Philippines is the place to be’

Sweden is looking to improve trade with the Philippines following the two-day visit last week of its Foreign Trade Minister Johan Forssell, during which he met and had talks with Energy Secretary Raphael Lotilla, Trade Secretary Alfredo Pascual, Finance Secretary Benjamin Diokno, Foreign Affairs Secretary Enrique Manalo and  Defense Undersecretary Angelito de Leon to explore and discuss possible areas of cooperation, trade, investments and financing assistance.

In a roundtable meeting with journalists last Friday, Forssell stressed that he is specifically visiting the Philippines, not as part of a stopover trip to somewhere else, but specifically to the country, with the obvious reason  being that the “Philippines is the place to be nowadays with the very strong economic growth and the positive feeling in the air... and that there is something about to happen here...and also in the region in itself.”

He assured the Philippine officials that Sweden intends to be a long-term partner of the Philippines, with a “strong and growing interest” from Swedish firms, even as there are 40 Swedish companies already in the country, what with the strong economic growth and “giant” population.

Among the well-known Swedish firms in the Philippines are ABB, Ikea and H&M.

Among the areas of  interest for Swedish firms, Forssell cited, is the “Build Better More” agenda of the government, which he said “fits perfectly well” with many of Sweden’s world-leading companies that are into green transition, infrastructure, ICT solutions, transport and health.

With Sweden also the current president of the EU Council, Forssell highlighted Sweden’s strong belief in free and open rules-based trade and its desire to reach more free trade agreements between the EU and the Asian region.

He also acknowledged the need to support the resumption of FTA talks between the EU and the Philippines “when the time is right.” However, having been a member of Parliament, Forssell, who admits to being a politician also, deftly sidestepped questions regarding concerns that continue to plague the FTA negotiations and merely stated: “We want the business situation in the Philippines to be as good as possible...the market is working fine, but there are also challenges within the bureaucracy...and having the long-term perspective...so that is what we are saying to our friends in the government...those things should be addressed...it’s in your interest really.”

Two-way trade between Sweden and the Philippines has been more in favor of Sweden, with the country exporting last year $152 million worth of goods and products and only importing from the Philippines $124 million, mainly in the form of machinery and food – fish and fruit. However, Forssell pointed out that Philippine exports to Sweden “could double these many times during the right circumstances.”

Swedish Ambassador Annika Thurnborg, for her part, revealed that the Philippines actually imports a lot of sisig meat from Sweden, which is a big pork producer, but does not use most of the parts that the Philippines uses for its famous sisig dish.

Following his initial meeting upon arrival Thursday last week with Trade Secretary Pascual, they discussed resuming business delegations between the two countries, with the last Swedish delegation visit way back in 2016, and the possibility of a Filipino delegation also going to Sweden, as trade goes in both directions.

Forssell also met with officials from the Department of National Defense, where Sweden sees “potential in that area.”

Sweden, according to reports, is offering the Philippine Air Force 12 Gripen C/D fighter jets, plus an additional two jets for free. The deal would cost approximately P61 billion,  but the United States, through Lockheed Martin, is competing for the offer to sell fighter jets to the PAF.

The US offer is for 12 F16 block 70 Viper fighter jets, complete with armaments, training, and maintenance.  The US offer would bump up the acquisition cost to more than the PAF’s P62 billion budget. But with the Enhanced Defense Cooperation Agreement or EDCA, the Americans countered with an offer of commonality of the platform for training and support, plus the possibility of military aid to provide the Philippines with an additional 12 F-16 C/D fighter jets.

Other areas of interest for Sweden, Forssell said, are sustainable transportation, the railway and BRT systems that would make it easier for Filipinos to reach their jobs, construction of bridges, energy transmission and energy effectiveness or efficiency – ”making sure that you use all the energy that you produce in an efficient way.”

Sweden, being an eco-friendly country, Forssell said, is not dependent on fossil fuels and is investing heavily in solar, wind, and in new small and medium-sized nuclear reactors, where the two countries can “have a collaboration in the future.”

New CEZA CEO

Newly appointed Cagayan Economic Zone Authority (CEZA) chief executive officer Katrina Ponce-Enrile, in a brief interview, admitted that she has her “work cut out for her” right out of the gate.

Katre, as she is fondly called by her high school batchmates, (full disclosure: we were high school batchmates in St. Paul Manila) revealed that her immediate priority is to review the financials of CEZA which has not been profitable since 2018.

“I need to review the financials of the government corporation and see how I can turn it around because since 2018, their bottom line has been in the red. So, I have my work cut out for me to bring and contribute to the government coffers.”

Katre already has her credentials as a businesswoman with her wildly successful Delimondo canned food line.

Congratulations Katre!