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Facilitated naturalization of refugees and stateless persons

RA DRAGON-UNSPLASH

War, violence, and insecurity in many areas of the world have forced multitudes of people to flee from their homes. The ongoing war in Ukraine, for instance, has resulted in a large-scale displacement of over 6 million people, according to the United Nations High Commissioner for Refugees. In response to this rapidly evolving humanitarian crisis, the Philippine government has expressed its readiness to welcome those who seek to flee the risk of persecution, human rights violations, and other types of armed conflict in war-torn areas.

On Feb. 15, the Supreme Court, by virtue of its rule-making power under the 1987 Constitution, promulgated A.M. No. 21-07-22-SC, or the Rule on Facilitated Naturalization of Refugees and Stateless Persons. The Rule provides for the expedited procedure in filing petitions for naturalization by duly-recognized refugees and stateless persons in the Philippines. The Rule, which the Court prides itself on as being the first and only “judiciary-led initiative of its kind at the global level,” aims to facilitate the assimilation of refugees and stateless persons into Philippine society, in accordance with the Philippines’ obligations under several international legal instruments.

Under the 1951 Convention Relating to the Status of Refugees, a refugee is a “person who, owing to a well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his or her nationality and is unable, or owing to such fear, is unwilling to avail himself or herself of the protection of that country; or who, not having a nationality and being outside the country of his or her former habitual residence as a result of such events, is unable or, owing to such fear, is unwilling to return to it.” On the other hand, a stateless person refers to “a person who is not considered as a national by any State under the operation of its law.”

To be recognized as a refugee or a stateless person, an application for determination of refugee or statelessness status must first be filed with the Department of Justice through its Refugees and Stateless Persons Protection Unit. Once the application is favorably resolved by the Secretary of Justice, the Rule on Facilitated Naturalization allows the refugee or stateless person to file a verified petition for naturalization at the Regional Trial Court of the area where he or she has resided for at least one year immediately preceding the filing of the petition. A joint petition may likewise be filed by immediate family members who are related either by consanguinity or affinity.

Significantly, the Rule allows the filing of the petition on behalf of an unaccompanied child, as well as a joint petition involving related unaccompanied children, by the Department of Social Welfare and Development, the appropriate Local Social Welfare and Development Office where the unaccompanied child resides, or the child-caring agency having his or her custody (Sec. 6, A.M. No. 21-07-22-SC). An unaccompanied child is a child who is “separated from both parents and other relatives and is not being cared for by an adult who, by law or custom, has responsibility to do so” (Sec. 5(d), A.M. No. 21-07-22-SC). With this, the right of unaccompanied children to acquire nationality is assured, with the courts being guided by the best interests of the child principle.

With respect to the qualifications, disqualifications, and documentary requirements for the Petition for Naturalization, the Rule references Commonwealth Act No. 473, the relevant law on naturalization, and adopts most of its provisions.

Notably, the totality of evidence rule eases the applicant’s burden of producing his or her supporting documents. In Section 9 of the Rule, the inability to submit the documents shall not be a ground for the denial of the petition as long as the totality of the evidence is sufficient to establish that the petitioner meets all of the qualifications and does not suffer any of the disqualifications under C.A. No. 473. It is important to note, however, that the Declaration of Intention, if applicable, and the proof of recognition of refugee or stateless status remain indispensable.

Another salient feature of the Rule which is expected to ease the financial burden of the petitioner-refugee or stateless person is the relaxation of the relevant publication requirements. In addition to the traditional mode of publication of the petition in a newspaper of general circulation, at the petitioner’s expense, the Rule now allows the electronic publication of the petition in the official website of the Supreme Court, hence reducing the costs of the petitioner (Sec. 12, A.M. No. 21-07-22-SC). The petitioner is also required to pay only 50% of the docket and other legal fees, unless exempted by law (Sec. 27, A.M. No. 21-07-22-SC).

While we have yet to see a petition filed under the newly promulgated Rule on Facilitated Naturalization, the same is expected to pave the way for refugees and stateless persons to be fully integrated into Philippine society by according them with Philippine citizenship. As political and civil unrest in many parts of the world continues to uproot millions of people from their homeland, consequently depriving them of basic human rights, the Rule is indeed a good and timely measure to ensure the protection of refugees and stateless persons, consistent with the Philippines’ obligations under international law.

This article is for general informational and educational purposes only and not offered as, and does not constitute, legal advice or legal opinion.

 

Kristine Bernadette F. Soriano is an associate of the Immigration Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

kfsoriano@accralaw.com

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US President Biden’s latest Taiwan gaffe stokes tensions with Beijing

REUTERS

PRESIDENT Joseph R. Biden is seeking to show US resolve against China, yet an ill-timed gaffe on Taiwan risks undermining his bid to curb Beijing’s growing influence over the region.

