US businessmen want more open economy

An influx of American investments could pour into the Philippines because of confidence in the Aquino administration but restrictions in the professional and retail trade sectors may deter investors, an American business leader in the country said on Monday. “There is renewed interest in the Philippines. The Aquino administration is setting the right tone,” Robert Sears, the executive director of the American Chamber of Commerce of the Philippines (AmCham), told reporters recently.

Sears said that “small” actions such as making the bureaucracy easier to work with, focusing on job creation and putting in place efforts to curtail graft and corruption are earning the new administration brownie points.

He noted that the Philippines was “not in the radar screen for some time,” but American investors are giving the country a second look, especially with a new government in place.

Sears said this is a period when American students are on vacation—that most US businessmen look for investment opportunities abroad.

“When they come over to Asia, they now pass by the Philippines,” he added.

But Sears said that restrictions on the economy and competitiveness issues may still put off potential US investments in the Philippines.

He cited the high capital required for retail investments under the Retail Trade Liberalization Act.

“If capitalization in the retail trade sector [is lowered], there will be a level playing field, and foreign investors will come in,” Sears said.

He added that the limits on professions that foreigners can practice in the Philippines turn off American businessmen.

Sears said that about 45 laws bar non-Filipinos from certain jobs.

“If you ask me, I want reciprocity. If Filipinos can do anything in the US, Americans should also be allowed to do the same here,” he added.

According to the US Trade Representative’s website, US foreign direct investment in the Philippines in 2008 reached $5.9 billion, down 16.3 percent year-on-year. –BEN ARNOLD O. DE VERA REPORTER