Filipinos in South Korea

ICAO lifted ban for Philippines planes flying to European Airspace?

International Civil Aviation Organization (ICAO)

After more than 5 years, local airlines may soon be allowed to fly again to Europe and to expand their operations in the United States after the government successfully passed a safety audit by the world's aviation regulatory body.

Transportation Secretary Joseph Abaya on Saturday said the findings of the one-week audit by the International Civil Aviation Organization (ICAO) were "positive," contrary to earlier reports.

"The ICAO Coordinated Validation Mission (ICVM) team was satisfied with their observations/findings on the [Civil Aviation Authority of the Philippines's] efforts to comply with international safety standards," Abaya said in a text message.

Passing the ICVM audit will likely pave the way for the lifting of ICAO's "significant safety concern (SSC)" tag on the Philippines issued in 2010. Other countries cited with deficiencies in the 2010 report were Angola, Bangladesh, Cambodia, Djibouti, Kazakhstan, Guinea-Bissau, Malawi, Rwanda and Zambia.

The ICAO had cited 89 points of concern in the country's aviation regulatory framework that jeopardized the safety of airline passengers. Among these were the registration of aviation companies and regulations covering the training of pilots and other industry personnel.

Findings sent to Canada

The ICAO audit was used by the European Union (EU) as a basis for the ban on local airlines from flying to any point in the economic bloc. The ban also meant that no Philippine carrier was allowed to even enter EU airspace.

Abaya said the ICVM's findings would be forwarded to the ICAO's headquarters in Canada. "They will recommend to ICAO headquarters the lifting of the significant safety concern issued on the Philippines," Abaya said.

Abaya said the official lifting of the EU's ban should come in two to three weeks.

In a statement, the Department of Transportation and Communications said the ICVM team focused on two "critical elements" during the audit. These were the certification of airlines in the Philippines and the registration of Philippine civil aviation aircraft.

Other areas covered were the legal, organization and licensing aspects which were "satisfactorily addressed" last October, the DOTC said.

"We are confident the ICAO will adopt/approve the recommendation," Abaya added.

The ICVM arrived in the Philippines last week on the invitation of CAAP, headed by retired Gen. William Hotchkiss, who assumed his post in July last year.

Hotchkiss dismissed reports that the ICAO team had given CAAP "failing marks" because it had only passed one of the five major issues looked into by the audit mission.

According to Hotchkiss, the CAAP team headed by Henry Gourdji called the validation mission a "success." The other members of the ICAO team were Amal Hewawasam, Vincent Lambotte, Christopher Dalton, Guseul Kim and Saulo Jose da Silva.

Encouraging, inspiring

"The exit briefing conducted by the ICAO audit team was on the whole very encouraging and inspiring for the CAAP team that had been tirelessly working for the lifting of the SSC tag that had been hounding CAAP for several years," he said.

"The team itself acknowledged during the closing of the review Friday that the present CAAP team was headed in the right direction. They were very satisfied with our efforts to comply with international safety standards," he said.

Hotchkiss said that CAAP was "very optimistic" that the recommendations would be approved and adopted by ICAO in an official announcement in two weeks.

He said that while the ICAO had yet to come out with a final report on the audit, officials who visited the country in the past months had expressed confidence that corrective measures on the remaining concerns shall be totally addressed by CAAP. (http://bit.ly/XwVMvY)

Read more in Philippines, ASIA and the Global Economy

Philippines: winning Japanese investment at the expense of China

Japan Sumitomo Corp : Sumitomo Corporation Launches Expansion of Industrial Park in the Philippines

The First Philippine Industrial Park, some 50km south of Manila, is already a whopper, accounting for about 3 per cent of the country's total exports. Which is why it is notable that Sumitomo Corporation, the Japanese trading house that owns 30 per cent of it, wants to make it even bigger.

By 2014, the 67 companies that currently call it home – including Honda, Canon, Nestle and Philip Morris – could be joined by 20 more, as Sumitomo spends about Y5bn to expand the 349-hectare site by almost a third.

The plan confirms two things. First, that Japanese companies will continue to steer funds into faster-growing, more dynamic economies – even as the recent depreciation of the yen makes investment back home that little bit more attractive.

