DTI bats for PH-US minerals processing deal
Published Apr 24, 2023 08:02 am
The Department of Trade and Industry (DTI) would like the United States government to consider a partnership with the Philippines on critical minerals processing for potential complementation in the electric vehicle (EV) ecosystem that would enable the Philippines to participate in the industry’s global supply value chain.
This was raised by DTI Secretary Alfredo E. Pascual who met with USTR Ambassador Katherine Tai last April 17 during her visit here.
During the meeting, Pascual noted of the recently signed Critical Minerals Agreement (CMA) between the United States and Japan. Pascual enjoined Ambassador Tai to consider a similar partnership with the Philippines given the potential complementation between both countries. “With the Philippines’ abundance of critical mineral reserves vis-à-vis the United States’ nickel demand for processing into batteries for electric vehicles, it is high time that we seize the opportunities for our countries to work together and address the respective gaps in our supply chains,” said Pascual. Ambassador Tai noted that one of the key objectives of the CMA framework is to build supply chains that are robust, resilient, and secure. Pascual explained that the proposed minerals processing partnership between the two countries is in addition to a possible free trade agreement and the reauthorization of the US Generalized System of Preferences to pursue deeper cooperation on critical minerals processing with the United States. “We need to send a clear signal to our trade and investment partners including our stakeholders that our alliance and 3³ is as robust as ever, especially on the economic front,” Pascual said. The CMA or the Agreement Between the Government of Japan and the Government of the United States of America on Strengthening Critical Minerals Supply Chains”, signed by both parties last March 28, was deemed a historic deal that will diversify key supply chains and strengthen the US-Japan bilateral economic and trade relationship The agreement builds on the 2019 US-Japan Trade Agreement and will strengthen and diversify critical minerals supply chains and promote the adoption of electric vehicle battery technologies. In particular, the agreement memorializes the shared commitment of the US and Japan with respect to the critical minerals sector to facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals, advance robust labor and environmental standards, and cooperate in efforts to ensure secure, transparent, sustainable, and equitable critical minerals supply chains. The deal establishes several new commitments and areas for joint cooperation regarding electric vehicle battery critical minerals supply chains between the United States and Japan, including those related to: non-imposition of export duties on critical minerals; domestic measures to address non-market policies and practices of other countries affecting trade in critical minerals; best practices regarding review of investments within their territories in the critical minerals sector by foreign entities; measures that promote more resource efficient and circular economy approaches to reduce the demand for, and environmental impact of, virgin material extraction and related processes; engagement, information-sharing, and enforcement actions related to labor rights in critical minerals extraction and processing; remedying violations of labor rights at entities connected to critical minerals supply chains; and promoting employer neutrality in union organizing and operations. The agreement entered into force immediately upon signature. At present, the trade and economic engagements between the Philippines and the US are facilitated through multiple mechanisms. It includes Trade and Investment Framework Agreement (TIFA), Bilateral Strategic Dialogue (BSD), Indo-Pacific Economic Framework for Prosperity (IPEF), and the Asia-Pacific Economic Cooperation (APEC). While the BSD and TIFA are bilateral platforms for progressing economic relations between the Philippines and the United States. Despite the Biden administration’s pronouncement that it will not entertain FTA deals, including the Philippines, Pascual still entertain hopes that US will finally agree to a bilateral FTA in the future. Meantime, Ambassador Tai conveyed that the Philippines-United States TIFA will be convened in early 2024. The TIFA is the general platform for expanding bilateral trade and investment flows between the United States and the Philippines and for addressing relevant market access issues and concerns. This TIFA was last convened in July 2017. The US is the Philippines’ 3rd largest trading partner, top export market, and 5th largest import supplier in 2022. In the same year, the United States ranked 5th in terms of approved investments, with notable investment activities in administrative and support services, manufacturing, and real estate.
*Secretary of Trade and Industry Alfredo Pascual with USTR Ambassador Katherine Tai
*During the meeting, Pascual noted of the recently signed Critical Minerals Agreement (CMA) between the United States and Japan. Pascual enjoined Ambassador Tai to consider a similar partnership with the Philippines given the potential complementation between both countries. “With the Philippines’ abundance of critical mineral reserves vis-à-vis the United States’ nickel demand for processing into batteries for electric vehicles, it is high time that we seize the opportunities for our countries to work together and address the respective gaps in our supply chains,” said Pascual. Ambassador Tai noted that one of the key objectives of the CMA framework is to build supply chains that are robust, resilient, and secure. Pascual explained that the proposed minerals processing partnership between the two countries is in addition to a possible free trade agreement and the reauthorization of the US Generalized System of Preferences to pursue deeper cooperation on critical minerals processing with the United States. “We need to send a clear signal to our trade and investment partners including our stakeholders that our alliance and 3³ is as robust as ever, especially on the economic front,” Pascual said. The CMA or the Agreement Between the Government of Japan and the Government of the United States of America on Strengthening Critical Minerals Supply Chains”, signed by both parties last March 28, was deemed a historic deal that will diversify key supply chains and strengthen the US-Japan bilateral economic and trade relationship The agreement builds on the 2019 US-Japan Trade Agreement and will strengthen and diversify critical minerals supply chains and promote the adoption of electric vehicle battery technologies. In particular, the agreement memorializes the shared commitment of the US and Japan with respect to the critical minerals sector to facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals, advance robust labor and environmental standards, and cooperate in efforts to ensure secure, transparent, sustainable, and equitable critical minerals supply chains. The deal establishes several new commitments and areas for joint cooperation regarding electric vehicle battery critical minerals supply chains between the United States and Japan, including those related to: non-imposition of export duties on critical minerals; domestic measures to address non-market policies and practices of other countries affecting trade in critical minerals; best practices regarding review of investments within their territories in the critical minerals sector by foreign entities; measures that promote more resource efficient and circular economy approaches to reduce the demand for, and environmental impact of, virgin material extraction and related processes; engagement, information-sharing, and enforcement actions related to labor rights in critical minerals extraction and processing; remedying violations of labor rights at entities connected to critical minerals supply chains; and promoting employer neutrality in union organizing and operations. The agreement entered into force immediately upon signature. At present, the trade and economic engagements between the Philippines and the US are facilitated through multiple mechanisms. It includes Trade and Investment Framework Agreement (TIFA), Bilateral Strategic Dialogue (BSD), Indo-Pacific Economic Framework for Prosperity (IPEF), and the Asia-Pacific Economic Cooperation (APEC). While the BSD and TIFA are bilateral platforms for progressing economic relations between the Philippines and the United States. Despite the Biden administration’s pronouncement that it will not entertain FTA deals, including the Philippines, Pascual still entertain hopes that US will finally agree to a bilateral FTA in the future. Meantime, Ambassador Tai conveyed that the Philippines-United States TIFA will be convened in early 2024. The TIFA is the general platform for expanding bilateral trade and investment flows between the United States and the Philippines and for addressing relevant market access issues and concerns. This TIFA was last convened in July 2017. The US is the Philippines’ 3rd largest trading partner, top export market, and 5th largest import supplier in 2022. In the same year, the United States ranked 5th in terms of approved investments, with notable investment activities in administrative and support services, manufacturing, and real estate.