January 18, 2025 | 1:35pm
Next week, a new-old world leader will be sworn into office. Donald Trump was the United States’ 45th President, but he will also be its 47th following his decisive victory in the elections held last November.
The world is watching. The international community, with its geopolitical issues, foreign relations, and trade policies, is likely feeling a mix of anticipation and anxiety. The inauguration of Trump will definitely have its impact on global alliances, regional stability, and international cooperation on critical issues.
For our part, given the number of Filipinos living and working in the United States, the families that rely on these Filipinos’ remittances, and given the long-standing economic partnership and defense alliance between our two nations, it is but logical to be concerned about what the second Trump administration would mean in terms of the relationship between the Philippines and the US.
Will this change in leadership also bring a change in the relations between our two nations? I do not believe so.
There have been many similar changes in US politics over the decades. Through it all, our bilateral relations have remained strong. This is because our mutual interests – economic partnership, security cooperation, our shared democratic values – have taken precedence over any cosmetic changes in name or leadership.
In terms of trade and economics, it is reasonable to expect things to remain the same. This is because over the years, the US has consistently ranked among the Philippines’ top export markets, maintaining a healthy trade balance. Similarly, the US continues to be a major source of foreign investment in the Philippines.
According to the Bangko Sentral ng Pilipinas, for the period January-September 2024, the US was the third largest source of foreign direct investments (FDI) in the Philippines.
We do not see this changing soon. The US is likely to remain one of the Philippines’ most important trade and investment partners, given the Philippines’ participation in the Indo-Pacific Economic Framework along with 13 other countries, and the launch of the Luzon Economic Corridor.
The Marcos administration has also been enacting reforms to create a more conducive environment for investors, thereby opening more opportunities for the US private sector to expand in the Philippines.
And Filipinos are aware of this, too. The US has been identified as the most beneficial economic partner of the Philippines, according to a survey conducted by Pulse Asia Research Inc., last September 2024. Another Pulse Asia survey in November 2024 revealed that the US is regarded by Filipinos (73%) as the most trusted partner in national development.
In fact, the Trump administration’s emphasis on bilateral deals may serve as an opportunity for the Philippines to negotiate terms that aim for continued investment and outsourcing partnerships. Philippine Ambassador to the US Jose Manuel Romualdez conveyed in an interview last November 2024, that the Philippine government is working on a “mutually beneficial” strategy to boost economic ties with the incoming Trump administration.
The Marcos administration could take advantage of these expected policy reforms through active engagement with US trade officials to ensure favorable conditions for industries that rely on the US market to safeguard jobs and ensure a strengthened economic partnership between the two countries.
This is most especially relevant in terms of promoting the country’s supply chains, particularly in semiconductors.
Additionally, the Philippine government can bank on recent policy reforms such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to attract more US investments into the country.
The concern is understandable, as Trump’s personal leadership style and even the controversies he finds himself facing could be deeply polarizing. Thankfully for the Philippines – and all others in the international community, actually – our relationship with the US nation, regardless of who leads it at any given time, has been tested over decades.
The strong economic ties between our two nations are highlighted by robust trade, investments flows, key reforms and trade agreements, the Philippines remains committed to enhancing its ties with the US, ensuring that the benefits of this partnership are felt across trade, investment, and broader regional security initiatives.
Indeed, this is a new chapter for the US. Trump may have already been inaugurated as president eight years ago, but America and the world then are different from the ones today. In just a short span of time, there emerged COVID, issues with rival economic powers, geopolitical tensions, and many more. These issues have all but allowed the US to surface the values it holds dear.
Individual leaders come and go but it is their decisions and priorities that remain long after they have gone. It is the friendships and alliances they build along the way that define their relationships with the rest of the world. In the case of the US, the 2024 election set the stage for potential shifts in global policies, including investment, trade and economic relations. The Philippine stands ready to navigate this evolving landscape, building on its longstanding relationship with the US.
The ties binding the US and the Philippines are deep and significant. Our economic linkage is strong, and there is no reason that we should be concerned about whether such ties would hold up. Mutual interests and shared democratic values govern our relationship. We have held on to these despite shifting regional dynamics and our respective domestic political changes.
We have all the reason to believe that while the coming days and years will continue to be challenging, they will also be marked by continued strengthening of the US-Philippine alliance and an even closer, more constructive relationship in terms of trade and investment.
Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)
This post was originally published on here
