NEARLY five hundred years after Ferdinand Magellan dropped anchor on Philippine shores, a second wave of intrepid Portuguese have landed once more in the country—not to avenge the death of the greatest navigator in written history, but to win the hearts and minds of the locals—with billions of euros in investments.
The recent “expedition” was made possible via Eurico Brilhante Dias, Secretary of State of the Republic of Portugal, with top-ranked Lisbon investors.
The BusinessMirror interviewed Dias about the mission, notwithstanding the European Union (EU) members’ earlier arrival and partaking of the country’s robust economic growth many moons ago.
“Under my duties in the Portuguese government, I have an important task of developing international trade and attracting foreign investments into my country,” the young and eager delegation leader stated.
Dias did not hesitate to point out the historical links that transpired between the Philippines and his country half a millennium ago, when a fellow Portuguese, sailing under the Spanish flag, planted a lasting European influence in our soil.
“We have historical heritage… I can say, almost 500 years. But of course, our economic relations are not so deep than it should be.”
“I have brought a delegation of 13 Portuguese companies. They are open for meetings and are looking for opportunities to invest and exchange experiences with Philippine businessmen,” he confessed.
Asked for specifics, Dias, tall and imbued with as much desire as his navigator-forebear discover “new territories,” said they have six areas of two-way investments in mind: tourism, information and communications technology, mining, logistics, real estate and food processing.
“Portugal is a fantastic place to produce and sell products in an interesting market like the EU, with 500 million consumers who average more than €20,000 gross domestic product [GDP] per capita,” he boasted.
The state secretary clarified his country’s expertise in those sectors of investments, while he singled out tourism as a sector of paramount importance.
Dias said they are aware of the administration’s current program in building more infrastructures. “They are fantastic,” he said.
“We have Portuguese construction companies related to waste and water- treatment plants, where their Filipino counterparts can invest in.”
As logistics companies, Dias said they are strong and highly skilled in the food industry, “We can make investments and give our citizens a better life, with more investments and trade activities between our countries.”
Since arriving, the Portuguese official had meetings with various officials from the government “to develop our political and diplomatic relationship,” while he shared about his interactions with the foreign affairs as well as the trade and industry departments.
Dias said he wanted to make clear three important roles of his mission, which are: “first, generate more investments and trade; second, show our commitment and support a free-trade agreement [FTA] between us and the Philippines and support a FTA between the EU and Asean, [including one with] the EU and the Philippines.”
He said they have already been to Vietnam and pursued the same trade-and-investment undertaking, but “of course, we need to work harder to develop that.”
“Third, to contact the Chamber of Commerce, [as well as] other entities and investors to show Portuguese and Philippine companies can exchange goods, products and services…and that can we attract more investments from the Philippines to Portugal.”
Recovering economy
DIAS admitted Filipino investors have gained access to Portugal; but conversely, not many companies from his motherland are in the country.
“So we need to work hard to have better figures; to have more investments between our countries.”
He said there are economic obstacles to be hurdled related to his trade mission, but promised that “we can do [more] together, and that we can explore. I’m sure these low [trade] figures that we have could really be improved.”
Asked why they came only now, when practically the entire developed world had already come rushing in to take advantage of the Philippines’s robust growth, Dias said: “I don’t know,” then continued, “I suppose sometimes, when you are far from [being seen], you are also far from priorities. Out of sight, out of mind.”
He did not admit it, but the financial crisis of 2008 seriously affected Portugal’s economic growth. It is only lately that they are recovering from a sluggish economy. This is common knowledge in the EU, when the economic downturn of the Iberian country started in 2001. Years of internal economic crisis and recession ensued.
Today, Lisbon has rebounded, giving Dias the drive to come and convince the Philippines to do business with one of the planet’s first world powers.
“Of course, Portugal is a European country; an Atlantic country. But we need to have a broader perspective, including not only the Philippines, but also China, Japan, Indonesia, [etc.].”
Their goal, he said, is to have 50 percent of their GDP come through exports within the next decade, between 2024 and 2025.
