Ten companies from the Mercosur trading bloc are actively exploring opportunities in the Philippines, according to the head of the Mercosur-Asean Chamber of Commerce (MACC).
In an interview on Monday afternoon, MACC President Rodolfo Caffaro Kramer said that the time is ripe for Mercosur countries, which are composed of Argentina, Brazil, Paraguay, Uruguay and Venezuela, to establish stronger ties with Asean and the Philippines, in particular.
“We are convinced that Mercosur and the Philippines have a great potential to work together because we’re complementary,” said Kramer, adding that food and medicine are two areas of interest.
Kramer said that four Argentinian firms in the sectors of food, beverage, medicine and biotechnology are keen on coming to the Philippines, together with one large Brazilian company that manufactures medicines.
MACC is also talking to 5 Uruguayan companies to come to the Philippines. The MACC president declined to give specifics but says it is a signal of the Philippines’s potential to become the primary trading partner of Mercosur to tap the rest of Asean.
“Asean is for us an extraordinary example because diversity is big but you’re trying to integrate. The future is regional. We are saying that the best door to go to the Asean is the Philippines,” Kramer said.
Cultural and historical similarities make the Philippines attractive, Kramer said, but air connectivity is a roadblock.
“We have to improve in terms of connectivity,” the MACC president said.
The MACC is in talks with the United Arab Emirates and other airlines for a direct flight from Brazil to Singapore to cut down on travel time and to promote trade.
The Philippine Chamber of Commerce and Industry, likewise, sees bright prospects on further Mercosur-Philippines business relations, and advises joint-venture partnerships.
“An important strategic priority of the Philippines is the expansion of our markets and potential joint- venture partners in nontraditional countries, which include Latin- American countries. Intensifying interaction with Mercusor countries will definitely contribute toward achieving our goal of broadening trade and investment engagement with the region,” PCCI President Alfredo M. Yao said in a speech delivered on Monday.
The local business chamber hosted the visiting Mercosur business delegation on Monday, whose interests include meat, chicken and fish, soya and soybean meal, motorcycles, textiles, wines and ciders, pharmaceutical products, telecommunications, milk and cheese, leather products and olive oil.
At present, trade volume between Asean and Mercosur is still negligible.
The MACC has recently established an office in Manila, with presence in Vietnam, São Paulo in Argentina, Uruguay and Buenos Aires. The biregional chamber will also set up an office in Jakarta.