Sat. Jul 13th, 2024
The United States, the Philippines, and Japan Launch the Partnership for Global Infrastructure and Investment Luzon Economic Corridor

During the trilateral leaders’ summit, the leaders of the United States, the Philippines, and Japan announced the intent to develop the Luzon Economic Corridor as the latest economic corridor of the G7 Partnership for Global Infrastructure and Investment (PGI) and the first in the Indo-Pacific region.  The State Department will drive and coordinate implementation of Luzon Corridor through the Office of the Special Presidential Coordinator for PGI.  This work is also a demonstration of our commitment to Indo-Pacific Economic Framework for Prosperity (IPEF) partners as a key deliverable under the PGI IPEF Investment Accelerator that aims to scale high-standard investments, create more resilient economies, and drive long-term sustainable development.

The Luzon Economic Corridor will support connectivity between Subic Bay, Clark, Manila and Batangas in the Philippines.  Together, the United States, the Philippines, and Japan will accelerate coordinated investments in high-impact infrastructure projects, including rail; ports modernization; clean energy and semiconductor supply chains and deployments; and agribusiness to further connect and drive economic growth in each hub.

This approach will make an outsized impact on critical industries, such as semiconductors, where reducing logistics and energy costs coupled with a favorable policy and regulatory environment can propel further growth.  PGI investments in critical infrastructure will further spur this industry and complement the U.S. government’s ongoing collaboration with the Philippines to grow and diversify the global semiconductor industry.  PGI investments will also improve food security in the Philippines by connecting farmers to market through improved logistics and cold chain storage infrastructure.

The announcement of the Luzon Economic Corridor follows the Secretary’s visit to Manila last month and the joint desire of the United States, the Philippines, and Japan to elevate our economic initiatives as a central element of our robust strategic partnership.  The United States will also seek to partner with multilateral development banks and the private sector to deploy capital and development and finance tools to support infrastructure projects across the Corridor.

In order to begin implementation of the Trilateral Leaders’ commitment on developing the Luzon Economic Corridor, the United States, the Philippines, and Japan intend to hold a trilateral event promoting investment in the Corridor on the margins of the Indo-Pacific Business Forum (IPBF) in Manila in May—the premier U.S. commercial event in the region.  The trilateral partners will also create a Steering Committee to drive progress of infrastructure development and investment along the Corridor.

Official news published at https://www.state.gov/the-united-states-the-philippines-and-japan-launch-the-partnership-for-global-infrastructure-and-investment-luzon-economic-corridor/

originally published at Politics - JISIP NEWS