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Oct 21, 2016
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President Rodrigo Duterte has recently declared that he was severing the country’s ties with the United States.

The president said this in a televised statement during his four-day state visit to China this week.

Although there was no official statement yet from the Malacañang Palace, these were serious pronouncements that prompted the US Embassy to ask for an explanation on the matter.

Here are some of the things that could be affected if the long-standing allies indeed part ways in the near future:


1) International aid

The US is one of the most generous nations when it comes to aid provision to the Philippines during the time of need.

Remember super typhoon Yolanda that devastated the country back in November 2013? The US ranked as the third top contributor with a $90 million in assistance to the country at that time.

They also provided intangibles and other crucial post-Yolanda services, all summed up in this video:


2) US troops in the PH

In September, Duterte made a pronouncement that US troops should stay out of Mindanao. However, no official instruction was handed down to the Americans.

If the cutting of ties with the US indeed comes to pass, then foreign troops will most likely be kicked out of the Philippines.

The move may also endanger the Enhanced Defense Cooperation Agreement and our Mutual Defense Treaty with the US, which are our primary defenses against any incursion in our territory, particularly those areas located in the West Philippine Sea.


3) Trade and commerce

The US is one of our top trading partners. In August of 2016, the country ranked as the Philippines’ second top export destination.

Export trading value with the US is estimated at $738 million and account for 15.1 percent of the country’s total exports.

4) Tourism

Aside from being one of our top trading partners, Americans constitute the second most number of tourists in the country.

In August 2016 alone, US tourists spent some P42.84 million in the Philippines.


5) BPO industry

The Business Process Outsourcing (BPO) industry is undeniably one of the driving forces of the country’s economy. It also provides work opportunities for Filipino job seekers.

So far, there are at least 50 American BPO companies in the Philippines, where 800,000 Filipinos work in.

 

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