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Agriculture, Education secretaries appointed NEDA Board members

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THE secretaries of Agriculture and Education have been made members of the National Economic and Development Authority (NEDA) Board, NEDA Secretary Arsenio M. Balisacan said.

Their membership ensures that the administration’s priorities “with respect to agriculture and food security, as well as education and the development of skills for a competitive economy, are properly attended to,” Mr. Balisacan told reporters at the Palace on Wednesday.

He said the proposed Philippine Civil Service Modernization Project — an “important project for the development of human resource management processes in the public sector” — was also discussed during Wednesday’s NEDA Board meeting.

The Board also approved a request to increase the project cost of the Metro Manila Priority Bridges Seismic Improvement Project and also extend the corresponding implementation period and loan validity of the project.

It seeks to “strengthen the resilience of the transport network in Metro Manila by replacing two major bridges, Lambingan Bridge and Guadalupe Bridge, on the arterial roadways with the improved seismic bridge design specifications,” according to a website post by the Japan International Cooperation Agency, which funds the project.

The Department of Public Works and Highways in April said the seismic improvement project will ultimately help decongest Metro Manila roads.

The Board also tackled the proposed upgrade and expansion of both the Bohol International Airport and Northern Mindanao’s Laguindingan International Airport, Mr. Balisacan said.

“We also reported on the progress in the implementation of the 186 infrastructure flagship projects,” he said, citing an earlier NEDA statement that 45 projects funded through foreign loans or grants were classified as problematic.

Meanwhile, Mr. Balisacan said NEDA was determining the process for undertaking the review of rice tariffs every four months. Rice import tariffs were cut to 15% following the issuance of Executive Order No. 62, but are subject to periodic review.

“We are already preparing the methodologies on how to undertake that review, so we don’t necessarily waste time,” he said, adding that NEDA should be able to give the President timely updates. — Kyle Aristophere T. Atienza

PHL to allow yellow onion imports of up to 16,000 MT

PIXABAY

THE Department of Agriculture said on Wednesday that it will allow yellow onions imports of up to 16,000 metric tons (MT) until the end of the year.

“We approved it on Monday because our stocks will be depleted, but we still have ample supply of red onions,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters on the sidelines of a poultry and livestock event.

“Our red onion is good until March. So only a limited quantity of yellow onion will be imported, to stabilize prices,” Mr. Laurel added.

In July, Mr. Laurel extended the import ban on red onion until the end of August, with supply deemed sufficient until February 2025.

He said however that the supply of domestic yellow onions is sufficient only until the end of August.

In a draft memorandum, the Bureau of Plant Industry (BPI) said it will be issuing sanitary and phytosanitary import certificates (SPSICs) for the 16,000 MT of yellow onion, which is deemed sufficient until the end of 2024.

“With the upcoming holiday season and harvest commencing in January 2025, it is expected that the demand for yellow onion will increase. Given that the supply is very limited, it can lead to an increase of price in the market,” it said.

Mr. Laurel said the import order is timed not to disrupt the market during the harvest early next year.

“By the end of this week or early next week, the imports will come in but in limited quantities. We are doing it in batches, so the market won’t be flooded,” he added.

Mr. Laurel said SPSICs will be issued every two weeks.

The national inventory of yellow onion amounted to 1,642.31 MT as of Aug. 9, according to the BPI. On the other hand, red onion volume was 99,512.1 MT.

The BPI added that the imports were calibrated with reference to monthly per capita consumption, and will serve as a buffer to stabilize market prices.

“Possible extension of the must-arrive date will still be subject to change depending on the availability of stocks and prices,” it added. — Adrian H. Halili

Labor rights violations seen requiring more CHR funding

BUSINESS GROUPS and unions expressed support on Wednesday for increasing the budget of the Commission on Human Rights (CHR) to allow it to look into more labor-related human rights violations and provide support to victims.

In a joint statement, six business groups led by the Philippine Chamber of Commerce and Industry (PCCI) said more funding will give the CHR the resources to better monitor labor-related human rights violations.

They said more funding is needed to support a witness protection program pending the resolution of the cases, as well as to expedite the release of reparations to victims.

“We reiterate our earlier call for the government to continue the investigation, prosecution, and disposition of all labor-related cases affecting freedom of association and collective bargaining, without delay and in the interest of justice,” according to the joint statement.

The Department of Budget and Management approved a budget of P1.07 billion for the CHR in the National Expenditure Program 2025.

