British gov’t boosts trade links with Phl

CEBU, Philippines - With the support of open markets and good prospects of more sustainable and equitable economic growth, the British government has sought to deepen its business ties with the Philippines, the British Embassy Manila said.

In his visit to Cebu Monday, Colin Glen, the embassy's second secretary on bilateral communications, stressed the continued strong trade and investment relations between the United Kingdom and the Philippines.

British businesses engaged in sectors such as retail, energy, financial, information technology and business process outsourcing, pharmaceutical, education, tourism, renewable energy, among others have eyed the Philippines as potential investment place. UK trade missions here have been aimed at looking at possible partnerships with the business sector in increasing the efficiency of transport and social infrastructures.

British firms are also looking at investing in the BPO sector which currently employs around 800,000 workers.

On the other hand, the UK Trade and Investment has also wanted to attract Filipino investors to do business in the UK particularly in industries such as banking and finance, food and drink, retail, education, healthcare, infrastructure and also energy.

Glen explained Philippine firms investing in the foreign country are growing and looking to expand due to growing awareness on inward investment opportunities in the UK which is one of the world's most open and free markets.

It takes an average of 13 days to set up a business there. Bank of the Philippine Islands, PLDT Global and Smart and Emperador are some big Filipino firms that have expanded global operations there.

According to the embassy, the two-way investment should further be strengthened to allow local industry players to forge commercial partnerships and explore trade opportunities.

Lynn Ayers Plata, the consulate's communications manager, said the presence of British firms here has showed UK's positive confidence in the growth of the Philippine economy. "This is a good indication as to where the Philippines is heading," she added, noting the country's investment climate seems to be improving.

In the same way, she said UK has also strengthened its positioning as an investment destination as it is deemed as a great gateway to Europe.

Trade relations

UK-Philippine trade relations are good. Data from the Department of Trade and Industry showed that in 2012, the total bilateral trade between the two valued at US$ 927.91 million, or 0.81 percent of the total Philippine trade with the world of US$ 114.23 billion.

In the same year, UK was the country's 20th trading partner, 13th as an export market accounting for 1.26 percent share of the total Philippine exports to the world of US$ 52.10 billion and 28th as an import source accounting for 0.44 percent share of the total Philippine imports from the world of US$ 62.13 billion.

UK is one of the largest European investors and fourth highest source of foreign direct investments in the Philippines. Major foreign investors here include HSBC, Unilever, Shell, Standard Chartered, Pru Life, GSK, AstraZeneca, among others; retail brands such as M & S, Speedo, Topshop, Warehouse, etc.; and Financial Times, Logica, T-Mobile and Northgate Arenso are some UK firms active in the BPO sector here.

Last year, UK exports of goods valued at £374 million, a 13 percent yearly increase. Top UK exports include electrical machinery, pharmaceuticals, professional services and transport equipment.

Philippine exports to the UK include motor vehicle parts, desiccated coconut, tuna, electronic micro assemblies, accessories of automatic data processing machines, among others.

Pinoys in UK

More than 250,000 Filipinos are living in the UK as British residents, workers and students.

Many of them are employed in the healthcare sector as nurses, caregivers and health assistants. (FREEMAN)