As the world watches the return of Donald Trump to the White House, Undersecretary Ceferino Rodolfo of the Department of Trade and Industry (DTI) has painted a fairly optimistic picture of the impact of Trump 2.0 presidency on Philippine economic interests.
“If you look at President Trump during his first administration, he was actually the only recent US president that welcomed a bilateral FTA (Free Trade Agreement) with the Philippines,” said Rodolfo at a recent European Chamber of Commerce of the Philippines (ECCP) event.
He said Trump expressed this pro-FTA sentiment during his 2017 visit to Manila for the ASEAN Summit.
More than that, the DTI official said, Trump’s then US Trade Representative (USTR), Robert Lighthizer, had even earmarked the Philippines as the likely first beneficiary of a Trump-era bilateral FTA.
Furthermore, Trump’s nominee for USTR, Jamieson Greer, served as Lighthizer’s chief of staff and has been known for his consistent advocacy of deeper trade ties between the US and the Philippines.
“We know him (Greer) quite well because of his involvement in the previous administration of Trump. Plus his track record when he tracked down all of his speeches when he already left office, they maintain the same welcoming attitude for a bilateral FTA with the Philippines,” Rodolfo said.
This continuity in leadership, the DTI official suggested, strengthens the likelihood of renewed FTA discussions between the two countries.
At the same time, Rodolfo said, Trump 2.0 coincides with the Republican Party’s control over both Houses of the US Congress, giving the US president a more favorable legislative landscape for pushing through such trade initiatives.
The DTI official pointed to another key development signaling this shift: Senator Marco Rubio’s confirmation as US Secretary of State.
Diversify foreign investment sources
Rodolfo said Rubio “filed way back in June 2024, a Philippines-US Strategic Economic and Security Partnership Act that, among others, called for renegotiation of a critical minerals agreement with the Philippines and instructing all US government agencies to look for ways to support the Philippines in terms of closer economic relations including by funding whatever is needed so that we can process more of our critical minerals.”
Given all these and the Philippines’ vast reserves of nickel, copper, and other essential minerals being crucial to America’s green energy transition and defense industries, the country could gain significant investments, particularly in mining, processing, and infrastructure development.
“In summary, looking at what happened in the [US] congressional hearings, looking at the confirmation process of the key officials, key cabinet secretaries in Trump’s administration, we really foresee a net positive impact on Philippines-US relations,” Rodolfo said.
Nevertheless, while the Philippines is eager to capitalize on renewed US interest, Rodolfo said the country must continue to diversify foreign investment sources, aligning with the government’s Strategic Investment Priority Plan (SIPP) and CREATE MORE initiative, which seek to enhance the country’s competitiveness as an investment hub.
The trade official said the country must not lose momentum in its negotiations with the European Union for a Philippines-EU FTA. He said the EU currently has a head start, with both parties already in the second round of talks.
Rodolfo said the Philippines is also diversifying its investment attraction strategy beyond the US and the EU, with Japan, Taiwan, and South Korea emerging as key targets for economic partnerships.
