There is a potential for the Philippines and the Netherlands to enhance bilateral trade relations in sectors such as semiconductor and high-technology, agri-food processing, and infrastructure.
The statement was made by Philippines Department of Trade and Industry Secretary Alfredo Pascual during his meeting with Netherlands Deputy Minister Hanneke Schuiling on July 3, 2023. He highlighted the country’s trade growth with the Netherlands averaging around 10% annually over the past five years.
In his remarks, Secretary Pascual stressed the significant role of the Philippines in the Indo-Pacific-Asia interface as it recently assumed the role of Country Coordinator for ASEAN-EU relations until 2025. With this, he underscored the importance of maintaining open economies and societies that will facilitate the relatively free movement of goods, services, and people.
Further, Secretary Pascual expressed his interest for the country to be the sixth priority of the Netherlands for economic cooperation, following the ASEAN-5 countries: Indonesia, Malaysia, Singapore, Thailand, and Vietnam. He also sought the continuation of the Programma Uitzending Managers (PUM) initiative in the Philippines following the decision by the Netherlands’ lower house bicameral parliament to withdraw PUM’s presence in 12 countries, including the Philippines.
Earlier, as part of the Philippines’ European Investment Roadshow, Secretary Pascual also led the Roundtable Meeting (RTM) on the Aerospace Sector between the two countries. The RTM is a more focused approach on promoting the Philippine aerospace industry, following the Philippine Netherlands Business Forum in December 2022.
The RTM was organized by the Philippine Trade and Investment Center in collaboration with the Netherlands Aerospace Group (NAG). NAG is a trade association dedicated to supporting aerospace and aviation companies in the Netherlands by facilitating networking opportunities and accessing broader markets. With over 100 members, NAG represents a remarkable 95% of the Dutch aviation industry’s revenue. Currently, their primary focus revolves around aerospace and airport development.
In his keynote message, Secretary Pascual noted the Philippine government finds the aerospace and aviation industry significant in the country’s pursuit of economic recovery and expansion. According to him, developments in this industry do not only generate employment opportunities for Filipinos but also facilitate knowledge transfer and technological development, which in turn, will help position the Philippines as a key player in the global market.
With the Netherlands’ strong aviation and aerospace infrastructure; and world-class airports, aerospace research facilities, and maintenance, repair, and overhaul (MRO) services, Secretary Pascual highlighted, “We are open to collaborate with you in sharing expertise, promoting investments, and strengthening the aviation infrastructure in both countries, enabling us to keep up with global demands.”
Further, Secretary Pascual sees the Netherlands as a gateway for Philippine airline companies to expand their operations in Europe given its record as a major European hub. This potential link can facilitate business and tourism travel, as well as trade and investments between the two countries.
He also cited education and skills development, promotion of sustainable aviation, and the development of space technology and applications as other areas for collaboration. With the Netherlands having renowned aerospace engineering programs and research institutions, Secretary Pascual expressed confidence the Philippines will benefit greatly from joint research projects, knowledge exchange, and training programs, building the country’s capacity in this sector.
With the shortage of engineering and talent in Europe, opportunities for outsourcing was discussed for flight simulation, voice, and engineering consultancy. The Dutch program, “Partners for International Business,” was also mentioned as a platform to develop a two to three-year action plan to assist Dutch companies to internationalize.
In closing, Secretary Pascual said, “Our country is positioned to be the hub for manufacturing and aftermarket services in the aerospace industry including aircraft MRO and aerospace manufacturing in the Asia Pacific region.” He boasted the Philippines is home to Collins Aerospace, the world’s leading aircraft interiors company; and Lufthansa Technik, a top MRO provider.
