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Employers say time to deliver on RCEP promises to farmers

BW FILE PHOTO

THE Employers Confederation of the Philippines (ECoP) said the approval of the Regional Comprehensive Economic Partnership (RCEP) means the focus must now turn to delivering on the safeguards promised to farmers and other businesses exposed to more foreign competition.

“What we should really address now are the safeguards that we have promised the farmers… our support for the interest of the farmers in terms of supply of better seed and fertilizer and… water the whole year round… so our farmers can really be competitive,” ECoP President Sergio R. Ortiz-Luis, Jr. said in a statement on Tuesday.

“The treaty itself is okay, but the way we implement things sometimes is different (and) whatever we say in black and white sometimes doesn’t happen especially in the area of smuggling,” he added.

Billed as the world’s largest free trade agreement (FTA), RCEP was ratified by the Senate on Feb. 21. Participating countries are entitled to trade goods with minimal to zero restrictions on quantity, tariffs, or import taxes.  

RCEP started taking effect on Jan. 1, 2022. The participating countries include the 10 members of the Association of Southeast Asian Nations (ASEAN), Australia, China, Japan, New Zealand, and South Korea.

The FTA involves about a third of the global economy and will remove 90% of tariffs charged by the participating countries before the trade deal took effect.

Mr. Ortiz-Luis said that the government should also address smuggling after signing up for RCEP.

“Smuggling will still be a problem with or without tariffs. This can make the lives of the farmers difficult,” Mr. Ortiz-Luis said.

He added that he expects exporters will find it easier to comply with the requirements for accessing preferential tariffs following the consolidated of the ASEAN rules of origin.

“In the export sector, we are looking at opening up markets because of the lower tariffs; we are expecting that it would help us,” Mr. Ortiz-Luis said.

Separately, Philippine Competition Commission Chairman Michael G. Aguinaldo said in a Feb. 27 briefing that the government needs to provide further support to farmers with the advent of RCEP.

“One of the concerns would be… that (farmers) might be on the losing end because there’s the fear that agricultural products might flood the market. It would depress prices. Good for the consumer but bad for the farmer,” Mr. Aguinaldo said.

“The solution doesn’t lie in not ratifying the RCEP but in the government providing the needed support in terms of financing and technology so our farmers can upgrade their operations and be able to compete with other countries,” he added. — Revin Mikhael D. Ochave 

NEDA’s Balisacan warns Congress not to pursue legislated wage hikes

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE National Economic and Development Authority (NEDA) does not support proposals to legislate higher wages, Secretary Arsenio M. Balisacan said at a House hearing on Tuesday.

“Increasing wages by legislation does more damage,” Mr. Balisacan said at a hearing of the appropriations committee in the presence of the government’s other economic managers.

He was responding to remarks by Deputy Minority Leader France L. Castro.

“Inflation keeps increasing, but our wages remain small. Our people’s purchasing power does not increase… so what can our economic managers do to increase people’s wages?” Ms. Castro told the panel.

Mr. Balisacan said that the expanding economic activity through investment can help increase wages.

“The safest thing to do is to increase wages by way of expanding economic activity, and that means a lot of investment in labor,” he said.

“It’s harmful to the economy if wages are forced to increase by legislation. If wages rise not because the demand for labor is high compared to the supply of labor, then the Philippines will be hurt (in terms of) competitiveness,” he added.

“If wages rise not because of productivity, how can we export and how can our products become more competitive? if we cannot export, we cannot increase economic activity,” he added.

Mr. Balisacan said that agriculture needs to be made more productive “by investing in the right places, farm to market roads, tech, access to markets, and not forcing increase in wages by legislation.”

Mr. Balisacan told BusinessWorld that Congress should focus on passing priority measures to address growth and inflation concerns.

“There are priority measures that need legislation. We have 10 that are supposed to be passed by end of session and 20+ more after that. (Through this we hope to) shape the next budget for 2024 in ways that are very responsive to the constraints to growth,” he said.

