Philippines expects U.S. ties to remain steady despite Congress shift

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Philippines expects steady U.S. ties

Highlights

Philippine Ambassador Romualdez states Democratic gains in Congress after the November 3 US midterm elections will not significantly alter stable economic and defense relations.
Trade tensions persist as the US imposed a 12.5% tariff on most Philippine exports in July, with Manila seeking restoration to 10% amid ongoing negotiations.
The Luzon Economic Corridor investment initiative progresses steadily regardless of US political shifts, while US investor interest remains strong, particularly in technology.

Congress shift and policy continuity

As reported by BusinessWorld Online, Philippine Ambassador to the U.S. Jose Manuel "Babe" G. Romualdez says Manila does not expect Democratic gains in Congress to significantly change bilateral ties, adding that support built over the past years is likely to remain in place.

Democrats are set to gain influence in both chambers beginning in January after the Nov. 3 midterm elections, creating divided government under President Donald J. Trump. Romualdez says the Philippines expects continuity across both economic and defense relations, arguing that the two areas move together.

Francis M. Esteban, a faculty member at the Department of International Studies at Far Eastern University in Manila, says bipartisan support for the alliance is likely to keep the relationship stable despite the change in congressional control. He says closer congressional scrutiny of White House initiatives could also make policy more stable and predictable, while Democratic priorities, including their stance on the conflict involving Iran, could shape Washington's strategic focus and bring greater attention to the Indo-Pacific region.

Trade risks and summit agenda

Gary G. Ador Dionisio, a professor and former dean of the School of Diplomacy and Governance at De La Salle-College of Saint Benilde, says defense cooperation is likely to remain the strongest pillar of bilateral ties because Indo-Pacific stability serves long-term U.S. strategic interests. He adds that trade and investment could face more uncertainty where commitments depend on tariff policy, congressional appropriations and coordination with the White House.

Romualdez says tariff discussions may change with the new Congress, although negotiations are continuing through the Office of the U.S. Trade Representative. Washington imposed a 12.5% tariff on most Philippine exports in July over concerns related to forced labor, and Manila is seeking to restore the rate to 10%.

He also says the Luzon Economic Corridor, a Philippines-U.S.-Japan initiative aimed at attracting investment in infrastructure, logistics and strategic industries, is already moving and is unlikely to be derailed by political changes in Washington. Ahead of Trump's expected visit to Manila for the ASEAN Summit this month, Romualdez downplays the prospect of major announcements, saying the trip is likely to focus on reaffirming past discussions on defense and economic cooperation, with no plan to sign an agreement related to Pax Silica.

Romualdez says interest from U.S. investors remains strong, especially in technology, though the Philippines still needs to reduce red tape to absorb more capital. Dionisio says Manila should use the summit to push cooperation in maritime security, supply chains, energy security, cybersecurity and disaster preparedness, while recognizing that lasting support will require diplomatic work beyond the meeting.

Our earlier article on the Philippines’ expanding access to Malaysia’s halal market explained how PhilUlama’s recognition by Malaysia’s JAKIM added a fourth Philippine-based certifier eligible for exports to Malaysia. We noted that wider certification capacity can support export growth and investment across multiple sectors by strengthening the infrastructure needed to participate in established regional trade ecosystems.

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