The United Kingdom’s leaving the European Union has a “potentially positive” effect on UK interest in the Philippines as companies look for alternative places to do business in, which may include the Philippines, according to the British Chamber of Commerce Philippines (BCCP).
BCCP chair Chris Nelson yesterday told reporters that “Brexit” so far has “no effect at all” in the movement of British trade and investments.
“Currently, nothing is actually changed,” Nelson said. Changes may “happen by the end of March with Article 50, if it happens.
He was referring to an article of the Treaty of Lisbon, which the UK government needs to bring into operation to start negotiations related to their exit from the European Union.
Signed by the 27 EU member states in 2007, the treaty is meant to reform the functioning of the regional bloc following its expansion from only 15 members over the previous three years.
“I don’t think the uncertainty (over Brexit) has had a negative effect (on UK business globally as well as in the Philippines),” Nelson said, “But the (UK) government is certainly bent on driving international investments.”
He said that only last October, eight UK companies joined the BCCP-organized Cross-sector Trade Mission to explore opportunities in the Philippines and find potential local partners.
These companies include Economic Energy UK, Eve Taylor, International Management Systems, Marketing (ISO), Larimar Furniture, Norvic Aero Engines Ltd., PTS Consulting, R&B Distillers, and The Zip Yard.
“These firms could be back early next year to firm up potential partnership deals and I believe they will be in business by the second quarter,” Nelson said.
“Brexit has generated questions but we are confident that with the positive growth (in bilateral trade), as evidenced by the 38-percent increase in UK exports to the Philippines in 2015, the momentum will continue,” he said.
BCCP data show that UK export of goods and services to the Philippines amounted to at least $800 million in 2013.
Also, the UK is the “highest European investor in the Philippines,” with a net foreign direct investment stock of at least $5 billion.
According to the business group, bilateral trade between the two countries is worth around $1.8 billion yearly.
Nelson said British Ambassador Asif Ahmand himself stressed that Brexit had minimal impact on the Philippines and that the UK would “continue to be an active partner of the country.
“The BCCP and the British embassy will continue to provide business support to UK companies to boost UK-Philippine trade,” Nelson said.