US traders upbeat on RP

American businessmen in the Philippines are ignoring the continuing political noise and are instead urging government authorities to concentrate on liberalizing the economy.

The American Chamber of Commerce of the Philippines, Inc. (Amcham) has decided to stay apolitical this time amidst new coup talks, charter change and a possible shift in the form of government.

In an interview with The STAR, Amcham executive director Robert Sears dismissed coup rumors and continuing calls for President Arroyo to step down.

"The rhetoric is a lot of noise. For everyone doing business here, we don’t get involved in local politics. It really doesn’t affect our business," Sears said.

However, Sears acknowledged that "for potential investors it can be a bit disconcerting."

What foreign businessmen are more concerned with, Sears admitted, is for the Philippines to liberalize and open up its economy.

China, in fact, Sears pointed out, "is already more liberal."

A case in point, Sears cited, is the decision of China to allow Fedex to buy out its Chinese partners and operate the business on its own.

Sears noted that in the Philippines’ "Fedex can’t even buy out its local partner."

Although he is not privvy to why Fedex decided to pull out of the Philippines, Sears believes that its inability to have full ownership of its business was also a factor in the decision to leave the Philippines.

"Where have we been in the past 30 years?" Sears lamented. "What we should do is open up the economy and open up ownership and reduce bureacracy."

Those supporting the proposal to allow foreigners to own land have argued that granting ownership would convince foreign investors to stay long term since they can’t bring the land with them if they decide to pull up stakes.

The Amcham’s apolitical stance, however, is a reversal of its position in July last year when it urged the early resolution of the political crisis caused by the sudden resignation of President Arroyo’s key economic team led by then Finance Secretary Cesar Purisima.

The Amcham at that time warned that prolonged political instability adversely impacts on the business environment.

According to the Amcham, "political stability is an essential requisite for a strong business environment."

The influential business chamber of American multinationals expressed its regret "that a political crisis has recently and rapidly developed in the Philippines which severely impacts on the ability of the current administration to govern effectively."

Therefore, the Amcham said, "we urge Filipinos to resolve the crisis at the earliest possible time, within the rule of law and the Philippine Constitution."