The Philippines is exploring a possible sectoral preferential trade deal with the United States focusing on nickel and possibly other critical minerals similar to what the latter forged with Japan. Secretary Alfredo Pascual of the Department of Trade and Industry (DTI) brought up the idea of clinching a deal similar to the Critical Minerals Agreement (CMA) – aimed at strengthening and diversifying critical minerals supply chains and promote the adoption of electric vehicle (EV) battery technologies – with US Trade Representative Katherine Tai during their meeting in Manila on April 17.
Citing the potential complementation between the two countries, Pascual said the Philippines has an abundance of critical mineral reserves vis-í -vis the US’ nickel demand for processing into batteries for EVs.
The historic CMA between US and Japan signed on March 28 calls for among others, “non-imposition of export duties on critical minerals.”
“It is high time that we seize the opportunities for our countries to work together and address the respective gaps in our supply chains,” Pascual was quoted by the DTI in a statement yesterday.
There were no details on Pascual’s proposal.
During the meeting, Tai underscored the current approach of the USTR has shifted to the Indo-Pacific Economic Framework rather than free trade agreements with individual countries which the Philippines has been proposing.
Tai also expressed support for the reauthorization of the Generalized System of the Preferences which grants tariff free access on exports for the Philippines and other beneficiary-countries. – Irma Isip
