Severing ties with US bad for export, BPO industries

CEBU, Philippines - Cebu business leaders are worried on the possible effects of President Duterte’s statements to end the country’s military and economic relations with the United States.

Philip Tan, past president of Mandaue Chamber of Commerce and Industry (MCCI), said that if indeed the President was serious in his statements to sever ties with the US, it will definitely have a negative impact towards exports and the outsourcing industry.

The US is the number one market of the Philippines for both exports and outsourcing companies, particularly Cebu. Tan said the President should be careful and avoid creating enemies.

"Its good to gain friends, but we have to avoid burning bridges," said Tan.

  During his visit to China on Wednesday, the President said it was "time to say goodbye".

 "Your stay in my country was for your own benefit. So time to say goodbye, my friend," he said, as if addressing the U.S.

"I will not go to America anymore. I will just be insulted there," the President was quoted in a report.

While the business sector, especially those doing big business with Americans are not happy about this, PhilExport-Cebu president Nelson Bascones is confident that the President's words, although threatening, still have to go through several due process as it involves diplomatic protocols.

 "I don't know if he is true to what he said. Yes, he is the President of the Philippines, but not the 'Philippines'. I think Senate has to review his foreign policy," said Bascones.

 Bascones said that US is the country's main trading partner, "They are the number one buyer of our exports."

  Foreign policy under Duterte has dramatically shifted from that pursued under predecessor Benigno Aquino, who took Beijing to an international tribunal over its extensive territorial claims in the South China Sea and won a resounding victory.

Duterte likewise threatened to suspend joint US-Philippine patrols in the South China Sea and end joint military exercises.

The country’s BPO industry, which has surpassed India by revenue, may bear the brunt of Duterte’s tirades against the US, Genny Inocencio-Marcial, a representative of the IT and Business Process Association of the Philippines, said in a report. (FREEMAN)