US: Sea row threatens regional commerce

MANILA, Philippines - Uncertainties spawned by hostile incidents in the South China Sea and West Philippine Sea are affecting the business climate in the region, visiting US Secretary of Commerce Penny Pritzker said in a roundtable briefing with reporters yesterday.

Pritzker cited China’s move last month to deploy armed naval vessels near the Paracels to guard an oil rig that it had parked in the vicinity. One of the vessels rammed and sank a Vietnamese ship, which ventured into the area that Vietnam considers part of its territory.

She said China’s action was “provocative” and that it had further raised tensions in the region. “We’re very concerned about that. Its (China’s) dangerous conduct and intimidation by vessels operating in this area is not good,” Pritzker said.

She reiterated the US position on the need for a peaceful and legal approach to end the territorial disputes in the region.

“The US has a national interest in the maintenance of peace and stability, there must be respect for international law, unimpeded lawful commerce and the freedom of navigation and overflight in the South China Sea, and the US supports the use of diplomatic and other peaceful means to manage and resolve the disputes in the South China Sea, including the use of arbitration or other international legal mechanisms,” she said.

She said the issue “relates to the business environment” and that it is important for commerce to thrive in an environment of certainty.

“Actions like these create uncertainty, which is not good for the business environment,” she pointed out.

Despite such concerns, however, she said US companies remain determined to invest in the region, particularly in the Philippines.

“Having said that, you’ve seen the enthusiasm of American businesses who want to be present in the ASEAN region and particularly here in the Philippines. There is an attitude of total awareness of the situation but in general (there’s) optimism about what’s occurring in the region and a desire to participate,” Pritzker said.

In remarks before the roundtable discussion, she stressed the US commitment to Asia “is enduring.”

“Developing economic and commercial ties to region will generate shared prosperity,” she said.

She said the US is cognizant of the Philippines’ economic dynamism as well as its progress in instituting reforms. She noted “remarkable improvements” in protecting intellectual property rights, collection of taxes as well as in the country’s sovereign debt rating. 

Philippine ambassador to the US Jose Cuisia said Pritzker’s visit “goes to show that the Philippines is in the radar screen of American investors.”

Pritzker heads a delegation of senior American corporate executives to the US-ASEAN Business Council.

US-based Filipino engineer Jun Baldonado – who attended council meetings – said he was surprised to learn that business opportunities abound even outside Metro Manila.

“I thought all the opportunities for business process operations (BPO) were only in Manila.