He said a revived Portugal has the acumen to achieve its goal: “It’s our objective, it’s our political will. That’s why we are making an effort to promote more diplomatic activities and our economy as [a producer of high-quality] goods as well as services; and at the same time, a country that is open to other countries.”
Quincentennial queries
THE discussion segued to 2021—the 500th anniversary of Magellan’s circumnavigation of the world.
Preparations have been under way, not only for Portugal but also for Spain, to celebrate the quincentenary of Magellan’s feat. Both countries have built their own ships ready to circumnavigate the world and visit as many cities in the process.
Why are the two countries sharing Magellan’s monumental feat? This is because, when the navigator broached to King Manuel of Portugal the idea of sailing westward, he was roundly denied the opportunity, as the monarch had no interest to sponsor a journey to a place he could not keep under his flag.
At that time, following the Treaty of Tordesillas, the two ancient world powers in the Iberian Peninsula divided the world into two spheres of influence. But the Portuguese ruler at that time, who lacked a modern, updated map, did not know about the Spice Islands.
Precious spices, specifically clove, were the object of Magellan’s voyage, which at that time commanded a higher value than that of gold.
Magellan (Fernão de Magalhães in Portuguese; Fernando de Magallanes in Spanish), who earlier had made forays to India and part of the Moluccas, moved to Sevilla in Spain. Charles I, then 18-year-old and grandson of King Ferdinand and Queen Isabella, gave his nod to finance the landmark voyage.
The headstrong sailor promised the young king that the westward sea voyage would bring immeasurable riches to the Castillan nation.
In the case of Portugal, Dias said they have since 1961 a sailing ship, the NRP Sagres, a multimasted, tall school vessel of the Portuguese Navy. As the third vessel with the same name in the Portuguese Navy, she is sometimes referred to as Sagres III.
According to Dias, Sagres III would drop anchor in the Philippines after visiting several other cities “to celebrate that fantastic event in 2020.”
The plan for Sagres III is to sail the same route Magellan did, “more or less,” Dias said, volunteering they have a commissioner heading the preparations for those celebrations in Portugal.
“We are preparing a common agenda with Spain,” he admitted. “I’m sure there are other kinds of activities to be developed, mainly related with culture and Portuguese as a global language.”
Mulling over the potentials of jointly celebrating the 500th anniversary of Magellan’s circumnavigation of the planet, Dias said: “It is going to be a moment where we can remember and renew our bonds, and we can have stronger relationship.”
Trying to relive their old glory, Dias said Portugal’s message is “to prepare for this celebration; not to celebrate the past, but to show how that past can be used to have a better future.”
He added, “And a better future means [not just an exchange of] goods and services, but also of culture and people.”
Culture, values, globalization
THE state secretary said Portugal wants to share its culture and values “in order to have a better globalization, [which equates to] more international trade and investments.”
Following his dialogues with local investors, Dias revealed that local businessmen will visit Portugal in the near future to look for opportunities there.
“We have 177 companies exporting from Portugal to the Philippines, [although admittedly it is not quite high in our priorities, but] it’s a beginning. We need to increase that figure.”
His more ambitious project is to build regional platforms, because “Portugal is an economy within the EU, the euro being our currency. But at the same time, Portugal is a platform for Portuguese-speaking countries like Brazil, Angola and Mozambique.”
He said Lisbon has a dynamic diaspora in North America. “We have fantastic relations with Canada with a standing FTA. We have our first client outside EU in the US, as well as the same political and economic relations with countries from Morocco to Algeria.”
In their attempts to catch up, Dias said Portugal is also exploring new markets in Egypt and the United Arab Emirates.
He offered that his country is an interesting platform for Europeans, Americans, Africans and the Philippines, which he describes as a “fantastic gateway to Asia and its southeast part.”
He promised that if the Philippines could be perceived as a true Asian gateway, “and if you can give that perception of value that you have as a platform of Asia to Portuguese companies, I’m sure a lot of [our] companies will invest in the Philippines, not only to explore this market, but also others.”
Image credits: Jimbo Albano