Whether intentional or not, Mr. Biden provoked China with a vow to defend Taiwan militarily. After saying that US policy on Taiwan “had not changed at all” during a news conference in Tokyo, he then answered “yes” when asked if the US would act “militarily” to defend the island in the event of a Chinese attack.

“It’s a commitment we made,” Mr. Biden added.

White House officials later walked back the remark, saying the president was only promising US aid to help Taiwan defend itself in the event of hostilities. That would be akin to what the US is doing in Ukraine, where Mr. Biden has vowed not to send troops.

“The policy has not changed at all, and I stated that when I made my statement,” Mr. Biden said Tuesday when pressed by reporters to clarify the US position.

The president’s remark nonetheless roiled Mr. Biden’s first trip to Asia since taking office and upstaged his roll-out of a new strategic framework for the region. It also cast new light on Washington’s decades-old approach of “strategic ambiguity” about whether US forces would defend Taiwan against China, while also adopting a “One China” policy under which Taiwan isn’t recognized as an independent country.

It’s a complicated policy, criticized both by Beijing and some US lawmakers, that has tripped up Mr. Biden and some of his predecessors in the past. Mr. Biden has made similar missteps on Taiwan at least twice as president, but in making the remark so close to Chinese territory and in the context of the Ukraine war, the impact was amplified.

Although the latest episode is unlikely to fundamentally alter the US-China relationship, it highlights the current tension around Taiwan at a time when Chinese officials have expressed concern about American efforts to box in their country. And Mr. Biden’s remark also opened him to criticism by domestic political opponents who have sought to portray the president, 79, as infirm and unfit for the job.

SEEKING ‘CLARITY’
Senator Tom Cotton, an Arkansas Republican, said that Mr. Biden’s comments represented a shift toward “strategic clarity” on Taiwan and that the president should outline a clear US commitment to defend the island “in clear, deliberate remarks from a prepared text.”

“Otherwise, the continued ambiguity and uncertainty will likely provoke the Chinese communists without deterring them — the worst of both worlds,” he said.

Indeed, one Chinese official suggested that Mr. Biden’s comment may have been deliberate, aimed at testing Beijing’s response to a policy change. The official, who asked not to be identified describing internal Chinese government discussions, portrayed such a potential US approach as dangerous.

China’s leaders have closely watched the Ukraine crisis unfold, taking note of Russia’s political and economic isolation as well as the massive international support for Kyiv as they consider their posture toward Taiwan.

And Mr. Biden spoke in Tokyo, the capital of a major Chinese rival, on a trip to strengthen the US alliance with new, Washington-friendly leaders of Japan and South Korea, two countries already unfriendly toward Beijing.

Mr. Biden’s previous comments about US support for Taiwan happened during domestic television interviews.

“The level of concern in Beijing about US policy toward Taiwan is already very high, and this episode will further heighten that concern, especially since it was said in Tokyo,” said Bonnie Glaser, Asia program director at the German Marshall Fund of the US.

While Mr. Biden’s intent may have been to deter a Chinese attack on Taiwan, “his messaging is confusing and may undermine deterrence,” Ms. Glaser added. The US’s policy of “strategic ambiguity” on Taiwan, which Mr. Biden has repeatedly backed during his five-decade Washington career, is intended to minimize the risk of a direct military confrontation with China.

White House officials said after Mr. Biden’s news conference that the president stands behind the “One China” policy and its commitment under the Taiwan Relations Act to provide the island with the military means to defend itself. Officials said that by answering “yes” when asked if the US would defend Taiwan, the president meant the US would supply military equipment to the island, not send troops.

Chinese Foreign Ministry spokesman Wang Wenbin nonetheless denounced Mr. Biden’s comments on Monday and said the US should refrain from sending the wrong message on Taiwan, “to avoid causing grave damage to bilateral relations.”

Although Mr. Biden may have sought to evoke a Ukraine-like effort to keep Taipei supplied in the event of an invasion, the island would present an entirely different strategic challenge. It doesn’t share a land border with American allies, as does Ukraine, meaning China could more easily blockade its ports and airports to prevent resupply.

Mr. Biden’s comments set off a now-familiar cycle for White House aides, who have become accustomed to cleaning up the president’s remarks on world hot spots. After Mr. Biden declared in Poland that Russian President Vladimir Putin “cannot remain in power,” his advisers insisted the president wasn’t advocating regime change.

And Mr. Biden told reporters that lawyers at the State Department might feel differently after he labeled Russia’s invasion of Ukraine a “genocide.”

Mr. Biden previously said the US would come to Taiwan’s defense during an ABC News interview in August and in a CNN town hall in October. The US abandoned its post-Chinese civil war position that it would defend Taiwan in the late 1970s when it normalized relations with Beijing.

