Philippines burdened by South China Sea arbitration, says expert
Herman Tiu Laurel, president of the Asian Century Philippines Strategic Studies Institute, a Manila-based think tank, told Xinhua in a recent interview that Manila spent US$30 million merely to pay off legal fees and expenses of lawyers who prepared the case, a figure criticised by the Philippines' Commission on Audit as "unnecessary and excessive."
"The arbitration has in fact become an anchor around the Filipino people's neck, weighing the nation down economically," Laurel said.
"I have articulated a myriad of problems created by the 2016 arbitration ruling, particularly the economic and diplomatic damage it has inflicted and continues to inflict on the Philippines," he said, stressing that regional peace and stability have been at risk due to the tensions caused by the so-called award.
The arbitration ruling "has become the source of 'silent alienation' of the Philippines from its ASEAN family, being in conflict with China while all the rest, including those with South China Sea disputes, are in full cooperation mode with China," Laurel said.
Laurel advocates for the Philippines to emulate other Asean countries' "successful and mutually beneficial" approach by engaging in dialogue and constructive cooperation with China.
"China has continuously demonstrated through modern historical times to be a force for peace and harmony," he noted.
This year marks the 50th anniversary of the establishment of diplomatic relations between China and the Philippines. Over that half-century, cooperation has grown in trade, investment and people-to-people exchanges. Yet, the arbitration ruling continues to cast a shadow, Laurel said.
He also pointed to the May midterm elections in the Philippines, noting that many newly elected senators are "independent-minded," bringing new hope for easing bilateral tensions.
The Philippines should "redouble its efforts" to return to the independent and neutral foreign policy and to "focus on building lasting peace and prosperity with our neighbors and the global majority," Laurel said. - Xinhua
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysia Sun
26 minutes ago
- Malaysia Sun
World Insights: China, Egypt deepen cooperation for shared growth
Egypt-China cooperation helps elevate both nations and offers a stronger voice for the Global South, said Egypt expert Salah El-Din Fahmy. CAIRO, July 14 (Xinhua) -- As China and Egypt -- now fellow BRICS members following Cairo's 2024 accession -- are to mark their 70th anniversary of diplomatic relations in 2026, analysts anticipate a significant deepening of their economic cooperation and strategic partnership. LANDMARK DEALS PROJECTS China and Egypt signed multiple cooperation documents last week in such areas as e-commerce, green and low-carbon development, development assistance, finance and health. Experts see the deals as a boost to Egypt's ambition to become a regional energy and logistics hub and to China's efforts promoting South-South cooperation under the Belt and Road Initiative (BRI). Among the landmark deals, the People's Bank of China (PBOC) and the Central Bank of Egypt signed a memorandum of understanding to deepen financial cooperation, which covers local-currency settlement, collaboration on central bank digital currencies and digital innovation. According to Pan Gongsheng, governor of the PBOC, these efforts will provide more efficient and convenient services for enterprises of both countries in trade, investment and financing. Diaa Helmy, secretary-general of the Egyptian-Chinese Chamber of Commerce, described the financial cooperation as a critical signal of trust and a long-awaited step in Egypt-China economic ties. He said that using local currencies could help reduce dependence on foreign currencies, stabilize trade flows and open the door for deeper institutional coordination between the two countries. "I see that partial trade exchange between the two countries in their national currencies is necessary, and that it's time to swap debt for development, as China spares no effort to strengthen relations with Egypt, which it sees as a trusted friend," Helmy said. China and Egypt officially elevated their ties to a comprehensive strategic partnership in 2014, deepening bilateral relations across politics, trade, infrastructure, technology, and cultural exchange. Major China-Egypt projects under BRI and Egypt's Vision 2030 include the Central Business District in Egypt's New Administrative Capital and the China-Egypt TEDA Suez Economic and Trade Cooperation Zone -- an industrial cooperation model hosting 185 companies. Chinese companies have also contributed to projects like the Benban Solar Park in Aswan Province, among the world's largest, along with infrastructure in construction, manufacturing, transport and energy. "China's journey from traditional industry to high tech is a model for Egypt. We can benefit not just from Chinese investment, but from its expertise in technology, manufacturing and innovation," said Salah El-Din Fahmy, professor of economics at Al-Azhar University. SOUTH-SOUTH COOPERATION The China-Egypt partnership goes beyond the scope of economy, with officials and experts highlighting how the two countries are strengthening political coordination and amplifying the Global South's voice on key international issues. Helmy underlined the political side of the partnership, noting China supports Egypt and the Arab world on issues including the Palestinian cause, while Egypt and Arab states back China on core interests like the one-China principle and maritime rights. "This is a model of South-South cooperation across economic and political lines, reflecting the principle of a community of a shared future and the conviction that tensions and wars are not solutions but part of the problem," the expert said. In the coming years, coordination between the two countries "is essential to face global challenges, including climate change, maritime trade routes, supply chain risks, and geopolitical tensions," he added. Regarding the importance of the BRI for Egypt, Fahmy said that Egypt's geographic position makes it a gateway connecting Asia, Africa and Europe, offering a strategic platform within China's broader South-South development vision. Looking ahead, experts see the China-Egypt partnership as more than a bilateral success story -- it's part of a shift toward a balanced, multipolar world where emerging economies play a stronger role in global development. "Egypt-China cooperation is entering a new qualitative phase, helping elevate both nations and offer a stronger voice for the Global South on the international stage," Fahmy said.
