Phl says $60-B two-way trade goal with China unlikely

MANILA, Philippines - It’s business as usual for the Philippines and China on trade and investment matters despite their maritime row, although Manila is not very confident about reaching the $60-billion target on two-way trade by 2016 as agreed upon by President Aquino and then Chinese president Hu Jintao in 2011.

“Doubling of trade to $60 billion is based on their numbers of $30 billion as starting point.  Our numbers’ starting point is $12 billion so the target is $24 billion. I do not have the statistics with me right now but we will likely fall short of target,” Trade and Industry Secretary Gregory Domingo said in a text message through Presidential Communications Operations Office Secretary Herminio Coloma Jr.

“The individual businessmen may be taking a more cautious stand so in that way there might be slower growth. Tourism with Chinese is way up though,” Domingo said.

Aquino and Hu witnessed the signing of the agreement on the five-year development program for trade and economic cooperation in Beijing.

In his speech during the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc.’s joint celebration of the 116th Philippine Independence Day and 13th Filipino-Chinese Friendship Day on June 10 in Manila, Chinese ambassador Zhao Jianhua said China is now the third largest trading partner of the Philippines and that in the first quarter of this year, two-way trade reached $12.5 billion.

“This growth rate ranks the second among China’s trade with ASEAN (Association of Southeast Asian Nations) members. Last year, 426,000 Chinese tourists visited the Philippines, a sharp increase of almost 70 percent from the previous year,” Zhao said.

“Given the current trend, if we can further tap the potentials and create better conditions and atmosphere, China and the Philippines will do even better in terms of trade, investment and tourism,” he added.

In 2012, bilateral trade between China and the Philippines reached $36.37 billion, increasing 12.8 percent year-on-year. This growth rate was higher than the 6.2-percent expansion in China’s foreign trade.

The two countries also enjoyed two-way investments of $195 million last year. Philippine investments in China reached $130 million, while China invested $65.45 million in the Philippines.

New project contracts signed by Chinese firms in the Philippines grew by 63.2 percent to $1.02 billion in 2012, according to Philippine Exporters Confederation Inc.

The balance of trade was in favor of China in 2012 but for the period 2007 to 2011 (except in 2009), the balance of trade had been in favor of the Philippines.

On alert

But amid the calm on the trade front, Filipino troops guarding the areas being coveted by China in the West Philippine Sea remain on alert and under orders from the high command to defend their position.

Members of the 12 Marine Battalion Landing Team (MBLT-12) under the command of Lt. Col. Rodel Martires recently received airdropped packages with the phrase “hold the line” printed on them, supposedly a message from Armed Forces of the Philippines (AFP) chief Gen. Emmanuel Bautista exhorting them to “hold the fort.”

The packages included letters from schoolchildren containing words of encouragement for soldiers deployed in isolated outposts in the West Philippine Sea.

The packages containing goodies were airdropped recently on troops stationed on the grounded BRP Sierra Madre, which serves as the Philippines’ military outpost on Ayungin Shoal.

Martires told The STAR in Puerto Princesa City on Wednesday that none of his men were complaining about their assignment.

“It’s our duty to guard and protect the country’s territorial integrity,” Martires said, adding that his men deployed in seven islets and two reefs are regularly rotated so as to give their inland colleagues a chance to experience being deployed in remote outposts.

The MBLT12 is one of the operating units of the Western Command (Wescom), which has overall military jurisdiction over the country’s maritime interests in the West Philippine Sea.

In a separate interview, a naval officer said troops deployed in contested areas appeared unafraid of the increasing Chinese presence.

“They’re not at all disturbed by the security development out there brought about by China’s coercive and aggressive behavior. What is clear to the troops is their mission of guarding and protecting the country’s maritime domain,” the officer, who asked not to be named, said.

He added that Filipino troops were also closely monitoring security developments in the Paracels where a Vietnamese fishing boat was sunk by a bigger Chinese vessel. – With Jaime Laude