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Political Relations RP-Austrian diplomatic relations, established on 17 October 1946, remained characterized by cordial bilateral ties free from any major irritants as it approaches its 60th anniversary (2006). Several bilateral agreements are currently in effect, including those in the field of Air Services, Visas, Social Security, Investments, and Taxation. A trade agreement signed in 1979 was terminated in 1997 with Austria’s entry into the EU. A number of high-level visits have been undertaken by Philippine and Austrian officials to each other’s territories, at the Ministerial and Deputy Minister level, reaching a peak in the 1990s. On 17-19 September 1997, then President Fidel V. Ramos undertook an official visit to Austria. That visit seven years ago marked the last visit by a ranking Philippine official to Austria. Political cooperation between the Philippines and Austria take place in both the bilateral and multilateral arena (United Nations; Asia-Europe Meeting (ASEM) Process). However, political relations are relatively limited and bilateral relations and exchanges are primarily economic and cultural in complexion, but both countries have clearly endeavoured to take advantage of available opportunities to affirm their commitment to strengthening their long-standing diplomatic and political relations. Be that as it may, Philippine-Austrian relations have yet to realize their full potential, and policy makers and business leaders from both sides have yet to take a closer look at the immense political, business and tourism opportunities that are merely waiting to be tapped. This should not be difficult to surmount given the strong historical, cultural and people-to-people affinities between the Philippines and Austria. These challenges notwithstanding, key positive developments have taken place in recent years:
· Limited High-Level Political Interaction. Although no high-level visits were undertaken by officials of the Philippine or Austrian governments to either country, opportunities emerged during 2004 for limited interaction at the sidelines of multilateral events attended by both governments. On 8-9 October 2004, for instance, both President Gloria Macapagal-Arroyo and Austrian Federal Chancellor Wolfgang Schüssel attended the 5th ASEM Leaders’ Summit in Hanoi on 8-9 October 2004.
Commercial Relations Commercial relations between the Philippines and Austria have been active. In 2003, Philippine exports to Austria totalled US$24.088 million, a decrease of 44% over the previous year. Total imports from Austria were much higher at US$47.55 million in 2003. Philippine exports to Austria, however, amounted to only about 1% of total Philippine exports to the world, for the year. The balance of trade, despite rising Philippine exports to Austria (14% annual average), has remained in Austria’s favour since the 1990s. This is attributed generally to the composition of Philippine imports from Austria, which consist of higher-valued products, compared to the “traditional” character of Philippine exports to this country. To illustrate, Philippine leading exports to Austria during the period consisted of electronics, garments, footwear, sporting goods, canned tuna, tobacco, automotive parts and house wares. Meanwhile, top Philippine imports from Austria consisted of pharmaceutical products, electronic products, construction materials, metal machinery and equipment, medical and industrial instrumentation, textiles and yarns, and chemical products. As of October 2004, Philippine bilateral trade with Austria showed a similar scenario as in preceding years, with imports still far outweighing exports. There is also an observed significant decrease in Philippine exports level compared to previous years, as data shows that exports in 2004 reached only about 75.5% of the total exports of the previous year. There has also been little change in the composition of bilaterally traded goods as in previous years as well. The prevailing economic slowdown in Europe, led by the weakening of the economies of the two largest members, France and Germany, has contributed to the slowdown in business, which could also have affected Philippine bilateral trade not only with Austria, but also with the rest of the European Union. It is important to note that the recent decline in Philippine trade with Austria coincided with the accession to the EU of Austria’s immediate neighbours in Eastern Europe, to which many Austrian businesses shifted. Philippine Trade with Austria FOB Value US Dollars 1997 - 2004 (October)
Source: DTI Tradeline Investment Relations The Austrian Parliament ratified on 04 August 2003 the Agreement between the Republic of Austria and the Republic of the Philippines on the Promotion and Mutual Protection of Investments (signed in Manila on 11 April 2002). Subsequently, the Protocol of Exchange of Instruments of Ratification governing this agreement was signed on 24 September 2003 in Vienna. Ambassador Victor G. Garcia III signed in behalf of the Philippines, while Mag. Arno Riedel, head of the Foreign Ministry’s Department for Bilateral and Multilateral Foreign Economic Relations signed for Austria. To date, Austrian private investments in the Philippines are primarily from those Austrian companies undertaking development projects there in connection with the Austrian Government’s soft-loans for the Philippines. Austrian Soft-Loans to the Philippines Since the 1970s, Austrian assistance to the Philippines has taken the form of soft loans. Most recently, Austria has helped fund the following projects in the Philippines: 1. Austrian-Assisted Bridge Construction/Replacement Project and Austrian-Assisted President’s Bridge Programme Phase II -- These involved a combined soft loan amount of 1.5 billion Austrian schillings (ATS) [i.e., ATS 500 million for phase I; and ATS 1 billion for phase II. Both projects involved the construction of modular steel bridges and the replacement of old or weakened bridges around the Philippines using this same modular steel technology, 2. Emergency Network Philippines (ENP) – First formulated in 