The Philippines scores particularly well for its "rich human resources with good levels of English and high hospitality," says Yasushi Fukuda, general manager of Sumitomo's overseas industrial park division, which also runs parks in Vietnam, Indonesia and Thailand.

Japan's total FDI stock in the Philippines stood at just over $10bn at the end of 2011, according to government data, more than five times the level of a decade earlier – a rate of growth exceeded only by investment in India (13x), China (8x) and Thailand (6x) over that period, within Asia.

The second conclusion to be drawn is that a fair amount of this newer investment by Japan Inc is happening at the expense of China, as companies baulk at spiralling labour costs after the blow-up over a tiny chain of islands in the East China Sea.

Osaka-based Funai Electric was hit by wage-hike demands from Chinese workers after anti-Japan demos broke out last year, the Nikkei newspaper reported this week. It is now shifting production to a new site near Manila.

China was getting expensive already. Monthly base salaries for manufacturing workers in China grew by roughly 40 per cent over five years to $328 as of October 2012, according to the Japan External Trade Organization. By contrast, workers get $253 in the Philippines, $145 in Vietnam and $53 in Myanmar.

This year Japanese companies expect to pay Chinese factory workers 10 per cent more than in 2012, says Jetro – double the equivalent rate of increase in the Philippines.

Without naming China in particular, Fukuda of Sumitomo notes that wage hikes and worker shortages are driving many Japanese companies to consider "diversification of production facilities."

And where better than the Philippines, where about 97 per cent of Japanese companies with overseas operations are yet to venture?

Notably, it is not just the Hondas and Canons that Sumitomo is looking to lure. It says it is considering offering factory facilities for lease, with logistics and procurement support, as a way to encourage small and mid-sized Japanese businesses to set up shop.

Although the official sales promotion is yet to begin, "inquiries from prospective customers have been rapidly increasing," says Fukuda. (http://on.ft.com/XKxQHB)

FT

CNN: Fishermen caught out by politics of West Philippine (South China) Sea

Efren Forones (center) and his fellow fishermen embark on the 38-hour trip to fishing grounds around the disputed Scarborough Shoal.

Luzon, Philippines (CNN) -- A year ago, a fisherman Efren Forones came back from fishing trips with up to three and half tons of fish. In return he was able to buy 15 to 20 kilos of rice for his family every month and was planning to send at least one of his six children to college.

Not any more.

He now returns with just 400 kilos of catch at best, meaning he can only afford one to two kilos of rice a month, while school for his children is an expensive luxury and out of the question.

The reason? He says he can longer fish in the fertile waters around Scarborough Shoal.

A cluster of uninhabitable sand banks and small rocks set in a shallow azure water lagoon about 130 miles (200 km) west from the Philippine island of Luzon, Scarborough Shoal is one of a number of territories at the center of an international dispute in the South China Sea.

Both the Philippines and China lay claim to it.

Tense standoff

The long-term tensions between the two nations escalated last April during a one-month stand off between the two nations, after Manila accused Chinese boats of fishing illegally in the area. When a Philippines navy vessel inspected the boats it found "large amounts of illegally collected corals, giant clams and live sharks" inside one of the boats, according to the Philippine government. Manila then reported that two Chinese surveillance ships had taken up position at the mouth of the lagoon, blocking the way to the fishing boats and "preventing the arrest" of the fishermen. The vessels stretched a cable across the mouth of the lagoon, which also prevented Filipino fishermen from going there, according to the Philippines coast guard.

READ: Why Manila is taking China to tribunal

Earlier this year, the Philippine government took its feud with China to a United Nations tribunal, a move that Beijing has rejected. In an article on state-run CCTV last month, China pointed to a code of conduct it signed in 2002, known as the Declaration on the Conduct of Parties in the South China Sea, with fellow members of the Association of Southeast Asian Nations (ASEAN). It said the declaration expected that relevant disputes be solved through friendly talks and negotiations by sovereign states directly concerned.

That brings little comfort to the struggling fishermen in communities in west Luzon, the nearest region to Scarborough Shoal -- also known as Panatag Shoal here or Huangyan Island to the Chinese. One of them is Masinloc, a municipality of 40,000 people, which relies on the seas for almost 80% of its income, according to the Philippines Bureau of Fisheries and Aquatic Resources. It says thousands of fishermen have lost their regular jobs as catches decline.

