DTI pushes US-Philippines critical minerals processing deal

MANILA, Philippines — The Department of Trade and Industry (DTI) wants the US to consider partnering with the Philippines on the processing of critical minerals, similar to a deal the American government recently signed with Japan.

In a statement, the DTI said the Philippines is keen on pursuing deeper cooperation with the US on the processing of critical minerals.

Trade Secretary Alfredo Pascual expressed the country’s interest in such partnership during his recent meeting with US Trade Representative (USTR) Ambassador Katherine Tai.

Citing the Critical Minerals Agreement (CMA) between the US and Japan, Pascual enjoined Tai to consider entering into a similar partnership with the Philippines.

“With the Philippines’ abundance of critical mineral reserves vis-à-vis the United States’ nickel demand for processing into batteries for electric vehicles, it is high time that we seize the opportunities for our countries to work together and address the respective gaps in our supply chains,” he said.

Tai noted one of the key aims of the CMA is to build supply chains that are robust, resilient, and secure.

Signed last March 28, the CMA between the US and Japan builds on the 2019 US-Japan Trade Agreement and aims to strengthen and diversify critical minerals supply chains, as well as promote the adoption of electric vehicle battery technologies.

Under the agreement, Japan and the US commit to facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals, advance robust labor and environmental standards, and cooperate in efforts to ensure secure, transparent, sustainable, and equitable critical minerals supply chains.

Aside from a partnership for critical minerals processing, the DTI is also pushing for a bilateral free trade agreement (FTA) and the reauthorization of the trade preference scheme Generalized System of Preferences (GSP) with the US.

For the DTI, a bilateral FTA with the US would enhance the access of Philippine products and services to the American market.

It is also expected to create more opportunities for investments and business linkages, and greater economic integration within the Indo-Pacific region.

While Tai acknowledged the interest of the Philippines in an FTA, she underscored the current approach of USTR of negotiating innovative and win-win trade arrangements, such as the Indo-Pacific Economic Framework for Prosperity (IPEF).

“Increasingly, we have been able to show that our practice is benefitting our economy, and we are trying to use this forward movement to innovate a non-traditional trade agreement,” she said.

On the push for the renewal of the GSP, Tai expressed her support for the scheme.

At present, trade and economic engagements between the Philippines and the US are facilitated through mechanisms, including the Trade and Investment Framework Agreement, Bilateral Strategic Dialogue, IPEF, and the Asia-Pacific Economic Cooperation.

Last year, the US was the Philippines’ third largest trading partner, top export market, and fifth largest source of imports.

In terms of approved investments, the US was the Philippines’ fifth biggest source last year, with notable investment activities in administrative and support services, manufacturing, and real estate.