BusinessMirror

Beyond borders, breaking barriers with the European bloc’s envoy in PHL

- By Recto L. Mercene @rectomerce­ne

SINCE its founding in November 1, 1993, the European Union (EU) has grown into a monolithic organizati­on of 28 member-countries, boasting of a $16-trillion gross domestic product (GDP)—almost one-fourth of the entire world’s.

The aggrupatio­n came about after decades of struggles between neighbors, which culminated in the bloodiest of all: the Second World War. Eventually, they decided not only to promote peace but also unify its economic and monetary system, combat discrimina­tion, break down barriers to trade and borders, encourage technologi­cal and scientific developmen­ts, as well as champion environmen­tal protection, among others.

Today that avowed “unity” is threatened by the departure of the United Kingdom. The so-called “Brexit-eers” say it is not what the peoples of the EU voted for—and

it could keep the UK tied to the bloc indefinite­ly, without any say on its rules.

Ambassador of the EU Delegation to the Philippine­s Franz Jessen, who has been posted in the country for the last four years, helped make sense of the complexity of Brexit. During a BusinessMi­rror Coffee Club forum early this month, he made the assurance that the EU will remain intact even if the UK eventually cuts its cord with the mainland.

“The EU will survive with clearly 27 member-states,” he assured. “I think everybody is very sad…of the decision the UK has made. But that’s their decision.”

As a background, the EU’s original founders are Germany, France, Italy, the Netherland­s, Belgium and Luxembourg. The UK came aboard only in the early 1970s, allegedly, as a way to avoid its economic decline. Its percapita GDP, relative to those of the EU founding members, declined steadily from 1945 to 1972. However it had stabilized between 1973 and 2010.

In 2017 the British government contribute­d £13 billion to the EU budget, while EU spending on the UK amounted to only £4 billion.

Despite Brexit, Jessen said the Philippine­s’s trade with the remaining 27 countries would remain substantia­l, that “it would not be affected very much [despite] a relatively large member-state such as the UK leaving.”

His reassuranc­e: “It is one countr y out of 28. It means that the statistics would not be dramatical­ly different from what they were used to.”

From the Philippine perspectiv­e, the envoy said, “You would probably see an EU that is pretty much similar to what you’ve used to know.”

“I’m [upbeat in] the Year of the Pig to see how we can take our relationsh­ip further ahead,” Jessen mused.

The soft-spoken diplomat said there are two things the EU wants from the country—one of which is economic interactio­n. He said the country is very important for the EU, being “one of the biggest partners in [our] economic activities in terms of foreign direct investment­s.”

“We have traditiona­lly been the biggest in terms of trade and traditiona­lly No. 2; sometimes No. 3, [or] bigger.”

The Danish diplomat likewise pointed out that the EU is a major source of employment and job creation for Filipinos, and it is his duty to look for ways of doing it better on the economic front, not simply by talking about it, “but [by] actually doing it on the ground.”

According to the ambassador, there are 800,000 overseas Filipino workers in all of Europe, of which 300,000 are seafarers aboard EUflagged ships. About 23,000 highly paid Pinoy officers captain them.

‘Moving forward’

IT was at this juncture that the EU ambassador stated the second purpose of his diplomatic presence in the country, which is about “moving forward.”

Jessen, who has a doctorate degree in Economics from the Virginia Polytechni­c Institute and State University in the United States, popularly known as Virginia Tech, revealed that EU officials are discussing a new paradigm called “geographic­al indication­s [GI].” The concept basically recognizes traditiona­l products from their place of origin.

He explained, for instance: “‘Bordeaux wine’ means that it originated from Bordeaux, a city in southweste­rn France. You know where it’s produced, and it satisfies certain traditiona­l production criteria.”

The Philippine­s also practices GI on intellectu­al property of products such as mangoes from Guimaras, an island adjunct of Iloilo City in the Visayas.

“The advantage for the producers is that their products can be sold at a higher price because people are better informed: ‘This is wine from Bordeaux, or a fruit from Guimaras,’ and they are prepared to pay a little bit more than they would for another kind of wine or another mango.”