The Legislative-Executive Development Advisory Council said that its priority measures include the Maharlika Investment Fund bill, the proposed Internet Transactions Act/E-Commerce Law, the Salt Industry Development bill; a bill condoning unpaid amortization and interest on loans of agrarian reform beneficiaries; and a bill amending the law allowing a three-year fixed term for Armed Forces of the Philippines senior officials.

The other priority measures include amendments to the Build-Operate-Transfer Law to increase engagement via Public-Private Partnerships; and bills creating a Philippine Center for Disease Prevention and Control, a Medical Reserve Corps and a Virology Institute.

Speaker Ferdinand Martin G. Romualdez told the House panel, “I reiterate the Congress’ willingness to work hand-in-hand, to be marching in lockstep with the executive in pursuing the solutions to the economic challenges that the country faces.” — Beatriz Marie D. Cruz

Planters call for seizure of Batangas sugar shipment

ASIAN TERMINALS, INC.

SUGAR planters said the Sugar Regulatory Administration (SRA) must seize the 5,000 metric tons of refined sugar landed in 260 containers at the port of Batangas on Feb. 9, which had arrived prior to the issuance of a formal sugar order.

In a joint statement on Monday, Aurelio J. Valderrama, Jr. of the Confederation of Sugar Producers Association, Enrique D. Rojas of the National Federation of Sugarcane Planters, and Danilo A. Abelita of the Panay Federation of Sugarcane Farmers said that the SRA needs to act with haste against the Batangas shipment, which they consider “an illegal importation of sugar.”

“This case of smuggled sugar represents a clear threat to the Philippine sugar industry, because it opens the door for sugar imports, in violation of established procedures and guidelines under existing laws, rules, regulations and regulatory issuances,” the planters groups said.

Agriculture Undersecretary Domingo F. Panganiban has said that he interpreted a memorandum from the Office of the Executive Secretary to mean that immediate sugar imports have been authorized, and that he had acted in response to the urgency of the supply situation.

Sugar imports typically must be covered by a sugar order issued by the SRA. Sugar Order No. 6 took effect on Feb. 18, authorizing imports of 440,000 metric tons of the commodity, part of which will serve as a buffer stock to dampen volatility in sugar retail prices.

“If left uncorrected, (the unauthorized imports) will encourage further abuse of discretion and the granting of undue advantage to favored individuals or businesses,” the planters added.

The planters urged the SRA to exercise its mandate and file criminal charges over the Batangas imports, alleging violations under Republic Act 10845 or the Anti-Agricultural Smuggling Act of 2016.

They also called for the confiscation of the refined sugar in collaboration with the Bureau of Customs. — Sheldeen Joy Talavera

China durian export deal expected to generate $150M

PHILSTAR FILE PHOTO

THE Bureau of Plant Industry (BPI) said on Tuesday that a China durian export agreement is expected to generate $150 million this year from the 50,000-metric ton order.

“We are expecting about $150 million from our initial export of (fresh) durian this year. Of course, this depends on our good production and compliance with the requirements of the government of China,” BPI Officer-in-Charge Director Gerald Glenn F. Panganiban said at a Laging Handa briefing.

He said the target is to generate around P240 million, but the final value will be determined by whether durian farmers can meet the volume requirements. He expects farms to expand to service Chinese demand.

According to Mr. Panganiban, the BPI has endorsed 59 registered farms, five licensed packing facilities, and five licensed exporters for the China trade and expects more to become compliant.

“We don’t have limit on exports. As the durian exporters have said, the Chinese market is undersupplied relative to demand,” he said.

Apart from durian, Philippine agricultural exports to China include banana, mango, avocado, young coconut, cocoa, coffee, okra and asparagus.

The Philippines has been exporting fresh durian to Hong Kong, Japan, Malaysia, Saudi Arabia, Singapore, Thailand, the United Arab Emirates, and Vietnam. — Sheldeen Joy Talavera

NIA to work with DPWH to fast-track irrigation, flood control projects

PHILSTAR FILE PHOTO

THE National Irrigation Administration (NIA) said it will work with the Department of Public Works and Highways (DPWH) to fast-track flood mitigation and irrigation projects, as directed by President Ferdinand R. Marcos, Jr.

