[Philippines] Message for Portugal

[Apingdaldal]

Continuation of: http://w11.zetaboards.com/ModernNationsRPG/topic/30508627/1/#new

*bump8

 

[Apingdaldal]

*bump*

 

[Bruno]

"It would be just a normal Trade Agreement, we were thinking of starting small and grow as the time goes, this our current top productions in our nations, feel free to pick one"

(As choosen in the old forum Resources)
1 - Footwear:
2 - Knit or crochet clothing, accessories
3 - Furniture, bedding, lighting , signs, prefab buildings
4 - Paper, paper items
5 - Plastics, plastic articles

"Would it be possible to recieve yours, so we could also choose one? I do find this trade agreement of immense importance for both our nations economies as it will provide our companies with a greater arrange of materials and our tax payers with a greater range of products to buy."

 

[Apingdaldal]

"We are fine with incremental progress in trade. Besides, great things start from small beginning.

Philippine exports has been consistently strong in the following (as per old MN as well):

- precious minerals/metals

- electronics and electrical equipment

- agricultural products

- wood

- shipbuilding

Our Precious minerals/metals has a wide variety: copper, nickel, raw chromite, bromite, gold, silver, manganese, and iron ores. with Nickel being our top mineral produce as we are the world's #1 in Nickel production.


Our strong mineral production this has also made Philippines a leading manufacturer of electronics and electrical components and equipment, ranging from industrial and residential products

Philippines is also an agricultural country and an archipelago, our agricultural exports also has a wide variety; among the popular products are coconut, refined sugar, banana, pineapple, tuna, tobacco, seaweeds and carageenans, shrimp/prawns, and manufactured fertilizer (http://www.senate.gov.ph/publications/AG 2012-02 - Agricultural Exports.pdf)

Our wood/lumber export is also a fast-growing yet sustainable industry.

And as an archipelago, Philippines has natural affinity with the ocean since ancient times. Our unique geography has made my country strong shipbuilding, shipping, and maritime and has always been consistent in the Top 10 in shipbuilding and shipping. (http://www.pressreader.com/philippines/the-freeman/20170120/281998967162254). Our Philippine Industry for Maritime Products and Shipbuilding (PIMPS) has already done successful business transaction from several countries in a span of only a year from it's inception.

We would be very interested in Portuguese footwear. I believe introducing Portuguese footwear in Philippine culture will be a very great and novel idea."

 

[Apingdaldal]

@Fairhold

 

[Bruno]

"Woah.. you have a lot of products which we would like to import, however perhaps the most important right now would be agricultural goods, I do believe it would bring a new variety of products to our market bolstering its competitiveness. Can we agree on this? we Export Footwear and you export Agricultural Goods?"

He would wait for the Filipino answer, while asking one of his Lawyers to write up a documement to present via fax to his counterpart, it would detail the exchange of this products and its continuation after the celebration of the agreement, with the Portuguese Ports and Philippines Ports accepting both with lower tariffs increasing revenue on both nations.

 

[Apingdaldal]

"Of course I agree with this Export agreement. Filipinos will be ecstatic to see Lisbon's Sapataria do Carmo "footwear fashion" in Manila, Cebu, Davao, and to all major cities of the Philippine archipelago. So yes, Filipino agricultural products for Portuguese footwear. 100% agree!

I would also strongly suggest that we sign both a Free Trade Agreement along with this Export Agreement. With the Export Agreement, for sure there will be increased influx of Filipino agricultural products to Portugal and increased influx of Portuguese shoe brands in the Philippines. And if a Free Trade Agreement will be in places along the increase in supply of exported products, both our exported products will have even more competitive prices in our respective countries, which in turn will increase the demands for these products. I am pretty sure that in the case of Portuguese footwears; an eased-up tariff due to a Free Trade Agreement will enable Portuguese footwear brands like Senhor Prudencio, Guava, Officina Lisboa, and Last Sole become price-competitive and become competitive against brands from other countries."

 

[Bruno]

"Splendid! I'm quite overjoyed that you know the Sapataria do Carmo, have you ever gone to it?" He would open a drawer and pull out two documents in a simple format, the Trade Agreement and Free Trade Agreement.

