The United States has reaffirmed its commitment to further deepen its economic and commercial ties with the Philippines and the rest of the region as part of the Obama administration’s economic rebalancing to the Asia Pacific.
Speaking before local and foreign business chambers on Wednesday, US Commerce Secretary Penny Pritzker stressed that the Asia Pacific region had become a significant market for American products and services, as sales to and investments in the region served as the foundation for good jobs in the United States.
The Philippines, in particular, shares with the United States a $24-billion-a-year trade relationship, generating significant number of jobs both in the country and in the United States.
The country is also seeing increased interest from American companies, given the Philippines’ growing economic dynamism and the significant progress seen in the implementation of economic and institutional reforms.
“Given the remarkable growth seen here in Philippines under President Aquino, and across the region, there remains untapped potential for us to do much more together in the years ahead. By 2022, the Asia Pacific region will be home to 54 percent of world’s middle class,” Pritzker said.
“The Asia Pacific will be the engine of global growth over the next decade, which will have profound impact on how and where the world does business. American firms would want to be part of this solution,” she added.
Pritzker noted that the US and its private sector-led businesses were looking to further tap and enhance the region’s economic prosperity, with interests to invest in key sectors such as information technology, infrastructure, clean energy, telecommunications, financial services, healthcare and education.
According to Pritzker, the US government’s commitment to further strengthen trade and investment relations with the Philippines and the rest of the region covered four areas—enhancing security, expanding prosperity, fostering democratic values and advancing human dignity.
Central to the economic dimension of the commitment was the creation of new mechanisms or tools such as the Trans-Pacific Partnership (TPP) agreement, which is expected to provide a level playing field for commerce across the fast growing region.
“The successful completion of TPP is a central economic priority in the Obama administration because opening up markets in the Asia Pacific region will help promote growth and jobs here and in the US. Once completed, the TPP will provide greater regulatory coherence for all countries involved… and establish rules to better link companies with production and distribution networks across Asia Pacific,” Pritzker explained.
The TPP, deemed to be the country’s only chance to have a trade agreement with the United States, is targeted for conclusion by the end of August this year.