He admitted that from his point of view, GI is a very practical kind of cooperatio­n between his region and our country. “How do we make this system work so that your products are recognized­andcancomm­andahigher price in the EU market and vice versa?”

Jessen transition­ed by saying that the EU has more ambitious free-trade agreements that he would like to have activated. “The region has the technology, know-how and capital, and you have the young labor force with [ever-improving] skills. It’s something we can benefit [from] in Europe by outsourcin­g most of our production through the Philippine­s.”

The envoy further explained the developmen­ts over at the European economic bloc:

“When you look at the figures, you probably would have seen that the UK covers about 6 to 7 percent of EU trade in a normal year. We can easily grow by [that much], or more, in terms of bilateral trade. The overall figure would not be dramatical­ly influenced by Brexit.”

On the other hand, the marine products such as tuna that we export to Britain, as well as others, “will depend very much on the agreement the UK had with the EU.”

“It’s a bit too early to talk about the complete influence. What I can say is that ‘EU 27’ will not change. You’ll have the same access as before, we’ll have the same consumers, the same biases and you’re trading in the same currencies.”

New realities, developmen­ts

THE multilingu­al Danish ambassador, who speaks nihongo and a slew of other European languages, thought his posting in the country would be smooth sailing; that it would just be as simple as building on his predecesso­r’s legacy.

“I had not expected that the ‘twists’ and ‘turns’ would be so strong as they were,” he admitted; then added, “It was a challenge, but it’s a nice kind. Yes, it is.”’

That debacle came in the form of a miffed Duterte, who refused to accept the P383.64million (€6.1 million) aid arising from the EU-Philippine­s Trade-Related Technical Assistance (TRTA).

In a previous interview, Jessen was asked if the agreement had ever been formalized. “It was, in the sense that we had the TRTA, a document that actually had to be signed by the end of the year. And that was returned to us unsigned.”

However, the good ambassador did not feel offended by the President’s rejection of the aid. He admitted that in the course of the debate about the issue, “more questions have been asked and traditiona­l points of view were challenged in a way that they were not previously.”

“I think it [begs the question of whether] we were really doing the best.”

He answered the rhetoric by saying: “Maybe, [it was because of the] old habits of doing things as we used to do without sort of adjusting to new realities and new political developmen­ts not only here in the Philippine­s but also in Europe.”

Instead of criticizin­g, Jessen, once an assistant professor in the Economics Department of the Odense University in Denmark, said: “Sometimes I feel that the Philippine­s is at the forefront of a number of internatio­nal developmen­ts, and it makes it more exciting because things are happening here a bit earlier in some areas than what is happening in other areas in the world.”

“So I think with the election of Duterte, you can see some of the things he is pushing [for, which are] later on repeated in other countries,” the diplomat opined.

First time fascinated

DURING his nearly 48-month tour of duty in the country where he had gotten “involved” in our new brand of politics, Jessen feels that Duterte’s ascension to office “makes it exciting to be here,” as the diplomat feels that he is at the forefront of certain developmen­ts.

The EU’s top envoy in the Philippine­s met the president in Davao City shortly after the latter assumed the highest office in the land. He remembered seeing long lines of people wanting to see the then-newly installed chief executive and felt spellbound by what he saw.

“I was clearly, of course, fascinated the first time I met Duterte after he had been elected.”

After some lengthy discussion­s with the former Davao mayor, Jessen left with a positive impression of his host. “To [have spent] time with him was very promising. He clearly had caught the interest of voters in a way I think many political observers did not expect.”

He said he had heard how the President would run the country, as well as the leader’s optimism about the way it would be done.

“I think many people in the Philippine­s are also trying to understand all the changes that have happened in the last 31 months and what they mean for the country and its future.”

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 ??  ?? AMbASSADOr of the EU Delegation to the Philippine­s Franz Jessen
AMbASSADOr of the EU Delegation to the Philippine­s Franz Jessen

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