Among the noticeable things when I buy in public markets
is the presence of Norwegian salmon. Usually the salmon heads or salmon belly
are available, and their retail price is not that far from bangus or tilapia.
So while it is common to see Norwegian salmon in big groceries and
supermarkets, it is good to see the presence of this Norwegian product in
public markets at affordable prices, implying that trade of this commodity is
increasing fast.
And that proves further that free trade is good. The
taste of salmon is a lot different than many tropical fish products that we
have. Free trade allows the poor and lower middle class to enjoy this produce
from time to time.
Last May 14, 2016, I had the opportunity to meet and
break bread with some Norwegian businessmen and Filipino managers running
Norwegian companies in the country. It was at the celebration of Norway’s
Constitution Day.
I checked the data from the UN Conference on Trade and
Development, “Bilateral FDI Statistics 2014.” Instock investments from Norway
is still small, only $7 million as of 2012. The biggest investments are from UK
($1,418M), France ($310M), Switzerland ($239M), and Denmark ($197M).
Nonetheless, the flow of trade and investments between Norway and the
Philippines is rising.
The important institutions of Norwegian commerce in the
Philippines are the following:
First, the Norwegian embassy, promoting diplomatic,
cultural and economic partnerships with the Philippines. I met the Norwegian
Ambassador to the Philippines, His Excellency, Erik Forner and I asked him what
are the key business sectors where relations between Norway and the Philippines
are most active, and he quickly mentioned the maritime industry. Many Norwegian
businesses operating in the Philippines are shipping-related. Norwegian
shipping companies are among the biggest employers of Filipino seafarers, about
25,000 of them, aboard their ships or in shipyards abroad. They also have the
Norwegian Training Center in Manila that provides relevant and specific
training for Filipino seafarers working on Norwegian ships. Then the Norwegian
Maritime Authority is working with the Philippines’ Maritime Industry Authority
in ensuring that maritime/seafarer education is in compliance with
international standards.
Second, the Philippine Norway Business Council, a young
organization that promotes bilateral business opportunities between the two
countries. Established on 5 January 2011, the Council is a direct result of a
common initiative from the Norwegian business community in the Philippines. The
objective was to create a forum or a platform of interaction for Norwegian
companies represented in the Philippines, Philippine companies with links to
Norwegian businesses, and individuals involved in Norwegian companies.
Third would be the Norwegian companies themselves that
have come into the country to partake of opportunities presented by the
Philippines business environment. One of these companies is Norconsult -- one
of the oldest Norwegian companies in the country specializing in project
management services for engineering projects in the transport, energy, and
urban & regional development sectors.
Norconsult’s first Filipino Managing Director for its
Philippine subsidiary, Rodolfo “Ozone” T. Azanza, Jr. said that their manpower
complement has expanded almost three times in less than two years, signifying
the expanding business opportunities for his firm, that in turn also create
more jobs for Filipinos. He also said that the best export of Norway to the
Philippines is their strong practice of business integrity. By practicing it
locally, it gives a good business case, attracting clients and employees who
live by the same principles.
Here is a snapshot of the social and economic conditions
of the Philippines and Norway, rather incomparable in many aspects but are
welded by trade and investments (see table).
On April 28, 2016, the four European Free Trade Area
(EFTA) states composed of Iceland, Liechtenstein, Norway, and Switzerland,
signed a free trade agreement with the Philippines in Bern, Switzerland. The
EFTA-PH Free Trade Agreement (FTA) is a broad-based agreement covering trade in
goods and services, investment, competition policy, intellectual property
rights protection, government procurement, and sustainable development.
Specifically, EFTA abolishes all customs duties on industrial products from the
Philippines upon implementation, while the Philippines will gradually lower or
abolish its duties on the vast majority of such products coming from EFTA.
That trade agreement may bode well for a similar future
agreement with the continent’s bigger economies like Germany, France, and UK. A
possible Philippine membership in the US-led Trans Pacific Partnership
Agreement will also be a good thing, before a FTA with huge EU economies.
In trade, the best route is unilateral liberalization,
just open the borders and regulate only those products and services that can
cause harm to public health and safety. Like guns and bombs, poisonous
substances, substandard medicines, etc.
However, only a few economies have succeeded in having
such policy, like Hong Kong, Singapore, UAE, and Chile. So the second-best
policy is via regional and bilateral FTA. Empowering the local consumers and
producers with more choices where and from whom to buy and sell is empowering
the people, expanding their economic freedom and individual liberty.
Bienvenido S. Oplas, Jr. is the head of Minimal
Government Thinkers, a Fellow of SEANET and member of EFN-Asia that promotes
free trade.
BWorld 48, On unilateral trade liberalization, March 17, 2016
BWorld 57, Eric Hoffer, Machiavelli and Duterte, May 06, 2016
BWorld 58, INDCs and PH energy realities, May 14, 2016
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