Mr. Biden, who as a senator chaired the Foreign Relations Committee for about four years, has on other occasions used language that appeared to alter US policy on Taiwan, including by describing the island last year as “independent.”

President Donald Trump made a congratulatory phone call to Taiwan’s president, Tsai Ing-wen, in December 2016 after her election — the first time a US president or president-elect had spoken directly to Taiwan’s leader since 1979. And Mr. Trump publicly mused before taking office about abandoning the “One China” policy, only to restate the US position in February 2017.

President George W. Bush agreed with an ABC News interviewer that the US had an obligation to defend Taiwan in the event of a Chinese attack and said that the US would provide “whatever it took to help Taiwan defend herself.”

No matter the clean-up by White House officials, China has always assumed US involvement in any conflict with Taiwan, said Ryan Hass, the Cecilia Yen Koo Chair in Taiwan Studies at the Brookings Institution.

“Beijing always has had to base its military plans in the Taiwan Strait on an assumption of US military intervention, Mr. Hass said. “It would represent strategic malpractice for Beijing to assume anything otherwise.”

The Chinese Embassy in Washington declined to elaborate on the foreign ministry’s comments. The White House didn’t respond to a request for additional comments.

“The US will suffer the consequences and the American people may rebel if the US president wants to send American soldiers to fight in Taiwan,” said former Chinese diplomat Gao Zhikai.

US National Security Adviser Jake Sullivan said last week that Mr. Biden may speak with Chinese President Xi Jinping in coming weeks, and Mr. Xi may decide to wait until that conversation before reaching judgments about the US policy direction toward Taiwan, Mr. Hass said. — Bloomberg

Climate action on CO2 emissions alone won’t prevent extreme warming

TO CONTROL climate change, the world must go beyond cutting carbon dioxide (CO2) emissions and curb lesser-known pollutants such as nitrous oxide playing a key role in warming the planet, new research suggests.

Decades of global climate discussions have focused on CO2 emissions, which are most abundant in the atmosphere. The common goal of reaching “net-zero” emissions refers most often to CO2 emissions alone.

Over the last year, more than 100 countries have pledged a 30% cut by 2030 to emissions from methane, another carbon-based greenhouse gas that is far more powerful at trapping heat than CO2. Most of those countries have yet to say how they will meet that deadline.

Meanwhile, scant attention has been paid to other warming pollutants, including black carbon, also called soot, which absorbs radiative heat, as well as hydrofluorocarbons found in refrigerants, and nitrous oxides. But together with methane, these pollutants are responsible for about half of the warming seen today, according to the study published on Monday in the journal Proceedings of the National Academy of Sciences.

“When we’re worried about the near-term … we need to look at the other non-CO2 climate forcers,” said study co-author Durwood Zaelke, president of the Institute for Governance & Sustainable Development in Washington DC.

This is especially important as countries pursue CO2 reductions through cutting back on their use of fossil fuels, still considered the main contributor to global warming. Using fewer fossil fuels will result in less air pollution, including airborne sulphates that actually counteract some climate change by reflecting solar radiation away from Earth.

Scientists say these sulphates are masking about 0.5 degree Celsius of warming that would be seen without them, meaning aggressive climate action could see temperatures temporarily jump higher — unless the lesser pollutants are tackled as well.

A path of decarbonization alone would see the planet breach 2 degrees Celsius of warming beyond pre-industrial temperatures by 2045, the study finds.

Conversely, reining in all climate pollutants together could see the world begin to avoid some warming as early as 2030 and halve the rate of warming between 2030 and 2050, the findings suggest.

“This landmark paper should bring about a major rethink” of global targets, said Euan Nisbet, a climate scientist at Royal Holloway, University of London, not involved in the study. “If we don’t also bring down non-CO2 warming, we cook.” — Reuters

DC sues Mark Zuckerberg over Cambridge Analytica data breach

THE DISTRICT of Columbia (D.C.) said it sued Meta Platforms, Inc. Chief Executive Officer Mark Zuckerberg for his alleged role in the data breach that allowed political consulting firm Cambridge Analytica to target Facebook users during the 2016 presidential election.

A “sweeping investigation” revealed that Mr. Zuckerberg contributed to lax oversight of user data and the creation of misleading privacy agreements that resulted in Cambridge Analytica and other third parties getting their hands on the personal information of 87 million Americans, D.C. Attorney General Karl Racine said in a statement on Monday.

Cambridge Analytica was hired by then-candidate Donald Trump during his 2016 campaign against Hillary Clinton. Mr. Racine called it “the largest consumer privacy scandal in the nation’s history.”

The lawsuit mirrors an earlier suit Mr. Racine filed against Facebook in 2018, though the judge overseeing that case rejected as “almost bad faith” the Democratic attorney general’s attempt to add Mr. Zuckerberg as a defendant earlier this year.

