China visit: Confusing signals

The unprecedented state visit of President Duterte to China has turned out to be the most notable foreign policy shift ever in the history of the Philippines. It seems the visit was highly successful, with China promising to pour in $24 billion in soft loan funds and additional investments of close to $11.5 billion in mining, energy and infrastructure.

But what reverberated the most around the world was Duterte’s very serious words announcing our “separation” from the United States “militarily” and “economically,” which sent shivers of major concern down the spine of Filipinos across all sectors, from businessmen down to the ordinary workers.

The specter of breaking away in terms of military cooperation may have been purely political rhetoric. The president had repeatedly spoken about this even without prior consultation with his Cabinet, which Defense Secretary Delfin Loranzana admitted during his confirmation hearing before the Commission on Appointments. But the thought of “severing” economic ties with the US had everyone – including Cabinet officials – shell-shocked.

The US is our third biggest trading partner with $18 billion worth of trade in 2015 alone. Money from the BPO sector as well as remittances from overseas Filipino workers – two pillars of the economy which together account for about 16 percent of gross domestic product – is largely attributed to the United States.

Over 77 percent of revenue from BPO services (estimated at $22 billion in 2015) are from American companies. Over 1.2 million Filipinos are employed by the BPO sector, with more jobs to be generated as American firms expand their operations like leading US customer marketing company Harte Hanks that recently opened its BPO hub at the Mall of Asia complex in Pasay City. In terms of OFW remittances – which had been instrumental in propping up the economy over the years – 30 percent of the inflows come from the US.

Simple Filipino folks are already concerned that the country could become overwhelmed with Chinese products that may be cheaper but are of inferior quality. The fact is, the image of China as far as goods is concerned has faced serious issues, with scandals such as melamine-laced milk and plastic rice. Surveys also clearly show that majority of Filipinos have more trust in the US that got a +66 rating compared to China which got a -33 rating in the latest Social Weather Stations survey.

While the “colorful” and off-the-cuff comments were amusing and laughable at first, many Filipinos no longer find the recent pronouncements of the president funny. His Cabinet officials had to scramble to “contextualize” his comments during his state visit to China. From asking media to utilize “creative imagination” in interpreting presidential statements, the Palace communications team was reduced to doing damage control and worse, having to backtrack on statements made by the president.

While the president ultimately explained upon arrival in Davao what he meant between “separation” and “severing” ties with the US, it became clear from reports all over the world that the damage had already been done. The practice of making radical comments then issuing denials later on – which seems to have become the norm lately – has to stop. More and more, the credibility gap is widening. There has to be some consultation with regard to major statements especially when it comes to the economy and other wide-ranging security issues.  President Duterte has to start thinking along these terms, and realize that he can no longer rule like he did as mayor of Davao City. 

As pointed out by former president Fidel V. Ramos, the times call for an “interdependent” foreign policy where relationships with other nations are intertwined. “Friendships should never change, but indeed should be multiplied,” FVR said, because the time is fast approaching when the whole world will become “just one community and one family.”

The time has also come for seasoned and experienced Senators like Frank Drilon and Dick Gordon to start speaking out on all these presidential pronouncements that could severely affect the country’s economy and its standing around the world. Business groups should sit down with the president’s economic team and conduct a serious dialogue and thresh out all these confusing signals on economic matters. We should all know that at the end of the day, it’s the economy that could make or break a nation.

The president may mean well when he says he is doing what he feels is right for “my” country, but he must also remember that the Philippines is also “our” country.

An admirable career diplomat

I have met many American ambassadors from Dick Solomon to Kristy Kenney with many of them becoming personal friends like Harry Thomas and Tom Hubbard. All of them have served with distinction, but one in my view who is on top of the list is outgoing US Ambassador Philip Goldberg. The Manila Overseas Press Club hosted a farewell reception for him last Tuesday (see photos in the Allure section of the STAR today).

In spite of all the personal attacks and “unnecessary” harsh words he received from the present dispensation, Ambassador Goldberg has maintained utmost professionalism and an imperturbable attitude, steadfast in his commitment to strengthen ties between the Philippines and the US.

Ambassador Goldberg, a high-ranking career diplomat, was personally handpicked by then-State Secretary Hillary Clinton to serve as Ambassador to the Philippines. He heads back to Washington, DC where he is expected to play a major role in the Clinton administration.

Philip has made many friends in the country especially Leyte, where the people will never forget the immediate US response during the early crucial hours after super typhoon Yolanda hit the province.

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