America’s Trade Over Aid, priced in Manila

NEW YORK-I arrived early enough to catch the room still empty. The Villard Ballroom’s ceiling curves into two gilded oculi, each cradling a chandelier strung for waltzes rather than diplomacy. Along the far wall, three screens glowed dark blue beneath the great seal, a lectern waiting under a banner that read TRADE OVER AID DEALS SHOWCASE.

Within the hour, that room would seat ambassadors from fifty nations. On the morning of September 25, the United States Mission to the United Nations asked it to hold six federal agencies, two dozen corporations, and a proposition sharp enough to draw blood in diplomatic circles: foreign aid, the currency of American influence since the rubble of postwar Europe, had been quietly demoted. The deal had taken its chair.

This was not my first encounter with this doctrine. In July, I watched Ambassador Dan Negrea introduce Trade Over Aid at a United Nations briefing as a wager that private capital could accomplish what six decades of government-to-government transfers had not. The Philippines, even then, appeared on his list of nations expected to align their reforms to the initiative. July was argument. September, I discovered, was invoice-and the Philippines was its opening exhibit, invoked twice on the screen behind the podium before ambassadors from fifty nations.

The paper trail runs to July of last year, when Secretary of State Marco Rubio pledged in an essay that Washington would favor ‘trade over aid, opportunity over dependency, and investment over assistance’-the sentence that named the initiative. It was folded into the National Security Strategy that November and the State Department’s own strategic plan that December, alongside a two-billion-dollar American pledge to the UN’s emergency relief office, cited whenever officials are asked whether this means retreat from humanitarian aid. It launched formally on the floor of the New York Stock Exchange on April 27, met the wider UN membership at the Marriott Marquis on July 13, and reached its third act at the Lotte New York Palace. More than 60 countries have signed on, a dozen beyond the 50 delegations actually in that room.

Negrea drew a hard line between the ‘battle of ideas’ phase I’d watched in July and the concrete phase now underway – capital in motion, backed by an Export-Import Bank lending capacity of $195 billion and a Development Finance Corporation capacity of $205 billion, figures offered as artillery rather than abstraction.

Deputy Secretary of State Christopher Landau followed with an unusually personal address: a good ambassador, he said, is first and foremost a good salesman for his own country’s businesses. Assistant Secretary Michael DeSombre, a former Asia dealmaker, supplied the arithmetic-126 overseas contracts secured last year, worth over $150 billion, sustaining an estimated 617,000 American jobs-and a blunt instruction to every embassy: consider yourselves a sales office for American enterprise. The printed Declaration of Principles read less like conference boilerplate than scripture for a new economic faith: sovereign nations own their trajectories, free markets outpace every rival model, and aid routed through NGOs too often arrives, as one speaker put it, worth twenty cents on the dollar.

This is where the morning stopped being abstraction. In July, the Philippines was a name on a roster of nations pledged to reform. By September, it was the centerpiece exhibit DeSombre reached for whenever he needed to prove the doctrine actually functions, and the regional slide behind him-headed simply East Asia and the Pacific-put a figure and a date on every claim.

Thailand led with a billion-dollar Microsoft cloud commitment from May. The middle column belonged to my own country: 460 million dollars, credited to I Squared Capital’s purchase of the Philippine Coastal liquid fuel terminal, dated on the mission’s own slide to February of this year. The public record tells a slightly different story worth setting straight: I Squared announced the deal in October 2024, buying the terminal from Keppel Infrastructure Trust and Metro Pacific Investment Corporation through its Global Growth Market Fund, with closing originally targeted for late 2024; the law firm that advised I Squared did not publish its ‘completed acquisition’ notice until March 2025. Whichever month the ink actually dried, the substance holds-the largest independent import terminal in the nation, anchored inside the Subic Bay Freeport Zone, holding 6.3 million barrels and covering roughly a fifth of national import storage capacity, acquired for $460 million including $181 million in assumed debt and up to $50 million in contingent payments.

DeSombre described the purchase in language blunter than any press release would risk: whoever commands fuel storage commands the tempo of a manufacturing sector, an aviation industry, an economy’s very capacity to move without waiting on a tanker schedule dictated by someone else’s convenience. That sentence will register very differently in Manila than it did inside that ballroom, given how often the specter of fuel scarcity has haunted Philippine economic memory.