“You want to change this from a case about Facebook to a case about Mr. Zuckerberg,” D.C. Superior Court Judge Maurice Ross said at a March hearing. “What value does it add to name him? There’s no more relief for the consumers of the District.”

Mr. Racine on Monday said it was important for his office to go after Mr. Zuckerberg.

“We continue to persist and have followed the evidence right to Mr. Zuckerberg,” Mr. Racine said in the statement. “The evidence shows Mr. Zuckerberg was personally involved in Facebook’s failure to protect the privacy and data of its users leading directly to the Cambridge Analytica incident.  

Meta declined comment. The company has previously derided Racine’s claims as “little more than a broadside against Facebook’s business model.”

Cambridge Analytica worked in support of the 2016 campaigns of Trump, Ted Cruz and Ben Carson, all Republicans. It was founded in 2013 by former Renaissance Technologies co-CEO Robert Mercer, a major supporter of Trump in 2016. Steve Bannon, Trump’s former chief strategist, was one of the campaign’s liaisons to Cambridge Analytica, which collapsed after revelations about its harvesting and use of personal data. — Bloomberg

Vista Land & Lifescapes, Inc. to conduct annual meeting of stockholders on June 15

 


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Marcos to prioritize stimulus package

REUTERS
Ferdinand R. Marcos, Jr speaks to foreign correspondents at his headquarters in Mandaluyong City, Philippines, May 11. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE presumptive president Ferdinand “Bongbong” R. Marcos, Jr. on Monday confirmed that a new stimulus measure will be part of his priority legislation for the incoming Congress, although potential revenue sources are still being studied.

At a news conference at his headquarters on Monday, Mr. Marcos said he will look at the 2023 national budget, which is still being prepared, to “find sufficient funds” for the proposed economic relief package.

He said he plans to “move some public expenditure away from non-investment expenditures to more investment expenditures” to “revitalize the economy.”

“There are slight differences because although (this year’s budget) has been disbursed, not all of it has been spent, so meron pa tayong breathing room pero konti na lang, and so that’s why we will have to look at the new budget,” Mr. Marcos said. 

Asked if he would consider selling government assets to fund the stimulus package, Mr. Marcos said: “I’m always very wary of selling government assets, so as a matter of principle I would rather not.

Leyte Rep. Martin G. Romualdez, a leading candidate for House Speaker of the 19th Congress, last week said one of the priorities is the passage of a stimulus package dubbed as “Bayan Bangon Muli.” He said the measure would allow the President to use resources available during the final months of 2022 to address the country’s pandemic response and use leftover funds to stimulate the economy.

However, Albay Rep. Edcel C. Lagman told CNN Philippines on Monday that the next administration may not have enough funds to fund another stimulus package as the government has already disbursed 90% of the P5-trillion national budget for this year.

“Unless the new administration can find or create fresh funds, the stimulus package monikered as ‘Bayan Bangon Muli’ will be mere sloganeering and simply a change in nomenclature from the original Bayanihan,” Mr. Lagman said, referring to the two stimulus packages approved by President Rodrigo R. Duterte during the pandemic.

Economists said the next administration should first provide a clear pandemic recovery plan and assess the status of public finances to make any stimulus package more efficient and responsive to emerging needs. 

“The first order of business of the next administration is to first design a post-pandemic economic program which so far has been nonexistent,” said Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University.

“If proven to be viable, then the questions of financing should be easier,” he said in a Messenger chat.

Zyza Nadine Suzara, a public finance expert, said the Marcos team needs to come up with a recovery strategy first, which should be broken down into specific programs that will address the most urgent socioeconomic challenges.

“How will it know how much the total funding requirement really is if there is no plan,” she said in a Messenger chat.

She said the next administration may either find available funds under the 2022 national budget or identify available cash in the Treasury to fund the stimulus package.

While working within the 2022 national budget might not be a huge problem, Ms. Suzara said passing a supplemental budget to fund the proposed stimulus might be an issue because the Department of Finance has to certify that excess revenue sources are available “to foot the bill.” 

She noted that there might still be funds left unspent or unreleased under the 2022 budget due to the recent election ban. She said the incoming 19th Congress “can authorize the reallocation of those funds.”

However, Ms. Suzara said the Marcos family could pay its pending tax liabilities, which Congress could then earmark to fund the target stimulus, “as a sign of goodwill and unity.”

Emy Ruth D. Gianan, an economist at the Polytechnic University of the Philippines, said it would also be prudent to examine the state of the country’s public finances to assess what kind of measure should be implemented to aid economic recovery.

“The questions should be: How deep are we in debt? Which dole outs have yet to be distributed?” she said in a Messenger chat. “We cannot rely on stimulus packages alone, and then wonder where we would get the money to support such large spending later on.”

