The Philippines is seen to benefit from an expected boost in international trade, following new US President Joe Biden’s recent pronouncements.
Carlos Dominguez, Department of Finance (DOF) secretary, has expressed optimism on the impact of the Biden regime’s plans on international relations, which will eventually benefit the Philippines as well.
“This passage from President Biden’s speech bodes well for a return openness to international trade and investment which will undoubtedly redound to our mutual benefit,” Dominguez said in a Viber group with finance reporters yesterday.
Dominguez was referring to one of Biden’s statements during his inauguration: “So here’s my message to those beyond our borders. America has been tested, and we’ve come out stronger for it. We will repair our alliances and engage with the world once again. Not to meet yesterday’s challenges, but today’s and tomorrow’s challenges. And we’ll lead, not merely by the example of our power, but by the power of our example.”
Meanwhile, in a report, Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said under the Biden administration, there may be greater international cooperation and/or multilateral arrangements and less protectionism, especially in tacking global issues such as the coronavirus disease 2019 (COVID-19) vaccines and solutions, security, defense, international financial aid such as for infrastructure projects, among others.
“The Philippines would also adapt to these changes in the US, towards greater cooperation such as in obtaining more assistance on COVID-19 vaccines, infrastructure, security and defense locally and in dealing with external issues such as on the West Philippine Sea, among others,” Ricafort said.
He added the US-China trade war may still be there but could be “toned down” by the Democrats and could become “less confrontational.”
“That would lead to greater global trade and faster economic growth for Asia, including the Philippines, after slower global/Asian economic growth at the height/escalation of the US-China trade war from 2018-2019,” Ricafort said.
“Philippine exports recovered strongly and back to pre-COVID-19 levels in recent months and would pick up further, together with Philippine imports from the US, in view of these latest developments; but could be offset by the new and more contagious coronavirus strain/variant that could slow down economic recovery prospects globally and locally,” he added.