"I Quite agree on the free trade agreement also, it would be good to decrease tariffs on products, so that our own population don't have to pay more to acquire it."

The Trade Agreement would detail the following:

• Portugal will export from the Port of Sines to the Philippines high quality Footwear
• The Philippines will export from their own port to Portugal high grade Agricultural Goods
• The transaction will happen monthly due to the distance between each partner.

While the Free Trade Agreement would have a normal format, which would mean it would decrease tariffs on Portuguese and Philippine Exports, charging lower entry and exit fees.

"Also we do have a business proposal for you, Portugal is looking to invest in the Philippines Transport Infrastructure, we would love to construct using our own funds a railroad between the Port of Aparri and Manila, to be used only by Commercial and Cargo Train. This would serve your nation extremely well as well as provide a specified line to reduce costs on the transportation of goods for both our nations. Meaning it would become cheaper and faster to flow the products within you nation, we are certain this investment would be equal to $450'000'000 to construct this railroad. For this to become a reality, we would need the usage of the Port of Aparri, which if it was possible due to ammount we are investing, the Philipines could donate it to us, becoming a Portuguese Port, which would reduce even more the strain and costs of your trade, meaning you would get more than 80% profits on trade coming from that port. Now if its not possible to donate it, we would be happy to pay $140,000,000 for it.

Back to the Railroad, upon completion, it would be used by your government to transport goods to and from this port to the capital, paying a small usage fee to us, which compared to what you pay right now in transportation costs and maintenance costs would be much lower. This would be bring unimaginable benefits to your nation, such as economy growth, more supplies and products in your stores and manufacturing companies, and more. Do accept this?"

 

[Bruno]

@Apingdaldal

 

[Apingdaldal]

"Your proposal is interesting. However, it would be unconstitutional in the Philippines for other countries or any foreign entity to have ownership of any property of the National Government. And all ports in the Philippine archipelago are all property of the Department of Transportation which also to be in-charge of the Philippine Coast Guard.

There is only one option though: we can have the Port of Appari for lease. In this arrangement, while Philippines owns the port, Portugal will have control and operational rights on the Port of Appari provided:

1. Portugal cannot dismantle any equipment and facility of the port.

2. Portugal will abide by Philippine Law.

3. Portugal shall operate the port purely in civilian purpose and commerce; and not for military activities from Portugal and other foreign country.

If you will still be keen in setting up commercial port operation in the Northern Luzon, we are willing to have Port of Appari leased to Portugal for only $140,000,000 annually.

As for the proposed Railway, you may not be keen anymore on your proposal and we will fully understand if you. If that will be the case, we can alternately propose you to lease instead the Port of Pasacao located in Federal State of Bicol; in the coastal province of Camarines Sur. An existing railroad is already there which is called the "Bicol Express". The Bicol Express already runs from Naga, Camarines Sur all the way to Tutuban, Manila. We can have Port of Pasaco leased to Portugal for also $140,000,000 annually as well.

I hope you will still be interested in doing business with us, Senhor?"

 

[Apingdaldal]

bumping @Fairhold

 

[Apingdaldal]

@Fairhold

 

[Bruno]

"We are interested, however we will need more time to thinking about your proposal, seeing that, it could turn in a loss for Portugal if the Port was not in part owned by Portugal. While we reconsider this proposal, which will have to run through however Finance and Infrastructure Ministries. I had the idea. We certainly do not want to put at risk your laws or your constitution as we value it and believe that you are following it as you promised. But what if Portugal were to built another Port in the Philippines, using Portuguese Funds? It wouldn't be owned by the Philippine Government, however it would improve the region by developing it and providing more local jobs. It be a win-win scenario, Portugal would own the Commercial Port while the Philippines would have infrastructure built without spending any tax payers funds? Both Parties would be winning. However the railroad would have to be re-thinked, but it would still be in the plans to do it."

