Because of the enduring bilateral ties between the United States and the Philippines, the US Trade and Development Agency (USTDA) has poured an additional $1.3 million grant for the Luzon Economic Corridor (LEC), the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) announced on Sunday.

This means that funds to develop the LEC now total $3.8 million, up from the previously pledged $2.5 million, signaling a strong commitment to fast-track transformative projects connecting key business hubs and strengthening the country’s economic position.

The approval of the additional grant is mainly focused on the realization of the country’s ambitious infrastructure drive, which is the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway—a flagship project of the LEC.

The OSAPIEA said the additional grant was communicated to them and the Department of Transportation by the USTDA last April 28, following a competitive consultant selection and negotiation process.

The USTDA is set to announce the selected US consultant soon, pending final due diligence checks.

“The OSAPIEA is set to meet with DoTr and the US Embassy next week to discuss the signing of the Beneficiary Agreement for the freight railway. In parallel, the Philippine government is also working with Swedfund on a separate grant of $1.2 million to complement the project,” the OSAPIEA, headed by Secretary Frederick Go, said.

Further, the OSAPIEA said the development is a critical step toward the realization of the Luzon Economic Corridor, which aims to connect key economic hubs—namely Subic Bay, Clark, Manila, and Batangas—through high-impact infrastructure projects, including the SCMB railway.

The railway is expected to streamline logistics, reduce transportation costs, and generate significant employment opportunities for Filipinos.

While in Washington, D.C. to negotiate for bilateral tariffs, Secretary Go remarked, “Great positive news. This milestone demonstrates that RP-US economic ties are stronger than ever. The increased USTDA grant for the SCMB Rail pre-feasibility study signals renewed investor confidence and will translate to more job opportunities along the corridor.”

The Luzon Economic Corridor continues to attract international support, with the US, Japan, and other partners working closely with the Philippines to accelerate infrastructure-led growth and regional integration.

Tariff talks with US yield 'positive results'

In a separate statement, Secretary Go revealed that negotiations between the Philippines and US Trade Representative Jamieson Greer for the 17 percent imposed tariff for all US-bound exports yielded constructive and positive results.

Secretary Go, who led the Philippine delegation, said the meeting with USTR Greer “went very well,” emphasizing that the interests of local industries remained central to the discussions.

“We made sure to put the welfare of Philippine local industries at the center of our negotiations. We are hopeful that these discussions mark the beginning of a process toward arrangements from both sides that will not only strengthen US-Philippines trade ties but also help diversify our country’s export markets,” Go said following the talks.

However, it was not clearly stated whether the USTR will lower the imposed tariff on the Philippines.

The comprehensive dialogue took place in the wake of the US government’s imposition of a 17 percent reciprocal tariff on Philippine exports, currently the second lowest in Southeast Asia.

“Our goal for this meeting is a partnership that benefits both sides and supports the growth of our industries at home,” Secretary Go added.

For her part, DTI Secretary Ma. Cristina A. Roque said, “We were able to convey to the USTR our local industries' concerns, and we are hopeful this will yield our desired results.”

US Ambassador Babes Romualdez, who is also part of the talks with USTR, as relayed by the US Embassy, said, “Both countries agreed to undertake concrete steps in recognition of the complementary nature of our economies and the strategic value of our alliance.”

Romualdez, however, declined to discuss further details about the talks but said Manila hopes to close a deal beneficial to both countries.

“We cannot discuss details for now. We are confident both countries will come up with a good and mutually beneficial agreement,” he told the state-run Philippine News Agency, noting that they are still waiting to see if there will be a second round of talks for the imposed reciprocal tariffs.