“This is a convergence effort. Of course, if NIA does this alone, we will not be able to handle it. The DPWH will help us. Their focus would be on flood control projects,” NIA Acting Administrator Eduardo Eddie G. Guillen said at a Palace briefing, adding that NIA would focus on climate change adaptation projects as they relate to water management.

He said the flood-control initiative will call for more dams to be built to improve water management; in turn the dams will be tapped for irrigation.

He said that the NIA can irrigate around 2 million hectares of agricultural land but sought aid in maintaining service to 1.2 million hectares, citing the need to upgrade irrigation facilities.

He said he will seek to find a way to work with limited funds while leveraging collaboration with the DPWH, which is well-funded.

Mr. Guillen estimated that a P200-billion program of dam building has the potential to “change the agricultural landscape.” — Sheldeen Joy Talavera

Members of creative industries to be trained in protecting IP

TOPDRAWANIMATION.COM

THE Intellectual Property Office of the Philippines (IPOPHL) said it will undertake four projects this year seeking to train workers in the creative industries on protecting their intellectual property (IP).

In a statement on Tuesday, the IPOPHL said that the projects will be carried out under the banner of the Bureau of Copyright and Related Rights’ (BCCR’s) copyright plus program, which has an overall budget of P1.35 million.

“We’re hopeful that the copyright plus program will continue to encourage artists to share their creative stories and efforts, while also becoming ambassadors for copyright — and IP as a whole — in their communities,” BCCR Director Emerson G. Cuyo said.

The first project was proposed by Lakan Media Creatives Creative Director Terence G. Gonzalves, which is seeking to create a seven to 10-minute documentary on protecting copyright for short indie filmmakers.

A second project, by Balangay Entertainment, Inc.’s Nicanor P. Valdez, hopes to conduct IP education in the form of a tabletop card game.

The third project, by Kwentoon Founders Juan Diego Songco and Isabelle Songco, involves an online visual storytelling training workshop on IP for aspiring writers and artists.

The fourth project, by Komiket Co-Founder Paolo Herras, is a workshop for storytelling in graphic novel form.

“The creative reputation of Filipinos is well-known globally. This is why IPOPHL is constantly finding ways to encourage our countrymen to nurture and develop their creative prowess while also pushing them to register their creative works so that they can protect their copyrights,” IPOPHL Director General Rowel S. Barba said. — Revin Mikhael D. Ochave

Gypsum board maker bats for zero tariffs on raw material to stimulate domestic production

NATURLOOP.COM

A PROPOSAL to reduce tariffs to zero for imports of natural gypsum will stimulate domestic production of gypsum board, a construction material used in drywall, and lower prices for consumers, Knauf Gypsum Philippines, Inc. told the Tariff Commission (TC).  

“All other competitors are imported and they have the capacity to bring down their prices. That is why we are seeking a tariff exception because that would also bring our prices down,” Knauf Philippines Marketing Head Charlene Bonalos said during a Tariff Commission hearing on Tuesday.

Knauf is the only gypsum board manufacturer in the Philippines. Gypsum boards are in drywall because they are fire-resistant.

The TC said in a notice on Feb. 10 that Knauf Philippines petitioned to reduce the most favored nation tariff rate on natural gypsum to 0% from 3% under ASEAN Harmonized Tariff Nomenclature 2022 subheading 2520.10.00.

Regina Palad, Knauf Philippines manager for compliance, said the zero tariff would help make the company’s offerings more competitive against imports.  

“With the zero tariff, it will cost less to produce,” Ms. Palad said, adding that the benefit to consumers will be a wider selection of products.

According to the TC, imports of natural gypsum hit 406,170 metric tons (MT) in 2022, down 39%.

