BPO sector safe, but manufacturing still in danger from US 1st policy

MANILA, Philippines - The Philippines’ business process outsourcing (BPO) industry is now expected to be safe from US President Donald Trump’s “America-first” policy, but the country’s manufacturing industry remains in the danger zone.

Philippine Economic Zone Authority (PEZA) director general Charito Plaza, who visited Colorado last month to meet with investors and stakeholders who are familiar with the policies of the US President, assured the country’s BPO industry that there is “nothing to worry about anymore” as far as Trump’s controversial policy is concerned.

“They said BPOs will not be affected because the America-first policy of the President is more on the manufacturing and not for service providers. No need for the BPOS to worry, even our Philippine embassy says that. They were informed that service industry providers will not be affected with the America-first policy,” she said.

“They are more concerned for the manufacturing,” Plaza added.

In a meeting with the US Chamber of Commerce, Plaza said the group disclosed that “the US government will not press for the US IT-BPO companies operating in the Philippines to cut down on their offshore operations to minimize job displacement of Americans.”

“However, the US is seriously considering a regulatory intervention for some countries hosting American manufacturing companies where the US has huge trade deficits with,” she added.

At present, the value of products imported by the US from the Philippines is higher than its exports in the country.

The trade deficit with the Philippines, however, is not as large as those with other US trading partners such as China, Canada, Mexico, Japan, and Germany.

Plaza last January said American BPO locators of PEZA who have earlier expressed interest to expand have decided to hold off investments as they await for clearer policies from Trump.