This excludes the P53.55 million for the Human Rights Violations Victims’ Memorial Commission, bringing total appropriations for the CHR to P1.12 billion.

The groups also proposed that the Inter-Agency Committee (IAC) for the Protection of the Freedom of Association and Right to Organize of Workers, which was established through Executive Order No. 23, offer quarterly progress reports.

“Such a regular interface may serve as a means to be updated and apprised on the progress made by the IAC in the discharge of its functions,” the groups said.

The six groups also requested a review of the continued operations of the National Task Force to End Local Communist Armed Conflict to avoid overlaps with other agencies.

The joint statement was also signed by the Employers Confederation of the Philippines, Philippine Exporters Confederation, Inc., the Federation of Free Workers, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, and the Trade Union Congress of the Philippines. — Justine Irish D. Tabile

Contract awarded to expand, improve Butuan’s Masao port

BUTUAN CITY PIO

MINDANAO-BASED contractors have won the P498.09-million contract to expand and improve Butuan’s Masao port, the Philippine Ports Authority (PPA) said.

In a notice of award, PPA said the winner is the joint venture of Evenpar Construction and Development Corp. and UKC Builders, Inc.

“You are hereby instructed to formally enter into contract with us and to post the required performance security in the form and the amount stipulated in the instruction to bidders, within 10 days from the receipt of this notice of award,” PPA General Manager Jay Daniel R. Santiago said.

PPA said failure to enter into the contract and to provide the performance security will cancel the award.  The contractor is required to complete the project within 720 calendar days, the PPA said in its invitation to bid.

In the next four years, or until 2028, the PPA is allocating about P16 billion to fund infrastructure works, including 14 flagship projects. — Ashley Erika O. Jose

DTI, ARTA to streamline process for movements of MSME goods

FACEBOOK.COM/DTI.GOLOKAL

THE Department of Trade and Industry (DTI) will sign an agreement with the Anti-Red Tape Authority (ARTA) to streamline the process for micro, small and medium enterprises (MSMEs) seeking to export goods or distribute them domestically.

“We have to make business easy… and for those that want to export, we also have to (ensure they can) also export quickly,” DTI Acting Secretary Cristina Aldeguer-Roque told reporters on Wednesday.

She said that the memorandum of agreement (MoA) to be signed soon is a result of her meeting with ARTA Secretary Ernesto V. Perez on Tuesday.

“The goal is to ease doing business locally and also ease getting the papers ready so that they will be ready for exports also,” she said.

“Aside from the big industries, which we really support, we also have a push for the MSMEs, those who are really ready to conquer the global arena,” she added.

She said that there is a need to streamline processes not only for export but also in distributing products on the domestic market to help businesses tap the big potential in the Philippines.

“Our population is so big, and that is also the reason why a lot of investors want to come in. So that’s one of our strengths,” she said.

The MoA seeks to reduce the steps that businesses will have to go through before being cleared to distribute products, whether for export or not.

She said industries with great potential to export include the beauty sector, due to growing demand for whitening and coconut products.

“There’s really a strong export market for beauty products, especially papaya and virgin coconut oil, which are very popular abroad,” she said.

“There’s also halal beauty products … we are going to really push halal, which has a $3.3 trillion potential global market,” she added.

The top export markets for Philippine beauty products are the Middle East, Europe, and the US.

On Wednesday, the DTI opened its first Beauty Philippines Fair, the first of the department’s industry-specific trade fairs. Due to run from Aug. 28 to Sept. 1 at SM Megamall, the fair aims to create a showcase for beauty-products MSMEs.

“We have to realize that a lot of MSMEs are also into the beauty business, especially now that the beauty business is very strong,” she said.

“So, I decided to start with very targeted trade fairs … now it’s the beauty sector; after that we also have fashion; then after that we will also have bridal,” she added. — Justine Irish D. Tabile

DoE seeks P10B in funding for energy management program

ROBERT LINDER-UNSPLASH

THE Department of Energy (DoE) is arranging financing of about P10 billion to accelerate a program that will reduce power consumption at government agencies.

Energy Undersecretary Felix William B. Fuentebella said the DoE expects an outlay of around P2 billion per year starting 2026 to expedite the rollout of the Government Energy Management Program (GEMP).

“We have the strategies in place so what we’re working on is the financing. So, we’re trying to come up with a facility through the DoF (Department of Finance) with our development partners,” Mr. Fuentebella told reporters on the sidelines of a forum on Wednesday.