Mr. Duterte will step down on June 30 with a record amount of debt, which reached a record high P12.68 trillion as of end-March.

Balisacan to return to NEDA under Marcos

Arsenio M. Balisacan — Courtesy of Philippine Competition Commission

FORMER Socioeconomic Planning Secretary Arsenio M. Balisacan, former Labor Secretary Bienvenido E. Laguesma and migrant workers’ rights advocate Susan “Toots” Ople have accepted presumptive president Ferdinand “Bongbong” R. Marcos, Jr.’s invitation to join his Cabinet.

At a news conference at his campaign headquarters on Monday, Mr. Marcos said he had asked Mr. Balisacan to “return” to the National Economic and Development Authority (NEDA), a Cabinet-level agency responsible for economic planning.

“I’ve worked with him extensively at the time when I was governor, we have very similar thinking in that regard kaya’t malakas ang loob ko (which is why I am confident),” Mr. Marcos said of Mr. Balisacan who he described as an “old friend.” “I know he’s very competent, I know his policies are policies that will be for the betterment of our country.”

Victor D. Rodriguez, who is set to become Mr. Marcos’ executive secretary, confirmed in a text message to reporters that Mr. Balisacan has already accepted the offer.

Mr. Balisacan in a statement said he looks forward to working with the economic team and the private sector “to bring back the country to its pre-pandemic high-growth trajectory, deliver rapid poverty reduction, and reduce socioeconomic inequality.”

A native of Ilocos Norte, Mr. Balisacan was Socioeconomic Planning secretary and NEDA director-general from May 2012 to January 2016 under the Aquino administration. After he resigned from NEDA, President Benigno S.C. Aquino III appointed him as the first-ever chairman of the Philippine Competition Commission (PCC).

He is a former dean of the University of the Philippines School of Economics. He has a PhD in Economics from the University of Hawaii, MS in Agricultural Economics from the University of the Philippines Los Baños, and BS in Agriculture (Magna Cum Laude)from the Mariano Marcos State University in Batac, Ilocos Norte.

Mr. Rodriguez said Mr. Laguesma and Ms. Ople have also accepted Mr. Marcos’ offer to head the Labor department and the newly established agency for migrant workers, respectively.

“For employment, for the development of our economy, nag-usap kami ng ilang oras at mukha namang tumutugma ang aming pag-iisip patungkol sa approach natin dito sa darating na mga taon when it comes to economic managers (we talked for a few hours and I think we are of the same mind on the plans for the next few years),” Mr. Marcos said.

Mr. Laguesma was Department of Labor and Employment (DoLE) secretary from 1998 to 2001, while Ms. Ople was a DoLE undersecretary from 2004 to 2009 under the Arroyo administration.

Ms. Ople is the founder of the Blas F. Ople Policy Center and Training Institute. The center is named after her late father who served for 19 years as the Labor minister under President Ferdinand E. Marcos.

Mr. Marcos is expected to face major economic obstacles once he takes his oath of office on June 30, such as the ballooning budget deficit, rising debt, soaring inflation and lackluster government revenues.

The Philippine economy grew by 8.3% in the first quarter, a sign that economic recovery may have become more entrenched.

However, the ongoing Russia-Ukraine war, soaring oil and commodity prices and supply chain disruptions are creating uncertainty not just for the Philippines, but the global economy.

Mr. Marcos said the Philippines under his leadership will join a United States-backed economic framework for the Indo-Pacific region, as Washington boosts its economic presence in the region in a bid to counter China’s growing influence.

US President Joseph R. Biden on Monday unveiled the Indo-Pacific Economic Framework for Prosperity (IPEF) in Tokyo, Japan.

Reuters quoted the White House as saying the deal offers no tariff relief to the countries that join, including India, Malaysia and the Philippines, but provides a way to sort through key issues from climate change to supply chain resilience and digital trade.

“The future of the 21st century economy is going to largely be written in the Indo-Pacific — in our region,” Mr. Biden said at a launch event in Tokyo. “We’re writing the new rules.”

Mr. Biden wants the deal to raise environmental, labor and other standards across Asia. The other initial founders are Australia, Brunei, Indonesia, Japan, South Korea, New Zealand, Singapore, Thailand, Vietnam and the United States.

But those founding countries will need to negotiate what standards they wish to abide by, how they will be enforced, whether their domestic legislatures will need to ratify them and how to consider potential future members, including China, officials told reporters. — Kyle Aristophere T. Atienza with inputs from Reuters

PHL risks slower growth without RCEP membership

A bridge is seen in the municipality of Pagudpud, Ilocos Norte. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Revin Mikhael D. Ochave, Reporter

THE Philippine economy may expand at a slower pace if it fails to become a member of the world’s largest trade bloc, the Joint Foreign Chambers in the Philippines (JFC) said, as it once again urged the Senate to ratify the Regional Comprehensive Economic Partnership (RCEP) trade deal before session adjourns next week.

