Stephen Harper hopes Manila visit will drum up trade

Prime Minister Stephen Harper and Filipino military General Lauro Catalino Dela Cruz, right, review an honour guard on November 9, 2012 at Manila International Airport. Harper is on a three-day official visit to the Philippines and is to meet with President Benigno Aquino III at the presidential palace to discuss bilateral relations between the two countries. JAY DIRECTO/AFP/GETTY IMAGES

MANILA—Canada is hoping to grab the tail of what could be the next Asian Tiger.

Prime Minister Stephen Harper has landed in the Philippines in a visit aimed at getting Canada's foot in the door of a country forecast to be a "star" economic performer.

An aggressive anti-corruption campaign by President Benigno Aquino III is helping restore confidence in this nation and the results are paying off as the Filipino economy chalked up growth second only to China, said Chris Thornley, Canada's ambassador here.

"It's great timing for Canada to be positioned . . . to be in on the ground floor," Thornley told reporters in a conference call Friday.

The economic turnaround comes after years of challenges for this diverse nation, marked by corruption, notably, and a decades-long rebel insurgency.

Thornley said that corruption has been a "tremendous hindrance" but praised reforms imposed by Aquino, who is seen as the "first honest president for a long time."

"People are being held accountable and consequences are being demonstrated for bad behaviour and this is paying off well for them in terms of economic development," Thornley said.

But he conceded, too, that it will likely take a generation to purge corruption from society and advised Canadians companies to come here with "their eyes wide open and understand that there are challenges.

"But they can come in with a sense of optimism," he said.

And last month the government signed a pact with the Moro Islamic Liberation Front aimed at ending a long-running insurgency that has killed tens of thousands of people.

The deal grants minority Muslims autonomy in return for an end to hostilities.

"I wouldn't say it's an end to the problem but it's a new start," Thornley said.

Canada could be asked to support the evolving peace accord by lending governance expertise for the new autonomous state, he said.

Harper landed here Friday night, flying in from Bangalore after spending six days in India on an extended trade mission. The prime minister's first visit to the Philippines is a strategic one.

International bank HSBC said the Philippines is poised to become the 16th largest economy by 2050 and said the nation was on track to be a "star performer." It predicted the country's economy would grow by an average of 7 per cent over the next 40 years.

Trade between the two nations now stands at a relatively modest $1.5 billion a year.

The Philippines is a founding member of the Association of Southeast Asian Nations and Canada, looking to expand its trade, especially among Asian and Pacific nations.

Canada enjoys "tremendous goodwill" within the Philippines, thanks largely to an extended diaspora.

The Filipino-Canadian community currently numbers about 600,000 across the country and the Philippines has been the largest source country of immigrants to Canada, including many temporary workers, such as nannies. And the latest census results show that the Philippines-based language Tagalog is the fastest-growing language in Canada.

And yet Thornley agreed that the Filipino community remains under the radar within Canada

"I think that's a very positive trait. They integrate well. They don't bring their politics with them. They are hard-working people," he said.

"So they are perhaps not noticed to the same extent as some of the other larger migrant communities we have in Canada," he said.

Canada is seeking a "friendlier regulatory environment" for Canadian mining companies but understands too that the Philippines needs a regulatory framework to "ensure that their interests are protected.

"Perhaps it is taking a little bit longer than we might like. There is a moratorium on new mining permits right now," Thornley said.

The Star.com