Malaysia Sun
26 minutes ago
- Malaysia Sun
South Korean exporters urge new government for trade policy shift amid US Tariff risks
ANI 14 Jul 2025, 11:31 GMT+10 Seoul [South Korea], July 14 (ANI): South Korean exporters want new government to go for a strategic shift in the trade policy amid U.S. tariff risks, reveals a survey as reported by the Korea Herald. To maximize national interest and enhance industrial competitiveness, 20.7 per cent of 416 trade industry professionals surveyed on June 10-11 chose the implementation of a strategic trade to a report released by the Korea International Trade Association (KITA), the most frequently specified task cited under strategic trade policy was an active response to tariff risks posed by the United Hee-chul, executive director of KITA's trade promotion division, said that, 'The trade sector hopes the new administration will establish a stable trade environment, diversify technology-driven exports, and help SMEs shift toward export-led growth.' He further added that, 'We look forward to bold export policies that can overcome US-led tariff risks and rising protectionism to upgrade Korea's export momentum.'The report by KITA further revealed that the level of uncertainty in global trade has intensified in recent years, primarily due to tariffs imposed by US President Donald Trump on key Korean exports such as steel and automobiles. This whole situation has led companies to ask for fairer export conditions to remain competitive other priorities quoted include fostering AI-powered export industries (9.5 per cent), enhancing trade security enforcement (7.5 per cent), and improving logistics security through increased use of Korea-flagged vessels (7 per cent).On the outlook side, about 43.3 per cent of respondents expect exports to decline by more than 5 per cent this year, while 38.9 per cent anticipate no major change and only 17.8 per cent foresee growth, reflecting a negative export outlook for 71.1 per cent of respondents said they believe an export recovery will not begin until next year or later. (ANI)
Free Malaysia Today
33 minutes ago
- Free Malaysia Today
EU says it still wants US trade deal, will defend interests
Ursula von der Leyen warned that the EU stands ready to adopt proportionate countermeasures if needed to defend its interests. (AP pic) MADRID : The EU said on Saturday it was ready to retaliate to defend its interests if the US pressed ahead with imposing a 30% tariff on European goods from Aug 1. US President Donald Trump's latest salvo surprised the bloc, the US largest trading partner, which had hoped to avoid an escalating trade war after intense negotiations and increasingly warm words from the White House. Ursula von der Leyen, head of the EU executive which handles trade policy for the 27 member states, said the bloc was ready to keep working towards an agreement before Aug 1 but was willing to stand firm. 'We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,' she said of possible retaliatory tariffs on US goods entering Europe. EU ambassadors will discuss next steps on Sunday, before trade ministers meet in Brussels on Monday for an extraordinary meeting. They will need to decide whether to impose tariffs on €21 billion of US imports in retaliation against separate US tariffs against steel and aluminium or extend a suspension which lasts until the end of Monday. The EU has so far held back from retaliating against the US, although it has readied two packages that could hit a combined €93 billion of US goods. European capitals swiftly backed von der Leyen's position. German economy minister Katherina Reiche called for a 'pragmatic outcome to the negotiations'. 'Trump's proposed tariffs would hit European exporting companies hard. At the same time, they would also have a strong impact on the economy and consumers on the other side of the Atlantic,' she said. French President Emmanuel Macron said on X that the European Commission needed more than ever to 'assert the Union's determination to defend European interests resolutely'. Retaliation might need to include so-called anti-coercion instruments if Trump did not back down, Macron said. The tool, drawn up during Trump's first term and used against China, allows the EU to go beyond traditional tariffs on goods and impose restrictions on trade in services if it deems that a country is using tariffs to force a change in policy. Spain's economy ministry backed further negotiations but added that Spain and others in the EU were ready to take 'proportionate countermeasures if necessary'. Trump has periodically railed against the EU, saying in February it was 'formed to screw the US'. His biggest grievance is the US merchandise trade deficit with the EU, which in 2024 amounted to US$235 billion, according to US Census Bureau data. The EU has repeatedly pointed to a US surplus in services, arguing it in part redresses the balance. Retaliation Combining goods, services and investment, the EU and the US are each other's largest trading partners by far. The American chamber of commerce to the EU said in March the trade dispute could jeopardise US$9.5 trillion of business in the world's most important commercial relationship. Bernd Lange, head of the European Parliament's trade committee said he was now convinced the first stage of countermeasures should come into force on Monday, followed quickly by the second package. Trump has said he would mirror any retaliatory moves. Still, Trump has repeatedly announced sweeping tariffs in recent months, only to row back or suspend them before his own self-imposed deadlines. The expectation that he will again relent has led to increasingly muted responses in financial markets, which have recovered since plunging after his initial 'Liberation Day' announcement of big global tariffs in April. Three EU officials who spoke on condition of anonymity said they saw Trump's latest threats as a negotiating ploy. Carsten Brzeski, global head of macro at ING, said Trump's move suggested that months of negotiations remained deadlocked and that the situation was inching towards a make-or-break moment for the transatlantic trade relationship. 'The EU will now have to decide whether to budge or to play hardball,' he said. 'This will bring market volatility and even more uncertainty.' Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted that the brunt of the US tariffs, if implemented, would be felt by US consumers. However, there would also be clear repercussions for the euro area economy, already struggling with weak growth. The European Central Bank had used a 10% tariff on EU exports to the US as the baseline in its latest economic projections, which put output growth in the euro area at 0.9% this year, 1.1% in 2026 and 1.3% in 2027. It said a 20% US tariff would curb growth by 1 percentage point over the same period and also pull down inflation to 1.8% in 2027, from 2.0% in the baseline scenario. It did not even offer an estimate for the possibility of a 30% tariff.