“Studies show the Philippine economy will grow at a slower pace without membership in RCEP. Nobody wants this to happen… we appeal to you (the Senate) to vote to approve the RCEP agreement when you return to session this week,” the JFC said in a statement on Monday.

Senators on Monday resumed the third and last regular session of the 18th Congress. However, time appears to be running out for the Senate to ratify the RCEP as the session ends on June 3.

Sought for comment, Senator Aquilino Martin L. Pimentel III, who heads the Foreign Affairs Committee, said in a Viber message that RCEP will be on the agenda for the May 30 session.

Mr. Pimentel said he is still hoping that RCEP will be ratified before Senate adjourns.

“That’s my hope. And I am working on it. (RCEP) should have been (discussed) today but (was) moved to May 30 by the leadership. Let us see. I am for RCEP ratification,” he said.

Senate President Vicente C. Sotto III said the senators will “not blindly vote on any measure.”

Asked if it will be hard to ratify the RCEP with the remaining time, he replied: “It depends on how the interpellations evolve.”

The JFC said the Philippines cannot afford not to participate in the RCEP, which it described as the largest trade bloc in the world representing 30% of global GDP.

“The Philippines cannot afford to leave itself out of the bloc since being a member will bring economic benefits that will hasten recovery from the scars, higher debt, and other damage caused by the ongoing COVID-19 pandemic,” it said.

The Philippine economy grew by 8.3% in the first quarter. The government is targeting 7-9% gross domestic product (GDP) growth for the full year.

The JFC said RCEP’s ratification will expand the network of foreign markets already accessible to Philippine exports.

“When this happens a large number of our current investors will invest more, and new investors from Australia, Europe, New Zealand, North America, and Northeast Asia, will be attracted, creating many thousands of new jobs. RCEP also offers other new advantages for exporters located in the Philippines that will benefit our member companies,” it added.

The JFC statement was approved by the American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Inc., Korean Chamber of Commerce of the Philippines, Inc., and Philippine Association of Multinational Companies Regional Headquarters.

RCEP took effect on Jan. 1, and is already in force in Australia, Brunei, Cambodia, China, Japan, Korea, Laos, New Zealand, Singapore, Thailand, and Vietnam.

The Philippines is still not a participant in the RCEP as the Senate was unable to give its concurrence before session was adjourned on Feb. 3 for the election break. President Rodrigo R. Duterte ratified the trade deal on Sept. 2 last year.

“If we don’t participate, there would be the reverse of the benefits. So, instead of the positive gains on gross domestic product like 1.98% (growth), investments, exports, employment, and poverty level could be the reverse or worse,” Trade Secretary Ramon M. Lopez said in a mobile phone message.

If the Philippines fails to join, potential investments may be diverted to RCEP members, he added.

“We should join now. If we don’t join, the investments to increase production will be affected. The investors will go to other countries. That can be an additional input to our production capacity and cut our trade deficit. That is how you address the trade deficit, by having capacity locally so that we can export,” Mr. Lopez said.   

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the delay in the country’s participation in RCEP will result in lost opportunities for foreign direct investments (FDIs), imports and exports.

“A foregone opportunity is the potential increase in FDIs to locate in the country as a production/manufacturing and marketing base, especially FDIs of global/multinational companies that are attracted to locate in a RCEP member country in order to also access the bigger export markets of other RCEP member countries as well, as part of managing and hedging their respective global/regional supply chains,” Mr. Ricafort said in a Viber message.

Bank of the Philippine Islands (BPI) Chief Economist Emilio S. Neri, Jr. said in a Viber message that the Philippines may face more supply issues if it does not join RCEP.

“The Philippines will miss out a lot if it fails to join RCEP. The country may suffer from food supply and other supply chain-related challenges that can worsen combined inflation and economic stagnation resulting from the armed conflict in Eastern Europe and the persistent global supply chain issues,” Mr. Neri said. 

In case the Senate fails to act, the RCEP ratification may have to wait until the 19th Congress opens its first session on July 25.

RCEP has faced strong opposition from the local agriculture industry groups, saying that the sector is not ready for free trade in the global market.

Ports authority urged to stop container monitoring policy

PHILIPPINE STAR/EDD GUMBAN
Containers are seen at the Manila port area. — PHILIPPINE STAR/ EDD GUMBAN

VARIOUS business groups, which include shipping companies, truckers, exporters, and customs brokers, want the Philippine Ports Authority (PPA) to stop its container monitoring policy, saying this duplicates the functions of the Customs bureau and disrupts port operations.

The heads of 14 business groups issued a statement calling for the “immediate revocation” of PPA Administrative Order (AO) No. 04-2021, which sets policies on the registration and monitoring of containers using a technology solution.

