Trade with China seen to further improve

Trade Secretary Ramon Lopez expects an improvement in the country’s trade relations with China following the recent international tribunal ruling on the maritime dispute in the South China Sea.

The Trade chief said Tuesday’s ruling would have no major impact on the country’s trade and investment climate amid speculations China’s fury over the decision would negatively affect its trade rela- tionship with the Philippines.

“We don’t see any impact offhand. Even prior to this decision, we already see the trade (between the two countries) ongoing in terms of imports and exports. We export a lot to China and it creates jobs for us. They export also to us and that has been continuing. So safe to say I don’t see any impact and in fact, (trade relationship) may even grow stronger,” he said.

When asked on how both countries’ trade activities would improve given a ruling in favor of the Philippines, Lopez said: “With less political issue which we hope to happen,

concerns on trade should likewise improve.”

“As I have mentioned, even in the past three years while this case was being taken up, we were seeing trade continuing. That’s why I’m saying there will be no impact,” he added.

Lopez’ assessment was supported by local businessmen who likewise expressed optimism instead of concern regarding the ruling.

Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said trade and tour- ism relations with China suffered slightly over the past three years or since the country filed an arbitration case against China at The Hague.

“I think ( our trade relationship with China) will go back to normal given the way the administration is handling it well now. Although we will not resolve the ownership issue, I think it will be pushed back to at least what it was before, prior to the case and it may even increase and improve,” Ortiz-Luis said.

“President Duterte’s pronouncement that we are not going into war with China is the right way to go,” said Philippine Chamber of Commerce and Industry honorary chairman Donald Dee, noting increased investments from China., particularly in infrastructure, is a big possibility.

As of April this year, bilateral trade between the Philippines and China is valued at $ 1.725 billion.

As the country’s single biggest trading partner, China accounted for 10.6 percent of Philippine exports, while it was the source of a fifth of Philippine imports.