1998 by the DILG, involves the establishment and adoption of a nationwide integrated government communication and relay system that is backed up by advanced state-of-the-art computer equipment, systems, software and database support. This project expanded and upgraded the old PATROL 117 Street Watch Program, in terms of area and service coverage. ENP allows (telephone) calls for assistance to emergency number 117 (from anywhere in the Philippines) to be automatically answered and reported incidents to be immediately verified. The system thus enables public organizations like police stations, fire departments or rescue services to respond to emergencies The system consists of nineteen (19) networked systems designed, developed and implemented by the Austrian high-tech enterprise FREQUENTIS GmbH, which develops communication and information Systems for safety critical areas such as air traffic control and emergency call centres. The Manila call centre began operations in May 2003 and was officially inaugurated on 02 August that same year. The other planned call centres will be equipped within the next two years. Tourism The Department of Tourism has recorded a 37.0% growth rate of Austrian visitors to the Philippines in 2004. Data as of October 2004 showed a total of 6,311 visitors compared to only 4,605 for the same period in 2003. The spike was attributed largely to changes in the travel plans of Austrian holiday makers in the wake of the catastrophic Indian Ocean tsunami of 26 December 2004. Cultural Promotion Activities for 2004 Cultural relations have traditionally been the strongest aspect of RP-Austrian ties, largely because of historical and cultural affinities and social ties – the latter brought about by the growing number of Filipinos in Austria (including those acquiring Austrian citizenship and marrying Austrian citizens). Philippine national hero Dr. Jose P. Rizal himself visited Austria (Vienna, Linz and Salzburg) on 20-24 May 2004 and observed surgery performed at Vienna’s Allgemeines Krankenhaus (general hospital). A marker commemorating his visit is installed at the Hotel Metropole. Following are the highlights of the Embassy’s activities in this area, in 2004:
18 September The 2nd Peñafrancia Festival in honour of the Roman Catholic devotion Our Lady of Peñafrancia, simultaneous with the festivities taking place in the city of Naga, Camarines, Sur. Following Bicolano tradition, a fluvial procession was held by Filipino and Austrian devotees along the Danube River (Donau) and historic Austrian town of Hainburg. 13 October Participation of Madame Concepcion G. Garcia, wife of Ambassador Victor G. Garcia, in the painting exhibition dubbed ‘Ambassadorial Art’, held at Aux Gazelles, Rahlgasse 5 in Vienna’s 6th district. 28 May Observance of National Flag Day, Official Residence, Nussbergasse 2-B, A-1190 Vienna. Ambassador Victor G. Garcia III led Filipino community leaders in pledging allegiance to the flag. The event was followed by a brunch for the Filipino Community. 29 May Concert organized by the Embassy in cooperation with the Couples for Christ (CFC)/ANCOP International Austria, to launch the Gawad Kalinga 777 Drive in Austria. The concert featured Filipino Artists Ms. Adolovni Acosta, (pianist) and Mr. Adolfo Timuat (guitarist) and was held at the Yamaha Concert Hall, Schleiergasse 20, A-1100. 05 June “Pistá sa Barangáy” (annual Filipino community Barrio Fiesta celebration in honour of Independence Day), Pfarre Leopoldau, Leopoldauerplatz 12, A-1221. 07-11 June Art Exhibit of Filipino artists at the Vienna International Centre (VIC), Vienna. The exhibit, inaugurated by Ambassador Garcia, drew huge crowds and buyers eager to bring a touch of Filipino artistry to their respective homes. 11 June National Day Diplomatic Reception (106th Anniversary of Philippine Independence), SAS Radisson Hotel, Parkring, A-1010, Vienna. Over the years, the Philippine reception has become one of the “must-see” diplomatic events in Vienna, with its tradition of high-calibre cultural performances and sumptuous native dishes. In a first, Filipino dining places Asian Bakehouse, Bulakeña and Eissalon Ruckenbauer also participated in the event, allowing guests to sample popular items from their respective menus. 12 June Philippine Independence Day Ball hosted by the Filipino Community, Austria Centre, A-1220, Vienna. 08 October Symposium for former Filipino Citizens, Rizal Reading Room of the Embassy on 08 October 2004. The activity, first in a planned series, informed former Filipinos in Austria about current Philippine laws and regulations affecting them. For the initial meeting, visa regulations, property acquisition, and inheritance in the Philippines were discussed. Also discussed were Philippine tourism, Balikbayan visa privileges, the Special Resident Retirees Visa (SIRV) of the Philippine Leisure and Retirement Authority (PLRA) and the Special Investors Resident Visa of the Board of Investments (BOI). The Philippine Government is confident that Philippine-Austrian ties will continue to develop and take advantage of the many promising areas for pursuing cooperative relations, in the future. Filipino Community in Austria The growing Filipino community in Austria has been a valuable partner for the Philippine Embassy in the conduct of its functions in the service of Philippine national interest and the protection of overseas Filipinos’ rights and welfare. The Filipino community in Austria is highly organized. Altogether, the Embassy lists more than fifty (50) organizations, clubs and associations of Filipinos or Filipino-Austrians -- organized along either regional, ethnic, professional or religious lines – many of which maintain excellent cooperative and consultative ties with the Embassy and are actively supporting the Embassy in projecting a positive image of the Philippines through regular activities and projects. These cooperative ties are cultivated and developed principally through the monthly Filipino community-Embassy meetings chaired by Consul General Julio C. Dery. Vienna, 5 April 2005 |
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RP-Austria
Relations