The statement, which was published in a newspaper on Monday, was signed by Philippine Chamber of Commerce and Industry President George T. Barcelon, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr., Supply Chain Management Association of the Philippines President Pierre Carlo Curay and Philippine Liner Shipping Association (PLSA) President Mark Matthew F. Parco, among others.

The groups said the PPA “acted outside of its jurisdiction in monitoring the movement of containers that pass through international ports handling containerized cargo that do not fall under [its] authority,” such as those administered by the Cebu Ports Authority, Cagayan Economic Zone, and Poro Point Management Corp., among others.

The AO, outlining the agency’s policy on the registration and monitoring of containers, was signed by PPA General Manager Jay Daniel R. Santiago in September 2021.

AO required the registration and monitoring of containers arriving and leaving PPA ports. Scheduling, loading, unloading, release, and movement of containers will be monitored. It was aimed at developing a container identification, accountability, and protection program to demonstrate commitment to international standards.

However, the groups seeking the revocation of AO said the PPA’s monitoring tasks under the AO are functions of the Bureau of Customs (BoC).

The BoC, the groups noted, has its own monitoring policy under Customs Administrative Order No. 08-2019, which took effect in August 2019.

The involvement of PPA in container monitoring using a technology is “an unnecessary redundancy outside of [its] own scope of responsibilities,” the groups added.

They noted that the agency’s AO will “create inefficiencies and lead to dramatically higher costs for consumers and businesses especially the micro, small, and medium enterprises.”

The AO is also seen to derail the country’s recovery from the coronavirus pandemic, they said.

“Deeper analysis shows that this administrative order will not improve port efficiency and attract more commerce through the country’s two international seaports but has the potential to derail any improvements made in recent years and discourage the flow of more cargo,” the groups said.

The PPA has yet to respond to a request for comment as of press time.

According to documents posted on the PPA website, the agency awarded the P877.600-million Trusted Operator Program-Container Registry Monitoring System (TOP-CRMS) & Empty Container Storage Shared Service Facility Design Specifications and Implementation project to the Cebu City-based Nextix, Inc./Shiptek Solutions Corp. joint venture (JV). The notice of award was signed by Mr. Santiago on April 27.

Mr. Santiago and the JV entered into a contract agreement on May 2.

PLSA’s Mr. Parco told BusinessWorld in a phone message on May 19 that “the intervention [of] PPA in the Unified Ticketing Scheme and the implementation of TOP-CRMS will only increase cost to customers and complexity in business.” — Arjay L. Balinbin

Computer retailer Upson files for P4.9-billion IPO

BW FILE PHOTO

UPSON International Corp. (UIC) announced on Monday that it had filed an application for an initial public offering (IPO) that is expected to raise P4.88 billion.

The company, a retailer of personal computers and information technology (IT) products, submitted on May 17 its registration statement with the Securities and Exchange Commission (SEC).

UIC plans to offer up to 888,157,800 common shares comprising up to 789,473,600 primary shares and up to 98,684,200 secondary shares. The net proceeds will be used for store network expansion and general corporate purposes.

“There are rapid technological developments in computers and other IT products matched with growing market segments like educational needs and computer and IT-related jobs in all 17 regions. These are compelling opportunities that fuel the need for an aggressive expansion of our retail network nationwide,” UIC Chief Executive and President Arlene T. Sy said.

The company offers its products through outlet brands including Octagon Computer Superstore, Micro Valley, and Gadget King.

“We plan to open 250 branches over the next three to five years to add to our existing 183 branches as of 2021. We pride ourselves with Certifications of Authentic and Untampered products awarded by leading suppliers of computer and IT brand,” she added.

The company tapped First Metro Investment Corp. as the sole issue manager, bookrunner, and lead underwriter for the offering. The proposed offer period and target listing date on the main board of the stock exchange is in September, subject to regulatory approvals.

First Metro President Jose Patricio A. Dumlao said UIC “has a long-standing presence in the retail industry and has been consistently growing and performing so well in the Philippine market.”

“With restrictions slowly easing up, UIC has been taking strategic initiatives to adapt to the constant change in behavior amongst its consumers and to ensure that they’re able to cater to more customers by providing a complete, quality, and an up-to-date suite of IT products both through their physical stores and online platforms,” he said.

In 2021, the company’s net income increased by 95% to P403.6 million from P206.7 million in 2020. — Luisa Maria Jacinta C. Jocson

Fruitas swings to profit despite no seasonal uptick

FRUITAS Holdings, Inc. reported on Monday that its first-quarter earnings reached P6 million, improving from a net loss of P16 million in the same period the year before.

Net sales were up by 26% to P330 million from P261 million in 2021.

“This was achieved despite the lack of seasonal uptick from the Christmas season, including lechon sales, in the first quarter of 2022 and the Level 3 restrictions imposed in January 2022,” the company said in a disclosure.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) also improved to P53 million from P15 million.