The DoF is guiding the DoE in preparing a financing proposal, he said.

Mr. Fuentebella said financing for GEMP could be a combination of official development assistance  and concessional loans, with the DoF studying what would be the “best blend.”

“We have spoken to ADB (Asian Development Bank) and then we will also talk with the others. If it doesn’t (work), we’ll have to look for (other options),” he said.

He said the program involves retrofitting, upgrading for enhanced energy efficiency and conservation, raising the share of electric vehicles in the government fleet, and their charging stations.

GEMP is a government-wide program aimed at reducing the government’s electricity and fuel consumption by at least 10%.

The program is authorized by Republic Act 11285 or the Energy Efficiency and Conservation (EEC) Act and supervised by the Inter-Agency Energy Efficiency and Conservation Committee.

In January, President Ferdinand R. Marcos, Jr. issued Administrative Order (AO) 15 directing government agencies to accelerate implementation of GEMP.

AO 15 operationalizes the EEC Act for all government entities under the executive branch, including government-owned and -controlled corporations, government financial institutions, their subsidiaries, and state universities and colleges.

In the initial stages of implementing GEMP, the DoE said the government saved more than P300 million, equivalent to more than 30 million kilowatt-hours in 2023. Fuel savings were valued at P25 million.

For 2024, the DoE expects GEMP in accelerated implementation to generate nearly P2 billion in savings for electricity and fuel combined. — Sheldeen Joy Talavera

BARMM, Central Luzon exploration contracts attract potential bidders

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INTERNATIONAL and Philippine companies have submitted applications for contracts to explore for petroleum and hydrogen in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and in Central Luzon, the Department of Energy (DoE) said.

“We are very pleased that well-known international players in hydrogen and petroleum exploration and production have shown interest and participated in this year’s bid round,” Energy Undersecretary Alessandro O. Sales said in a statement on Wednesday.

At the opening of application documents on Tuesday, the DoE and the BARMM’s Ministry of Environment, Natural Resources, and Energy announced the receipt of three applications for the 1st BARMM Conventional Energy Bid Round. The contract areas on offer are a pre-determined area (PDA) in the Cotabato Basin and two PDAs in the Sulu Sea Basin.

All applications were deemed qualified for further substantive evaluation following an initial completeness check.

Meanwhile, for the 2024 Philippine Bid Round, the DoE received five applications for service contracts for hydrogen exploration in Central Luzon.

These applications also passed the completeness check and are eligible for further evaluation.

An application for PDA in Cebu’s Alegria Field was disqualified due to incomplete documentation.

“The comprehensive legal, technical, and financial evaluation of all qualified applications will be completed in the fourth quarter of 2024. The highest-ranking applicants from this evaluation will be endorsed to the Office of the President,” the DoE said.

The next phase will determine whether these applicants will be awarded service contracts.

“This activity marks the beginning of a transformative journey that may span several years. If we do not embark on this activity now, it will never come to fruition,” Mr. Sales said. — Sheldeen Joy Talavera

15 drugs added to VAT-exempt list

Illustration photo shows various medicine pills in their original packaging in Brussels, Belgium, Aug. 9, 2019. — REUTERS/YVES HERMAN/ILLUSTRATION

FIFTEEN additional drugs treating cancer, high cholesterol, hypertension, and mental illness have been added to the value-added tax (VAT) exempt list, the Bureau of Internal Revenue (BIR) said.

In a circular, the seven cancer medicines declared exempt were Avelumab, Acalabrutinib, Olaparib (100 and 150 milligrams), Trastuzumab (150 and 440 mg), and Trastuzumab deruxtecan.

Rosuvastatin (as Calcium), a treatment for high cholesterol, was also added to the VAT-exempt list.

The BIR also waived VAT on five medicines for hypertension: Olmesartan medoxomil, Perindopril (as arginine) for both the 5 mg and 10 mg varieties, and the for 1.5 mg/5 mg and 1.5 mg/10 mg varieties of Indapamide + Amlodipine (as besilate).

Also declared VAT-exempt were the mental illness drugs Sodium Valproate and Valproic Acid.

Under the Corporate Recovery and Tax Incentives for Enterprises Act, drugs, medicines, vaccines and medical devices identified by the Food and Drug Administration will receive VAT exemptions.

BIR Commissioner Romeo D. Lumagui, Jr. said in a statement that “the BIR supports the government… in helping the public have access to more affordable healthcare and medicine.”

