TO PHILIPPINES: Let’s renew trade!

Asia’s second growth power nods at landmark pact, calls for direct connectivity for the first time

• ‘Time to get back on track’-Rishad
• ‘Great, want direct air services too!’-(HE) Bandillo
• Bilateral trade at $40 Mn

‘Why not supply catamarans too?!’ –(HE) Bandillo

As bilateral trade moved to $40 Mn, Asia’s second fastest growing nation affirmed that it is ready to renew trade with Sri Lanka in a bigger way-and also called for direct air and marine cooperation between both countries for the first time on 05 February in Colombo. “Re-activating the landmark 1980 trade agreement is a promising way to initiate our bilateral trade again. We are also keen for direct air service cooperation and boat supplies from Sri Lanka” said (HE) Vicente Vivencio T. Bandillo (Dhaka based Philippines Ambassador for Sri Lanka) on 05 February in Colombo.

(HE) Ambassador Bandillo was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) during his courtesy call on 05 February at the Ministry of Industry and Commerce, Colombo. Joining Minister Bathiudeen at the wide ranging discussions was RDS Kumararatne (DG-Department of Commerce).

The Philippines was the second fastest growing country in Asia after China in 2014, and its GDP grew 6.9% in Q4 in comparison to 2013’s Q4. The Asian Development Bank expects the Philippine economy to grow 6.4% in 2015-the highest in the region after China.

“Total annual trade between both countries being at around $35-$40Mn levels, I note that there is no significant trade improvement between us in recent years and it is time to explore these unrealised trade potentials between us” said Minister Bathiudeen, and added: “To this end, we welcome input from your business chambers on the various sectors that they want to partner in Sri Lanka. Thereafter, we shall facilitate them towards business matchmaking. We signed a trade agreement with Philippines in 1980 but it is not active.  We need to re-activate this important agreement-The policy and decision makers on both sides get involved with their interaction so that the export efforts of HE the President Maithripala Sirisena could be strengthened.”

The first Trade Agreement was signed in 1980 to develop and strengthen direct trade and economic relations between the two countries on an equitable and mutual benefits basis. Thereafter, in Y2000, bilateral communications on cooperation based on the landmark agreement commenced.

“Ra-activating the 1980 landmark trade agreement is a good and a promising way to initiate our bilateral trade again. We can promptly start exchanging business and trade delegations thereafter. We are also keen for direct air service cooperation with Sri Lanka. I believe that opening direct flights in Manila – Colombo sector can help Philippino workers moving to and from the Middle East greatly. SriLankan airlines too can consider opening direct flights to the Middle East and we welcome them to Manila” said (HE) Bandillo and added: “Philippines being a nation of islands, we use the twin-hulled ‘catamarans’ extensively and we need them in basic as well as luxury range for use in inter island shipping. Therefore it is time to enhance marine cooperation as well and with Sri Lanka’s boat building technology and reputation, you can start supplying us modern catamarans and boats for which there is strong demand there. We’ll do trade promotion in a practical way so that exports are strengthened too.”

According to the Department of Commerce, bilateral trade between the two countries stood at $40.19 Mn and in 2014 January to June totalled $20.68 Mn. Apparel was the main exports from Sri Lanka to Philippine in 2013, taking 46% of total volumes. Other export items to Philippines were rubber tyres, gloves, tea, trailers & semi-trailers and chemical derivatives etc. In 2013, the main import item from Philippine to Sri Lanka was cereals (29% of total imports) followed by articles made of wood.

“Once we re-activate the 1980 agreement, having made some more efforts on trade, a mechanism needs to be established bilaterally to move towards B2B and multi-sectoral cooperation” responded Minister Bathiudeen, and added: “As RDS Kumararatne, my Director General of Commerce here informs me, both countries being top coconut exporters, the joint coconut development efforts that we used to have where Lankan researchers such as Dr P.G.Punchihewa previously visited Philippines and shared our tech knowledge on coconut development with Philippine growers, is well known, and could be resumed for mutual benefits. In addition to coconuts, there are strong potentials in apparel, fisheries, and even boats, in which Sri Lanka is becoming a strong supplier to the world.”

Responding to Minister Bathiudeen, (HE) Bandillo said: “Let our consul in Colombo visit Manila by April and meet our Chambers and officials to identify sectors of cooperation. We are planning to take a Lankan business delegation to Manila by June. Thereafter we can formulate a delegation from Manila to Colombo. The Consul can start with the Ministry of Trade of Philippines.”

Both HE Bandillo and Minister Bathiudeen also discussed on other avenues of bilateral cooperation on 05 February.