New Directions Set for Closer PH-US Economic Engagement at the Third 2+2 Ministerial Dialogue

12 April 2023 — The Third 2+2 Ministerial Dialogue set new directions for closer economic engagement between the Philippines and the United States for the next decades, as it tapped synergies in the agenda of Manila and Washington on energy security, resilient global supply chains, digital connectivity, environmental sustainability and inclusive growth.

As he left Washington D.C. to return to Manila, Secretary Enrique Manalo shared his assessment that “the 2+2 meeting, which was the first to be held in 7 years, opened new channels for improving the scale and depth of the bilateral partnership in trade and investments, giving due importance to the priority of President Ferdinand Marcos, Jr. to modernize infrastructure, achieve food security and promote energy security while transitioning to clean energy.”

Secretary Manalo stated that “Manila and Washington agreed to reinforce the bilateral relations with a new focus on a strong long-term economic partnership that has dividends for the Philippines’ upward economic trajectory as a middle-income economy.” At the same time, he said that “this refocusing takes into account the stakes of communities in the relationship, as well as our responsibilities with respect to climate change and environment.”

Secretary Manalo emphasized that “the discussions left no doubt that the Philippines-US relations are now geared for the future, as discussions for the first time extensively covered climate-smart technologies and policies, climate finance, green metals, clean energy transition and de-carbonisation strategies, critical infrastructure and new technologies for ecosystem management and biodiversity conservation.”

Secretary Manalo underlined that the Philippines considers a comprehensive, responsive and resilient economic partnership to be at the center of a modern alliance with the United States, and looks forward to seeing these new initiatives take shape in the next months.

Citing the record volume of bilateral trade reached in 2022, the Philippines urged the US at the 2+2 Dialogue to step up efforts in catalyzing and strengthening cooperation on strategic trade and investments, including in terms of a re-authorized Generalized System of Preferences (GSP) program, a future bilateral free trade agreement (FTA), and through more capital-intensive investments.

The 2+2 Dialogue coincided with the visit to Washington D.C. of Philippine economic managers led by Department of Finance Secretary Benjamin Diokno and Bangko Sentral ng Pilipinas Governor Felipe Medalla, for the World Bank –International Monetary Bank Spring Meetings and other meetings where they presented prospects and opportunities in the Philippines as one the fastest-growing economies in the world.

The 2+2 Dialogue reaffirmed the shared commitment of the Philippines and the United States to respect and promote an international law-based order in the Asia-Pacific and elsewhere in the world through sustained dialogue, cooperation, and the peaceful settlement of disputes.

In the discussions on developments in the West Philippine Sea/South China Sea, Secretary Manalo reiterated the Philippines’ unwavering commitment, as an archipelagic nation, to the peace, security, stability, and prosperity of the West Philippine Sea/South China Sea as this ultimately redounds to the protection of the livelihoods of Filipino fisherfolk and the preservation of the country’s marine resources for future generations.

He underlined President Marcos Jr.’s policy that the Philippines will continue to uphold its sovereignty, sovereign rights and jurisdiction in the West Philippine Sea and that the Philippines will do so, through peaceful and legal means.

Secretary Manalo and Department of National Defense Senior Undersecretary and OIC Carlito G. Galvez, Jr., together with their US counterparts Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin affirmed the strength of the security alliance and recommitted to bolster combined defense capabilities, in accordance with the 1951 Mutual Defense Treaty, the 1998 Visiting Forces Agreement (VFA) and 2014 Enhanced Defense Cooperation Agreement (EDCA). They agreed to continue discussions on threats and security challenges arising in land, sea, air, space and cyberspace domains, and effective responses to them, and to improve interoperability and cooperation in both conventional and non-conventional domains.

Established in 2012, the 2+2 Ministerial Dialogue is an important policy level dialogue for advancing alliance-related priorities. It is co-chaired by the Secretaries of the Philippine Departments of Foreign Affairs and National Defense and the U.S. Departments of State and Defense. Prior to this meeting, the 2+2 had only convened twice - on 30 April 2012 and 12 January 2016, respectively. The Philippine and American officials issued a joint statement following the Third 2+2 Ministerial Dialogue. END