Pax Silica Ph
The news broke on the 18th, that we had signed up for Pax Silica, a 4000-acre economic-security zone project of (with?) the U.S. along a Luzon economic corridor, ostensibly to reduce supply chain dependence on China for semiconductors and AI technology. My first reaction was wow! that’s a lot of land, on what terms kaya, do we share in the profits, may technology transfer ba, done deal na ba, at kung anoano pa. On second thought, I wondered if this is why PBBM seems so relaxed about this worsening economic crisis upon us, exacerbated by Trump’s war on Iran — because he knows na hindi tayo papabayaan ng Amerika, kailangan niya tayo for Pax Silica in this Pacific outpost? The Kilusang Magbubukid ng Pilipinas has already declared it a “massive sellout” of the country’s land, minerals, and sovereignty. Been waiting for the pundits to weigh in. Here’s a first from Philippine Star’s Cito Beltran who wonders if it’s just a PR story, a puff piece, meant only to distract.
‘TO SEE IS TO BELIEVE’
by Cito Beltran
April 20 2026All the rumors about the United States building economic zones, ship building facilities and now a 4,000-acre “Economic Security Zone” has started to get tongues wagging, with netizens sharing and reposting news articles about the subject.
Early this year, a Subic resident mentioned that there were “plans” by the US government to put up a ship building facility inside SBMA. But some locals suspect that it was a ploy to put up a military base instead.
And after just a few months, mainstream media and online news sources reported that the United States and the Philippines have gone beyond talking but are already in the early stages of putting together a proposed agreement.
Some of the details mentioned are that the land area involves 4,000 acres or 1,619 hectares, will be rent free, covered by diplomatic immunity, will operate under US Common law, covered by a two-year lease renewable for 99 years.
The area will be purposely built as an “Economic Security Zone” to be administered by the United States and available for US companies engaged in manufacturing defense and key industries who may hire US or local personnel as needed.
Another focus of these reports is that US investors are expected to level up the minerals extraction practices currently done in the region, particularly in the Philippines.
Instead of shipping raw materials, the US companies would process raw nickel, copper, chromite and cobalt and rare minerals, pass on the said materials to manufacturers inside the economic zone or export them to the mainland for use in defense and AI technology manufacturing.
At this point, it is important to be reminded that from the looks of it, the whole thing is still an idea or at the “conceptual stage” as mentioned in an online article of the Wall Street Journal.
There seems to be no mention of an exact location for the proposed US Economic Security Zone, which may be intentional in order to draw out local governments who are willing to embrace the proposed zone and to avoid political backlash if an area is pre-selected or mentioned.
As word gets out and the idea solidifies in people’s imagination, it would certainly create a competitive climate among local governments (provinces/towns) to become the site of a labor rich project, even if they collect no taxes.
Laborers need transportation, food, etc. Those needs play right into the businesses of local politicians and their families who often control local transport, stores and groceries and even fast-food chain outlets.
As you go through the alleged plan or provisions for the “US Economic Security Zone,” it is filled with highly controversial provisions, which from the looks of it may be “click bait” by design.
Since when do we start “giving away land” as in allowing foreign governments to occupy 4,000 acres of land rent free? Officials on both sides know that that would trigger an outcry from nationalists, leftists and politicians looking for two minutes of fame.
The idea of asking or giving diplomatic immunity for a 4,000-acre “Economic Security Zone” and agreeing that US common law applies within that zone is equivalent to giving the US sovereignty over Philippine land and a direct violation of the Constitution.
If US common law prevails within the Economic Security Zone, does it follow that it operates like a US military base or will Filipino workers, visitors or government officials be required to secure a US visa or a special purpose visa?
If officials or personnel of the zone commit a crime outside the zone, similar to the sex-related crimes committed by servicemen, etc., is there a provision that the suspects or accused will be surrendered to Philippine authorities “posthaste”?
Or will locals have to submit to the judicial process of a court within the zone or worse, travel to the nearest US territory like Guam or Hawaii? Does having US common law in effect mean the zone will have its own police and court of law?
In terms of mutually beneficial agreements, what is the benefit of putting up the zone to the Philippines? The US companies buy raw materials and pay cheap for them, yes, there will be employment but for how many, what type of jobs? Will they also get US salary rates?
This entire idea, concept or even “story” simply makes no sense, if not unbelievable. It is like leaving rotten fish in the open to attract all the flies. In journalism, it could be a political trial balloon to find out what the public or media reaction will be.
If the numerous articles now circulating in mass media does not “raise Cain,” it may signal to the governments and officials concerned to go right ahead.
In the world of politics and PR, it could be a win/win distraction story meant to distract the public from their difficulties and hardship that could push government into crisis.
On the other hand, the story could be a “puff piece” designed to create a positive impression or raise investor confidence by highlighting the willingness of the US government to create, operate and manage an export processing zone.
As a final point, this story is yet again an example of the government’s failure to communicate with its citizens. Why do we have to learn about the plan from a foreign media outlet and posts of the US embassy instead of the PCOO?
In the end: “To see is to believe.”