MBC urges gov’t to hold dialogue on recalibration of foreign policy

MANILA--The Makati Business Club is urging the government to call for a national dialogue on strategic relations as the administration aims to further strengthen its relations with Asian neighbors.

The MBC said in a statement on Tuesday that it supports the administration’s drive for an independent foreign policy since the Philippines has gained international respect and recognition over the past few years.

“As we transition through this recalibration in our foreign policy, we call on the government to initiate another multi-sectoral dialogue similar to when it drafted the 10-point socioeconomic agenda,” the business group said.

Opinions

“We hope that the government will also invite the views of eminent leaders, foreign policy experts, policymakers, business, the academe, and the youth,” it added.

The MBC also welcomed the administration’s initiative to revive Manila-Beijing ties, pointing out that both countries will benefit from renewed and closer ties with China’s economic stature and the Philippines’ rising economy.

It added that the renewed partnership between Manila and Beijing will be vital in addressing the infrastructure gap in the country, given China’s expertise in this sector.

The business group expressed optimism in enhancing bilateral trade and investment between the two countries.

China is the country’s second largest trading partner with two-way trade amounting to $7.2 billion -- $10.8 billion to the Philippines’ imports bill and $6.2 billion in exports revenue.

Philippine businesses’ investments in China as of 2012 reached $75 million while Chinese investments in the country as of 2015 amounted to $570,000.

The MBC however noted that as the country aims to boost its relations with its northern neighbor, the government should also take care of its ties with existing strategic partners like the United States.

“We believe that as we strengthen ties with one of our neighbors, this should be in tandem with continuing to nurture our partnership with existing strategic allies and friends,” the MBC said.

Trading partner

“Our relationship with the United States, particularly on the economic front, should remain solid and should also be further expanded,” it added.

Being the third largest trading partner of the country, two-way trade between the Philippines and the US amounted to $16.47 billion, in favor of the former.

Philippine exports to the US were valued at $9 billion while its imports from the US stood at $7.47 billion -- a surplus of $1.55 billion for the country.

The US is also one of the top investment sources for the country last year, amounting to $732 million.

The group further pointed out that the US has a critical share in the two major pillars of the Philippine economy -- the business process outsourcing (BPO) industry and overseas Filipino remittances.

“Filipinos in the US contribute the highest amount of remittances, valued at $8.4 billion, accounting for 33 percent of total remittances sourced from all over the world. American firms have also been critical in the development of our BPO industry that, as of 2015, contributed $22 billion to the economy and provided 1.2 million jobs,” the group noted.

“It is important for the world to see that the government continues its inclusive engagement and welcomes investments that will generate jobs. The Makati Business Club is prepared to participate in this discussion, as we work towards our shared aspiration of a progressive and inclusive Philippines,” it concluded.