Manila: The United States is not closing its doors on a possible free trade agreement (FTA) with the Philippines, according to Philippine Ambassador to the US Jose Manuel Romualdez. Romualdez revealed that discussions with US Trade Representative Jamieson Greer indicated that Washington DC is still open to considering an FTA, contrary to concerns that such a deal might no longer be feasible.
According to Philippines News Agency, Romualdez shared that Greer had explicitly stated, "No. We're going to consider," when asked about the FTA's prospects. This suggests that the Trump administration had not shut the door on the possibility of an FTA. The ambassador speculated that progress might be achieved after the midterm elections in the United States. Finance Secretary Ralph Recto previously emphasized the Philippines' intent to pursue free trade deals with the US and other nations.
Following negotiations between US President Donald Trump and President Ferdinand R. Marcos Jr. last July, a 19% tariff was announced on Philippine goods-a slightly reduced figure compared to the original rate. Romualdez noted that this tariff is not definitive, highlighting a recent letter from the Philippines requesting specific exemptions from the US.
He remarked, "I think that's being digested and being discussed right now," while acknowledging that the Trump administration has other pressing priorities at the moment.
Beyond trade discussions, Romualdez mentioned efforts to enhance US investments in the Philippines, especially within the Luzon Economic Corridor (LEC) and the defense manufacturing sector. The US recently unveiled a foreign assistance package aimed at developing the LEC, a collaborative initiative with Manila and Tokyo to bolster investments in significant infrastructure projects in Luzon, particularly in Subic Bay.
Romualdez also noted progress in talks regarding a proposed US ammunition hub in Subic Bay, following its inclusion in the proposed 2026 US defense appropriation plan or the National Defense Authorization Act (NDAA). He credited Congressman Ryan Zinke with advocating for the inclusion of ammunition manufacturing in the NDAA.
The ambassador mentioned that the US is exploring partnerships with local entities in the Philippines to establish the ammunition facility. "It's a big investment, but it's still being worked out," Romualdez stated, emphasizing that the project includes a wide range of ammunition types.
