US, Philippines Near 2-Year Economic Security Zone Deal Under Pax Silica
Updated
Updated · BusinessWorld Online · May 21
US, Philippines Near 2-Year Economic Security Zone Deal Under Pax Silica
8 articles · Updated · BusinessWorld Online · May 21
Jacob Helberg said Washington and Manila should reach a long-term economic security zone framework deal “sooner rather than later,” with a two-year window to finalize arrangements signed last month.
The pact would set sectoral industrial priorities inside the zone under Pax Silica, the US-led network linking allied supply chains in semiconductors, AI, critical minerals and advanced manufacturing.
In the Philippines, officials expect the Luzon Economic Corridor to draw telecom and hyperscaler investment, with DICT focused on securing international fiber-cable links and reliable connectivity for a planned 4,000-acre AI industrial hub.
Malacañang has said the corridor could generate up to 1 million jobs and help drive double-digit economic growth, underscoring the broader stakes of expanding US-Philippines economic cooperation.
As Manila rejects US legal oversight, can its new AI hub still secure the promised massive American investments?
Can the Philippines' power grid handle a massive AI hub without sacrificing local energy needs and environmental safety?
Pax Silica and the Economic Security Zone: Transforming the Philippines into an AI-Native Industrial Hub Amid Geopolitical Shifts
Overview
As of May 2026, the United States and the Philippines are actively negotiating the Economic Security Zone (ESZ), with the US pushing for rapid progress. US Under Secretary Jacob Helberg emphasized that economic security is a top priority, especially due to the rising demand from artificial intelligence technologies. He described the ESZ as a unique partnership and expressed gratitude for the Philippines' collaboration. The US aims to finalize the agreement soon, though no specific timeline has been set. This initiative highlights the strategic importance of economic security and the evolving partnership between the two countries.