Philippine President Ferdinand Marcos Jr. is set to meet with US President Donald Trump this week, marking a significant moment for trade relations and security cooperation between the two nations. This visit comes as both leaders look to bolster the Philippines’ economic standing in the region amid rising tensions with China.
Key Focus on Economic Cooperation
During his time in Washington, Marcos aims to push for a more favourable trade deal before the upcoming deadline on 1 August 2024. The Philippines faces a hefty tariff increase proposed by the US, with imports now facing a reciprocal tariff of 20%. This raises concerns about the impact on Philippine exports, which were valued at around US$23.5 billion last year, highlighting the necessity for a mutually beneficial arrangement.
- Last year, the US reported a nearly US$5 billion trade deficit with the Philippines.
- Marcos will discuss how to alleviate the effects of the severe tariff schedule impacting the nation.
Strengthening Defence Ties
Alongside economic discussions, defence and security issues are high on the agenda. The Philippines has been increasingly turning to the US for support, especially in light of China’s aggressive stance in the South China Sea.
Marcos has already expanded access for US military forces to Philippine bases, part of a long-standing mutual defence treaty that has been in place for over seven decades. This includes joint military exercises, which recently featured training with advanced missile systems, a move that has angered Beijing.
Building Strategic Relationships
The Philippine President’s visit is notable as it sets a precedent for future engagement in the Indo-Pacific region. According to Raquel Solano, Assistant Secretary of Foreign Affairs, the goal is to ensure that the Philippines becomes a more robust partner to the US, securing a stronger economic footing that can support extensive cooperation.
During meetings with senior US officials, including Secretary of State Marco Rubio and Defence Secretary Pete Hegseth, Marcos is expected to underscore the necessity of closing a deal that enhances both nations’ interests in the face of rising regional challenges.
A Strategic Pivot
This visit stands as a pivotal moment for both leaders, with Marcos seeking to reaffirm Manila’s position as a key ally amidst Washington’s strategic rivalry with China. Analysts suggest that Marcos might negotiate a more favourable tariff rate than what has been achieved by other Southeast Asian nations such as Vietnam and Indonesia.