Forones is one of them.

The 52 year old has been fishing in the waters off Masinloc for 22 years. He lives with his family in a traditional bamboo house mounted on pillars above the sea. His youngest daughter is four years old. Forones does not own a boat but used to be hired as a fisherman and paid a minimum of $85 dollars for a trip. Nobody is hiring now. He has tried to rent boats on his own and fish with his neighbors, but the little catch they bring back barely covers the rental fee and fuel.

READ: Asia's disputed islands -- who claims what?

He says the Shoal is the most important fishing ground in this region. "They (the Chinese) shoo us away, will not allow Filipinos to come near the area," he says. "They are the only ones that can fish there, not us. We lost Scarborough and it is hard. We earn nothing."

Beijing is unwavering in its claims. As recently as last month, the state-run Xinhua news agency reported that Chinese surveillance vessels were carrying out regular missions in the West Philippine Sea.

The Xinhua report cited Liu Cigui, director of the State Oceanic Administration, as saying that China would continue the patrols "to secure the nation's maritime rights and interests" in areas it claims as its territorial waters.

China's claim on the area dates back to 1279 during the Yuan Dynasty, when Chinese astronomer Guo Shoujing conducted a survey. Then in 1935, China declared sovereignty over 132 islands, reefs and shoals in the South China Sea, with the Scarborough Shoal -- or Huangyan -- included as a part of the Zhongsha Islands, according to Xinhua.

However, Forones is in little doubt who the lagoon, which lies within what the Philippines declares as its Exclusive Economic Zone, belongs to.

"Of course it is ours. We own Scarborough," he insists. "But China is trying to get it from us. Our government should fix that. We should seek help from the United States if the Philippine government cannot handle it alone."

Nowhere else to go

Forones and his wife plan to stay in Masinloc, for now. He will try to start diving for shellfish. By selling clams, mussels and oysters, they can make around $5 a day. Enough to buy rice and other basic food to feed the family. "There is no other place where we can go. I will stay here, get shells from nearby and help my husband to make living," Forones' wife, Gemma, says.

The situation is similar in Subic, a town 55 miles (88 km) south of Masinloc. It used to host one of the biggest American naval bases outside the United States, before it closed in 1991.

Operators of the fishing market on the outskirts of the town of 90,000 say business is down 50% since the fishermen were blocked from fishing where they wanted to at Scarborough. Many fishermen here share a similar story to their counterparts further north.

"When we went there, a Chinese vessel, the Chinese Marine Surveillance blocked our path," says Ronnie Drio, 46-year-old father of eight children. "As we managed to get past through it, it looked like they called another one because a different ship appeared and blocked our way again.

"That's when we got trapped. Then a Chinese man stepped out. He looked like their highest officer. He flashed a sign that we had to leave immediately. We were kicked out like pigs."

A number of fishermen have already left Subic and Masinloc and many more are considering it. One of them, 58-year-old Tolomeo "Lomi" Forones, is Efren's cousin. He's been a fisherman for 30 years but now makes a living as a motorbike taxi driver. He makes around $2 on a good day.

"Our income was higher when we used to fish at Scarborough. I even used to save money. But now we earn just enough for daily consumption and sometimes what we earn is not even enough to provide food."

Dangerous waters

He still does occasional fishing trips but against his wife's wish. Janet Forones wants to leave Masinloc and their low income is not the only reason: "Who would not get worried when they are out there? What if they get shot?" She was referring to the presence of the Chinese boats.

What puzzles the fishermen here most is the speed the whole situation has changed. Although the Philippine and Chinese governments have disputed each other's claim to the lagoon for many years, they could fish at Scarborough alongside Chinese fishermen up until a few months ago.

"I do not know why they don't like us or why they do not want us within that area. If Americans were still in the region, the Chinese would have never came to Scarborough because they would be scared. If our government allows the U.S. to come back over here, its OK with me," she says, referring to Washington's commitment to its mutual defense treaty with the Philippines that former Secretary of State Hillary Clinton reaffirmed last year.

But the solution to the dispute is as distant as ever. Litigation at the United Nations could last years. Most of the local fishermen do not have so much time. So while the governments squabble, many of these fishermen and their families will have to leave the only life they have known and start from scratch somewhere else. (http://bit.ly/ZpDToT)

CNN

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