Biden presidency good for Philippine economy —Salceda

Economist and Albay Representative Joey Salceda believes that a Joe Biden presidency will be favorable to the Philippine economy, among other areas where the United States and Philippines could work together on.

Salceda, who is also the chair of the House Committee on Ways and Means, made the remark on Thursday, as Biden leads the race against incumbent US President Donald Trump.

In a statement to reporters, Salceda listed down eight areas in which the Philippines could benefit from a Biden administration.

The first is on political economy and the US stimulus. Salceda predicts that Biden's Democratic Party will keep control of the House of Representatives, and that Democrats will at the very least gain some seats in the Senate.

"A Joe Biden presidency will ease the deadlock on US stimulus talks, which would positively impact the country, as the US is one of our largest trade partners, export markets, and sources of investment," Salceda said.

A Biden presidency will also likely increase the chances of the Philippines getting access on COVID-19 vaccines, he added.

"Biden is likely to restore closer relations with traditional US allies such as the Philippines. Biden will likely scale back the 'America First' policy on global cooperation, and will return to an emphasis on multilateralism," he said.

"This bodes well for the Philippines’ access to the COVID-19 vaccine, should it come from the [US]," he added.

Salceda likewise believes that Biden will probably revert the US to a position of global leadership when it comes to international development.

This, he said, translates to more opportunities for the Philippines to strengthen its ties with the US.

Financing and trade

Salceda said that if Biden unseats Trump, he will inherit the US International Development Finance Corporation, a development finance institution with capital of US$60 billion, where the Philippines could also benefit from.

"Biden is likely to use this more aggressively than Trump has to compete with Chinese investment and aid in the Philippines and in ASEAN in general," he said.

"This would allow us to get the best of both worlds, and leverage our relations with both powers to get the most favorable rates of financing," he added.

At the same time, since Biden is "more open" to multilateral trade deals than Trump, Salceda believes this will open opportunities for trade deals with the US.

"Biden will be starting from a very low base, as far as trade relations with Southeast Asia is concerned. Trump pulled the US out of the Trans-Pacific Partnership trade pact on his first day in office. In 2019, he did not even send a senior official to that year’s ASEAN summit in Bangkok," he said.

Global economy, geopolitics, climate change

Given the strong possibility that Biden would win the election, Salceda believes the mere change in the style of leadership of the American president will "will likely allow the global economy and geopolitics some certainty."

"This environment of certainty should allow the Philippines to position itself more decisively and not have to guess the US’ trade, economic, and geopolitical designs in Southeast Asia," he said.

This change in leadership style may also make an impact in the ongoing territorial dispute in the South China Sea, where the Philippines is a part of, Salceda said.

"A reinvigorated US presence in Southeast Asia under a more global-looking Biden presidency is likely to make China more inclined to be on the Philippines’ good side on West Philippine Sea issues, lest we pivot closer to the US," he said.

"This should allow us to seek more favorable terms in all resource extraction ventures in the area," he added.

Finally, Salceda said Biden's stance when it comes to climate change, and his intention to rejoin the Paris climate accords if he assumes office, will eventually benefit the Philippines.

"As the Philippines stands to be a net financial beneficiary of the terms of this agreement, the participation of the world’s largest economy in this international effort will help the Philippines gain more from this agreement," he said.

"This would also open opportunities for the Philippines to undertake such efforts as monetizing its carbon allowances in arrangements with the US and other highly industrialized polluters," he added.—LDF, GMA News