(Bloomberg) — The Philippines is seeking new avenues for trade in a bid to build economic resilience amid the possibility that escalating maritime tensions with its top trading partner China may lead to sanctions, according to the government’s top diplomat.
Relations between the two nations have been strained over the past year as President Ferdinand Marcos Jr. pursues a more assertive posture to counter China’s sweeping claims of the disputed South China Sea. Part of that effort has seen Manila turn to its longtime ally, the US, for security as well as much-needed investments to spur one of Asia’s fastest-growing economies.
Manila has not ruled out the prospect of the tensions leading to economic retribution from a country that it did $40 billion in trade with last year, with China serving as a major export destination for products like bananas and nickel ore. That could include some form of trade sanctions and requires planning for, Foreign Affairs Secretary Enrique Manalo said during an interview on Friday.
“Unfortunately, sometimes that’s a possibility,” he said from his office in Manila. “That’s why you have to reach out to other partners and you don’t put your eggs in one basket. In the event it happens, at least you have a means of adapting.”
Beyond deepening its defense partnership with the US, the Philippines has been building ties with other countries in Asia as well as with America’s allies in Europe. Part of the strategy has included expanding economic ties with countries like South Korea and France while launching negotiations for a visiting forces agreement with Japan.
A US trade delegation led by Commerce Secretary Gina Raimondo is due to arrive in Manila next month and Manalo said the Philippines is also seeking a free trade agreement with the European Union.
The Philippines and China have been locked in a territorial dispute in the South China Sea, with Beijing claiming nearly all of the resource-rich waterway including areas that Manila says are part of its exclusive economic zone. Tensions came to a head last year when the Philippines ramped up troop rotation and resupply missions to BRP Sierra Madre, a rusting warship that it deliberately grounded in 1999 to serve as its military outpost in the Second Thomas Shoal in the Spratly Islands.
Some of those missions have been met with water cannons and near collisions from approaching Chinese ships. Despite moves by the Philippines to diversify its economy, trade sanctions from Beijing do not appear imminent, said Manalo. “So far nothing like that has happened. But you know, you have to prepare for any eventuality the best you can,” he said.
But the dispute has stalled the Philippines’ plans to explore oil and gas in areas that it considers as part of its territory. Marcos has said discussions with China have been in a deadlock even after both nations agreed to resume talks on joint exploration in the South China Sea in January last year.
Manalo said while Manila remains open to further negotiations with Beijing, it cannot agree to yield control of any venture to China as provided under Philippine laws.
“We haven’t closed the door to negotiations, but we have certain positions we have to maintain,” the minister said.
Other nations can also participate in the Philippines’ energy exploration plans within areas it claims in the South China Sea. “Other countries, if they’re interested, I suppose could make their offers,” he said.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