 

[Apingdaldal]

There is no doubt that Philippines is all supportive to Foreign Direct Investment and in fact my country aims to become a globally attractive country for business and investment - foreign companies enjoys zero restriction in owning businesses here as long foreign investors obey our national and federal laws and pay correct taxes. However, foreign entities can fully owns the business, but not the land nor real estate here in the Philippines. Same apply not only with foreigners but even with Filipino citizens as properties owned by Filipino citizens can be sequestered by the National Government if necessary. This includes sea ports.

A foreign country building a port in the Philippines will also undermine Philippine sovereignty for several issues:

First, and actually the biggest issue, is regarding Philippines' national security as there is a possibility that commercial port be used for military and covert/clandestine operations. Besides that, Philippines' already boasts hundreds of ports throughout the archipelago with millions of metric tons of trade/goods coming in and out of our country. It would be difficult for "national protectionism" sentiment not to arise among the Filipino people when a foreign entity builds a facility controlled and owned by that foreign entity in Philippine soil.

Another issue would be the conflict on Philippines' Port State Control wherein the Philippines' is a signatory of the 1993 Tokyo MOU. It also happen that Port State Control inspections in the Philippines are under the jurisdiction of our Philippine Coast Guard - an Philippine government organization.

These are the issues of this proposal. We acknowledge that this proposal is novel and promising. But to be honest, I find it will difficult to establish a legal framework that will work both for Philippines and Portugal's interest simply because the Philippine government will never relinquish a single square meter of real estate to foreigners and even to local companies; regardless of the billion dollars they are willing to shell out.


I hope you will understand that I have reluctance in committing to that alternate proposal as it curtails several sensitive issues. That is why the best (and only) option is for the Philippine government to give leasing concessions to Portugal for port operations. If your concern with this leasing option is the assurance that your Portuguese shipping can seamlessly operate with downtime on the leased port then you don't have to worry about that as we can give long-term leasing rights of at least 35 year or more (see OOC note #1).


= = = = = = = = == == = = = = == = = = = = = = = == == = = = = == = = = = = = = = == == = = = = == = = = = = = = = == == = = = = ==

OOC Note 1: China's COSCO leases Greece's Port of Piraeus for a 35-year term for EUR 100 million per year. (https://en.wikipedia.org/wiki/Port_of_Piraeus)

 

[Bruno]

"Well I do understand your concerns, and I am sad that this proposal couldn't be completed, however I'll add that no port would be used for any kind of military operations or clandestine operations of any sort, its bad for business. Its also concerning that the Port could be in future could be, like you said, sequestered by the National Government. Which could also be bad for business. Well at least we tried to present another solution, and hopefully you won't be insulted in anyway by it. We value your sovereignty and we would never put it under pressure.

On the leasing deal, I'll have to bring it to my government, as I can't accept this alone. Perhaps in the very near future we will be able to reach an agreement which both nations will win from it.

Also I just remembered , we didn't fully reached an agreement for the Trade Deal, as we forgot to name the Ports!" He would chuckle

"This is still on the table, I would just need your Port Name for the Merchant Vessels to set sail."


The Trade Agreement would detail the following:

• Portugal will export from the Port of Sines to the Philippines [PORT NAME], high quality Footwear
• The Philippines will export from [PORT NAME] to Portugal, Port of Sines high grade Agricultural Goods
• The transaction will happen monthly due to the distance between each partner.

While the Free Trade Agreement would have a normal format, which would mean it would decrease tariffs on Portuguese and Philippine Exports, charging lower entry and exit fees.

 

[Apingdaldal]

Ramon Lopez scratches his head in misbelief that he forgot to tell the port where the Portuguese shoes will be sent:

"Ehrmmm... sorry about that. Going back, here will be our arrangement:

1. Portugal will export a mixed consignment of entry-level casual footwear and high-end designer shoes from your Port of Sines to the Philippines' Port of Cebu. Cebu will be the perfect entry of Portuguese fashion as Cebu has some Portuguese cultural affinity. In fact, the Shrine of Ferdinand Magellan is a popular tourist destination in Cebu.

2. Philippines will export Agricultural products from our Port of Pasacao to your Port of Sines. We will assign M/V Chelsea Resolute (https://modernnations.com/threads/p...-phil-20-600-teu-class-container-vessel.1474/) for this trade route.

