Rody urges Japan: Invest more in Philippines

Philippines, Japan to stand together on sea row

TOKYO – After telling American investors in the Philippines to pack up and leave, President Duterte courted Japanese businessmen yesterday to put their money in the country and contribute to its economic growth and make “meaningful changes” in the lives of people.

“Maybe, if you come to the Philippines, you just have to contend with the new dynamics of my country,” he said, apparently referring to his independent foreign policy.

Duterte has been assailing the United States due to its criticism of his bloody war against illegal drugs. His anti-US rhetoric was said to have spooked American businesses, but Duterte boasted the country could survive without them.

The President went to China last week for a state visit and declared “separation” from the US, but he clarified here that he merely discussed economics and not military alliance with Beijing.

The US and Japan have openly supported the Philippines in its maritime row with China, which has aggressively occupied the South China Sea. Japan also has a sea dispute with China.

In his meeting with Japanese Prime Minister Shinzo Abe, Duterte said they agreed to  collaborate on political, security and defense issues to create an enabling environment for the two countries’ economies to grow.

Duterte added, “Japan will continue to play an important role in modernizing the capabilities of the Philippines for maritime domain awareness and maritime security as well as in humanitarian relief and disaster risk reduction response.”

Both countries agreed to work together on peaceful settlement and adherence to the rule of law with regard to the disputed South China Sea.

But the issue on the rule of law referred only to the South China Sea dispute, not to Duterte’s controversial drug war that strained relations between the Philippines and the US, an ally of Japan.  Explaining his war on drugs and the need for the country to be able to stand on its own, Duterte said at present, “we are putting in place policies aimed at ensuring stability in the macro-economic policies,” increasing competitiveness and in crucial infrastructure, improving ease of doing business and investing further in human capital development by cultivating an “environment conducive for business.”

“We count on Japan to further extend its valuable support in our pursuits,” Duterte said, also citing the need for rural development and increasing agriculture productivity, in a speech at the Philippine Economic Forum attended by potential Japanese investors and Filipino business groups at the Prince Park Tower.

“We would like to see more investors and more businesses setting up shop in the Philippines,” Duterte, who is on a three-day official visit here, said.

While they are welcome to invest, Duterte said the businessmen would have to contend with new policies.

“I just want friendship with everybody. Go there but do not expect so much, expectations from maybe the policies of the West,” Duterte said.

Japan is the biggest trading partner of the Philippines, followed by the US and China.

“We look to Japan as a steady fulcrum in our regional engagements as the Philippines’ first and only bilateral free trade partner to date,” he said.

Duterte also recognized Japan as the Philippines’ “top source of approved investments and second major source of official development assistance.

“These economic development thrusts are necessary ingredients in making the growth impact on the lives of our people,” Duterte said.

“Aside from nurturing our people’s enterprising spirit through the promotion of micro, small and medium enterprises, the government is equally determined to generate more jobs by making it easier and more attractive to do business in the country,” he added.

While he dished out his displeasure against the US, Duterte was all praises for Japan, describing it as a great country that helped the Philippines “in so many ways in the past.”

Peace and security

Calling Japan as a “special friend” and “closer as a brother,”  Duterte asked for help on how the Philippines could boost the country’s defense system, particularly in air and naval assets.

Both leaders agreed to enhance military cooperation.

“Japan continues to play an important role in modernizing the capabilities of the Philippines for maritime domain and maritime security as well as humanitarian relief and disaster risk reduction response,” he added.

On the South China Sea row,  the two leaders acknowledged the importance of a rules-based approach to the peaceful settlement of maritime disputes without resorting to threat or use of force in accordance with the 1982 United Nations Convention on the Law of the Sea (UNCLOS), the UN Charter and relevant international conventions.

In a joint statement, Duterte and Abe also stressed self-restraint and non-militarization of the sea dispute.

Abe stressed the importance of the South China Sea in maintaining peace and stability in the region.

“The South China Sea issue is a matter of interest before the entire global community that is directly linked to regional peace and stability,” he said.

“With regard to the arbitration award, we have confirmed the importance of peaceful resolution of maritime disputes such as resolution in compliance with UN Convention on the Law of the Sea, amongst others, without resorting to threat or use of force,” the Prime Minister added.

Following  Duterte’s move to strengthen economic ties with Beijing,  Abe welcomed the President’s visit to Beijing in a bid to advance the bilateral relationship between the two countries.

As for Japan, Abe said “taking this visit by President Duterte as another opportunity, I look forward to further deepening our bilateral bond of friendship and to cooperate together towards the stability and prosperity of the region and the international community.”

Abe described the Philippines and Japan as “important partners,” sharing fundamental values including freedom, democracy and the rule of law.

“Both Japan and the Philippines are maritime nations and support to enhance maritime safety capability will be strengthened,” Abe said.

“I am very happy that we have just signed the documents covering the transfer of large patrol vessels as well as the letter of arrangement on the transfer of Japan Maritime Self-Defense Force trainer aircraft TC-90s,” the Prime Minister said.

Abe also welcomed the agreement on the promotion of agriculture for the consolidation of peace in Mindanao, stressing that “Japan supports the endeavors of President Duterte with regard to peace in Mindanao.”

As part of counterterrorism measures, Abe announced the transfer of high-speed small vessels and equipment. “Cooperation in the area of counterterrorism will continue to deepen going forward,” he said.

Japan also vowed to work closely with the Philippines on infrastructure development, especially  in Metro Manila and Davao areas.

He described his talks with Duterte as a “valuable exchange of views,” focusing also on the exploration of peace and stability.

Support for ASEAN chairmanship

Abe also expressed support for the Philippines’ chairmanship of the ASEAN next year. The Prime Minister also managed to express Japan’s concern anew on the threat of North Korea’s nuclear missile development.

In his reply, Duterte recognized Japan’s support.

“This is an important leadership role for the Philippines as we seek fully to realize the goal and rules-based, people-oriented and people-centered ASEAN,” Duterte said.

Duterte added Japan would be a crucial ASEAN dialogue partner “in ensuring the efforts to strengthen adherence to the rule of law as the bedrock of stable and secure relation in the ASEAN region and beyond.”

“The Philippines will continue to work closely with Japan on issues of common concern in the region and uphold the shared values of democracy, adherence to the rule of law and the peaceful settlement of disputes, including the South China Sea,” Duterte said.

Earlier, Duterte expressed confidence that more Japanese businesses would go to the Philippines as he noted Japan’s assistance for the country to achieve peace and development especially in Mindanao.

“Also crucial in our entire effort for economic development is the need to ensure peace and security in our country,” Duterte said.

“In this light, we appreciate Japan’s role in the peace-building efforts in Mindanao that is geared towards attainment of a more peaceful life for our country and the ending of a vicious cycle of poverty and conflict,” he added.

Complimentarily, Duterte said there was also the need to decentralize growth through agriculture development, particularly in rural areas that were more dependent on agriculture like Mindanao that had been producing the country’s top agricultural exports such as bananas, pineapples, coconut and also tuna.

“We must likewise pursue improved connectivity to infrastructure development projects. Japan has the corresponding capacity to be our reliable partner in all its resources, expertise and technical know-how,” Duterte said.

“More than just making a dent in improving poverty as statistics, these incentives are deliberately aimed at closing the inequality gap in the country’s development noticeable in the levers of urban and rural development,” he said.