DAVOS, Switzerland (via PLDT) — The Philippine government remains steadfast in its stand against agricultural subsidies, an issue that had derailed the implementation of the Doha agreement of the World Trade Organization (WTO).

President Arroyo made known her stand on the issue during her bilateral meeting at Casa Bracke here last Thursday with Susan Schwab, the United States’ Permanent Trade Representative to the WTO, Trade and Industry Secretary Peter Favila said.

"The President did say that she is not changing her position. In fact, she has called upon her colleagues in the Association of Southeast Asian Nations (ASEAN) to get this moving forward," Favila told the Philippine media delegation.

Earlier, the President, during the 12th ASEAN Summit in 2006, led the group’s commitment position on the Doha agreement for liberalized global trade, which was also the thrust of ASEAN.

"Our message is simple, reasonable and doable. What is given to other members should, also, be given to us," Favila said in an interview on the sidelights of the ongoing World Economic Forum (WEF) here.

This, too, was the centerpiece of the president’s dialogue held afterwards with WTO Director General Pascal Lamy.

The extremely controversial issues of the removal of subsidies on agricultural products, tariff reduction, and anti-dumping due to the divergence of views among the 151 member- nations of the WTO have stalled the Doha agreement.

"We have come to terms on the issue of agriculture, not to lose sight of the spirit of Doha," Favila pointed out.

The Philippines is one of the staunch advocates of the abolition of subsidies as a means to level the playing field.

The implementation of the Doha agreement is important for developing countries in the Asia-Pacific region which is expected to promote trade and commerce.

"We have to keep an open mind in this global free trade environment," Favila stressed.

Meanwhile, the Chief Executive welcomed the move of international credit rating firm Moody’s Investors Service to upgrade the country’s outlook from stable to positive as the prospect of a balanced budget loomed large.

In an interview with Davos TV, the President said the fiscal consolidation program adopted by her administration may bear fruit in 2007, earlier than the revised assumption of a balanced budget this year.

Fiscal discipline plus structural tax reform measures and a successful privatization program boosted the possibility that the national coffers could even post a surplus of more than P5 billion.

"Because of our reforms, we achieved a of level of maturity and stability that helps to withstand, that makes us more resilient than at any other point in time in our history to be able to withstand the external shocks, and this is the message I’ve been getting from all the CEOs I’ve been having conversations with here in Davos," the President said.

Bangko Sentral ng Pilipinas (BSP) Gov. Amando M. Tetangco Jr., on the other hand, said the decision of the Moody’s was an affirmation that the government is on the right track.

"This basically is a recognition of the benefits derived from the macroeconomic reforms we’ve been implementing," Tetangco, who is part of the president’s delegation here for this year’s World Economic Forum, said.

The outlook upgrade will allow the country to weather the ill effects of the meltdown triggered mainly by the subprime mortgage mess in the United States.

"This puts us in good position to weather external shocks," Tetangco added.

As of end-November 2007, the national government already reported a cash surplus of P12.6 billion, buoyed by the huge P47 billion proceeds earned from the sale of the government’s remaining 60 percent interest in PNOC-Energy Development Corp.

Revenues for the period amounted to P1.044 triillion, up by 18.3 percent, from P882.4 billion in the same period the year past. Expenditures, on the other hand, reached P1.031 trillion, inching up from P940.8 billion in 2006.

"Our medium term plan says that we should have a balanced budget by 2010. My economic managers were so enthused about the results ofour tax reforms, and they said we should move the target forward to 2008," the President explained.

"So when the figures of the last month will come out, my economic managers might surprise even themselves, that we might have had a balanced budget in 2007. But in any case, the market wasn’t expecting that, but so if it comes, then, it’s going to be a windfall," she added.

President Arroyo spoke before the high-level plenary session on "The Emerging Asian Community: Role of ASEAN."

From here, she motored back to Zurich Saturday enroute to Dubai, United Arab Emirates to meet with overseas Filipino workers and unveil a package of measures that would help migrant Filipinos mitigate the effects of the peso’s appreciation against the US dollar.

The President flies back home on the 28th.

GMA gets nod of approval from international CEOs

DAVOS, Switzerland (via PLDT) — President Arroyo got the nod of approval from international chief executive officers (CEOs) on the way her administration managed the Philippine economy.

A dinner here Thursday night hosted by 60 World Economic Forum (WEF) CEOs in her honor was "unprecedented," according to Roberto Romulo, a member of the International Board of Advisors (IBA).

As the unofficial historian of the annual meet, Romulo recalled how forlorn he felt when in past dinners, only a few CEOs would sit beside him during the invitation-only WEF CEOs’ dinner.

That was when the Philippine economy was going through a boom and bust cycle -- the government’s budget deficit soared to over P200 billion, high interest rates plagued business and inflation was spiraling.

Now is a different story. An overwhelming number of CEOs signed up to talk and hear the story from the country’s lady president on various issues.

Media learned that at the onset of the preparation, only 30 CEOs had agreed to host the dinner. But as the WEF conference drew near, the number doubled to 60.

Mrs. Arroyo caught the attention of the CEOs with her unwavering resolve in promoting interests of the 10-member Association of Southeast Asian Nations (ASEAN).

"Her views on Myanmar and ASEAN have resonated. The ASEAN is changing and the CEOs want to get her view, including where the Philippines fits in in this scenario," Romulo said.

Last November, the president was the only ASEAN head of state who had issued a strongly worded statement urging Myanmar to restore democracy and releasing Nobel laureate Aung San Suu Kyi and other political prisoners.

Among those in attendance at the CEOs dinner were Marc Holtzman of ABN-AMRO Bank NV; Stuart Gulliver, HSBC UK Holdings head,corporate investment and markets, and Mohammad Omran, chairman, Emirates Telecoms Corp.

WEF organizers also recognized the importance of ASEAN, describing the group as the "new actors in Asia," following the signing in Singapore last November of the group’s charter, the constitution of the 10 economies. The signing of the charter "will move the group beyond economic cooperation to become a regional force to promote peace and stability," said WEF officials.

"A new ASEAN is being born to provide a cooperative framework in an Asia that has seen the rapid rise of China and India as future successors to Western dominance. The changes are occurring at a time when the economies of the US and Western Europe are being battered by massive financial problems brought about by the subprime crisis, raising concerns that Asia has yet to decouple from the US," the WEF said.

A special session on the ASEAN will be held today, Friday afternoon, here.

The President has been credited withr the charter’s coming into fruition, a positive step towards setting up the ASEAN community.

This same message of approval was accorded the Chief Executive when she had earlier met in Zurich her IBAs.

The IBA, composed of 11 CEOs from multinational firms, was organized to help the president in crafting the direction of the economy in the last two and a half years of her term. The IBA recommends and counsels the President on how to best sell the country in the international market. (Fil C. Sionil)