The United States said the Philippines is welcome to join its Indo-Pacific Economic Framework (IPEF), Washington’s proposed vehicle for strengthened US economic engagement in the Indo-Pacific region.
This was the response of US Trade Representative (USTR) Ambassador Katherine Tai to Trade Secretary Ramon Lopez who expressed the Philippines’ interest in joining the initiative during their bilateral meeting in Washington DC on April 18.
IPEF seeks to operationalize shared objectives around trade facilitation, standards for the digital economy and technology, supply chain resiliency, decarbonization and clean energy, infrastructure, worker standards, and other areas of shared interest.
The Philippines expressed hope the IPEF will aim to be more inclusive and will have diverse participation from other interested countries in the region including the Asean. In response,
Tai mentioned in the meeting that the Philippines is an important country in the Indo-Pacific and is welcome to join the initiative.
Lopez told Tai the objectives of the IPEF – advancing resilience, inclusiveness, and competitiveness are aligned with the Philippines’ offensive interests.
The Philippines likewise signified interest in the elements of the IPEF such as trade, micro, small and medium enterprises promotion and development, digital economy, supply chain resiliency, environmental sustainability, and investment in infrastructure.
President Biden announced last October the US would explore the development of IPEF to deepen economic relations in the Indo-Pacific region and coordinate approaches to addressing global economic challenges.
Lopez and Tai also discussed mutually beneficial market access improvement that will promote trade in goods such as in coal, electric vehicle, corn and chipping potatoes.
Lopez also expressed the Philippines’ interest in the processing and packaging of Alaskan seafood and in exporting pineapples to the US mainland confirming the acceptability of the mitigating measures proposed by the US Animal and Plant Health Service for the entry of Philippine pineapple.
Lopez said the US and the Philippines have committed to strengthen trade access and facilitation and continued reforms that will create a better investment climate for investors under the Trade and Investment Framework Agreement) which has been an effective mechanism in addressing issues of mutual concern, complemented by the Bilateral Strategic Dialogue with the US Commerce Department.
In 2021, the US was the Philippines’ third largest trading partner (out of 223), top export market (out of 205), and fifth largest import supplier (out of 210).
Bilateral trade between the Philippines and the US reached $19.6 billion, with the Philippines enjoying a modest trade surplus. The US was also the Philippines’ fifth largest investor in the same year with approved investments amounting to $77.64 million.
