DTI exec on West PH Sea ruling: Business will find a way

BOTH the government and private sector are not worried that the United Nations (UN) Arbitral Tribunal’s recent ruling on the West Philippine Sea may affect trade relations between the Philippines and China.

DTI Cebu Provincial Director Maria Elena Arbon said that “business will still find a way.”

“That is the political side, but business will always be business,” said Arbon during an interview at the kick-off of the Department of Trade and Industry’s Launchpad Mentorship program for startups yesterday in Cebu City.

At present, she said it is too early to tell what’s going to happen following what many call a historic ruling.

But so far, she has not heard of any concerns from local businessmen regarding the matter.

Arbon was referring to the UN Arbitral Tribunal’s decision earlier this week where it ruled that Philippines has exclusive sovereign rights on the West Philippine Sea (in the South China Sea) and that China’s “nine-dash line” claim over disputed areas that included the Spratly Islands has no legal basis.

Senator Benigno Paolo “Bam” Aquino IV said he did not think the decision would have an effect on the trade relations between the two countries since it had already been affected when the dispute broke out.

“It may (get worse) than it already is, but I hope not,” said Aquino, who was at the Launchpad program launching yesterday.

Even before the tribunal released its decision on Tuesday, he has already heard of stories about Philippine-made goods not being able to enter China because of the dispute.

Aquino, chairman of the Senate committee on trade, commerce and entrepreneurship, recognized China’s earlier stance to continue diplomatic relations with the Philippines despite the dispute.

“That happens with other countries as well. I hope we can have discourse at a level where these things (such as trade) will not be affected,” the senator said.

Cebu Business Club (CBC) president Gordon Alan “Dondi” Joseph also thought the decision will have no effect on trade relations between the two countries, saying it is the implementation of the ruling that may be of concern.

Joseph said he personally believes that the Philippine government should be pragmatic and engage China.

“However much I dislike their bullying, it’s obvious that this government prefers to seek a win-win solution. This has its benefits,” he said.

Mandaue Chamber of Commerce and Industry (MCCI) incoming president Glenn Soco said business and cultural relations with China are deeply rooted.

This development is an isolated aspect of our entire relations with China or any country for that matter, he said.

“Trade and commerce will always flourish globally regardless of any political tensions. Foreign relations is already dictated by market forces which shapes the global economy,” said Soco.

Federico Escalona, executive director of the Philippine Exporters Confederation, Inc. (Philexport) Cebu, said he also hasn’t heard of concerns from businessmen within his organization.

However, he said that if the rhetoric becomes confrontational, he would be worried.

“If there will be war, that’s scary. God forbid,” said Escalona.

According to the Philippine Statistics Authority (PSA), People’s Republic of China was the country’s second largest trading partner in 2014 with total trade worth $18.337 billion or 14.3 percent of the total trade.

In 2013, China placed third, accounting for 12.7 percent or $15.098 billion total trade in 2013.