European support

Starting this Saturday, September 13, President Aquino of the Philippines is set to visit Spain, Belgium, France and Germany. One of the main goals of the ten-day trip is to lobby European governments for "moral support" for the Philippines' legal dispute with China. A few months ago, Manila filed a formal submission with a special United Nations court, claiming that Beijing is breaching the Convention on the Law of the Sea by exploiting contested waters in the South China Sea.

In addition, Aquino is expected to discuss the country's application to the EU Generalized Scheme of Preferences when he travels to EU headquarters in Brussels, a deal which could be worth some 600 million USD over three years. On his last stop in Germany, the president is set to meet Chancellor Angela Merkel and sign an agreement to establish the Philippine-German Chamber of Commerce and Industry.

Ernest Bower, the Sumitro Chair for Southeast Asia Studies at the Center for Strategic and International Studies, says in a DW interview that the Philippines understands that Europe is not prepared to provide hard-power assurances of security in the Indo-Pacific, so Aquino will probably seek reaffirmation of a well-honed EU talking point: that sovereignty disputes in the South China Sea should be resolved by international rule of law and arbitration, not by force.

DW: President Aquino is expected to seek the support of European countries in connection to territorial disputes with China. What kind of support is he looking for?

Ernest Bower: President Aquino's message in Europe will be that in Asia, economics is the foundation for security. The Philippines understands that the EU and its members are not prepared to provide hard-power assurances of security in the Indo-Pacific region.

Instead, Aquino will seek more comprehensive economic engagement in the form of investments from private companies, approval of the Philippines' application for the EU's Generalized System of Preferences (GSP) market access, and expanded trade.

This support will enhance the Philippines' sovereign independence by diversifying its markets and investment partners. This is particularly important because China has shown that it can and will use economic levers to try to force its smaller neighbors to concede on disputes over territory related to the West Philippine or South China Sea. Several years ago, China sanctioned the Philippines by cutting off its banana exports because it was unhappy with Manila over maritime disputes.

President Aquino will also be seeking a reaffirmation of a well-honed EU talking point, namely that it believes that sovereignty disputes in the South China Sea should be resolved by international rule of law and arbitration, not by force or by larger countries trying to intimidate less powerful neighbors.

You spoke about the Philippines seeking access to the GSP system of preferential trading. Why is this relevant?

The EU granting entry into the GSP would be very important to the Philippines for both economic and geostrategic reasons. The Philippines' economy is among the fastest growing in ASEAN now, due in large part to confidence around President Aquino's drive to improve governance and transparency, eradicate large scale corruption and fight poverty. His efforts are producing significant results.

The Philippines wants the EU more engaged as a market and investor, and the GSP will help drive both those objectives. Geo-strategically, the Philippines hopes stronger economic engagement with the EU will help diversify its export markets and reduce China's economic leverage.

How important is Europe to the Philippines?

The Philippines and other ASEAN countries believe, with good reason, that EU companies have not fully explored opportunities in their fast-growing markets nor built needed trust and engagement.

President Aquino will be proudly expounding his significant economic achievements in the Philippines and asking EU companies to take a more serious look. EU investment in the country significantly lags behind that of the US and Japan, and the Philippines would like to see those numbers increase.

There will also be an agreement to establish the Philippine-German Chamber of Commerce and Industry. It is a significant step?

There is a sense in the Philippines and among ASEAN countries that the EU and its member countries have not taken Southeast Asia seriously. Relative to the US, Japan and China, the EU and European companies are perceived to be more hands off, more aloof.

Therefore, the establishment of an active Philippine-German Chamber of Commerce and Industry is a step in the right direction. Building trust and engagement at the people-to-people level as well as among business leaders and government officials is a crucial step to enhancing trade and investment.

Ernest Bower is the Sumitro Chair for Southeast Asia Studies at the Washington-based Center for Strategic and International Studies.