Spain eyes closer economic ties with RP

Spain is taking steps to improve its bilateral trade and investment relations with the Philippines with the arrival yesterday of a six-man business delegation led by Spanish Deputy Foreign Minister Ramon Gil-Casares.

The delegation is considering possible investments in the fields of solar energy, transportation, infrastructure, consultancy, information technology and power.

Gil-Casares said that Spain’s trade and investment relations with the Philippines "have been quite minimal" with investment by Spanish businessmen since 1995 amounting to a meager $500 million and two-way trade totaling only $120 million.

"There are several reasons for the minimal bilateral trade and investments between Spain and the Philippines," Gil-Casares said.

"The prohibition against foreign ownership of local corporations and real estate property is one of the more important factors for the minimal trade and investment relations between the two countries," he said.

At the same time, Gil-Casares said, there is also some difficulty in "understanding the regulatory framework in the Philippines."

He also said that there was a misconception that Spain is blocking the Philippines’ move to gain further European Union market access for its tuna exports.

"Spain is not aware that there is a perception that it is the one vehemently against the Philippines’ bid for more EU market access for Philippine tuna," Gil-Casares said.

He explained that Spain is not even aware that there is a request from the Philippines for a lowering of the current 24 percent common EU tariff slapped on Philippine tuna.

"All Spain is aware of is that there is a pending case with the World Trade Organization questioning whether the preferential tariff granted to African, Caribbean and Pacific (ACP) nations is discriminatory versus other non-ACP countries," Gil-Casares said.

He disclosed that Spain has no objection to the Philippines gaining more market access for its tuna shipments.

"In fact, Philippine tuna exports to the EU has actually increased by 30 percent," he said.