Full Breakdown
United States and Philippines Near Deal on Economic Security Zone Under Pax Silica Alliance
5/22/2026, 1:01:03 AM
Deal Framework and Timeline
The United States and the Philippines are finalizing a long-term framework for an economic security zone under Pax Silica. A pact signed in April gives a two-year window for negotiations. U.S. Undersecretary of State for Economic Affairs Jacob Helberg said he expects the agreement to be reached soon. Helberg visited a proposed 4,000-acre (1,620-hectare) site in New Clark City north of Manila on 18 May with representatives of more than a dozen U.S. firms.
Pax Silica: Background and Expansion
Pax Silica is a multilateral programme to safeguard the technology supply chain, covering critical minerals, advanced manufacturing, computing and data infrastructure. The Philippines joined in April as the 13th member. The alliance expanded from seven founding members last September to 15, and Helberg said it will likely reach 16 by the end of next month.
Key Actors and Groups
Jacob Helberg is the U.S. undersecretary of state for economic affairs. The Philippines’ development authority chief, speaking to Bloomberg, has reservations about granting diplomatic immunity for the zone. Business participants include Foxconn chairman Young Liu, venture firm 8VC, Agility Robotics, Joby Aviation and Valar Atomics. Digital ministers from the Association of Southeast Asian Nations (ASEAN) also took part.
Data & Statistics
- Site size: 4,000 acre (1,620 hectare) in New Clark City.
- Membership: Philippines is the 13th member; alliance now has 15 members, expected 16 soon.
- Negotiation window: two years from the April pact.
Official Statements & Responses
Jacob Helberg told Reuters that the initiative enjoys strong momentum and that the United States expects the agreement to be concluded promptly. The Philippines’ development authority chief, speaking to Bloomberg, said the government has not accepted the U.S. request for diplomatic immunity for the zone, a point of contention.
Criticism & Opposition
The chief’s refusal to grant diplomatic immunity reflects concerns about legal jurisdiction and sovereignty. Critics warn that without immunity the zone could expose the Philippines to external legal claims and limit regulatory oversight.
Verbatim Quotes
- “I expect the United States and the Philippines to reach a deal sooner rather than later,” — Jacob Helberg, U.S. undersecretary of state for economic affairs
- “There's an enormous amount of momentum behind this.” — Jacob Helberg, U.S. undersecretary of state for economic affairs
- “We will most likely be at 16 by the end of next month, because we're probably going to add one or two members over the next four weeks,” — Jacob Helberg, U.S. undersecretary of state for economic affairs
Implications and Next Steps
The zone is intended to safeguard the technology supply chain, a goal that may influence regional economic security. Ongoing talks will address sectoral priorities, the diplomatic-immunity dispute, and integration of new members. The parties aim to finish the framework before the two-year deadline, after which operational rules will be formalized.
