Philippines keen to expand trade, service ties with Sri Lanka
Saturday, 21 February 2015 01:48
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The Philippines, which possesses Asia’s second-fastest growing economy, affirmed that it was ready to renew trade with Sri Lanka on a larger scale and also called for direct air and marine cooperation between both countries, the Philippines’ Ambassador to Sri Lanka said.
“Reactivating the landmark 1980 trade agreement is a promising way to initiate our bilateral trade again. We are also keen about direct air service cooperation and boat supplies from Sri Lanka,” Ambassador Vicente Vivencio T. Bandillo said recently in Colombo.
Ambassador Bandillo was paying a courtesy call to Industry and Commerce Minister Rishad Bathiudeen last week. Commerce Department Director General R.D.S. Kumararatne was also present at the meeting where a wide range of issues was discussed.
The Philippines was the second-fastest growing country in Asia after China in 2014, and its GDP grew 6.9% in Q4 in comparison with 2013’s Q4. The Asian Development Bank expects the Philippine economy to grow 6.4% in 2015.
“With total annual trade between both countries lying at around $ 35-$ 40 million, I note that there is no significant trade improvement between us in recent years and it is time to explore these unrealised trade potentials,” Minister Bathiudeen said.
“To this end, we welcome input from your business chambers on the various sectors that they want to partner in Sri Lanka. Thereafter we shall facilitate them towards business matchmaking. We signed a trade agreement wwith the Philippines in 1980 but it is not active. We need to reactivate this important agreement. The policy and decision-makers on both sides need to get involved so that the export efforts of President Maithripala Sirisena can be strengthened.”
The first trade agreement was signed in 1980 to develop and strengthen direct trade and economic relations between the two countries on an equitable and mutually beneficial basis. Thereafter, in 2000, bilateral communication on cooperation based on the landmark agreement commenced.
“I believe that opening direct flights in the Manila-Colombo sector can help Filipino workers moving to and from the Middle East greatly. SriLankan Airlines too can consider opening direct flights to the Middle East and we welcome them to Manila,” Bandillo stated, adding: “The Philippines being a nation of islands, we use the twin-hulled catamarans extensively and we need them in the basic as well as luxury range for use in inter-island shipping. Therefore it is time to enhance marine cooperation as well and with Sri Lanka’s boat-building technology and reputation you can start supplying us with modern catamarans and boats for which there is a strong demand there. We’ll do trade promotion in a practical way so that exports are strengthened too.”
According to the Department of Commerce, bilateral trade between the two countries stood at $ 40.19 million and in January to June 2014 totalled $ 20.68 million. Apparel was the main export between the two countries in 2013, taking 46% of total volumes. Other export items to the Philippines were rubber tyres, gloves, tea, trailers and semi-trailers and chemical derivatives, etc. In 2013, the main import item from the Philippines to Sri Lanka was cereal (29% of total imports) followed by articles made of wood.
“Once we reactivate the 1980 agreement, having made some more efforts on trade, a mechanism needs to be established bilaterally to move towards B2B and multi-sectoral cooperation,” Minister Bathiudeen stated.
He further commented: “With both countries being top coconut exporters, the joint coconut development efforts that we used to have where Lankan researchers such as Dr. P.G. Punchihewa previously visited the Philippines and shared our tech knowledge on coconut development with Philippine growers, is well known and could be resumed for mutual benefit. In addition to coconuts, there is strong potential in apparel, fisheries and even boats, of which Sri Lanka is becoming a strong supplier to the world.”
Responding to Minister Bathiudeen, Bandillo said: “Let our Consul in Colombo visit Manila by April and meet our chambers and officials to identify sectors of cooperation. We are planning to take a Lankan business delegation to Manila by June thereafter we can send a delegation from Manila to Colombo. The Consul can start with the Ministry of Trade of the Philippines.”
Bandillo and Minister Bathiudeen also discussed other avenues of bilateral cooperation.
