DTI: Pax Silica deal on track for signing this year

By Beatriz Marie D. Cruz, Senior Reporter

THE PHILIPPINES and US remain on track to finalize the master agreement for the Pax Silica initiative this year, even though no announcement will be made during US President Donald J. Trump’s visit in Manila for the Association of Southeast Asian Nations (ASEAN) Summit this month.   

Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo said both sides want the controversial project to “have its own dedicated moment” once the agreement is ready for signing.

“While there will be no announcement during the upcoming meeting between President Trump and President Marcos, this is simply a matter of timing,” he told reporters on the sidelines of the Fourth ASEAN Investment Forum on Tuesday.

“With ASEAN, APEC (Asia-Pacific Economic Cooperation), and several major initiatives occurring in close succession, we felt it would be better for the advanced manufacturing hub to have its own moment rather than compete within an already crowded diplomatic agenda.”

Signing the Pax Silica agreement during the ASEAN summit might remove attention from the regional bloc’s initiatives, Mr. Rodolfo said.

“Other key regional diplomatic and geopolitical initiatives deserve the dedication they merit, particularly given the unique visibility that only an ASEAN summit provides,” he added.

Mr. Rodolfo said the government wants to organize a separate ceremony for signing the master agreement under Pax Silica.

“We do not want to distract attention or take away attention from the regional initiatives that ASEAN and the Philippines are promoting,” he said.

The Philippines is hosting the 49^th ASEAN Summit and Related Summits from Nov. 15 to 17. Regional and global leaders are expected to grace the high-level event, including Mr. Trump.

Despite no announcement on the Pax Silica hub next week, Mr. Rodolfo said no substantial disagreements are stopping Manila and Washington from finalizing the master agreement.

He noted that negotiations are ongoing for the deal, but did not elaborate.

“I think we’re still on track towards having an agreement by the end of this year,” he noted.

“If we’re able to do that, then the timeline for the two-year development period, masterplanning and everything, is still on track,” Mr. Rodolfo added.

US Ambassador to the Philippines Lee Lipton on Saturday said there will be no announcement relating to the proposed Pax Silica hub during and after the ASEAN Summit.

Earlier, Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua M. Bingcang said that both sides are looking to have the agreement signed during the ASEAN Summit this month.

Mr. Rodolfo clarified that the growing opposition against the Pax Silica hub is not a factor as to why the deal will not be signed during the summit.

“That has always been part of the equation, that there should be consultations, and there should be more communication efforts with the affected stakeholders,” he said.

Manila and Washington are developing a 1,619-hectare artificial intelligence (AI)-native industrial hub in New Clark City, Tarlac. Its groundbreaking planned to happen in two years.

It is the flagship project under the Philippines’ participation in Pax Silica, a US-led alliance linking supply chains for AI, semiconductors, and critical minerals.

The BCDA will serve as the Philippine signatory to the Pax Silica agreement, which will also be signed by its American counterpart.

The country is leveraging its Pax Silica membership to move beyond low-value assembly, testing, and packaging to become an advanced manufacturing hub for tech hardware.

However, the project faces major scrutiny over concerns on its heavy energy and water requirements, displacement of locals, and its environmental impacts.