PAX Silica deal eyed by year-end despite no Trump visit signing

The Philippines and the United States (US) are targeting the signing of the proposed PAX Silica agreement before year-end, even as the government rules out finalizing the deal during US President Donald Trump’s visit to Manila.

Department of Trade and Industry Undersecretary Ceferino Rodolfo said negotiations remain on track, with both sides working to finalize the master agreement for the proposed Advanced Manufacturing Hub.

“We are still hopeful. I think we’re still on track towards having an agreement by the end of this year,” Rodolfo told reporters at the sidelines of the 4th ASEAN Investment Forum in Makati City on Tuesday.

He maintained that discussions have not stalled and that no major disagreements are preventing the two countries from reaching an agreement.

“We are hopeful because of the pace of the discussions and that there is really no significant substantive issue that would prevent us from signing,” he said.

Rodolfo pointed out that the government prefers to hold a separate signing ceremony rather than compete for attention with the Philippines’ ASEAN hosting agenda.

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

He also dismissed suggestions that stakeholder opposition had delayed the agreement, saying consultations have been ongoing since the beginning of the process.

Rodolfo also noted that the targeted two-year development timeline, including master planning and preparations for groundbreaking, remains achievable if the agreement is concluded this year.

Pax Silica is a US-led initiative focused on strengthening cooperation in artificial intelligence (AI), semiconductors, critical minerals and other strategic technologies.

In his fifth State of the Nation Address, President Ferdinand R. Marcos Jr. pitched Pax Silica as the centerpiece of the country’s bid to become a major player in the global AI and advanced manufacturing industry.

The proposed 1,620-hectare hub in New Clark City, Capas, Tarlac, is also expected to become a strategic component of the Luzon Economic Corridor, serving as an advanced manufacturing and logistics center in the global AI and technology value chain.

The project could generate up to P180 billion in annual revenues and nearly 200,000 jobs.