DAMMAM, 5 October 2005 — Members of the Filipino business delegation in the Philippine-Saudi Joint Commission Meeting (JCM) held in Riyadh said they were happy with the result and they were looking forward to stronger economic relations between the two countries.
Agreements were inked recently by the two governments, which officials said will open up more trade and investment opportunities.
Oscar de Venecia, vice chairman of the international trade affairs committee of the Philippine Chamber of Commerce and Industries (PCCI), said they were particularly elated that the recommendations of the business groups were positively included in the protocol agreements signed by the two governments in Riyadh last Sunday.
De Venecia said the two governments will soon release officially what was contained in those agreements.
Every two years the governments of the Philippines and Saudi Arabia conduct a joint meeting to tackle issues concerning their nationals.
Undersecretary Edsel Custodio of the Department of Foreign Affairs headed of 26-member delegation of the Philippine government and a high-ranking official at the Saudi Ministry of Foreign Affairs represented the Saudi government.
De Venecia said that the Philippine-Saudi Business Council (PSBC), which is under the PCCI umbrella, met with the Saudi Philippine Business Council (SPBC) last Saturday in Riyadh, a day before the joint commission met.
“The two business groups submitted several agreements to the JCM, of which most of the recommendations were positively included in the protocol agreements signed by the two governments,” said de Venecia.
He said Philippine businessmen are also looking into investing in Saudi Arabia’s mining industry, particularly on copper, gold and phosphate.
He said the Philippines is experienced in mining “but we have to be in a joint venture with the Chinese, Japanese, or Korean firms to ensure that we are technically qualified and financially capable.”
De Venecia, who headed the 22-member private-sector group from Manila, said they were eyeing Saudi Arabia as a big market opportunity to sell Philippine products.
In a meeting yesterday with Saudi businessmen at the Eastern Province Chamber of Commerce and Industries, both parties agreed to explore more business opportunities in their countries.
The Philippine team was accompanied by Ambassador Bahnarim Guinomla during the meeting in Dammam.
Thai Products
Victor Fernandez Jr., president of the Philippine Association of Service Exporters Inc. (PASEI) and who led the PSBC, said that issues on manpower, customs, investments, health, education, and aquatic resources were discussed and resolved during the meetings held in Riyadh and Dammam.
He said the Philippine group wanted to export more items to Saudi Arabia.
“But our counterparts told us that we are facing a lot of problems on the proper labeling of our products, particularly on expiry dates,” Fernandez said.
The Saudi council also warned their Philippine counterpart about fake products being brought into the Kingdom from Thailand. “This will really hurt your products,” Fernandez quoted a Saudi businessman as saying.
The PSBC, Fernandez said, will be discussing these issues with manufacturers in Manila. “The manufacturers must conform to these requirements,” he said.
“PCCI will form a seminar tandem with the Philippine Export Federation and will campaign actively with small-medium enterprise to enter in this big market in Saudi Arabia,” de Venecia added.
Fernandez said that they are seeking for more business in the Kingdom since there is a trade imbalance between the two countries.
Saudi Arabia’s exports to the Philippines is valued at $1 billion a year, mostly oil, while the Philippines exports a meager $42 million to the Kingdom, Fernandez said.
Saudi businessmen were also keen on selling more non-oil items to the Philippines, such as wheat and dates.
The two trade councils are now being fully organized to spearhead in resolving issues particularly on manpower supply. Most Saudi businessmen complain of the tough regulations imposed by the Philippine Overseas Employment Agency.
They said that if the recruitment regulation would be a little easier, the recruitment for Filipinos might double up, according to de Venecia.
“They still prefer Filipinos, and they are happy with our skills,” he said.
Veronica Elaine Carandang, head of the Philippine businesswomen group, said that with the entry of the Saudi businesswomen in the council, more trade opportunities are expected.
“It’s very different when the ladies discuss things. It is more easier and faster to make decisions,” she said.
