The Philippines is banking on the joint statement issued with the United States where both countries agreed to “pursue engagements” as a possible basis for its bid to clinch a Critical Minerals Agreement (CMA) and possibly a free trade agreement (FTA) between Manila and Washington.
In a press briefing on May 3, Trade Secretary Alfredo Pascual said major nickel processing and battery manufacturing companies, including one from the US, have expressed interest to invest in the Philippines even without the CMA, which is poised to tap into the country’s rich nickel resource in attracting investments in value-added products like batteries for electric vehicles.
Trade Undersecretary Ceferino Rodolfo said the joint statement of President Ferdinand Marcos Jr. and US President Joe Biden on Monday and the subsequent declaration of Pascual in bilateral talks with US on the Philippines’ interest on “sectoral agreements on critical sectors that have high value added and also labor (generation)… would provide the basis for future discussions, including not just for CMA but for an FTA… That would cover our proposal on CMA and also FTA focusing on goods and commodities that will benefit the two economies if tariffs are lowered on both ends,” he said.
Rodolfo quoted a portion of the joint statement which said both countries resolve “to continue expanding engagement and cooperation on all issues of common concern. In efforts to promote inclusive and broad-based prosperity, invest in the clean energy transition.”
Pascual also cited the portion of the statement which said: “Additionally, the two countries will pursue engagements with stakeholders, including in the business and social sectors, regarding opportunities to enhance bilateral economic engagement in a manner that is worker-centered, sustainability-driven, fair, and transparent, focusing on sectors in which it is critical to develop resilient supply chains and in which significant and meaningful economic value-added and employment can be generated in the United States and the Philippines.”
“CMA featured in the discussion but the form and nature of the agreement are not yet firmed up. The US party is aware of what we are asking for
We will continue discussions on this matter,” Pascual told reporters.
He added: “The whole world is moving toward EV and the supply of critical metals or critical green metals like nickel used to produce batteries will become very much in demand.
The big profit is on the finished product not on the rate minerals.”
Other interested investors are from EuropÄ™. China and Japan.
