Economist and former Albay 2nd District Representative Joey Salceda praised President Ferdinand R. Marcos Jr.’s recent visit to the United States, calling it the most comprehensive package of trade, investment, and defense cooperation the Philippines has secured in years. Speaking at a news forum in Quezon City, Salceda noted that the visit marked a significant achievement, comparable to the Japan-Philippines Economic Partnership Agreement (JPEPA).
“This is the closest we have ever come to a JPEPA-style framework with the United States, and we achieved it without a formal agreement,” said Salceda, who chairs the Institute for Risk and Strategic Studies (Salceda Research). He emphasized that the success was due to early action, diplomacy, and strategic alignment.
While the 1 percent tariff reduction from 20 percent to 19 percent received much attention, Salceda highlighted broader gains, including exemptions for 73 percent of Philippine exports under US Executive Order 14257, which lowers the effective tariff rate to 6.3 percent, the second lowest in ASEAN. “This was never just a ‘20-to-19’ (percent) tariff story. That framing is misleading,” he stated, adding that the Marcos administration secured strategic investments, defense assurances, and science and technology cooperation.
Salceda also pointed out a key diplomatic breakthrough, noting that US Defense Secretary Pete Hegseth declared that the Mutual Defense Treaty applies to Philippine armed forces, vessels, and aircraft anywhere in the Pacific, including the South China Sea. “That is the clearest and widest expression of the Mutual Defense Treaty ever issued by a United States official,” he said, emphasizing the removal of previous ambiguities.
Addressing concerns about a proposed 1 percent remittance tax in the US under Senate Bill 4228, Salceda assured that exemptions are possible and that the Philippine government is working to ensure local banks operating in the US qualify for such exemptions. “This is a solvable issue. What is needed is sustained engagement and technical coordination. That is already underway,” he added.
President Marcos Jr. returned from a three-day official visit to Washington, DC, which included a meeting with US President Donald Trump, bringing home over USD 21 billion in investment pledges and renewed strategic commitments.