‘Sugar, BPO industries may end up as casualties’

BACOLOD CITY, Philippines – The sugar and business process outsourcing (BPO) industries may end up as casualties of a Philippine “separation” from the United States as declared by President Duterte in his recent state visit to Beijing, Sen. Juan Miguel Zubiri told reporters here Friday.

He said that in such a scenario, the Philippines may lose up to $25 billion in revenues annually, with about 1.1 million Filipinos losing their jobs.

Furthermore, the Philippine sugar quota to the US might also be adversely affected although he admitted that prices of sugar in the domestic market are higher than in the US market.

However, upon his return Friday, Duterte clarified he was not severing diplomatic ties with the US.

Zubiri, who attended the MassKara celebration here Friday, also noted that the President’s cozying up to China has led to Beijing’s reopening its markets to Philippine banana and pineapple exports.

“When one door closes you open another, but I was hoping we could keep all doors open for a stronger economy,” he said

“Our economic managers have to prepare for the worst, and hope for the best,” Zubiri said, noting that the Philippine economy is likely to achieve seven percent growth this quarter.

Trade Secretary Ramon Lopez yesterday said the Philippines and China sealed deals worth $24 billion – $15 billion in investment projects and $9 billion in credit facilities. The deals are expected to create some two million jobs in the next five years.

Zubiri said the country should keep old friends while making new ones, as he voiced agreement with former president Fidel Ramos’ position that “we can have an independent foreign policy without making enemies.”

The senator said the Philippines’ friendship with the US transcends leaderships, as the next president in 2022 may likely be friendly with the country’s closest ally and biggest trade partner.

“The friendship between our two countries goes back 70 years since WW II… our friendship will last forever,” Zubiri added.

Sen. Paolo Benigno Aquino IV, who attended a Go Negosyo activity at the Provincial Capitol here, said the Philippines does not have to discard a friend just to win another.

“I don’t think an independent foreign policy means that we need to fight with other countries. It does not mean that if China is our ally, America is our enemy.” Even America and China have trade deals, he pointed out.

While an independent foreign policy is stated in the Constitution, Aquino said that what “it basically means is we chart our course based on what’s best for the Philippines.” 

“There are many Filipinos working in those countries so you cannot cut ties with them, and they have a lot of investments here,” Aquino added.

Meanwhile, Sen. Leila de Lima said Duterte’s declaration betrays his lack of understanding of foreign policy matters.

In a statement, De Lima said that she was just as confused as many of the people who heard or read the statements made by the President in China about ending military and economic ties with the US. – With Marvin Sy