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The Philippines is becoming even more globally competitive. In just the last
three years, we have moved up 26 places in the World Economic Forum (WEF)
Global Competitiveness Report. In the ethics and corruption category, the
country has jumped from 135th in 2010 to 87th this year. Should we
preserve these gains, we can expect to move into the top
third of the global rankings by 2016.
Recently, the Economic Freedom of the World 2013 Report issued by the
Fraser Institute, Canadas leading think tank, recognized the Philippines
as the second best performer in ASEAN, next to Singapore.
The Asian Business Cycle Report of the OECD Development Center also
cited the Philippines as the only emerging Asian nation with strong
business cycle momentum highlighting its economic resilience.
Furthermore, the latest study conducted by KPMG International and Oxford
Economics for the 2013 Change Readiness Index positioned the Philippines in
18th place in terms of the capability of the country to deal with change.
All of these developments represent a resounding affirmation of
global and domestic confidence in the Philippines.
There are, however, remaining challenges. And as we continue to tackle with
resolve the remnants of the culture of corruption and impunity, we seek at the
same time to institutionalize and sustain the reform agenda beyond the Aquino
administration. It is our conviction that the Filipino people deserve no less.
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We designed defense and security relationships to manage new realities.
In lieu of traditional ideas of balance of power, we have emphasized
engagement in new challenges, including transnational crime, terrorism,
and maritime security and cooperation, as well as,
cooperation on humanitarian emergencies.
In addition to our treaty alliance with the United States, we expanded our
defense and security engagements with other countries such as South
Korea, New Zealand, Italy, Spain and France. More significantly, our Senate
ratified a Status of Visiting Forces Agreement with Australia in June 2012.
The Philippines is also working with Japan in enhancing maritime security in
the region. As one of two Strategic Partners aside from the US, Japan
has been supporting our Philippine Coast Guard in training
its personnel and upgrading its equipment.
From 2012 to July of this year, we successfully facilitated the conclusion
of 40 agreements on political and security matters.
Under the pillar of protecting Filipino nationals overseas, we continue to
be guided by the Presidents call to be even more responsive to
the needs and welfare of our overseas Filipino workers.
Since 2011, we have repatriated nearly 20,000 Filipinos in countries torn
by civil strife and devastated by natural and other disasters. We continue to
repatriate our compatriots from Syria and Egypt, where violence
continues. Adhering to a policy that no one gets left behind, we have also
had the good fortune of not losing a single life that was within our control.
We additionally are addressing the challenges of Saudization and have so
far repatriated a total of over 4,000 undocumented Filipinos and assisted
several thousand others in meeting regularization requirements.
counseling, shelter, and labor mediation. They undertake jail visitations, administer overseas absentee
registration and voting, and help Filipinos organize themselves into communities. They network
with local organizations whose purposes are aligned with our policy objectives.
Taking care of our 10 million migrants in 174 countries over 40 time zones has earned
us the reputation as the Department that never sleeps.
Finally, let me discuss the economic security pillar in greater detail.
From 2012 until the first semester of 2013, we extended assistance to more
than 34,000 overseas Filipinos and members of their families. Our Foreign
Service personnel provide round-the-clock legal and consular assistance,
The Department has worked tirelessly to support the Presidents twin goals of poverty alleviation and
job creation. As a result, we have made significant progress in economic cooperation with other countries.
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In 2012 alone, we were able to finalize 43 agreements involving economic cooperation in the areas of investment, tourism,
development assistance, education, and air services agreements.
At the same time, we assisted in developing more than 700
inbound and outbound trade and business missions.
With Europe, the 2012 Philippines-EU Partnership and
Cooperation Agreement, which is in the process of ratification,
will allow both sides to address new challenges on issues such
as customs and trade facilitation, energy and migration.
Indeed, European countries are now looking at
the Philippines with invigorated interest.
In grants and loans, we have helped secure over three billion
dollars from Japan in official development assistance for, among
others, infrastructure projects, disaster risk reduction and peace
and development for Mindanao. In addition to a five-year
grant amounting to 434 million dollars from the Millennium
Challenge Corporation for poverty reduction and
infrastructure projects, the US, in the past year, has provided
over 400 million dollars in aid. We have also secured approval
in the last twelve months of nearly half a billion dollars from
the Republic of Korea in loans and grants and close to
141 million dollars in grants from Australia in 2013.
Meanwhile, the Philippine hosting of the 23rd World
Economic Forum on East Asia in 2014 and the Asia-Pacific
Economic Cooperation in 2015 provides invaluable
opportunities for the Philippines to promote itself
as a business and investment destination.
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Further to this, the Leaders stated that they would continue to implement the APEC Investment
Facilitation Action Plan, to encourage government officials to work with the private sector in
enhancing Corporate Social Responsibility practices and sustainable investment.
