spot_img
28.5 C
Philippines
Monday, September 30, 2024

Trade implications

Fishing, mineral exploration and other commercial activities in the West Philippine Sea must be viewed in a different light from the hostile positions taken by claimants in the disputed water. That may be difficult to achieve at the moment given the embarrassment created by the landmark ruling of the Permanent Court of Arbitration in The Hague on China.

The Philippines and other nations contesting the disputed West Philippine Sea, however, should strive to keep trade relations with China open and stable given the clout of the world’s second-biggest economy.

- Advertisement -

It may be too early to impose one’s will over the expanse of the Asian sea—one of the world’s most strategic shipping routes—following the international court ruling. Just the same, the protagonists in the area, especially the Philippines and a defiant China, must be cautious in their next move and wait for the right time to explain their respective agenda.

The Philippines has said it is not in a hurry to resume oil and gas exploration in contested parts of the sea pending a thorough understanding of the decision. The Philippines has had success in the exploitation of natural gas in waters near Palawan province and minor oil discoveries over the northwestern part of the island. This commercial activity should resume in the near future and it will not be counter-productive if Filipino companies invite their China counterparts in a joint exploration scheme.

The Philippines has exercised restraint over the West Philippine Sea when it imposed a moratorium on oil and gas drillings in the West Philippine Sea. China should consider the Philippines’ self-restraint as an act of good faith and move forward in developing similar commercial activities under a formal arrangement.

Fishing by Filipinos over the previously “disputed waters,” meanwhile, should resume unhampered and with no intimidation from contesting claimants, as long as the activity does not endanger the ecosystem as The Hague decision correctly pointed out.

The Philippines and China have been trading partners since the olden days. They should remain that way and further the relation in the face of global trade headwinds.

LATEST NEWS

Popular Articles