In 2021, the company trimmed its net loss to P16 million from a loss of P48 million in 2020.

In February, the registration statement for the initial public offering (IPO) of Balai ni Fruitas, Inc., a wholly owned subsidiary of Fruitas, was formally received by Securities and Exchange Commission (SEC).

It is targeting to list on the small, medium and emerging board of the Philippine Stock Exchange (PSE), subject to compliance with SEC and PSE requirements.

“We are fully committed to deliver value to our shareholders by improving operations and profitability. The potential IPO of Balai ni Fruitas will be an important exercise for us, which we expect to complete in first half of 2022,” Fruitas President and Chief Executive Lester C. Yu said.

At the stock exchange on Monday, Fruitas shares closed higher by 0.91% or P0.01 at P1.11 apiece. — Luisa Maria Jacinta C. Jocson

ABS-CBN, Kroma launch interactive channel

ABS-CBN and Kroma Entertainment, which is backed by the 917Ventures Retirement Fund, launched the Pinoy Interactive Entertainment or PIE Channel (pie.com.ph) on May 23.

PIE channel is a real-time and multi-screen interactive channel where programs will be accessible to both television and digital platform audiences who can participate, often directly, with the shows. The programs air from 5 a.m. to 2 a.m.

“We always look at means to innovate and deliver fresh entertainment. We joined forces with 917Ventures and Kroma for their ecosystem of unique solutions expertise and technology and distribution scale. Combining this with our expertise in content creation, we are ushering in a new one-of-a-kind format for TV and digital entertainment that is designed to celebrate the fun and joy that viewers love,” ABS-CBN Head of Digital Jamie Lopez said during an online press conference on May 18.

“We are always looking for ways to uplift the lives of Filipino people by giving them access to essential services such as health services, financial services, groceries and even education,” 917Ventures managing director Vince Yamat said. “But we also realize that Filipinos should be given access to entertainment and participate in shows from the comfort of their homes.”

“Whether on their TV sets, laptops, desktops, or mobile devices, PIE is accessible to Filipinos who want to try a new way to consume — and play with — the shows they love,” KROMA Entertainment Chief Executive Officer Ian Monsod said.

THE SHOWS
PIE Channel’s programs include talk shows, interactive game shows, and talent shows. Viewers can participate in the programs by creating an account through the channel’s website.

The morning talk show — it airs at 7 a.m. — Piesilog offers inspiring stories and information needed for the day. It is hosted by Home Buddies Facebook community creator and Nobi Home founder Frances Cabatuando.

The variety show Barangay Pie airs at noon. It is hosted by Mayor TV, Abby Trinidad, Ruth Paga, Sunshine Teodoro, Inah Evans, Patsy Reyes, and Coco Cordero.

The talent show Piegalingan hosted by actor and online streamer Ralph Malibunas, beauty queen and actress Sam Bernardo, and actor Eris Aragoza — highlights the achievements and skills of contestants.

PIE Channel’s Pienalo offers an interactive experience on the viewer’s chosen device. On it, the familiar game “Pera o Bayong” is given a new interactive format. An online player is selected and they have to choose from among 10 bayongs (woven market bags) containing cash prizes ranging from P3,000 to P100,000, winning the money contained in the bag of their choice. Meanwhile, online viewers are also given a chance to select a bag labeled as the “Tambahayan’s Choice.” Five viewers whose names will be raffled will win the amount contained in the “Tambahayan’s Choice” bag.

Another interactive show is the program Palong Follow, where viewers work together to find the country’s next big digital content creator.

Hosted by Aaron Maniego, Karen Bordador, and Renee Dominique, the interactive show PIE Night Long features relatable stories and situations with viewers able to share their opinions and be involved in the storytelling process.

Meanwhile, the interactive soap opera UZI allows viewers to suggest what happens in a story and complete an episode.

P10 MILLION UP FOR GRABS
In line with the launch, the PIE Channel is giving away P10 million in cash prizes over three months to viewers who engage with the shows and join games.

“As technology continues to evolve. We’re going to see more innovations that will make entertainment more immersive, engaging and rewarding. Just as technology evolves, so does the behavior of our audience. We embrace this and look at ways to complement this through entertainment,” ABS-CBN’s Mr. Lopez said.

PIE Channel is accessible to digital TV households in Metro Manila, Cebu, Davao, Iloilo, Zamboanga, Naga, Baguio, and nearby provinces through partner station BEAM. Aside from digital TV (PIE can be found by scanning the digibox), the channel can be viewed on its website pie.com.ph, on YouTube (http://youtube.com/iampieofficial), and on Sky Cable Channel 21. PIE will also be available on GCash GLife beginning May 28. — Michelle Anne P. Soliman