US prods PHL on Pacific partnership

Washington has advised Manila to cash in on the Trans-Pacific Economic Partnership Agreement (Tpepa) so that the Philippines can get a bigger share in investment being poured in by American firms in Southeast Asia.

David Carden, US ambassador to the Association of Southeast Asian Nations (Asean), in a recent discussion with the Philippine Chamber of Commerce and Industry (PCCI), said the Philippines needs to explore possible advantages that the country could gain if it wanted to attract more investment. The partnership itself is led by the United States.

He described the Tpepa, which binds 11 negotiating economies including four Asean members—Brunei Darussalam, Malaysia, Singapore and Vietnam—as a new-age free-trade agreement. Asean also groups the Philippines, Cambodia, Indonesia, Laos, Myanmar and Thailand.

Carden said the amount of US foreign direct investment (FDI) in Asean is 10 times higher than in India and six times higher than in China.

Aside from that, he added, the US government has committed to increase its trade support and investments to Asean. Carden also recommended that the Philippine government and the private sector address policy issues and barriers that hinder the flow of investment into the country.

PCCI President Miguel Varela told Carden the PCCI has played an active role in undertaking advocacy, research and consultations to measure the impact of trade agreements in business, as well as rally critical support to initiate necessary reforms that will make the country competitive, even at par, with its neighbors in the Asean. 

“Through our partnership with the Philippines-Asean Business Advisory Council, industry associations, the donor community and our local chambers, the PCCI ensures that our small and medium enterprises meet the critical requirements of internationalization and develop their foundation to be globally competitive,” Varela said. 

He added that the business chamber continues to collaborate with other private-sector organizations such as the Philippine Exporters Confederation to ensure that the country’s “strategic directions toward export development and investment promotion remains at the heart of our thrust in regional economic cooperation.”

According to Carden, expediting information flow between the government and trade “will definitely help reduce, if not eliminate, corruption.”

On issues related to territorial disputes in the region, the US ambassador to Asean said that the United States is committed to a rules-based, predictable, peaceful resolution of the disputes, utilizing all mechanisms available that are consistent with international law.

October 16, 2012

Source: Business Mirror, Philippines