By Justine Irish D. Tabile, Reporter
THE PHILIPPINES and the UK are anticipated to finalize an export finance agreement within the next three months, affirmed the British ambassador, which includes a provision of approximately 5 billion pounds (P375 billion) for the Philippines.
Ambassador Laure Beaufils stated late Wednesday that UK Export Finance will facilitate the involvement of British companies in infrastructure endeavors such as bridges, railways, offshore wind energy projects, and ports.
“We are optimistic that (the agreement) will occur within the next three months. We are quite hopeful,” Ms. Beaufils mentioned to reporters.
“It primarily revolves around aiding British exports to the Philippines… (the financing) may be offered in the form of guarantees or support for a bank loan; it can adopt various formats to allow the Philippines to essentially purchase British products,” she explained.
“Our export finance proposition (necessitates that) only 20% of the project comprises British content. One can undertake a substantial project with merely 20% British content” that can receive funding, she elaborated.
She described the Philippines’ interest in becoming part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a “remarkable development.”
“What’s more significant and intriguing for us is the potential of the Philippines joining the CPTPP, which could be a significant advancement because we regard it as the gold standard among trade agreements. I understand the Philippines has been exploring this as a possibility,” she remarked.
“For us, that would be fantastic since the Philippines would then join that extensive network of trading partners adhering to the gold standard,” she continued.
She pointed out that joining the CPTPP is more advantageous for the Philippines than negotiating individual free trade agreements with the members of the partnership.
On the topic of US tariffs, she noted that the Philippines might encounter challenges in attracting businesses looking to shift from high-tariff nations.
“The difficulty for the Philippines lies in the high energy costs and the lack of a manufacturing base that is prepared at this moment. That’s going to be an obstacle regarding whether the Philippines can capitalize on the elevated tariffs on other ASEAN countries,” she stated.
“I suspect it won’t be an overnight change,” she added.
Nevertheless, she expressed that there is considerable interest from British tech and cybersecurity firms as well as companies offering financial services.
According to the ambassador, the UK’s new trade envoy, George Freeman, plans to visit the Philippines in May.
“I believe that will mark a very exciting moment in our trade as well because he will aim to thoroughly explore some of these sectors. Notably, tech, since he holds expertise in science and technology, to determine how we can further energize our relationship,” she remarked.
