By Kris M. Crismundo
MANILA, (PNA) – Local exporters expects no immediate and immense impact on Philippine businesses, particularly in export sector, as the United States Federal government faced shutdown October 1.
Philippine Exporters Confederation, Inc. (Philexport) President Sergio Ortiz-Luis said in an interview that the shutdown of the US government will not immediately affect and impact on local businesses and exporters, however delay of orders from US may be expected.
”We do not expect any immediate and big impact on this (US government shutdown). The only problem we can see is that orders from this country may be delayed because of situation in their bureaus,” said Ortiz-Luis.
He mentioned that the situation now in US also affects trade among other countries.
”This reflects to uncertainty in US economy but we do not know to what extent it will be,” he added.
On the other hand, Ortiz-Luis said the situation in the US government may draw US businesses to other countries.
Yet this would not be a major consideration of putting up businesses outside America.
”Businesses may consider investing to other countries but this will not be a priority reason,” he mentioned.
The US faced partial shutdown of its federal government after the US Congress failed to pass spending bill before deadline as stated in its Constitution.
The Republican-controlled House of Representatives and the Democratic-led Senate have not compromised to pass spending bill as the House of Representatives did not favor the Affordable Care Act, or Obamacare which aims to cover uninsured Americans to benefit on healthcare.
The shutdown takes effect after a fiscal year ends. US fiscal year starts October 1 and ends September 30.
In the history of the US government, the country had experienced 17 government shutdown since 1977.
Most of these shutdowns took more or less than three days.
The longest US government shutdown was experienced from December 16, 1995 to January 5, 1996, counting 21 days.
It is still unknown when will the shutdown during Obama’s administration will end.