US firms take notice of Aquino’s economic reforms

AMERICAN investors see the Philippines’ keen interest in joining the Trans-Pacific Partnership (TPP) agreement as a sign of “commitment” to pursuing economic reform measures, another step forward in strengthening trade relations between the country and the United States.

“We have seen a steady increase in US business confidence in the Philippines over the past several years. President Aquino’s reform efforts have been vigorous and robust, and the business community has taken notice,” said John Goyer, senior director for Southeast Asia at the US Chamber of Commerce.

“The Philippines’ interest in joining the TPP down the road is indicative of its commitment to ongoing trade and investment reform and liberalization,” Goyer was quoted as saying by the Philippine Embassy in Washington.

Alexander Feldman, president and chief executive of the US-Asean Business Council, similarly noted the positive developments made under the present administration, which were deemed instrumental in boosting the Philippine economic growth story and sustaining strong investor confidence.

“Over the last five years, the Aquino administration made impressive strides in growing the Philippine economy and improving governance. [This year] continued and built on this record of accomplishment and helped to create a welcoming environment to foreign investors,” Feldman said in the same statement.

“As host of this year’s Asia Pacific Economic Cooperation (Apec) Summit, the world witnessed the country’s bright future and heard firsthand from its leading investors. We look forward to working with the Government of the Philippines to continuing to ensure that American business is aware of and takes advantage of the opportunities in the Philippines as the Philippines moves toward eventual accession to TPP,” Feldman said.

The TPP, which is expected to generate an additional $225 billion to the world economy by 2025, is a landmark agreement that eliminates or reduces tariffs, lowers the cost of trade, and sets new and high standards for global trade while addressing next-generation issues. It was envisioned to promote economic growth, create jobs, raise living standards, reduce poverty, promote good governance and enhance labor and environmental protections.

The current 12 TPP members—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam—announced the conclusion of their negotiations in October. These 12 countries have a combined population of 800 million, and projected to account for 40 percent of the world’s gross domestic product and 30 percent of world trade.

Philippine Ambassador to the United States Jose L. Cuisia Jr. said in a year-end briefing with investors the Philippine economy remains “in excellent shape, and the future holds much promise.”

Cuisia pointed out the country’s strong macroeconomic fundamentals, prudent public finance management and good governance—factors that will allow the Philippines to maintain the strengths of its business environment and competitiveness.