Americans prefer transparency

By IRMA ISIP

American businessmen prefer transparency, predictability and a reliable court system over land ownership when they invest in the Philippines.

American Ambassador Harry Thomas Jr. in a speech yesterday before the Makati Business Club said that these three conditions were more pressing concerns for Americans.

“Business people are telling me they always want predictability (and lack of it) causes them to look at other avenues,” said Thomas.

This explains why the Philippines is getting less foreign direct investments from the US. “Look at Vietnam, look at Singapore, look at Cambodia and say what are they doing to attract investments that you need to do in the Philippines,” he said.

Thomas added that out of the $150 billion FDIs from the US in Southeast Asia, about $100 billion are in Singapore.

“We’re trying to encourage US business persons to invest in Asean. There’s a lot of missed opportunities on our side,” he said.

Thomas cited the need for the Philippines to attract investments from the US because it competes with other countries in the region.

“How do you attract the $100 billion that Singapore has. A lot of that is not up to us, it’s up to you, it’s up to Congress, it’s up to the Senate, the people on the street.”

He added that Philippines surely does not want to be number 8 or 9 among the 11 countries in Asean. “I’m sure you want to be number one.”

Thomas said some US businessmen do, and some do not have, a challenge on foreign ownership but for those who do have, “we educate them on the colonial period, many do not know about the parity … we always try to explain that Filipinos are not irrational and a lot of this is based on history.”

”But how do you get from history to modern day to a balance that would give Filipinos jobs?” Thomas asked.

He noted that land ownership is less of an issue for American business, although he cited that in Thailand, they can lease land for many years.

Thomas explained that the possibility for the Philippines acceding to the trans-Pacific partnership - a Pacific free trade deal -- does not only rest in the hands of the US but also depends on the other countries.

“Very shortly we would see some new initiatives not only for the Philippines, for which we have negotiated a trade and investment framework agreement - but also Asia in a greater orbit of trade,” Thomas said.

Thomas also told the MBC members that it may be difficult to have the Save Act - like any other bill - get passed in the US Congress during this election year.

“We’ll see next year, but we give credit to Ambassador (Jose) Cuisia for making the Save Act as one of the top priorities,” Thomas said.

The US envoy explained rebalancing relationships between US and Asean not only involves military support but also encouraging American investments.

Thomas said President Aquino’s fight against corruption has enabled the US to continue to help the Philippines in terms of foreign assistance, such that US aid has not been cut and there has been an increase in the number of peace corps volunteers.

On the issue of the dispute in the Philippine seas, Thomas said “This is something we work on on a daily basis with the government. We do not want to further escalate tension.”

“We want a peaceful resolution. We want all countries to live up to all agreements, that is to support of code of conduct between China and Asean. There’s a better way to resolve it, to sit down and negotiate,” Thomas said.