At the same time, our experience has been that our customers, our suppliers and Ford benefit most when markets rather than governments determine what is sold, at what price and under which conditions. For Ford, that means more liberalized trade, investment and distribution rules, tax reform, transparency in the way governmental policies are made and harmonization of standards and regulations whenever possible. We are please to be working integrally with the Joint Commission on Commerce and Trade between the U.S. and China to establish harmonization and equivalency of standards in China. We extend our kudos to China for maintaining stability of the RMB and proceeding with their internal reforms, even though the Asia economic crisis is affecting their external trade. It is a major accomplishment, but still a work in progress.
Incentives are only one step to provide encouragement for investment.
The Philippines, for example, must meet its commitments to eliminate local content rules by January 2000. Such regulations drive manufacturers to focus on domestic market volumes rather than force them to transform and integrate local companies into their regional and global market plans. Effective government policies can play an important role in developing a suitable business climate. This also provides the foundation for long-term investor confidence. New investment and modernization programs must constantly be encouraged.