Between 2018 and 2022, the Philippines imported 2.9 million MT of natural gypsum, with 54.1% sourced from Oman, 43.3% from Thailand, and 2.6% from Australia, the US, China, and Egypt.

Knauf Gypsum Philippines produces gypsum board and jointing compounds. Some of its products include acoustic panels, ceiling tiles, and acoustic suspension systems.

The TC set a deadline of March 10 for position papers on Knauf Philippines’ petition. — Revin Mikhael D. Ochave

Fair trade complaints down 10% in 2022

THE Department of Trade and Industry (DTI) said fair trade complaints declined 10% in 2022 to 27,947 cases due to the deterrent effect of more frequent inspections.

In a statement on Tuesday, the DTI said its Fair Trade Enforcement Bureau (FTEB) “processed 5,687 cases deemed to be under its jurisdiction, of which 5,070 were resolved.”

The FTEB also issued 40,855 licenses, permits, authorities, and accreditations last year.  

The FTEB inspected 750 supermarkets and groceries in Metro Manila last year to gauge the supply of basic necessities and prime commodities as well as the compliance of establishments with the suggested retail price bulletin.

“The FTEB also tightened market surveillance to ensure compliance with the Consumer Act of the Philippines (Republic Act [RA] No. 7394), the Price Act (RA No. 7581 as amended by RA No. 10623), and the Law on Products Standards (RA No. 4109),” the DTI said.  

Meanwhile, FTEB monitoring and enforcement teams also inspected 19,680 establishments last year, resulting in the confiscation of P68.54 million worth of uncertified products, up 839%. — Revin Mikhael D. Ochave

Senators spurn hybrid con-con, say Charter change too costly

THE INAUGURAL session of the Constitutional Commission of 1986 — OFFICIALGAZETTE.GOV.PH

By Alyssa Nicole O. Tan, Reporter

PHILIPPINE senators on Tuesday rejected a House of Representatives proposal to change the 1987 Charter through a hybrid constitutional convention, saying it is too expensive.

“This will surely eat up what little funds we have for other government programs and projects, and may also prevent us from achieving our goal of having less than 60% debt-to-GDP (gross domestic product) ratio by 2025,” Senate Majority Leader Emmanuel Joel J. Villanueva told BusinessWorld in a Viber message.

Congress should take into account the cost, which could reach P28 billion, he said, citing the National Economic and Development Authority.

The House on Tuesday passed on second reading a bill detailing the procedures for Charter change (Cha-cha) through a hybrid constitutional convention (con-con).

Iloilo City Rep. Lorenz R. Defensor proposed that only economic provisions of the Constitution be changed. The amendment was approved.

Under the substitute bill approved by the body, convention members who will propose changes to the Constitution will both be elected and appointed. Delegates of the convention, which will run Nov. 21 to June 30, 2024, will get a P10,000 daily salary and will be entitled to travel allowance.

The government needs P9.5 billion to amend the Charter, Cagayan de Oro Rep. Rufus B. Rodriguez told a hearing last week after talking to election officials.

The election of delegates will cost P1.5 billion if done simultaneously with village elections, while the budget for the convention itself will cost P5 billion, he said. The plebiscite will cost P3 billion.

Senator Juan Edgardo M. Angara, who heads the Senate finance committee, called the hybrid con-con “the most expensive and laborious option to revise the Constitution.” He also said the salaries are too high.

“Those currently seated shouldn’t be beneficiaries, especially in the extension of one’s term, should there be any,” he said in a statement.

Senator Robin C. Padilla, who earlier filed a resolution seeking to amend economic provisions of the Constitution through a constituent assembly, frowned at the House proposal.

“First, we don’t have money to have an election,” he said in Filipino, according to a transcript sent by his office. “There will even be new provisions on salary, we don’t have that. Will we have to borrow money again?”

The senator, who heads the Senate committee on constitutional amendments, said he expects a deadlock if amendments focus on political provisions. Congress, he added, should focus on economic provisions.

