Drilon: Be prepared for impact on economy of Duterte tirades
Senator Franklin Drilon. INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE
Sen. Franklin Drilon on Friday called on the country’s financial managers to be prepared to cushion the negative economic impact of President Rodrigo Duterte’s relentless tirade against the Philippines’ longtime allies and international organizations.
While the senator expressed support for the government’s independent foreign policy, Drilon warned of the serious economic consequences of “antagonizing multilateral institutions and having poor relations with other countries,” particularly in terms of a reduction in foreign aid.
In a statement, Drilon said that if the President continued with his antagonistic stance against the United States and the European Union, this may result in a reduction or even withdrawal of foreign aid to the Philippines which is currently at $3 billion.
He said the country also ran the risk of losing trade preferences, including those under the generalized system of preferences which allows local producers to export products at zero or preferential tariff rates. This would, Drilon said, reduce the competitiveness of Philippine products in foreign markets.
“So the fact is, if we lose these privileges it will adversely affect our economy, and in turn the livelihood of millions of our countrymen. So it is very critical that we maintain our good relations with our longtime partners and allies in the US and EU,” Drilon said.
He said, “The country cannot afford to lose the support of its longtime ally countries, especially in the economic and development sectors.”
“The government should take precautionary measures to cushion the impact once foreign aid contributions to the country are reduced, or should the United States and the European Union take the President’s challenge to withdraw foreign aid seriously,” the senator said.
While supporting the administration’s pursuit of an independent foreign policy, Drilon pointed out that it could be accomplished “without jeopardizing the billions worth of foreign assistance poured into the country annually.”
President Duterte, responding to international criticism over human rights violations in his antidrug campaign, has been peppering the United Nations, United States, European Union and international human rights organizations with insults.
He has said in various ways that he does not care about international human rights commitments, and has threatened to withdraw Philippine membership in the United Nations, cut longtime ties with the United States and develop closer ties with China and Russia.
Mr. Duterte is scheduled to pay a state visit to China next week. Trade officials said they expected to obtain over $3 billion in funding commitments during the visit.
