British Businessmen Confident in Philippine Economy and Bilateral Trade
Despite economic challenges, British businessmen remain confident in the Philippine economy and the growth of bilateral trade. According to Chris Nelson, Chairman of the British Chamber of Commerce of the Philippines, during an ANC interview on August 28, the prospects for trade between the two countries “still remain very good.”
The latest figures show that total trade between the Philippines and the UK reached an all-time high of 2.6 billion pounds in 2022, with equal contributions from both trading partners. However, while the UK economy only grew by 0.7 percent in the previous quarter, the Philippine GDP was lower at 4.3 percent.
Nelson acknowledged the challenges, including inflation concerns, but highlighted the continued growth in trade. He emphasized the opportunities for UK companies to invest in Philippine infrastructure, particularly in renewable energy projects. Nelson also mentioned the importance of highlighting opportunities for both UK and Philippine companies.
He further highlighted the significance of the recently launched Developing Countries Trading Scheme (DCTS), which grants zero duty on UK exports to its trading partners, including the Philippines. The DCTS is expected to boost trade between the two countries. Additionally, both parties expressed interest in forging a bilateral free trade agreement (FTA) in the future.
Despite the absence of an FTA, Nelson believes that the current cooperation between the Philippines and the UK is at an all-time high and will continue to grow. He expressed confidence that the government will extend Executive Order 10, which grants zero duty on crucial agricultural staples, to further boost trade.
Nelson also noted that pork exports from the UK to the Philippines increased by 34 percent in 2022, contributing to controlling inflation in food prices. He called for the passage of the Anti-Agricultural Smuggling Act to support domestic agricultural products and farmers, as well as to benefit traders. Currently, the Philippines is one of the two largest importers of British pork.
In addition to trade, the British-owned management and consultancy firms Santos Knight Frank and JLL expressed significant interest in the Philippine property sector during a recent Property Forum by the British Chamber of Commerce of the Philippines. The strong demand for co-working office spaces and growth in the mid-price residential sector were highlighted as contributing factors to the overall economy.
Overall, despite challenges, British businessmen remain confident in the Philippine economy and see opportunities for growth in bilateral trade, particularly in the export of pork and investment in infrastructure.
