PH seen withstanding U.S. protectionism

With the foreign policy rebalancing pursued by the Duterte administration, the head of the state economic team is confident that the country will be well-positioned to withstand shocks coming from US protectionism under President Donald J. Trump.

“The only uncertainty in the horizon is the direction the Trump administration will take the US economy to, ” Finance Secretary Carlos G. Dominguez III said earlier.

Many fear a sharp rise in protectionism should Trump translate his rhetoric to actual trade policies. Protectionist policies may dampen trade and may have adverse impact on the Philippine business process outsourcing (BPO) sector, our economy’s second highest dollar-earner, Dominguez said.

“Fortunately, the Duterte administration early on decided to rebalance our foreign policy. We have so far concluded trade, investment and development assistance with China and Japan that amount close to a trillion pesos. The President is due to visit Russia this year and that should further encourage stronger trade and investment ties and open new markets,” he said.
“All these gains should more than offset whatever protectionist policies the Trump administration might decide to institute,” according to Dominguez.

But recent Bangko Sentral ng Pilipinas data showed that amid global uncertainty due to the Trump presidency, a net outflow of so-called “hot money” was posted in the fourth week of January.

During the week of Jan. 23-27, a $7.98-million net inflow of foreign portfolio investment was registered, as the $239.86-million inflow surpassed the $247.85-million outflow.

The year-to-date figure nonetheless stayed at a net inflow of $54.63 million, reversing the $129.85-million net outflow a year ago. —Ben O. de Vera