Taipei, May 4 (CNA) The Philippines is likely to benefit from a proposed trade agreement between Taiwan and China, in terms of direct investment and outsourcing, the Philippines de facto representative to Taiwan was quoted as saying in a newspaper report last weekend.
The Philippines will continue to receive more than its fair share of investments and job orders from Taiwan and rising wages in China could prompt Taiwanese investors in China, especially those in the low- to medium tech and labor-intensive industries, to consider relocating their businesses to the Philippines, said Antonio Basilio, managing director and resident representative of the Manila Economic and Cultural Office (MECO) in Taipei.
Basilio said that some China-based Taiwanese footwear and bicycle manufacturers are looking at the Philippines as a likely location for their offshore operations in light of the proposed economic cooperation framework agreement (ECFA) between Taiwan and China, according to the report in the Philippines Daily Inquirer's Sunday edition.
Meanwhile, he added, Taiwanese companies would likely outsource their processing to countries like the Philippines in their efforts to transform into branded manufacturers.
The ECFA, which the Taiwan government hopes to sign by mid-year, is aimed mainly at lowering or eliminating most tariffs on products traded across the Taiwan Strait.
In an interview with the Central News Agency in March, Basilio also expressed concerns over the possible adverse effects of the ECFA on the Philippines.
"Actually we've already begun feeling (the effects) even before the start of the negotiations," he said at the time. "We foresee that when most of the restrictions on investments from the mainland are lifted, it may result in some Taiwanese plants closing and moving (to China). That means less employment of our workers in Taiwan." At the same time, the agreement could present opportunities for the Philippines, which would be able to expand the concept of an "economic corridor" to include China, he added.
But other reports from the Philippines have hinted that Taiwan's closest neighbor to the south could suffer as result of stronger cross-Taiwan Strait ties in the areas of trade, investment and tourism.
Acting Socioeconomic Planning Secretary Augusto B. Santos said at a Cabinet meeting that the Philippines could lose foreign direct investments from Taiwan as a result of the ECFA, Philippines' GMA News television reported on April 21.
Santos said in the report that Filipino workers in Taiwan may lose their jobs if more Taiwanese factories move to mainland China. He also noted that the Philippines recorded a 14.7 percent drop in tourist arrivals from Taiwan in 2009 as more Taiwanese tourists were choosing to travel to China.
According to Santos, Taiwan is the 7th most popular destination for Filipinos looking to work overseas. In 2008, there were 38,546 new hires and rehires in Taiwan. There are about 94,055 Filipinos living and working in Taiwan. (By Chris Wang) enditem /pc