Envoy: US remains open to free trade deal with Philippines

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February 11, 2026 | 12:00am

MANILA, Philippines — The United States remains open to entering into a free trade agreement (FTA) with the Philippines, but the latter wants to firm up tariff arrangements first.

During the US-Philippines’ Society’s press conference yesterday, Ambassador to the US Jose Manuel Romualdez said a potential FTA between the two countries was raised during earlier tariff discussions led by then Special Assistant to the President for Investment and Economic Affairs Frederick Go.

“We mentioned it and we just said that perhaps this is not the time. But they said that they’re open, meaning the US is open for an FTA,” Romualdez said.

“But I don’t think we’re prepared to go into discussions on that one until we have more or less solidified our agreement on this, on the tariffs,” he added.

At present, the US imposes a 19-percent tariff on Philippine exports, excluding key agricultural goods and semiconductors.

Romualdez said discussions concerning semiconductors are still ongoing.

Last week, the US signed a memorandum of understanding (MOU) with countries, including the Philippines, aimed at diversifying global critical mineral supply chains and promoting investments in the sector.

Romualdez said more information on the MOU is expected to be made available during the bilateral strategic dialogue between the two countries in the coming week.

He said nickel processing is an area where the Philippines and the US can work together under the MOU.

“Almost 90 percent of our nickel is exported to China because they’ve been able to order that market to a certain extent- because they buy everything that we produce because of the processing that we do not have right now,” he said.

For the Department of Trade and Industry (DTI), the MOU provides an opportunity for the country to strengthen its critical minerals sector and to play a bigger role.

“The MOU is a major enabler for the Philippines to shift from simply exporting raw mineral ores to becoming a significant player in value-added processing,” Trade Secretary Cristina Roque said.

“We are aiming to be more than just being a supplier; we are positioning ourselves as a vital link in the global supply chains for semiconductors, defense and clean energy,” she said further.

Through the MOU, the DTI also expects the country to attract investments in mining, as well as related industries such as power generation, logistics and chemical handling.

“Through this agreement, we expect to attract substantial and diverse investments that will develop the local workforce and strengthen our standing in the industries of the future,” Roque said.

The MOU is also expected to provide access to US grants, feasibility studies and joint geological mapping to modernize the local mining landscape.

In addition, it will help reduce over-reliance on a single market by linking the country to a broader network of over 50 allied nations.

The DTI said the MOU is also expected to help create high-skilled jobs through technology transfer and advanced research initiatives.