EU urges Phl to open up economy

The European Union (EU) has urged the Philippines to open up its economy to more foreign players, noting that the country now has a strong competition policy in place.

EU Ambassador to the Philippines Franz Jessen said yesterday it is high time for the country to relax foreign restrictions as it now has the Philippine Competition Commission (PCC) to watch over uncompetitive and unfair market practices.

“The Philippines should take more advantage of opening up the economy now that there is already an overarching agency that will ensure a competitive market,” Jessen said during the Competition Forum organized by the European Chamber of Commerce of the Philippines (ECCP).

“Over two years ago, the Philippines enacted the Philippine Competition Law and just recently, the PCC finished its two-year transitory period. In the short span of time that the PCC was established, it had made strides in educating its stakeholders of the importance of competition to the economy, has studied quite a number of cases and continues to learn from other economies, including the EU, on the proper way of implementing a sound and strong competition policy,” he added.

President Duterte, through a memorandum order last year, called for the easing of restrictions on investment areas with limited foreign participation, adding such a move would lead to more investments and spur faster economic growth.

Foreign and local business groups, for their part, have long been calling to relax foreign restrictions in the country, saying it would mean a fresh infusion of financial resources for the country’s undercapitalized sectors.

Likewise, the groups said it would lead to the introduction of new technologies that would spur greater innovation and efficiency in local industries and the promotion of healthy competition which would drive businesses to operate more efficiently, resulting in better quality and more competitively priced products and services for the people.

According to Jessen, a competition policy in place is important both for businesses and consumers as it ensures low prices and better quality as well as makes local businesses stronger and able to hold their own against global competitors.

“The EU and the EU business community is one with the Philippines in building competitive culture. Competition drives our economies to achieve more; to be more productive and to innovate,” Jessen said.

“Whether through job creation, fair market prices, or better variety in choice, we at the ECCP believe that competition is what drives innovation and is one of the essential aspects that will propel the country forward,” ECCP executive director Florian Gottein said separately.

With competition seen as one of the most important drivers that prompt businesses to provide a broad range of high quality goods and services, Gottein said ECCP hopes to see more competition in sectors such as telecommunications, infrastructure, and retail, sectors “which are highly crucial to the daily lives of all Filipinos and smooth business operations, whether Filipino or European.”