“We know the situation, and we should also know the needs of the people,” Mr. Padilla said. “And what is that? Work, food on their dinner table, salary. The political structure can follow after that.”

He said he is open to holding his own hearings on the issue.

“We in the Senate can’t just rely on the House of Representatives public hearings, so we will also hold our own public hearings,” he said. “Should I be convinced, for example, by the people that they are prepared for the con-con, then I will adopt it.”

Senator Ana Theresia “Risa” N. Hontiveros-Baraquel called Charter change a major distraction that will only sideline urgent issues.

“We should do away with this long-standing tale of make-believe that Charter change will solve all our problems,” she said in a statement in mixed English and Filipino. “We don’t need that right now.”

“Let’s face the reality that inflation, poverty and corruption are the pressing issues that need to be addressed with aggressive political will and focus,” she said. “Why is there a sense of urgency in Charter change, but none of these issues are felt by Filipinos?”

NO BUDGET
Ms. Hontiveros said spending a large sum on Charter change would only do more damage. “I am glad the president has explicitly articulated that this is not a priority. I hope his allies in Congress act accordingly.”

President Ferdinand R. Marcos, Jr. has said changing the Constitution is not a priority of his government.

“We can achieve what we want, but within the present constitutional [framework,] the way the Constitution is written,” he told reporters on Feb. 12. “There are so many other things we need to do first, that we can still do.”

Senator Maria Lourdes Nancy S. Binay said even changing economic provisions of the Charter is not needed since these have been addressed by recent amendments to the Retail Trade Liberalization Act, Public Services Act and Foreign Investments Act.

“It is better to prioritize their implementing rules and regulations than to push Cha-cha despite the crises we are facing.” 

Meanwhile, the House bill on the hybrid constitutional convention does not specify a budget for the exercise.

Instead, any amount needed will be taken from available appropriations under the national budget, Quezon Rep. David C. Suarez told Tuesday’s hearing.

Senior Minority Leader Paul R. Daza, one of the congressmen who voted against the measure, said a constitutional convention takes longer than a constituent assembly, which he supports.

“In a constituent assembly, you can restrict the agenda because you cannot hide the agenda [and] you have to pass [it] in the House and in the Senate,” he told reporters. “You can do that in a few months at no cost… We can do as good of a job as any delegate in a con-con.”

A constitutional convention is considered to be the “most transparent, exhaustive and democratic and the least divisive means of implementing constitutional reforms,” the House committee said earlier.

The other modes of Charter change is through a constituent assembly composed of senators and congressmen and through a people’s initiative. Proposed changes must be ratified by a majority vote in a national referendum.

There have been several high-profile attempts to change the 1987 Constitution, but these have all failed. —with Beatriz Marie D. Cruz

More effective COVID-19 vaccines arriving in March

SCANNING electron microscope image shows SARS-CoV-2 (round blue objects) emerging from the surface of cells cultured in the lab. — NIAID

MORE than a million doses of coronavirus vaccines that are more effective against new strains are set to arrive in the Philippines in three to four weeks, the Department of Health (DoH) said on Tuesday.

The COVID-19 Vaccines Global Access (COVAX) committed to provide 1.002 million doses of Pfizer bivalent vaccines to the Philippines, Health officer-in-charge Maria Rosario S. Vergeire told a virtual news briefing in Filipino.

“The vulnerable members of our population who have been vaccinated after four months will be prioritized,” she said. “Hopefully these vaccines come soon so that we can give these to our priority population right away.”

Health workers, senior citizens and seriously ill people will receive the vaccines first, she added.

Ms. Vergeire said the country’s pandemic task force is finalizing how government agencies would use the alert-level system as coronavirus cases continue to decrease.

“The task force discussed if the alert level system could just be used as a risk communication tool moving forward,” she said.

The Philippines posted 832 coronavirus cases in the past week, with a daily average of 199, DoH said in a bulletin on Monday. The average daily infection on Feb. 20 to 26 declined by 7% from a week earlier.