The bureau has yet to release the full circular on the new medicines under the VAT-exempt list. — Beatriz Marie D. Cruz

ASF fears scaring consumers away from pork, farmers say

PHILIPPINE STAR/WALTER BOLLOZOS

THE farmgate price of pork has declined because consumers have been deterred by the surge in African Swine Fever (ASF) cases, farmers said.

“The farmgate price for hogs, unfortunately, dropped by P30 to P40 per kilogram. I hope (this translates) to a drop in market prices,” Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, told reporters on the sidelines of a poultry and livestock event on Wednesday.

A kilo of pork kasim (shoulder) was selling for between P260 and P370, while pork liempo (belly) fetched P290 to P400 in Metro Manila markets, according to Department of Agriculture (DA) price monitors as of Aug. 28.

He added that hog prices dropped to about P160 to P180 per kilo.

“There are reports that many are avoiding (buying pork),” Mr. Cainglet said, noting that current supply remains ample.

According to the Bureau of Animal Industry, 15 municipalities had active ASF cases across 32 provinces as of Aug. 21. ASF was first detected in the Philippines in 2019.

“It has been with us for the past 3-4 years, palipat-lipat ang ASF (ASF is moving around). So, let’s not be afraid of the reports, that’s actually normal for the hog industry,” he added.

The DA has said it will kick off hog vaccinations by Friday, beginning in Batangas where ASF has spiked in recent weeks.

“If there are any delays it might just be for one or two days more, but the target is Friday,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters.

The department has procured 10,000 doses of the ASF vaccine for Batangas, with about 2,000 expected for deployment by Friday.

He said that the DA procured another 150,000 doses in the next batch of vaccines, arriving this weekend, Mr. Laurel added.

The DA has allocated P350 million to procure 600,000 vaccine doses from Vietnam. — Adrian H. Halili

IPOPHL sets new rules for accrediting IP professionals

THE Intellectual Property Office of the Philippines (IPOPHL) said it issued new guidelines for recognizing intellectual property (IP) agents and attorneys.

 In a statement on Wednesday, IPOPHL said it released Memorandum Circulars 12 and 13, outlining the formal recognition system for patent and trademark agents and attorneys, respectively.

“The guidelines set the standards for the recognition’s qualifications, application procedures, training, fees, grounds for revocation, cancellation, and renewal,” IPOPHL said.

With the new set of rules, IP service providers are required to fulfill documentary requirements, undergo requisite training, and pass a qualifying examination to become recognized.

IPOPHL Director General Rowel S. Barba said that the new guidelines will allow the office to officially recognize IP professionals who provide patent and trademark services to creators, innovators, and entrepreneurs, among others.

“Overall, this will strengthen the IP profession as it sets standards that make for satisfactory and quality IP services,” Mr. Barba said.

 The circulars provide for the creation of the Recognition Board, whose five members will oversee the implementation of the system.

 “The recognition is mandatory for non-lawyers who are providing patent and trademark services to IP owners, while the recognition is voluntary for lawyers,” IPOPHL said. — Justine Irish D. Tabile

Chasing after ghosts for tax purposes

Since 2023, the Bureau of Internal Revenue (BIR) has intensified its efforts to weed out and file cases against alleged violators of the provisions of the National Internal Revenue Code of 1997, as amended, (Tax Code). In fact, through its Run After Fake Transactions (RAFT) program, the BIR has filed multiple civil and criminal cases against approximately 70 taxpayers for allegedly selling or buying and using fake/“ghost” receipts to substantiate the expenses and corresponding input Value-Added Tax (VAT) claimed for tax purposes. The BIR also filed administrative cases against Certified Public Accountants allegedly involved in these schemes, moving to have their licenses revoked by the Professional Regulation Commission.

Based on the BIR’s assessment, billions in taxes have been lost due to the proliferation of fraudulent receipts. Hence, chasing after the taxpayers who further propagate this practice is a key priority and driver in the BIR’s strategy to plug this tax leakage. While the BIR has not fully disclosed the details of its investigations on how it was able to detect when fake receipts were used and how it was able to trace the alleged violators, the BIR proposed several theories. Such theories include alleged collusion between business owners and accountants, and the existence of a syndicate that registers ghost companies whose sole business purpose is to sell original receipts so that their buyers can illegally reduce their tax liabilities.