Facilitating trade and investment within APEC economies will be easier through increased mobility of
business people across borders. This was the reason for the creation of the APEC Business Travel Card
(ABTC), which facilitates the travel of business persons by, among other benefits, granting them
three-year, multiple-entry privileges to participating APEC economies.
It is in this regard that the DFA continues to strengthen its relationship with Certifying Business Organizations
or CBOs1. CBOs are expected to pre-screen applicants to ensure that they are bona fide business persons
with a legitimate need to travel within APEC economies. CBOs also help raise awareness about the
opportunities in APEC and encourage SMEs to expand their presence outside of their traditional markets.
The success of each of these APEC initiatives connectivity, infrastructure development, and more
depends not merely on the government, but also on our close cooperation with the private sector.
We look forward to working with you in promoting the economic development
of the Philippines and the Asia-Pacific region as a whole.
It should be pointed out that 2015 is an important year for the Philippines and for the region. This year
marks the deadline for many international commitments, such as the Millennium Development Goals and the
realization of the ASEAN Community based on the Political-Security, Economic and Socio-Cultural pillars.
In particular, the ASEAN Economic Community envisions a competitive region
with a single market and production base.
Based on the scorecard, ASEAN is viewed to be on track to realize the ASEAN Economic Community (AEC).
The notable developments in the AEC pillar show that the implementation rate of the measures in the AEC
Blueprint has increased from 74.5% in December 2012 to 79.7% as of September 20132.
Based on DTIs July 2013 data, the Philippines has achieved a national implementation rate of 85.54% this
year, accomplishing 182 items out of 213 total AEC measures. For the 2008 to 2013 period, the Philippines
scored 87.2%, accomplishing 392 of 439 measures.
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We have undertaken many efforts to peacefully engage China and settle these disputes.
However, all of these were unsuccessful. The Philippines has exhausted all reasonable
political and diplomatic avenues for a peaceful negotiated settlement of its
maritime dispute with China. Our last resort is to utilize the legal track
towards the resolution of these disputes.
From the Philippine perspective, the rules-based approach contains two elements:
the first is the third-party arbitration towards resolution of maritime disputes, in
accordance with the universally recognized principles of international law, specifically
UNCLOS; and the second is the expeditious conclusion of a Code of Conduct (COC)
on the South China Sea between ASEAN and China towards the management
of tensions. Those initiatives are anchored on international law.
The Philippines initiated arbitral proceedings in January this year. Upon invitation,
China refused to participate. We see arbitration as an open, friendly, and durable
solution to the dispute. We believe it benefits everyone. For China, arbitration will define
and clarify its maritime entitlements. For the Philippines, arbitration will clarify what is ours,
specifically our fishing rights, rights to resources and rights to enforce laws within our
Exclusive Economic Zone. For the rest of the international community, the
clarification of maritime entitlements will assure peace, security, stability
and freedom of navigation in the South China Sea.
On the status of the arbitration, the Arbitral Tribunal has adopted the rules of procedure
and decided that the Permanent Court of Arbitration in The Hague shall act as the
Registry in the proceedings. Again, China refused to participate in the proceedings.
Nonetheless, the decision of the Arbitral Tribunal will be legally binding on all parties and
will not be appealable. The Philippines will submit its Memorial by 30 March 2014.
The Philippines fully supports ASEANs efforts to work towards the early conclusion of
a substantive and legally binding COC to promote the peaceful management of tensions
in the South China Sea. The Philippines is encouraged by the results of recent meetings
between officials of ASEAN and China where both sides agreed to begin
discussions on the workplan for the COC.
Despite the challenges we face in protecting what is ours, the Philippines endeavors to
maintain a constructive relationship with China, one that is mutually beneficial. We
maintain that our dispute in the West Philippine Sea is not the sum total of our relations.
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The President is firm in his conviction to uphold his agreement with Chinese President Hu
Jintao in 2011 not to let the maritime dispute affect the broader picture of
friendship and cooperation between the two countries.
We acknowledge Chinas role in world affairs and support its peaceful rise. To be truly viewed
as a positive force, China must manifest its adherence to and respect for the rule of law.
Clarion Call
May I, therefore, enjoin every Filipino to fully support our independent and principled Foreign
Policy in advancing our advocacies in all three pillars; to continue fully supporting the
Presidents Daang Matuwid. With you as partners, the Government will be further energized
to work towards inclusive growth, combating corruption, promoting transparency and
accountability, improving global competitiveness, achieving just and lasting peace, and
upholding the rule of law. May I, moreover, enjoin each and every one of you to
continue speaking well of what is happening in the Philippines and to speak
more often and more loudly of our very bright future.
The global spotlight is on us. Let us make the most of this important juncture in our history.
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