BUSINESS leaders see brighter prospects for the Philippine economy as the United States, one of its strongest allies, heralded a new administration under president-elect Joe Biden.
According to Philippine Exporters Confederation Inc. (Philexport) Cebu executive director Fred Escalona, there should be an expected easing of trade tensions between the US and China following Biden’s win.
“A Biden administration will ease trade tensions with China through a more diplomatic approach versus (current US President Donald) Trump’s hardline approach of imposing sanctions on some Chinese exports,” he said.
Escalona added the Philippines will also benefit from this as global supply chains, especially for electronics, will be activated.
The world’s two economic powerhouses have been in a bitter trade battle over issues on unfair trade practices, intellectual property theft and technology, among others. Their longstanding spat has caused economic damage to countries heavily relying on them.
Economists expect that this bilateral friction may heal soon under Biden’s new trade policies.
Democrat Biden won the White House, US media said Saturday, Nov. 7, defeating Donald Trump and ending a presidency that convulsed American politics, shocked the world and left the United States more divided than at any time in decades.
CBS, NBC and CNN news networks announced the result just before 11:30 a.m. (1630 GMT) as an insurmountable lead in Pennsylvania took Biden, 77, over the top in the state-by-state count that decides the presidency.
Besides easing trade tensions, Mandaue Chamber of Commerce and Industry president Steven Yu expects to see more positive development in the country’s information technology-business process management (IT-BPM) industry.
With Cebu remaining an attractive IT hub for multinational and international BPM companies, Yu is hopeful that more firms would expand their operations in the region.
“This will benefit our IT-BPM industries as the US opens its arms to the world from the closed-door policy of the Trump administration. We just hope that President Donald Trump will concede soon and lead to an orderly transfer of power. This will be credit-positive and help boost the world markets. Since Cebu has a major IT-BPM industry, we will benefit from any friendly policy towards BPMs,” he said.
Under the Biden administration, business is expected to be more stable and predictable compared to the rollercoaster momentum of the Trump administration, Yu stressed.
“Contrary to general perceptions, the Trump administration is actually friendly to the world markets and businesses in general. However, the Biden administration can build on it and accelerate its progress while providing a stable framework. The timing is actually perfect, and we hope to see a better world unfold ahead of us in the next few years,” he said.
Trump’s “America First” policy caused a stir on the country’s IT-BPM industry with some fearing to lose jobs as Trump wants to bring jobs back to the Americans. (JOB)