As bilateral trade moved to $40 Mn, Asia’s second fastest growing nation, the Philippines, has affirmed that it is ready to renew trade relations with Sri Lanka in a bigger way whilst also calling for direct air and marine cooperation between both countries for the first time recently, 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,” Dhaka based Philippines for Sri Lanka, Ambassador Vicente Vivencio T. Bandillo said.
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.
Ambassador Bandillo was addressing Minister of Industry and Commerce of Sri Lanka, Rishad Bathiudeen during a courtesy call on February 05 at the Ministry of Industry and Commerce, Colombo. Joining Minister Bathiudeen at the wide ranging discussions was R. D. S. 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 (ADB) expects the Philippine economy to grow 6.4% in 2015, the highest in the region after China.
“As the total annual trade between both countries is recorded at levels of around $35-$40 mn, I note that there is no significant trade improvement between us in recent years and it is time to explore these unrealised trade potentials,,” said Minister Bathiudeen.
He also 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 President Maithripala Sirisena could be strengthened.”
“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 the Manila - Colombo sector can help Philippino workers who move to and from the Middle Eastern region. Sri Lankan airlines too can consider opening direct flights to the Middle East and we welcome them to Manila,” said Ambassador Bandillo.
The Ambassador further disclosed that since the Philippines is widely a nation of islands, the country utilizes twin-hulled ‘catamarans’ extensively. “We need them in basic as well as luxury ranges to use in inter island shipping. So, we believe 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,” he acknowledged.
According to the Department of Commerce, bilateral trade between the two countries stood at $40.19 mn and in 2014 January up to June, this figure totalled to $20.68 mn. Apparels 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 and 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 the 1980 agreement is re-activated along with extra efforts highlighted on the aspect of trade, a mechanism needs to be established bilaterally to move towards B2B and multi-sectoral cooperation,” responded Minister Bathiudeen.
“The Philippines consul in Colombo is in preparation to visit Manila by April and arrange to meet relevant 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,” Ambassador Bandillo said.
