MANILA: Philippine politicians on both sides of the aisle have slammed President Rodrigo Duterte’s latest tirade against the country’s Visiting Forces Agreement (VFA) with the US.
Duterte made the comments during a Philippine Air Force event on Friday, demanding that Washington pay Manila if it wants the more than two-decade-old VFA to remain in place.
One senator said the leader’s comments were “embarrassing” and gave the impression that the Philippines was a “nation of extortionists.”
Others warned that the diplomatic relations of the Philippines, together with its sovereignty, should not come with a price tag.
Catholic priest and peace advocate Elizeo Mercado Jr., a senior policy adviser at the Institute for Autonomy and Governance, told Arab News that “whatever the president’s decision on the VFA, it is outright wrong to put a price on it.
“Friendship has no price. To put a price tag on it is not good diplomacy and not good for the relationship with the US. The president might agree or disagree, or allow or disallow the VFA, but it should be based on a matter of principle, not on price,” Mercado told Arab News.
He added that the move was in “bad taste” and “makes us look like we are for sale.”
Mercado said: “If we are friends with the US, we can talk about the VFA. If we are not friends with the US, we can also talk about it respectfully, on the basis of principle.”
Vice President Leni Robredo, in a radio program, also criticized Duterte’s comments.
“It sounded like extortion. It sounded like a criminal saying, ‘if you want this, you have to pay first,’” she said, adding that the demands were “no way to treat a longtime ally.”
Robredo added: “It’s embarrassing. It’s like we are extorting them. For me, when we say we do not want to renew the VFA, then let’s lay down the reasons. Let us show them why it will not be good for us. Money should not be the consideration.”
The vice president said that relations should be based on the mutual benefit of both parties. “It’s not ‘we’re friends because you gave me money,’” she said.
Sen. Panfilo Lacson, who chairs the country’s committee on national defense, said a diplomatic approach would have been more effective in sending a message to the US.
“Why use strong words to send a message to a longtime ally, when a civil, diplomatic and statesmanlike approach can be more effective?” Lacson said in a statement on Sunday.
He shared Mercado and Robredo’s sentiment that the president’s comments were in “bad taste.”
The previous day, Lacson warned that the Philippines needed the VFA — especially given recent Chinese intrusions into Philippine territory, particularly in the West Philippine Sea — as “the last thing” the Philippines should lose is the balance of power that its allies, including the US, “can provide to suit our national interests and territorial integrity.
“It was in that context that I posted a tweet on the matter on Saturday. I decided to take it down after giving it a thought that the president’s intention was to get a fair shake of the agreement, only he could have said it in a more diplomatic way. On crucial issues such as this, there should be no room for misinterpretation or misunderstanding moving forward,” Lacson said.
“The president may have used strong words to send his message across to the US, but there is a more civil and statesmanlike manner to ask for compensation from a longtime ally using the usual diplomatic channels and still getting the same desired results.”
International security analyst Stephen Cutler told Arab News that the VFA addresses “all kinds of activities of US military.”
He said: “The massive aid provided by the US after disasters uses US military goods, equipment and personnel. None of that would likely be available without the VFA. So USAID would still help, but through chartered civilian flights and civilian personnel. US Navy ships might bring supplies, but would stay in international waters, with Philippine boats ferrying foods and goods to shore.”
As for Duterte’s remarks, he said: “For me, I see the president as addressing his constituents, and trying to rally them to his ideas of ‘stand on our own.’
“It looks like the president wants to buy new air and naval assets and equipment for the Philippine military, but the opposition won’t fund that because they think that the US will provide support if needed.
“He may be laying a path for even more defense spending at a time when anti-coronavirus spending is the only thing on people’s minds,” Cutler added.
The VFA provides a legal framework through which US troops can operate on a rotational basis in the Philippines. Experts say that without it, other bilateral defense agreements, including the Mutual Defense Treaty, cannot be implemented.
Duterte notified Washington in February last year that he was canceling the deal amid outrage over a senator and ally being denied a US visa. But he has extended the termination process, which will now be overseen by US President Joe Biden’s administration.
Representatives from both countries have been meeting to iron out differences over the military agreement.
Philippines’ Duterte slammed for demanding Washington pay for US troop deal
https://arab.news/zae3b
Philippines’ Duterte slammed for demanding Washington pay for US troop deal
- Officials say “embarrassing” move “puts price tag on peace”
- Others warned that the diplomatic relations of the Philippines, together with its sovereignty, should not come with a price tag
Shipping on Rhine river in Germany back to normal after rain raises water level
Rain in past days means the last northern river sections where shipping was hindered by shallow water
HAMBURG: Repeated rain in past days has raised water levels on all of the river Rhine in Germany to normal levels allowing cargo vessels to sail with full loads, commodity traders said on Tuesday.
Dry weather and a heatwave in June and July meant the river became too shallow for vessels to sail fully loaded. Ship operators imposed surcharges on freight rates to compensate for vessels sailing partly empty, increasing costs for cargo owners.
