Globalization of the Philippines at APEC/ASEAN Summit

By: J0e Mauricio

 

After the euphoria that hit the Philippines last November, for being a host to the dozens of ASEAN countries that held a historical summit in its own domicile, the country is now back to normalcy.

The Philippines alone does not have the solutions to all the economic problems that had been taken up. The ASEAN or APEC has come to stay as the single most important forum to address the financial and economic issues of the participating nations.

The emerging economies are happy like the Philippines, that these countries did not agree on the global oversights mechanism to ensure that national regulations and authorities are implementing the action plan.

It is also with regrets that the ASEAN efforts to deal with the crises are coming together at a time when there will be a change of government of the Philippines and it is not clear what the new administration has put on the table. The incoming administration in the Philippines could still indicate its position before it takes office in 2016. We don’t see any reason why the president-elect of the country would oppose to the idea of global or ASEAN oversight.

The developing economies of Asia were so eager to get more investors. Several major new developments in ASEAN trade are expected to play a significant role in logistics in 2016 affecting nearly every business that imports or ex[prts goods. Does the Philippines have the infrastructure to handle the exchange of goods? Does it have roads that will simplify the movement of goods through international borders for thousands of clients?

The new trade agreement aims to open markets and simplify trade processes, creating an unprecedented opportunity forASEAN countries. But is the Philippines ready?

That streamlined process may prove even more beneficial to companies doing business internationally, as several pending trade agreements take effect.

The Philippines was invited by President Obama to join Trans Pacific Partnership (TPP) which is the biggest free trade deal in history. The twelve-country members, not including the Philippines, account for about 40% of global Gross Domestic Products (GDP). It has yet to be ratified by the governments of each country.

To be successful, it is imperative that countries understand how these trade developments could impact their business and do their due diligence to prepare for them, such as strategizing business opportunities and adapting their business models to encompass trade opportunities. It is also important to build a compliance strategy so that importing and exporting processes and documentation are in compliance with the pending trade agreements’ rules and regulations.

While many SMB’s (Small Medium Business) might have the strategic firepower to capitalize on the opportunities, the complex demand of regulatory compliance could be overwhelming.

The question, is the Philippines ready? If not, here are some suggestions…There are companies in the U.S. that could help them, like C.H. Robinson logistic company, that leverages scalable global technology to help clients doing business internationally bring all aspects of their supply chain together, providing with end-to-end shipment visibility, and reporting across all the regions of the world.

This hybrid approach can improve supply chain performances or the same or lower total landed cost, reducce capital investment, increase insight into performance matrix, and speed up response time to changing market conditions.

Is the Philippines ready for globalization? The answer is a resounding YES! Go! Go Philippines!

To the American investors looking at the promising Philippine market, do invest in the Philippines, the awakened TIGER OF ASIA!!##