Compared to China, US trade, investment offers laughable

THE much-ballyhooed ‘US Trade and Investment Mission’ to the Philippines boasted by the BBM government with its ambassador to the US, Babes Romualdez doing his hard sell to drum up the event along with the Philippine oligarch-controlled media, finally did arrive to the country last March 11 and “pledge” (promised) to plunk in US$1 billion in fresh investment here by American companies.

Prior to this, Amb. Romualdez was in overdrive to hype the US Trade Mission over serious doubt by sensible sectors over potential loss of trade and investments with China due to US pressure.

Heck, Romualdez event went to the extreme of claiming, mere hot air as it turned out, that the “US will invest P1.7-Trillion in the Philippines!”

That is pure hogwash we know now when US trade secretary, Gina Raymundo, immediately upon arrival, declared she only came with a $1 billion investment pledge.

On the other hand, the BRI (Belt and Road Initiative) donations of China alone that are reality– Chico River Irrigation Pump, Davao Bucana Bridge, Estrella-Pantaleon and Binondo-Intramuros Bridge, the ongoing Kaliwa Dam Project that would provide 600/mld (million liters per day) to drying Metro-Manila and hundreds other projects– already count billions of dollars, not to mention private investments like DITO Telecoms’ $ 3.9 billion investment in our telecom sector.

For many years now, the Philippines has been asking the US for better trading arrangement—what are ‘ironclad’ allies after all—such as zero tariff under the GSP (general system of preference) as well as an FTA (free trade agreement) covering some 3,5000 Philippine products.

All these ‘friendly request’ by us have repeatedly been denied by the Americans. Finally, in 2023, we got a clear thumbs down when US Trade Representative Katherine Tai declared, “traditional free trade agreement is not ‘appropriate’ at this time while pushing the Indo-Pacific Economic Framework (IPEF).” In short, we got snubbed, again.

The US is already protectionist. The Philippines cannot get trade privileges from the US anymore; instead, the US will be predatory in its “investments” as the Trade Mission shows with the bulk of its announced US$1 billion investment going to the energy sector.

Why? To exploit the extraordinarily high profits from Philippine power contracts that allow over 18.5 percent returns. As for garments and microchips the Philippines, without GSP, FTA and Xinjiang cotton and access to the China chips market won’t be competitive.

Heck, Romualdez event went to the extreme of claiming, mere hot air as it turned out, that the “US will invest P1.7-Trillion in the Philippines. That is pure hogwash we know now when US trade secretary, Gina Raymundo, immediately upon arrival, declared she only came with a $1 billion investment pledge.

Barely discussed these days, the China-led Regional Comprehensive Economic Partnership (RCEP) opened our durian and avocado to China gargantuan market starting last year.

RCEP opened Malaysia to Chinese NEVs (New Electric Vehicles) joint ventures, industrial park development and nickel processing cooperation. The Philippines is now defaulting on its RCEP free trade benefits that the Philippine Institute for Development Studies (PIDS) said would boost our economy by 2 percent.

Meanwhile, the economy continues with its downward spiral, rice production shortfall is expected in 2024, Negros’ sugar production dropped due to El Niño, official inflation has inched back to 3.5 percent while “shrinkflation” (uncounted shrinkage of goods consumers buy for the same price) continues to climb.

But BBM is traveling to the countries of the White Alliance (NATO) and vassal states (Japan, S.K.) pushing the “China threat” and the “WWIII mood.” How ridiculous, silly and – very sad.

The “China threat” and “war mood” being pushed is going to ridiculous heights. The latest is the “7 out of 10 Filipinos willing to defend nation from foreign enemy” and mainstream media juxtaposing this with the water cannoning incident in the South China Sea.

And earlier, OCTA survey reported 59 percent of Filipinos want the country to rejoin ICC. Clearly, mercenary polling firm OCTA is serving the US interest by using complex questions that cannot be accurately answered and measured compared to using simple questions.

The “transparency strategy” American ex-USAF Colonel Raymond Powell that he pushed with the cooperation of the entire BBM government has not achieved a single objective it promised its vassals here, such as “gathering international support” as our fellow ASEAN members are shooting it down already.

So, the “transparency strategy” goes to Germany where the two “proxy-dents” Scholz gives tips to BBM on how he destroyed the German economy for the sake of the revival of the US economy – by leading the Ukraine War from behind.

From Germany, BBM visited the Czech Republic, a country of 10-million population acting out the role of the “mouse that roared” against Russia in the Ukraine War.

This is a role that BBM now seems to be emulating, declaring himself the “David” against the “Goliath” China when he is actually the “mouse” of the US hegemonic bully trying to maintain its 20th century dominance in an already 21st century ‘Multipolar World’ under the BRICS+ countries.

BRICS+ countries already constitute 37 percent of the world’s GDP (gross domestic product), compared to the 29 percent of the West.

China’s trade with the Global South results in 2024 year-on-year export gain of 10.3 percent, offsetting loss in its trade with the West. Year-on-year, China’s import also grew 0.2 percent but is expected to be much robust soon.

I would not be surprised if the Philippines is left out when China’s import demand increases soon.