Rain in past days means the last northern river sections where shipping was hindered by shallow water, including around Duisburg and Cologne, have been raised to levels allowing full loads.
Rain had raised other sections of the river, including the chokepoint at Kaub, to normal levels over the weekend.
The impact of the heatwave had been stronger than expected as fields were especially dry which drain into smaller streams and rivers feeding into the Rhine.
The Rhine is an important shipping route for commodities such as grains, minerals, ores, chemicals, coal and oil products, including heating oil.
German companies faced supply bottlenecks and production problems in summer 2022 after a drought led to unusually low water levels on the river.
Unrest in Angolan capital after 4 killed in fuel hike protests
- Gunfire could be heard in central Luanda’s Cazenga area, where people were seen taking food and other items from shops
- Police reported “a few isolated incidents of disorder” early Tuesday and said people involved “were repelled and continue to be repelled“
LUANDA: Shots rang out as Angola’s capital was gripped by a second day of looting Tuesday, after at least four people were killed and scores arrested when violence erupted during a strike against a fuel price hike.
Transport in Luanda remained suspended and shops closed after massive looting on Monday, the first day of the taxi drivers’ strike to condemn the July 1 price rise, which had already led to several protests.
Gunfire could be heard in central Luanda’s Cazenga area, where people were seen taking food and other items from shops, an AFP reporter said.
Images shared on social media showed clashes in the Rocha Pinto suburb near the airport and security forces deploying to a street where burning rubbish bins barricaded a road in the Prenda area.
The government’s decision to raise heavily subsidised fuel prices from 300 to 400 kwanzas ($0.33 to $0.43) a liter in July has caused anger in Angola, one of Africa’s top oil producers where many people live in poverty.
“We are tired ... they must announce something for things to change ... for us to live in better conditions,” a protester told Angola’s TV Nzinga.
“Why do you make us suffer like this? How will we feed our children? The prices have to go down,” a woman said, addressing President Joao Lourenco.
Police reported “a few isolated incidents of disorder” early Tuesday and said people involved “were repelled and continue to be repelled.”
“We currently report four deaths,” Deputy Commissioner Mateus Rodrigues told reporters in a briefing about Monday’s violence. He did not specify how they occurred.
Police rounded up 400 people overnight for suspected involvement in the unrest after arresting 100 on Monday, he said.
About 45 shops were vandalized, while 25 private vehicles and 20 public buses were damaged, he said. Banks were also targeted.
“We continue to stress that our forces are on the streets, equipped with the necessary resources based on the threat level, responding where order has been restored to maintain it, and intervening where there are still disturbances to reestablish public order and peace,” he said.
AFP photographs on Monday showed people running off with items looted from shops, while images posted on social media showed large crowds of protesters and, separately, police pushing back groups of people.
Local media reports said security forces had used tear gas and rubber bullets to disperse crowds.
A journalist in the city of Huambo, around 600 kilometers (370 miles) from Luanda, said there had also been looting and rioting there.
The New Alliance of Taxi Drivers Association (ANATA) distanced itself from Monday’s violence but said the three-day strike would continue.
It “has become clear that the voice of the taxi drivers reflects the outcry of the Angolan people,” the association said in a statement Tuesday.
Around 2,000 people demonstrated against the fuel hike on Saturday, with protests also held the previous two weekends.
Human Rights Watch said police had used excessive force in the July 12 protest, including firing tear gas and rubber bullets.
In a joint statement on Monday, civil society groups condemned the July 19 arrest of one of the organizers of the protests, Osvaldo Sergio Correia Caholo.
He was a “victim of the oppression in Angola, where freedoms and fundamental guarantees are constantly being trampled upon,” they said.
The protests were a “direct consequence” of the government’s failure to address unemployment, high living costs and a decline in public services, the Uyele civic group said.
It is “urgent to understand that we are facing a serious symptom: the social exhaustion of a youth with no alternatives,” it said in a statement.
Lourenco’s MPLA party has ruled Angola, which has a population of around 33 million, since its independence from Portugal in 1975.
Poland says 32 people detained and suspected of coordinating with Russia for sabotage
- One person has been convicted, while the others are in custody awaiting trial,
- The group includes a Pole, Russians, Ukrainians and Belarusians
WARSAW: Polish Prime Minister Donald Tusk on Tuesday said authorities have detained 32 people suspected of coordinating with Russia to engage in acts of sabotage, according to Polish news agency PAP.
One person has been convicted, while the others are in custody awaiting trial, PAP reported.
The group includes a Pole, Russians, Ukrainians and Belarusians, PAP reported, as well as a 27-year-old Colombian man who is accused of two arson attacks in Poland last year at Russia’s behest.
The Polish Internal Security Agency in a statement Tuesday said he faces up to 10 years to life in prison in connection with the arson attacks on two construction warehouses in May 2024.