The Health department said more than 73 million people or 94.60% of the population have been vaccinated against the coronavirus. About 21 million people have received booster shots.

In its weekly report published on Feb. 23, the World Health Organization (WHO) said globally, almost 5.3 million new cases were reported on Jan. 23 to Feb. 19, 89% lower than in the past 28 days. More than 48,000 people died during the period, 62% lower than a month earlier. 

The Western Pacific region, which includes the Philippines, posted a more than 90% decline in coronavirus infections amid a decline in testing output, the WHO said. Deaths also fell by 77%.

As of Feb. 19, more than 757 million people have been sickened by the coronavirus virus worldwide, with 6.8 million deaths, the WHO said.

“Filipinos have found value in wearing masks and protecting themselves and their families and we should continue protecting ourselves from all illnesses, not just the coronavirus,” Ms. Vergeire said. — John Victor D. Ordoñez

Marcos, Malaysian PM to discuss security and economic cooperation in Manila

REUTERS

MALAYSIAN Prime Minister Anwar bin Ibrahim would meet with Philippine President Ferdinand R. Marcos, Jr. in Manila on Wednesday to discuss security cooperation, the Malaysian Ministry of Foreign Affairs said on Tuesday.

“Both leaders are expected to discuss various bilateral matters such as security cooperation, halal industry collaboration and digital economy cooperation,” it said in a statement. “Both sides will also be exchanging views on regional and international issues of mutual interest.”

Mr. Ibrahim will be in the Philippines on March 1 and 2 and will be accompanied by his Foreign Affairs minister, among other officials.

In a separate statement, the Philippine presidential palace said the two leaders would discuss areas of mutual concern including “political, security and economic cooperation, as well as people-to-people ties.”

Afterwards, Mr. Marcos will hold a dinner banquet in honor of the prime minister.

“The visit reflects the importance of good ties between Malaysia and the Philippines as close neighbors and partners in the Association of Southeast Asian Nations,” the Malaysian Foreign Ministry said.

“It will provide an excellent opportunity for both sides to advance the partnership for progress, guided by shared interest, increased political and economic cooperation and people-to-people exchanges,” it added.

The Malaysian leader is also expected to deliver a public lecture at the University of the Philippines and meet with Malaysians in the Philippines.

Mr. Ibrahim, the 10th prime minister of Malaysia, is the first head of government to visit the Philippines under the Marcos administration.

The Philippines was Malaysia’s fifth-largest trading partner among ASEAN member states in 2022, and the 15th globally. Total trade amounted to $9.42 billion, up by 20% from 2021.

Malaysia also facilitated the peace process between the Philippine government and Moro Islamic Liberation Front, which led to the signing of a peace deal in March 2014.

The oil-rich state of Sabah, a territory that is part of Malaysia’s northern Borneo, has been a thorny issue between the two countries for decades.

The Sulu Sultanate claims to have leased Sabah to the British North Borneo Co. in 1878, a deal that Kuala Lumpur sees as an act of abandonment.

The sultans of Sulu once ruled over Sabah and the Sulu islands. Sabah fell under British control after World War II and joined Malaysia in 1963, shortly after the sultanate ceded sovereignty to the Philippines. — Alyssa Nicole O. Tan

DoJ raises requirement for criminal cases filed in court 

DOJ.GOV.PH

THE DEPARTMENT of Justice (DoJ) has required government prosecutors to file criminal cases that would lead to a “reasonable certainty of conviction” as part of efforts to ease jail congestion, it said in a statement on Tuesday. 

DoJ said it had issued guidelines requiring complaints to be supported by evidence that would lead to a high likelihood of conviction such as evidence that is not disputed by the accused. 

“The difference between probable cause and proof beyond reasonable doubt has caused the temporary detention of many individuals who are eventually acquitted because of the prosecution’s failure to prove guilt in court,” it said. 

Earlier this month, the DoJ lowered bail for poor Filipinos to half of the recommended bail or P10,000 whichever is lower. — John Victor D. Ordoñez