Media Note from the Office of the Spokesperson, April 11, 2024
Leaders from the United States, the Philippines, and Japan have united in a groundbreaking initiative to establish the Luzon Economic Corridor, marking a significant milestone for the G7 Partnership for Global Infrastructure and Investment (PGI). This initiative, the first of its kind in the Indo-Pacific region, underscores the commitment to the Indo-Pacific Economic Framework for Prosperity (IPEF) and aims to enhance connectivity and foster sustainable development.
The State Department, in collaboration with the Office of the Special Presidential Coordinator for PGI, will spearhead the implementation of the Luzon Corridor, reflecting a shared vision to drive high-standard investments and bolster economic resilience across the region.
The Luzon Economic Corridor will serve as a vital artery linking Subic Bay, Clark, Manila, and Batangas in the Philippines. Together, the US, the Philippines, and Japan will accelerate investments in key infrastructure projects encompassing rail systems, ports modernization, clean energy, semiconductor supply chains, and agribusiness. This concerted effort aims to stimulate economic growth and connectivity within each hub.
The strategic focus on industries like semiconductors is poised to yield substantial benefits, with initiatives to reduce logistical barriers and energy costs. PGI investments will complement existing collaborations between the US and the Philippines to enhance the semiconductor industry, further strengthening economic ties.
Furthermore, investments in critical infrastructure will enhance food security by optimizing logistics and cold chain storage systems, facilitating access to markets for Filipino farmers.
The announcement of the Luzon Economic Corridor underscores the deepening economic cooperation between the US, the Philippines, and Japan, reflecting a shared commitment to advancing mutual prosperity. Collaboration with multilateral development banks and the private sector will be sought to mobilize resources and finance infrastructure projects along the Corridor.
A trilateral investment promotion event is planned on the sidelines of the Indo-Pacific Business Forum in Manila in May to kickstart the implementation process. Additionally, a Steering Committee will oversee infrastructure development and investment activities along the Corridor, ensuring progress and alignment with shared objectives.
Source: USCIS
