PRESIDENT Gloria Macapagal Arroyo and Chinese Premier Wen Jianbao will sign today 12 agreements that will bring in a total of P240.1-billion in investments into the Philippines and boost bilateral trade and cooperation between the two countries.
After attending the 12th Association of Southeast Asian Nations summit in Cebu, Wen will proceed to Malacañang in Manila to meet President Arroyo to sign agreements on trade, agricultural cooperation, mass transportation, customs cooperation, cultural promotions and protection and other areas.
Foreign Affairs spokesman Eduardo Malaya said Wen would also meet Agriculture Secretary Arthur Yap on Tuesday.
The Department of Agriculture said the agreements would cover investment pledges over the next five to seven years, including a memorandum of agreement that would allow Fu Hua Co. of China to invest $3.83 billion for the cultivation of hybrid corn, rice and sorghum.
The secretaries of the departments of agriculture, environment and natural resources and agrarian reform will sign the agreement with Fu Hua.
An agreement that would allow Filipino exporters to enter China’s $1-billion fruit market will also be signed in Malacañang.
Under a memorandum of agreement with the Jiangnan Wholesale Market, the agriculture department secured 5,000 sq m of market space for Philippine tropical fruits like papaya, bananas, pineapples and mangoes in the largest fruit and vegetable trading center in China.
The agriculture department also worked out a contract between China National Constructional and Agricultural Machinery Import and Export Corp. and Palawan Bio-Energy Development Corp.
The department also worked out an agreement between One Cagayan Resource Development Center Inc. and the Nanning Yongkai Industry Group to develop bio-ethanol plants. Each of the two firms will have a production capacity of at least 150,000 liters a day.
Premier Wen and President Arroyo will also witness the signing of a revised agreement on agriculture and fisheries between China and the Philippines.
The department hopes to sign a separate set of agreements with China ‘s largest agricultural investor, the Beidahung Heilongjiang Group, for the development of 200,000 hectares of land in the North Luzon Agribusiness Quadrangle.
Beidahung is expected to sign a memorandum of agreement with EL Enterprises Inc. for the establishment of a $120-million agro-industrial project with all-weather greenhouses that will produce and export quality flowers and off-season vegetables and fruits to Japan, Hong Kong and Taiwan.
Beidahung is expected to bring in P43.4 billion worth of investments into the country.
Meanwhile, in Cebu, Asean leaders signed a trade agreement with China seeking to liberalize nine service sectors that will facilitate the free movement of people and goods between the region and the only Asian superpower.
According to President Arroyo, the leaders of Asean forged the Agreement on Trade in Services of the Framework Agreement on Comprehensive Economic Cooperation with Wen to minimize trade barriers, increase intra-regional trade and investment, and create a larger market with greater opportunities.
“China has an important and strategic role to play in the economic development and security situation of the Asia Pacific region,” said Mrs. Arroyo who is also chairman of the Asean.
The agreement will go in effect in July and will cover business services such as real estate, market research and management consultancy; construction and engineering related services; tourism; transport and educational services; telecommunication services; health-related services; recreational and sporting services; environmental services; and energy services.
“It is expected that trade in services in the region would expand and grow in scale through the four modes of service delivery—cross-border supply, consumption abroad, commercial presence, and movement of natural persons,” the joint Asean-China statement said.
Both sides have also agreed to test the first set of sector commitments within one year, after which the inclusion of the second package of sectors to be liberalized could be discussed.
“We are both friendly neighbors and important strategic partners. We need each other in our respective development endeavors, and we are bound by common interests. We should seize the opportunity to deepen cooperation and open a new chapter in China-Asean relations,” Wen said.