In business, there’s always a silver lining

Despite the global economic uncertainty brought about by the imposition of tariffs by the United States – which many countries are still trying to figure out how to navigate similar to what we are doing – I, like many who have been in business, believe that there is always a silver lining in any difficult or challenging situation.

This positive perspective was bolstered during the four-day US-ASEAN Business Council (USABC) Business Mission to the Philippines led by Ambassador Ted Osius. USABC brought their largest ever business delegation composed of some of the biggest companies in the United States, engaging with the administration’s economic team, senior officials across key government agencies, legislators, business leaders and other major stakeholders.

During the USABC engagement with the Department of Foreign Affairs where I joined Secretary Tess Lazaro and US Ambassador to the Philippines MaryKay Carlson as resource persons, Ambassador Osius reiterated the group’s continuing confidence in the Philippines’ growth story, and shared the excitement of US companies about opportunities and the possibilities that exist in the Philippines on various sectors that include technology, defense, artificial intelligence, food and agriculture, pharmaceuticals, infrastructure and digitalization.

“Our companies are committed. They’re here because they believe in the future of the Philippines. They’re investing because they believe that the Philippines is headed towards the right direction,” Ambassador Osius said, adding that Fortune 500 companies have been investing in the Philippines for a long time because they found that it was “the most hospitable place to get going.”

Ambassador Osius also cited government reforms such as the “ease of doing business” that he noted has “improved remarkably,” adding that “the government’s commitment to resolving problems is really unmatched in the region.”

The USABC also organized an Aerospace, Defense and Security (ADS) mission to the Philippines composed of more than 20 companies recognized as leaders across the defense and security sectors, among them Armscor Global Defense Inc., the biggest firearms manufacturer in the Philippines.

The business mission comes at a very opportune time as President Marcos’ meeting with President Donald Trump reaffirmed the ironclad alliance between the US and the Philippines as vital to peace and security in the Indo-Pacific region while advancing closer economic ties, including supply chain cooperation.

The core message that I wanted to convey to the business delegation was simple: economic strength is the foundation of strategic strength.

When US companies invest in the Philippines, we are not only talking about returns on capital – it’s about returns on the alliance, because a stronger Philippine economy means a more capable and reliable defense partner for the United States. It’s as basic as that. And as I have said on many occasions, economic and defense security are inextricably linked; essentially two sides of the same coin.

“The strength of our alliance is not just determined by the depth and frequency of our defense and security engagements. For our alliance to be strong politically, it must also be strong economically,” Secretary Lazaro said.

The strategic location of the Philippines – sitting at the heart of the Indo-Pacific – makes it an ideal hub for trade and security. And at a time when America is diversifying supply chains and rethinking its global strategy, the Philippines is a natural choice and a strategic necessity.

During the open session with members of the media, the tariffs issue was raised. But as Secretary Lazaro pointed out, the situation “encourages intra-ASEAN trade,” with a lot of discussions evolving within ASEAN on how to expand and increase intra-ASEAN trade.

The recent trip of President Marcos to India is also a very clear indication that we are looking at other markets outside of the US – which is what other countries are also doing. Having said that, we are reaching out to other countries not only within our region but in Europe and other areas to make up for the exports to the US that may no longer be competitive in price because of the tariffs.

Admittedly, the planned 100 percent increase on chips and electronic products is very disturbing, to say the least, as this would impact a lot of companies not only in the Philippines but across Asia-Pacific. Which is why we are working with the semiconductor industry to see how they can navigate this development.

Talks are also ongoing with US trade officials, the US Chamber of Commerce, the Semiconductor Association in the United States and Washington, D.C. and of course, the US-ASEAN Business Council.

We are counting on the continued support of the US private sector to help the Philippines engage with President Trump as we seek mutually beneficial opportunities to foster closer economic cooperation. After all, the USABC delegates are not only investors, but also trusted voices in Washington – so I called on them to convey this message to the US government: every US dollar invested in the Philippines strengthens America’s position in the Indo-Pacific.

US investments create jobs, provide opportunities to transfer skills and reinforce an ally like the Philippines that shares the security goals of the United States. So where do we start? On infrastructure and logistics that serve trade and naval readiness; on energy projects that secure reliable power for both industry and defense; on technology and cybersecurity that protect commercial and military assets; and on defense industrial partnerships that keep American equipment ready in the region.

Prosperity and security have become inseparable – and it makes a lot of sense for the US and the Philippines to invest together, grow together and stand together. In the end, one has to remember that “politics makes the headlines, but business makes the bottom line.”

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