European businessmen are now moving forward in their investment plans in the Philippines as they see a fresh start in the economic relations between the Philippines and Europe with the forthcoming visit of French Prime Minister Jean-Marc Ayrault, the first European head of state to visit the country in many years.
ECCP Vice President Henry Schumacher called the visit of the French Prime Minister on October 19-21 a milestone noting that it has been a long time since a European president visited the Philippines.
“This is a milestone that must be celebrated and that changes the equation because this visit is putting the Philippines back on the map in the EU,” Schumacher said. An estimated 150-business delegation is said to accompany the visit of the French Prime Minister.
Michael Raeuber, ECCP’s new president, told a press conference that European businessmen are going where business and markets are.
“The opportunities are here in Asia and not just in China but in the Philippines (as well). EU should not only look at the Philippines as a production hub but as a market for their services and products,” Raeuber said.
Raeuber, also president of Royal Cargo Combined Logistics Inc., further cited the country’s improved governance, lesser bureaucratic red tape and the Aquino administration’s peace initiative with the signing of the framework agreement with the Muslim rebels and government to attain lasting peace in Mindanao.
“European businesses that are already here are expanding,” he said. Some of these firms include Continental Temic, Lufthansa Technik, Nestle, among others.
Raeuber cited the Bangsamoro agreement as positive for Mindanao as he expressed hope that more peace would be achieved with the government’s reaching out to the left-wing National Democratic Front.
“This is positive so there could be peace throughout the Philippines,” he said.
On some huge contracts entered by the previous government with European firms with the previous Arroyo administration but were cancelled by the Aquino administration, the ECCP raised hope that amicable settlement can be arrived. For the NAIA 3 issue, the ECCP said there should be a closure and finality.
“It should be a good thing if the NAIA-3 dispute is resolved with finality,” said Raeuber noting that the law provides for compensation to the NAIA terminal 3 contractor, Philippine International Air Terminals Co.
“There is a need for compensation and closure,” he said.
Schumacher also admitted that NAIA-Terminal 3 is an issue that has remained hanging but, “Everybody says we cannot continue looking back. While we find solution, we have to move forward.”
For the cancelled P18 billion Laguna Lake dredging project contract by Belgian firm Baggerwerken Decloedt en Zoon, Schumacher raised the possibility of both parties going into an amicable settlement or a compromise agreement.
“There is a potential for an amicable settlement. The administration is willing to find solutions and everybody understands that going to court is a long long process. So there is a way for a less confrontational settlement,” Schumacher said.
Raeuber also noted that the review of the contract of the $200 million of Thales of France, formerly Thomson CSF NCS-France, for the supply of safety equipment for NAIA has been taking too long to complete.
Raeuber said that if the contract is tainted with corruption then there are laws that should deal with it, otherwise contracts have to be respected and implemented.
He said that there are only two areas of concern by businessmen in general: consistent policy and adherence to national law or the supremacy of national laws over local ordinances.
Source: Manila Bulletin; Business Bulletin; 17 October 2012