Following these tax investigations and news about ghost receipts, I began to wonder about the possible ways for the BIR to detect such receipts. Section 248(B) of the Tax Code governs when the 50% surcharge may be imposed and lays down the test for prima facie evidence of a false or fraudulent return that merits the application of such a 50% surcharge on the deficiency tax assessed. The prima facie evidence test or the 30% threshold test provides that a substantial underdeclaration of taxable sales, receipts, or income, or a substantial overstatement of deductions constitutes prima facie evidence of a false or fraudulent return. Under this context, failure to report sales, receipts, or income in an amount exceeding 30% of that declared per return, and a claim of deductions in an amount exceeding 30% of actual deductions, renders the taxpayer liable for substantial underdeclaration of sales, receipts, or income or for overstatement of deductions.

Even though Section 248 only discusses the imposition of a 25% or 50% surcharge, the 30% threshold test in this Tax Code provision has also been applied by the BIR and the courts to evaluate whether a taxpayer’s case would fall under the exceptions to the general three-year prescriptive period to assess potential deficiency taxes as provided under Section 222(a) of the Tax Code.

In the case of McDonald’s Philippines Realty Corp. vs. Commissioner of Internal Revenue (G.R. No. 247737 dated Aug. 8, 2023), the Supreme Court (SC) considered the 30% threshold test as one of the factors to determine whether the BIR’s observance of the extraordinary 10-year assessment period is warranted. The SC also established in this case the requirements to properly invoke the 30% threshold test and its effect of shifting the burden to the taxpayer to refute the legal presumption that a false or fraudulent return was filed based on the alleged substantial underdeclaration of sales, receipts, or income or overstatement of expenses or other deductions.

As a brief backgrounder on the 30% threshold test, this statutory provision was actually formally introduced in the 1997 version of the Tax Code. Prior to this, the SC had to rely on jurisprudence and the particular circumstances of each taxpayer to determine whether there is substantial underdeclaration of sales, receipts, or income. With the inclusion of the 30% threshold test in the Tax Code, there is now a statutory measure for checking whether an underdeclaration or overstatement is substantial, resulting in an express presumption that a false or fraudulent return has been filed based on its face.

While the discussion on the 30% threshold test in the above SC case focused on whether there is substantial underdeclaration of sales, receipts, or income, there is another side of the coin to the 30% threshold test which deals with the overstatement of deductions. Relating this to the BIR’s RAFT program, the BIR may also use the 30% threshold test on a taxpayer’s expenses as a tool to detect whether there are indications of possible overstatement/over-claiming of deductible expenses and/or input VAT. Further, the BIR may leverage its current database containing the list of proven ghost receipts suppliers to check whether these sellers are also vendors of the taxpayers being investigated via a regular tax audit.

In the interest of fairness to all taxpayers and paying what is rightfully due as our collective contribution to nation-building, I support and welcome the RAFT program initiative of the BIR. I find it justified for the BIR to use all legal tools and means at its disposal to chase down those who intentionally impede the proper and full collection of taxes and those who intentionally cheat the system, including professionals who use their knowledge/expertise to aid or abet these violations. As taxpayers, on the other hand, we implore the BIR to exercise its powers with proper caution and within reason as provided under the law.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Paolo John Dantes is a manager at the Tax Services department of Isla Lipana & Co., a Philippine member firm of the PwC network.

paolo.john.dantes@pwc.com

Mutual Defense Treaty review sought amid China’s continued ‘aggression’

DVIDS/ LANCE CPL. ISAIAH CAMPBELL

By Kyle Aristophere T. Atienza and John Victor D. Ordoñez, Reporters

THE PHILIPPINES’ National Maritime Council on Wednesday said there’s a need to update the Philippines’ Mutual Defense Treaty (MDT) with the United States, citing the changing geopolitical landscape.

“Maybe it’s high time now to make the review,” council spokesman Alexander S. Lopez, Jr. told reporters, noting that the treaty should be “relevant to new security challenges.”

Washington is bound by the treaty to defend the Philippines in case of an armed attack on its forces, public vessels or aircraft in the South China Sea.

The geopolitical landscape has changed a lot since the two countries ratified the treaty in 1951, Mr. Lopez said. Add to this China’s expansionist stance and continued attempts to block Manila’s resupply missions to Second Thomas Shoal, he added.

