PH businessmen see trade war ending with stormy Trump era
Joe Biden’s rise to power after a hotly contested US elections may benefit the Philippines in terms of improved global trade and business climate and greater offshoring opportunities, according to local business leaders.
“Biden will probably be more willing to negotiate and discuss things compared to [outgoing US President Donald] Trump. There are less risks from further trade wars, so we may see more trade. That will be a positive for our export business,” said Alvin Lao, president of D&L Industries, a leading producer of food ingredients and specialty chemicals.
As a believer in science and global warming, Lao said Biden’s push for sustainability and renewable energy would be negative for D&L’s biodiesel business, albeit this was not a high-margin business. On the other hand, he said Biden’s stance would be good for the firm’s other businesses like biodegradable plastic and specialty oleochemicals.
Veteran property consultant David Leechiu, president of Leechiu Property Consultants, said offshoring would likely flourish under a Biden presidency and enhance trade opportunities between the Philippines and Western countries.
“It will give internal stability to the US and they will be more forward- and outward-looking again. They will rekindle many partnerships and trade agreements and leadership positions internationally, which they lost in the last four years. The climate [change] issue is one example. Security in Asia, along with the affirmation of their military and diplomatic power, is another example, all of which should strengthen their ties with their key Asian allies: Japan, Korea and the Philippines,” Leechiu said.
During the four-year term of Trump, rising protectionism and US-China trade wars were a recurring concern among global investors.
“I think the Philippines will renew ties with US and improve diplomatic ties and security in the South China Sea,” he said, noting investment prospects would return.
Francis Lim, president of the Management Association of the Philippines, also welcomed the election of Biden in the United States, which is now home to four million Filipinos.
“We are emboldened by the victory speech of President-elect Joe Biden. We nurture the hope that he will lead America with steady hands in this difficult time given the enormous challenges like reviving the [virus-hit] economy, healing the divide in the nation and across nations, protecting democratic ideals around the world, addressing the imperatives of the environment and social inequality, and strengthening global cooperation, peace and stability,” Lim said.
Manny Cruz, chief strategist at local stock brokerage Papa Securities, said a Biden presidency would bode well for global trade. “It is less protectionist and it will improve the US-China trade war that will benefit local businesses.” INQ
