Marcos Visit: PH-US Trade & Defense Deal Praised
Salceda Hails Marcos Jr.’s US Visit as Landmark for PH Trade, Defense Cooperation
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MANILA – Economist and former Albay 2nd District Representative Joey Salceda has lauded President Ferdinand R. Marcos Jr.’s recent visit to the United States, describing it as the most extensive package of trade, investment, and defense cooperation the Philippines has secured in years. Salceda emphasized that the visit achieved a framework akin to the Japan-Philippines Economic Partnership Agreement (JPEPA) without a formal treaty, a feat he called unprecedented.
A JPEPA-Style Framework Achieved Through Diplomacy
Speaking at a news forum in Quezon City, Salceda, who also chairs the Institute for Risk and Strategic Studies (Salceda Research), stated that the recent US visit brought the Philippines closer to a JPEPA-style economic partnership than ever before. “This is the closest we have ever come to a JPEPA-style framework wiht the United States, and we achieved it without a formal agreement,” Salceda remarked. he attributed this success to “early action, diplomacy, and strategic alignment.”
Beyond tariff Reductions: A Comprehensive Package
Salceda clarified that the gains from the visit extended far beyond the widely reported 1 percent tariff reduction on certain Philippine exports. He highlighted that US Executive Order 14257 grants exemptions for 73 percent of Philippine exports, effectively reducing the country’s average tariff rate to a mere 6.3 percent, positioning the Philippines as the second-lowest in ASEAN in terms of effective tariff rates.
“This was never just a ’20-to-19′ (percent) tariff story. that framing is misleading,” Salceda asserted. “What the President did was avert a full 20 percent across-the-board tariff through early engagement and high-level negotiation.” He further elaborated that the Marcos management secured significant strategic investments,crucial defense assurances,and vital science and technology cooperations,describing the outcome as “the full menu.”
Landmark Defense Assurance: Mutual Defense Treaty Clarified
A key diplomatic breakthrough highlighted by salceda was the unequivocal statement by United States Defense Secretary Pete hegseth. Hegseth declared that the Mutual Defense Treaty unequivocally applies to philippine armed forces, vessels, and aircraft anywhere in the Pacific, explicitly including the South China Sea.”That is the clearest and widest expression of the Mutual Defense Treaty ever issued by a United States official,” Salceda emphasized.”It removes all previous ambiguity. The commitment is now concrete and explicit.” This clarification is seen as a significant boost to Philippine security and regional stability.
Addressing Remittance Tax Concerns
In response to concerns regarding a proposed 1 percent remittance tax in the US, outlined in Senate Bill 4228, Salceda assured that exemptions are attainable. He confirmed that the Philippine government is actively engaged in discussions to ensure that local banks operating in the US qualify for these exemptions.
“This is a solvable issue,” Salceda stated. “What is needed is sustained engagement and technical coordination. That is already underway.”
The President returned from his three-day official visit to Washington, D.C. on Wednesday, a trip that included a meeting with US President Donald Trump.The visit yielded over USD21 billion in investment pledges and solidified renewed strategic commitments between the two nations.