3. Transaction will be per monthly basis for both Portugal and Philippines.

Speaking of Free Trade Agreement, it's a coincidence as we are also planning to present to you a draft for the Free Trade Agreement. It's already prepared and I will have it fax to you within a few seconds. Kindly review and just let me know if its agreeable."


Ramon Lopez instructed his staff to send the draft FTA to his Portuguese coutnerpart via private, secured facsimile:

Philippines-Portugal FTA

Pact of Cooperation and Trade Agreement
Between
The Federal Republic of the Philippines
And
The Federal Republic of Portugal
On Trade, Commerce and General Cooperation

The government of The Federal Republic of the Philippines and the government of The Federal Republic of Portugal: (hereinafter referred to singularly as “the Party” and collectively “the Parties”),

RECOGNIZING the existing friendly relations between the two countries,

FURTHER RECOGNIZING the importance of trade and commerce in the development of the economies of both countries;

DESIRING to strengthen and further develop exchange between the two countries in the field of trade, commerce, science, development and commercial/military industry; and

BELIEVING that such cooperation would serve their common interests and contribute to the development of their economies in both countries;

RECOGNIZING the different comparative advantages in production and manufacturing of both countries,

HAVE AGREED as follows:


1.The purposes of this Pact of Cooperation and Trade Agreement is to intensify the commercial and financial exchange between both Parties in order to broaden and expand their respective economies.

2.Both Parties agree upon extending limited tax and tariffs incentives to companies and ventures of their counterpart who want to invest and start business in each other territory.

3.The Parties agree upon the creation and establishment of joint Chamber of Commerce, which main goal will be the promotion of bilateral trade and commercial exchange.

4.The Parties agree upon the creation of a joint committee in order to identify projects and areas in which cooperation, in all its forms, can be of use for both countries.

REVISION, MODIFICATION AND AMENDMENT

1. Either Party may request in writing a revision, modification or amendment of all or any part of this Trade agreement.

2. Any revision, modification or amendment agreed to by the Parties shall be in writing and shall form an integral part of this PC/TA.

3. Such revision, modification or amendment shall come into force on such date as may be determined by the Parties.

4. Any revision, modification or amendment shall not prejudice the rights and obligations arising from or based on this PC/TA before or up to the date of such revision, modification or amendment.


ENTRY INTO FORCE, DURATION AND TERMINATION

1. This PC/TA shall come into force on the date of signing remain in force indefinitely unless otherwise termination of the PC/TA was mutually agreed.

2. Notwithstanding anything in this Article, either Party may terminate this PC/TA by notifying the other Party in writing through diplomatic channels at least one (1) month prior to its intention to do so.

3. Unless otherwise agreed by the Party's in writing, the termination of this PC/TA shall not affect the implementation of any cooperative activity undertaken under this PC/TA and not yet completed at the time of the termination of this PC/TA.


Signing for:

Philippines: Ferdinand E. Marcos Jr. - Prime Minister

Portugal: (please sign here)


Done at Manila, Philippines on June 2012 in duplicate originals, in the English and Portuguese language.

 

[Apingdaldal]

bump @Fairhold

 

[Bruno]

"Great!" he would sign the Trade Agreement.

"Now my Minister for Finance should set the Trade Route in hour systems and the products will flow. Also the FTA would be gigantic, just to be sure that Tariffs would be minimized so that our populations have better access to both our exports."

He would also sign the FTA.

"I think that concludes everything I wanted, we will review the other agreement within our council, and we will inform you as soon as possible. Do you wish to speak about something else?"

 

[Apingdaldal]

"Thank you for signing the FTA.

Yes, we have one more thing to discuss now that cultural exchange and trade has officially started between our countries. We would like to know if you would be interested if we can establish more direct flights between our airports? I am pretty sure that both Portugal and Philippines will benefit from this in terms of tourism revenue. And since I have opened this idea of expanding direct flights between our country, I'd like to add as well the idea of having visa free entrance for Filipino expats, tourists, exchange students, and businessmen/investors to Portugal?"

@Fairhold

 

[Apingdaldal]

@Fairhold