The Philippines has accused China of dumping dead corals at Sabina Shoal, another feature in the South China Sea that both claim, to alter its elevation so it could reclaim the area.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Both countries have been trading blame over collisions near the shoal, which has been a staging ground for Philippine resupply missions to Second Thomas Shoal. Both shoals are within the Philippines’ exclusive economic zone.

There have been domestic calls to clarify provisions of the treaty after a June 17 standoff at Second Thomas Shoal, where Chinese forces allegedly threatened, using bladed weapons, Filipino troops delivering supplies to a Navy outpost there.

Filipino soldiers fought with bare hands, and one of them lost a thumb when his vessel was rammed by Chinese forces, according to the Philippine military.

Raymond M. Powell, a fellow at Standard University’s Gordian Knot Center for National Security Innovation, said the main question is whether the treaty should be updated or “simply needs its application clarified under current conditions.”

He noted that top US officials including President Joseph R. Biden and Defense Secretary Lloyd J. Austin have repeatedly clarified that the treaty applies to the South China Sea.

Formal consultations under Article III of the 1951 Mutual Defense Treaty (MDT) should be the initial steps in any attempts to update the treaty, Mr. Powell said in an X message.

Under the treaty, both countries through their Foreign ministers will regularly consult each regarding the pact’s implementation and “whenever in the opinion of either of them the territorial integrity, political independence or security of either of the parties is threatened by an external armed attack in the Pacific.”

“Trying to push a revised MDT through both nations’ Legislature is a long and difficult process,” Mr. Powell said. “Perhaps it would be worth doing, but Article III consultations would help determine if the payoff would be worth the effort.”

Sabina Shoal, which is 140 kilometers off the Philippine island of Palawan, has become another flashpoint for the Philippines and China.

Mr. Lopez cited Chinese efforts to please its domestic audience by accusing the Philippines of intentionally ramming its ships.

“Nobody is buying that narrative,” he said. “Their audience is basically domestic, but ours [narrative] is factual.”

“We are even appreciative of the response of the international community condemning the harsh actions, aggressive actions, life threatening actions perpetrated by the Coast Guard vessels,” he added.

Mr. Lopez said the Philippine Coast Guard was now gathering evidence to counter China’s claims that it had rammed its ships near Sabina Shoal.

“It’s very clear that the Philippines is currently threatened by an ‘external armed attack,’ so consultations would certainly be appropriate,” Mr. Powell said. “It would also serve as an important signal to China that its aggression has brought it to a dangerous point.”

DETERRENCE
Also on Wednesday, Senate President Francis G. Escudero said a proposal for US ships to escort Philippine resupply vessels in the South China would likely deter Chinese aggression.

“It will be a deterrent,” he told a news briefing. “However, I am confident that the President will measure this very carefully, with the view of not escalating tensions that may lead to increased military activities in the area or potential military confrontation.”

Samuel Paparo, commander of the United States Indo-Pacific Command, told a forum on Tuesday it is an “entirely reasonable option,” though that would require consultation between the treaty allies.

Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation, said China would likely counteract the move or succumb to “joint deterrence.”

“The proposal stirs a timely need, but the Philippines should lead the pact,” he said in a Facebook Messenger chat. “On one hand, if agreed upon, this would show the military might of the two allies.”

That treaty should be interpreted more broadly to tackle a “dynamic and cunning adversary,” Philippine Defense Secretary Gilberto Eduardo C. Teodoro, Jr. told reporters on Tuesday, although it has already proved to be a “great deterrent” in the South China Sea.

On Sunday, Manila’s South China Sea task force accused Chinese vessels near Sabina Shoal of ramming and using water cannons against a Philippine fishery vessel transporting food, fuel and medicine for Filipino fishermen.

The Chinese Coast guard said the Philippine vessel “ignored repeated serious warnings and deliberately approached and rammed” China’s law enforcement boat, resulting in a collision.

Mr. Escudero reiterated his call for the Office of the Solicitor General (OSG) to file before a local court a petition seeking to enforce a 2016 ruling by United Nations-backed tribunal, which voided China’s expansive claims for being illegal.

“We are hoping the OSG will file a petition to request the recognition of this foreign ruling so that its decision becomes a binding law in the Philippines,” he said.

At a Senate hearing on the Department of Justice’s budget for next year, Mr. Escudero said making the 2016 decision part of the law of the land would ensure that Philippine officials, especially the President, would follow it.

China claims sovereignty over nearly all of the South China Sea, including areas claimed by Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam. Beijing has deployed an armada of vessels to protect its claims.