MGSF01 Economic Impacts and Philippine Response to H1N1

UNCLAS MANILA 001043 SIPDIS BANGKOK FOR HOWELL HOWARD AND WINSTON BOWMAN STATE PASS USTR JANE DOHERTY STATE PASS USDA/FAS/OSTA CLAY HAMILTON AND CASEY BEAN STATE PASS USAID STATE PASS HHS/NIH STATE PASS HHS/CDC E.O. 12958: N/A TAGS: KFLU AEMR ASEC CASC KFLO TBIO KSAF KPAO PREL PINR AMGT, MG, RP SUBJECT: MGSF01 Economic Impacts and Philippine Response to H1N1 REF: A) MANILA 0913 B) MANILA 0941 C) MANILA 0959 ¶1. (SBU) Summary: The Philippine government has earmarked funds for H1N1 prevention and treatment, but the virus has had only minor impact on the Philippine economy. Philippine boxer Manny Pacquiao ignored official warnings to delay his return from Las Vegas to avoid spreading H1N1, diverting media attention from exaggerated concerns about U.S. troops entering the Philippines for training exercises. The rapid reversal of the Philippine ban on U.S. pork prevented any significant revenue loss to U.S. producers. End summary. Bringing Home the Bacon -------------- ¶2. The Philippine government ended its freeze on issuing import permits for U.S. pork on May 4 (Ref. B),thanks to a coordinated Mission effort and public pronouncements by international animal health authorities. Mission members lobbied Philippine officials to resume issuing import permits, and the Ambassador met with Philippine Agriculture Secretary Arthur Yap on May 4. The Department of Agriculture lifted its ban later that day (Ref C). The nine-day pork import permit suspension had minimal impact on U.S. pork producers, according to the U.S. Meat Export Federation. U.S. pork exporters simply delayed shipments to the Philippines during the hiatus. Philippine Government's Financial Preparations -------------- - ¶3. The Philippine National Disaster Coordinating Council set aside 93.5 million pesos (nearly $2 million) for planned H1N1 expenditures by the Department of Health. This includes 10 million pesos (around $212,000) for additional personal protective equipment; 15 million pesos (nearly $320,000) to reinforce stockpiles of oseltamivir; and the balance for other preparedness activities including support for hospitals that have the capacity to treat H1N1 patients. Business as Usual -------------- ¶4. There have not been any confirmed H1N1 cases in the Philippines. The Philippine stock market took a quick dip of 2% following the outbreak, but has since increased by about 7%, as of May 12. The travel industry has not been hit and the retail industry has not been affected. Philippine government officials do not foresee any H1N1-induced economic slowdown. Pacquiao's Triumphant Return -------------- ¶5. On May 3, Philippine boxing champion Manny Pacquiao fought in Las Vegas, winning his fifth title. Philippine Health Secretary Francisco Duque urged Pacquiao to delay his return to the Philippines to allay concerns that Pacquiao and his entourage could spread the virus around the country. Pacquiao defied Duque and came back to a hero's welcome on May 8, which included a meeting with Philippine President Gloria Arroyo. The boxing star said he had used hand sanitizer, and no one in his group has shown any flu symptoms. A travel ban has not been imposed, and all flights from the U.S. maintained their regular schedules. ¶6. Post was prepared to field questions from reporters and health authorities about any risk posed by U.S. Navy personnel coming to the Philippines for the Combined Afloat Readiness and Training (CARAT) exercises May 21-28. However, Pacquiao's return helped demonstrate that just because a person has come from the U.S. does not mean that the individual is infected. MEMMOTT