Business

Germany, Philippines ink trade, social security, training agreements

The Philippine Star

September 20, 2014 | 4:55pm

MANILA, Philippines - Bilateral relations between the Philippines and Germany expanded Friday as leaders forge agreements in trade, social security and technical training.

At the press conference with German Chancellor Angela Merkel at the Federal Chancellery, Aquino announced the signing of an agreement on trade cooperation between the two nations through exchange of drafts formally establishing the German-Philippine Chamber of Commerce and Industry in Manila.

Despite domestic criticisms that bureaucracy hamper the influx and establishment of businesses, Aquino said that the new understanding is a welcome sign that the Philippines is now more open for business.

"With this development, we can see enhanced trade and investments, especially among the German Mittelstand. It will also establish the cooperation arrangements with, and between, local German Chambers in Germany and the Philippines," he said.

Aquino said the agreement on social security between the two nations, meanwhile, will facilitate equality of treatment in the workplace.

The agreement will also involve processing of claims and prevent dual coverage, benefiting both German and Filipino nationals, Aquino said.

Also signed was memorandum of understanding between the Technical Education and Skills Development Authority, or TESDA, and the Federal Institute for Vocational Education and Training, or BIBB, seeking to institutionalize regular dialogue and sharing of best practices between Filipino and German policymakers and experts.

Aquino said cooperation in technical-vocational training will provide a "foundation to expand practical cooperation between our respective ministries as well as with the private sector."

"I am told that German technical expertise were instrumental in the development of the Philippines' Dual Training System Act of 1994 and we continue to harness those expertise toward our mutual gain," the president, who is in Germany for the final leg of his four-nation European tour, added.

Aquino said all of the three agreements ?underscore our common vision to build a Germany and a Philippines where equitable prosperity and shared development are realities enjoyed by our peoples."

"It is this very context that informs our collective resolve to deepen relations, at a time when we are confronted by complex challenges and needs that require not only the cooperation and understanding between our two countries—but that of the entire community of nations," he added.