MANILA, Philippines — The Philippines has expressed interest to take part in the Indo-Pacific Economic Framework (IPEF) initiative, as it eyes to strengthen trade and investment ties with the US, according to the Department of Trade and Industry (DTI) .
Trade Secretary Ramon Lopez conveyed the country’s support for the IPEF and interest to join the initiative during his bilateral meeting with US Trade Representative (USTR) Ambassador Katherine Tai.
IPEF is the US’ proposed vehicle for having a stronger engagement in the Indo-Pacific region through shared objectives on trade facilitation, standards for the digital economy and technology, supply chain resiliency, decarbonization and clean energy, infrastructure and other areas.
“In terms of the objectives of the IPEF, advancing resilience, inclusiveness, and competitiveness are aligned with the Philippines’ offensive interests,” Lopez said.
The Philippines also signified interest in the elements of the IPEF such as trade, promotion and development of micro, small and medium enterprises, digital economy, supply chain resiliency, environmental sustainability, and investment in infrastructure.
In addition, the Philippines expressed hope the IPEF would be more inclusive and have other interested countries in the region including those from the Association of Southeast Asian Nations.
Tai said the Philippines, which is seen as an important country in the Indo-Pacific, is welcome to join the initiative.
Lopez said both countries have also committed to work on strengthening trade access and facilitation, as well as reforms that seek to improve the investment climate for businesses under the Philippines-US Trade and Investment Framework Agreement, which serves as a mechanism for addressing issues of mutual concern.
Lopez was joined by Trade Undersecretary Ceferino Rodolfo, Commercial Counselor Kenneth Yap, and Consul Commercial Benedict Uy in the meeting held on the sidelines of the high-level diplomatic reception for government officials and business leaders in Washington, DC.
During the meeting, Lopez and Tai discussed trade priorities, with the Philippines sharing the recently approved legislative reforms to make the country more attractive to investments.
“We pursued major economic policy reforms, such as the amendments to the Retail Trade Law and the Foreign Investments Act, including the Public Service Act that essentially liberalized key sectors to allow greater foreign equity participation and attract more players and create more jobs while enhancing competition, that will lead to better services and more affordable costs for the people,” Lopez said.
He also relayed the increasing number of US data center developers catering to hyperscalers that are expanding in the Philippines.
“These also lead to more renewable energy capacities since renewable energy is the required source of energy for these facilities. These efforts are underway and will support building stronger trade and investment ties with the US,” he said.
USTR, meanwhile, emphasized the Biden administration’s worker-centered trade policy.
Both trade chiefs have vowed to uphold labor standards in promoting trade.
There were also discussions on improving market access to promote trade in goods like coal, electric vehicles, corn and chipping potatoes.
Lopez said the Philippines would be a good location for processing and packaging of Alaskan seafood for re-export.
“The Philippines has extensive experience and competitive edge in terms of processing and toll packing, as exemplified by our engagement with the EU (European Union). This may assist in boosting agricultural trade between the US and Philippines,” he said.
He said the Philippines is interested in exporting pineapples to the mainland US and both sides would hold further discussions on the next steps to be taken.
Both trade officials committed to work on further strengthening the partnership between the two countries.
Last year, the US was the Philippines’ third largest trading partner, top export market, and fifth largest import supplier.
Bilateral trade between the US and Philippines reached $19.6 billion, with the latter enjoying a modest trade surplus.
Last year, the US was also the Philippines’ fifth largest investor, with approved investments amounting to $77.64 million.