Despite ongoing trade talks between the two countries, the United States has approved a $3.8-million grant for the Luzon Economic Corridor, which seeks to accelerate coordinated investments in high-impact infrastructure projects.

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go announced this during a press briefing in Malacañan on Monday, May 5, following his recent trip to Washington, DC.

In a press briefing, Go said the grant, which will finance the Subic-Clark-Manila-Batangas Rail, was approved by the US Trade and Development Agency (USTDA), easing concerns raised over the past two months about the project’s progress.

"This will link the most important ports in our country — the Subic Port, the Manila Port, and the Batangas Port — which together comprise over 80 percent of all port traffic in the Philippines," he said.

He called the railway "extremely important to industry and trade" and emphasized that its continuation reflects enduring US support despite broader shifts in American foreign assistance.

The Luzon Economic Corridor is a key infrastructure initiative under the Indo-Pacific Economic Framework, aimed at boosting regional connectivity and supply chain resilience.

It is part of the trilateral commitment between the Philippines, the US, and Japan. The project, which encompasses key urban and industrial zones, is strategically significant as a hub for commerce, industry, and logistics, driving economic growth and regional development.

In August last year, Go said the Philippines was narrowing down the proposed projects under the Luzon Economic Corridor as the country's partners shifted their interest to Subic projects.

According to Go, the Philippine delegation prioritized the welfare of local industries during discussions with the US Trade Representative.

"We spent the most time on the semiconductor and electronics industry, dahil po ito yung number one export po natin sa America (because this is our number one export to America)," he said.

Other sectors raised during the talks included the coconut industry — the top agricultural export to the US — as well as garments, furniture, automotive parts, and food processing.

Go assured that the Philippine side was "very well-prepared," having consulted with stakeholders and Cabinet members before the meeting.

Go said the two countries are still working toward developing a negotiation framework for a possible free trade agreement between the Philippines and the US after US President Donald Trump imposed a 17 percent tariff on Philippine exports.

The Department of Trade and Industry’s Foreign Trade Office, led by Undersecretary Allan Gepty, will continue talks with US counterparts in the coming weeks.

"We have to let the process take its place. We have to let the technical working groups work on a framework for discussions," he said.

"Both sides will have to work together to put a framework [in place] before the 90-day moratorium period is over," he added.

However, Go did not divulge further details, citing confidentiality rules restricting the information he could share.

He noted, however, that no country has yet concluded a deal with the US under the current Indo-Pacific Economic Framework, including Japan, Korea, Malaysia, and Vietnam.

"The meeting I had last Friday was our first meeting. So I think it would be unreasonable to expect that... hindi naman siguro mako-conclude ang (we cannot conclude) negotiations in one meeting," Go said.