software expertise in the country as an advantage for U.S. businesses. Moreover, he urged quick action on government support for training workers under the CHIPS Act, aiming to boost the nation’s semiconductor industry beyond assembling and packaging.

We will continue to keep you updated on developments in the Philippines as they occur. If you have any comments or questions, please contact BGA Philippines Managing Director Victor Andres Manhit at vmanhit@bowergroupasia.com.

Best regards,

BGA Philippines Team

A small ginko leaf

Managing Director

Dindo is recognized as one of Manila’s most well-connected and savvy advisors on developments in government and business in the Philippines. Concurrent to his role as managing director for BGA’s operations in the Philippines, he is also the founder and managing director of the Stratbase Group and president of its policy think tank, the Albert del Rosario Institute for Strategic and International Studies. Since 1991, Dindo has served as a member of the faculty and is the former chair of the Political Science Department and a senior fellow of the La Salle Institute of Governance at the De La Salle ... Read More