The suspect allegedly received his instructions, including how to make a Molotov cocktail to start the fires, from someone associated with Russian intelligence, the agency said.
Other details about the suspects or the alleged sabotage were not immediately available.
Pakistan’s crackdown on black market dollar trade pushes deals online
- Pakistan’s crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead
KARACHI: Pakistan’s crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead.
Many unlicensed exchange shops have been shut since July 22, when the military spy agency summoned representatives of the sector to explain the US dollar’s rising cost in the open market. Soon after, raids were carried out by the Federal Investigation Agency, which tackles financial crime and smuggling.
Since the crackdown began, the rupee has rebounded from a sharp fall against the dollar earlier in July. In the open market, it firmed from 288.6 per dollar on July 19 to about 286 in recent sessions.
But traders and bankers say the trade continues, suggesting the crackdown’s effects could be short-lived.
The black market operates outside official channels and includes unlicensed dealers, personal networks, and digital peer-to-peer exchanges, with customers seeking to skip tax declarations, avoid burdensome paperwork and bypass limits on official currency purchases.
In Peshawar, a city near the Afghan border long known for black market currency deals, many shops in the historic Chowk Yadgar district remain shuttered, though some traders were still operating discreetly in back-alley booths.
“The trade didn’t stop. It just moved,” said Ahmad, a dealer whose family has been in the business for generations. “Now it’s on WhatsApp. If you know someone, the dollars come to your house.”
“The big players have shifted to safer locations and kept going,” said another trader, Gul. Both traders asked not to give their full names.
Even retail buyers are bypassing the formal foreign exchange market. Hassan, a manager at a multinational firm in Karachi, said stricter documentation drove him to an informal forex chat.
“Everyone there is a buyer or seller. No middleman, no commission. Sometimes it’s physical cash, sometimes bank transfers, sometimes crypto,” he said.
STRICTER FX DISCIPLINE
On Monday, Pakistan’s central bank called in bank treasury heads to address pressure on the rupee. Two bankers said they were told to stop buying dollars from exchange companies at above-official rates on the grounds it was skewing the market.
Banks were asked to rely on their own inflows from exports and remittances, but both sources have slowed. Exporters are delaying bringing money home, betting the rupee will weaken. Remittances are also tapering off as banks reduce incentives once offered to attract overseas inflows.
Authorities also pressed banks to keep the gap between the interbank rate and the open market rate narrow, a condition of Pakistan’s $7 billion IMF deal meant to discourage speculation.
“These meetings have been happening for years, but this one was more pointed,” one banker said, speaking on condition of anonymity.
The central bank is expected to cut rates on Wednesday, easing inflation but risking pressure on the rupee.
Indonesia to cut Middle East oil imports to meet Trump’s tariff deal
- Saudi Arabia is among Indonesia’s top oil suppliers
- US to impose 19% import tariff under new deal
JAKARTA: Indonesia will reduce oil and gas imports from Middle Eastern and Asian countries, Energy and Mineral Resources Minister Bahlil Lahadalia said, as Jakarta moves to implement its $15 billion energy deal with the US under the latest tariff agreement.
Indonesia is among three Southeast Asian countries that have struck deals with Washington so far, following negotiations with US President Donald Trump to lower tariff rates.
Jakarta has agreed to increase its imports from the US by more than $22 billion — including energy products — under the framework trade deal, while US tariffs on Indonesian imports would be set at 19 percent.
“We have agreed to buy $15 billion worth of gasoline, crude oil and LPG (liquefied petroleum gas), which we will do in steps by considering its economic viability. The prices must be competitive, and now we’re designing a framework for it,” Lahadalia told reporters in Jakarta on Monday.
“We will reduce (imports) from other countries (in) the Middle East and Asia.”
Southeast Asia’s biggest economy’s oil imports were valued at about $36 billion last year.
While the US is among Indonesia’s top oil suppliers, Washington still ranks behind Singapore, Malaysia and Saudi Arabia.
The US deal, which is expected to be finalized in the coming weeks, allows Indonesia to avoid the higher tariff rate of 32 percent threatened earlier by the Trump administration.
“We know that 32 percent (tariff rate) means no trade, which basically means a trade embargo, and that means around 1 million workers in labor-intensive sectors can be impacted,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement.
“What the government is doing through this cooperation with the US is to keep the internal and external balance so that we can maintain our trade balance, keep our economic momentum and ensure job creation.”
The US is Indonesia’s second-largest market after China, with exports valued at over $26 billion in 2024, according to Indonesia’s statistics agency.
Indonesia has consistently posted trade surpluses with the US in the past decade, including $16.8 billion last year.
Under the tariff agreement, Jakarta agreed to drop its tariff on nearly all American imports to zero and scrap all non-tariff barriers facing American firms, while also committing to purchase $4.5 billion worth of agricultural products from the US, including soybeans, wheat and cotton, as well as Boeing aircraft valued at $3.2 billion.
