By Justine Irish D. Tabile, Reporter
THE Philippine proposal to join the US-Japan Critical Minerals Agreement may end up broadening the deal’s membership, an analyst said.
“It is best to do a trilateral in a multipolar world. We can even broaden it to a quadrilateral, including Australia or even Canada, which are both active in the mining sector in the Philippines,” according to Victor Andres C. Manhit, president of the Stratbase ADR Institute, speaking via Viber.
In a recent briefing, Trade Secretary Alfredo E. Pascual said that the Philippines has proposed to US and Japanese ministers a plan to sign up for the critical minerals agreement between Japan and the US.
By doing so, the Philippines will avoid the process of negotiating bilateral or one-on-one critical minerals agreements with the US.
However, Mr. Manhit said that the accession presents both opportunities and responsibilities for the Philippines.
“The abundance of critical minerals like nickel and copper is an opportunity to position the country as a major player in the emerging supply chain for digital technologies, electric vehicles, and innovations in clean energy,” he said.
“The challenge is for the government and mining industry to develop our capacity to produce and serve what experts see as sustained demand for these metallic minerals as the world shifts to green transportation and clean en-ergy generation,” he added.
Mr. Pascual said that the proposal aims to increase US investments in mineral processing in the Philippines and help make global critical mineral supply chains more resilient.
“Pursuing bilateral or even trilateral critical agreements with the US and Japan aligns well with the spirit of the recent trilateral summit and will encourage the influx of investments to accelerate the development of the Philippine mining industry,” Mr. Manhit said.
“The support needed from linked industries and businesses will spark a multiplier effect, contributing to the economic growth of host communities through quality jobs and new revenue sources for the government,” he added.
The proposal was presented at the Trilateral Economic Ministerial Meeting on April 11 between Mr. Pascual, US Commerce Secretary Gina M. Raimondo, and Japanese Minister of Economy, Trade, and Industry Ken Saito.
“By fostering these partnerships, the country can play a vital role in the global transition toward sustainable technologies and electric vehicles,” Mr. Manhit said.
“I believe the current geopolitical environment provides strong impetus to engage in a synergistic critical mineral agreement with our friends, the US and Japan,” he added.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the proposal was well-timed after the ministers committed to cooperating in security and foreign direct investment.
He said that if admitted, the Philippines can become a major source of minerals as more mineral users seek to de-risk their global supply chains.
“As the US and Japan diversify their sources of critical minerals and source more from the Philippines, that would lead to more mineral exports for the country, as well as investments for establishing or expanding critical mineral production and processing facilities in the country,” he added.