The engine behind that acquisition is the Luzon Economic Corridor, the trilateral US-Japan-Philippine compact threading Subic Bay, Clark, Manila, and Batangas-a corridor of industrial geography responsible, by some estimates, for roughly half the nation’s entire output. DeSombre called the purchase the connective tissue linking American direct investment to the Philippines’ ambition toward advanced manufacturing, and invoked, with unmistakable pride, President Marcos Jr.’s own appearance this month at the Corridor’s investing forum in Manila-a sitting head of state courting the same capital under discussion in a Manhattan ballroom half a world away. He thanked, by name, Bill Campbell of I Squared, seated among the private-sector delegation, a modest gesture carrying an outsized signal: the Philippines was not being discussed as an aid recipient from a comfortable distance. It occupied a chair, and held leverage, inside the room where this doctrine was being drafted in real time.

The slide’s third column carried the freshest ink of the entire presentation. Zipline, the American drone-logistics firm, appeared under a joint heading for the Philippines and Papua New Guinea, its letters of intent dated this very month-September-covering drone technology for both private and public sectors across both nations. He framed the expansion as the next frontier for a company whose aircraft already ferry medicine and blood across Rwanda and Ghana under State Department-backed programs that proved the model before it scaled-rural health systems and disaster-response corridors reinforced not by another shipment of donated pallets but by autonomous flight, a proposition that ought to interest any Filipino reader who has watched relief convoys stall before reaching a Visayan island or a Mindanao mountain barangay after a typhoon.

What shifted between my two dispatches is plain. In July, my country was a name appended to a list of nations endorsing a set of principles. By September, it had become the receipt-an acknowledgment, delivered by a sitting Assistant Secretary of State before ambassadors from fifty nations, that the Philippines has become the proving ground for how the United States intends to conduct its economic statecraft in the years after 2030, when the current generation of development frameworks expires. Two Philippine transactions, appearing months apart, sharing a single slide-that placement was not an accident of alphabetical order.

What this arrangement ultimately delivers to ordinary Filipinos remains the harder question, and it deserves precedent rather than applause. The Luzon Economic Corridor has been sold before on nearly identical terms, and the honest ledger so far reads mixed: infrastructure and logistics gains are real and measurable, while the jobs and small-enterprise dividends promised beyond those four hubs have arrived more slowly than the announcements implied. A $460-million fuel-terminal sale and a fresh set of drone-delivery letters of intent are commitments of capital, not outcomes yet. Whether that capital reaches a barangay or a small enterprise, or settles instead into the balance sheets of firms already substantial enough to earn an invitation into that ballroom, is the follow-up story Philippine readers are owed.

The agency heads who followed made the doctrine tangible in ways DeSombre’s numbers alone could not. Caroline Vik, chief policy officer of the U.S. International Development Finance Corporation, walked through three transactions approved by the agency’s board that week: an investment in WIOCC, a pan-African digital-infrastructure operator whose fiber and data centers already serve Microsoft, Meta, Google, and Amazon across more than thirty countries; American financing behind Cambodia’s New Techo Airport, framed explicitly as an alternative to financing from Beijing; and a $500- million trade-finance facility with the International Finance Corporation designed to unlock roughly $2 billion in American exports annually by letting foreign buyers who couldn’t otherwise afford US goods actually complete the purchase. John Jovanovic, president and chairman of the Export-Import Bank, traced his agency’s mission back ninety-two years to its founding under Franklin Roosevelt and offered his own trio of proof points-an American locomotive manufacturer competing and winning in Kazakhstan, a slate of nuclear-plant financing across Central and Eastern Europe, and what he called the ‘asymmetric value’ of smaller deals that lock in trusted vendors over cheaper but less reliable rivals. Ryan Goodnight of SpaceX closed the roster with Starlink’s own math: a company six years old, present in more than 170 markets, that had made rapid rocket reusability the engine behind broadband service reaching, as he put it, Antarctica, the middle of the Pacific, and downtown Manhattan alike.

Set against the rest of Negrea’s global tally-$14.5 billion for the UAE in Boeing and GE Aerospace, $6.2 billion for Lesotho in digital infrastructure and energy-the Philippines’s $460 million looked almost restrained. But the Philippines, alongside Papua New Guinea, was the only geography invoked twice across the entire presentation. It did not win the showcase on volume. It won on billing.

Whether this doctrine outlasts the administration that built it, no ballroom can settle. But on a Friday morning in September, with the Philippines cited twice as the model the room was summoned to imitate, the doctrine I first met in outline in July had acquired, by my second visit, a face, a fuel terminal, and a fleet of drones. For a nation that has spent generations receiving the world’s charity, being asked instead to receive its capital-and held aloft as proof the arrangement works-deserved to be carried home in full.

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