August 15, 2003

Turning foreign investments into spectacular successes

“We believe that the best way to attract more American investments here …is to…make sure that Ford and other prestigious American companies are not only successful here, but spectacular successes,” said U.S. Ambassador Francis Ricciardone during a July 18 ceremony marking the roll-off of the 10,000th Ford vehicle produced in the Philippines for export.

“What will it take to get there? What we believe we have to do is to release the talents of people like you. Get politics out of the away of talented people, business people, working people who want to produce and prosper,” the Ambassador said.

On the proposed revision of the excise tax on vehicles, the Ambassador told the workers of the Ford plant: “There is a way of getting it right to make sure revenues flow correctly to the government, and that the black market does not prosper instead. The black market harms honest companies’ workers and producers like you. And if there are punitive taxes, they will only help the black marketers that feed corruption in this country. Punitive taxes would do nothing to help balance the budget, and would do nothing to help companies like Ford, and for that matter even non-American automotive companies, to help grow this sector of this economy.”

Following is the text of his remarks at the July 18 ceremony marking the roll-off of the 10,000th Ford vehicle produced in the Philippines for export:
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Under Secretary Domingo, Mr. Co, team members of Ford operations here in the Philippines: Magandang umaga sa inyong lahat!

Congratulations to all of you!

As the American Ambassador in this wonderful country, I love collecting success stories. I love looking at the positive things this country has to offer to its own people, to the world and to its partnership in the United States. I’m an optimistic person and the event that we have today feeds that optimism.

All of you, 500 and more employees here, team members of Ford, have demonstrated something very important to all Filipinos, and to all Americans who are interested in deepening partnerships with this country and beginning new ones.

You have demonstrated that Filipinos can compete on the world stage. You have shown that Filipinos are not merely among the best workers for export to the rest of the world, but also that you can stay in your own country to build things that will compete for export in the tough global economy of the 21st century.

You are winners, you are competitors, and you are doing great things- showing the way forward. For your country to prosper in the future, more people have to follow what you are doing. So congratulations to all of you and keep up the good work. Other Filipinos, more Filipino companies, Filipino politicians, please take note of what Filipinos working at this Ford plant are accomplishing.

As the American Ambassador in this country, President Bush has charged me to accomplish 3 broad business objectives. They are:

- To promote our mutual security. When your country is stronger, my country is stronger against terrorism and all manner of external enemies.

- To promote our mutual prosperity. When you prosper, when you export more, American consumers benefit and American exporters benefit. When more Filipinos are employed, more Americans are employed.

We see our bilateral trade and investment not as a zero sum game, not as something where Filipino companies profit at the expense of American companies or vice versa. We see the partnership as one where we grow the market together, and we grow job opportunities together.

Our approach is: Let’s do business together. Let’s create opportunities together. Let’s release the energy of people those like those in this plant to help this country grow richer and build a better future for their families.

- The third business objective of our Mission in Manila is to serve Americans and Filipinos. We aim to provide excellent services for Filipino public and American public. A million of our citizens travel back and forth every year between out two countries. That’s part of not just tourism but trade and commerce as well.

My participation in today’s event is most directly in support of our objective to promote our mutual prosperity. We do this by promoting trade and investment between our two countries. As Under Secretary of Trade and Industry Domingo knows, we work intimately with DTI, with all parts of the Philippine government, with members of Congress and Senate, in this common interest. We try to remove barriers to trade, to make it possible for Filipino and American consumers to get the services they want, whether in aviation or in automotive products, at the best prices available worldwide, the best choices available worldwide.

I’m here today because Ford’s investments in this country have been a shining example. In a year we have seen nearly 600 people employed, and the 10,000th vehicle for export from the Philippines. On the way to the plant, I saw a fine display of all the Filipino products purchased by Ford from other companies, including Mr. Torres’ company, among others.

I wish all those who whine and complain about globalization and who say “we are helpless victims of globalization,” or “Filipinos are not capable of competing,” could be here today to see the display outside, and to see Filipinos competing in the market place better than anyone else.

But this is a success story that’s still limited. It can be better.

We believe that the best way to attract more American investments here, whether from Ford or other companies, is to treat the investors you’ve already got, right. That is, make sure that Ford and other prestigious American companies are not only successful here, but spectacular successes.

If Thailand can export 260,000 vehicles, why should the Philippines be limited to 10,000? I believe that, as Under Secretary Domingo has suggested, we are going to be here again in a short time to celebrate the 100,000th Ford vehicle going out for export. Why not? I hope that I can come back here to celebrate that milestone with the Under Secretary, with Secretary Mar Roxas, and the next president, whoever he or she may be.

What will it take to get there? What we believe we have to do is to release the talents of people like you. Get politics out of the away of talented people, business people, working people who want to produce and prosper.

There are two pending questions right now that need to be resolved if we are going to be here to celebrate export of the 100,000th Ford unit in a couple of years. One of them is to help with export incentives. One of the world’s prestigious carmakers has located here and precisely because such export incentives were on offer.

Exports are important for anyone who wants to compete in the global marketplace. President Arroyo has done a lot to promote exports. Secretary Roxas has done a lot to promote exports. What we’d like to see now is a little bit more help for Ford to build up its exports from the Philippines, and thus to hire more Filipino workers.

The Congress will make a very crucial decision soon after it resumes its session, and that is on getting the vehicle excise taxes right. There is a way of getting it right to make sure revenues flow correctly to the government, and that the black market does not prosper instead. The black market harms honest companies’ workers and producers like you. And if there are punitive taxes, they will only help the black marketers that feed corruption in this country. Punitive taxes would do nothing to help balance the budget, and would do nothing to help companies like Ford, and for that matter even non-American automotive companies, to help grow this sector of this economy.

So we hope and we have every confidence that the democratic process in this country will lead to the right results in getting the excise taxes right: that is, fair, honest, and effective. We also hope that the democratic processes will also get the export incentives right, so that it will be possible in two years to celebrate the 100,000th export vehicle rolling from this plant.

Ladies and Gentlemen of Ford Motor Company Philippines, Mr. Co, Mr. Peese, please accept my hearty congratulations. You are winners! I wish you more power, and Mabuhay!

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