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Ecozones touted as means to mitigate global recession impact

POLLOC FREEPORT AND ECOZONE — BARMM FACEBOOK PAGE

THE impact on the Philippines of the impending global economic slowdown can be mitigated by developing more economic zones (ecozones), the Philippine Economic Zone Authority (PEZA) said.  

PEZA Officer-in-Charge (OIC) Tereso O. Panga said more ecozones are in store with the release recently of the Philippine Development Plan (PDP) 2023-2028 by the National Economic and Development Authority.

“Ecozones can be shields to soften the landing (amid) all these global disruptions… ecozones can (also) be drivers to accelerate economic recovery and growth,” Mr. Panga said in a statement on Wednesday.

“With the inclusion of the ecozone development program, we are positive that more ecozones will be approved and created especially in the countryside,” he added.

The PDP formally directs PEZA to execute the ecozone transformation roadmap. It also provides for the amendment of Republic Act No. 7916 or the PEZA Law, to facilitate the digitalization of the registration process for ecozone locators and the promotion of co-located industry and services entities in knowledge, innovation, science, and technology parks.

“The creation of ecozones will be within the existing investment promotion agencies to maximize investments and promote industrial dispersion especially outside metropolitan areas,” according to the PDP.

“Further, the ecozones will be integrated into the local economy by relaxing the requirements, facilitating the free flow of parts, components, and other inputs, and increasing open trade between zone locators and firms outside the zones,” according to the plan.  

PEZA said it approved 29 ecozone development projects worth P96.21 billion in 2022, of which 11 were registered in the first six months of the Marcos administration.

By far the largest approved investment is a mixed-use special ecozone for manufacturing and tourism in Pangasinan worth P81.648 billion.

“Of the total approved ecozone projects, 13 were information technology (IT) parks and centers, 12 were manufacturing ecozones, two tourism, one agro-industrial and one mixed-use for manufacturing and tourism,” PEZA said.

“To date, there are a total of 421 PEZA ecozones nationwide hosting 4,346 locator companies and creating 1.8 million direct jobs,” it added.

PEZA is hoping to grow ecozone investment by 10% in 2023.

A total of P140.7 billion worth of investment was generated in 2022, up 103.03%.

“With our enhanced investment laws and strengthened ecozone development programs, we remain bullish that we will be able to jumpstart the economy and keep up with the strong competition worldwide,” Mr. Panga said.

PEZA added in a separate statement that Mr. Panga is ready to step down as OIC once President Ferdinand R. Marcos, Jr. appoints a new PEZA Director-General.

PEZA leadership was thrown into turmoil last year when former Director-General Charito B. Plaza contested Mr. Panga’s designation as OIC.

Four PEZA employees filed a complaint with the Office of the Ombudsman against Mr. Panga for his alleged “usurpation of authority and violation of Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.”

In a statement responding to the complaint, PEZA said: “Being the most senior career executive and next in rank officer of the agency, the bases of the designation/assumption of the OIC are Office of the President’s Memorandum Circular (MC) Nos. 1, 3 and 9… This is further bolstered by MC No. 12 recently issued by Executive Secretary Lucas P. Bersamin for the OIC’s continuance in office until the President appoints a permanent one.”

“The PEZA Management Committee, its employees and ecozone stakeholders fully support the OIC to lead PEZA. The OIC, as he has said time and again, is ready to step down as OIC when President Marcos Jr. appoints a Director-General of PEZA,” it added.  

Amando Virgil D. Ligutan, legal counsel for the complainants, said in a statement that the PEZA employees decided to file their case with the Ombudsman to consolidate both criminal and administrative charges.

Mr. Ligutan alleged that Mr. Panga terminated contractual employees while other employees were demoted and transferred to “far-away” ecozones after being identified as “supporters of Ms. Plaza.” 

“The oppressed PEZA employees initially lodged their complaint with the Civil Service Commission, but they opted to withdraw it and filed instead its case with the Ombudsman,” Mr. Ligutan said. — Revin Mikhael D. Ochave

Data disclosed in loan transactions subject to new privacy protections

THE National Privacy Commission (NPC) said it has added new privacy rules governing data disclosed during the loan application process.

In a statement on Wednesday, the NPC said Circular No. 2022-02, issued on Dec. 1, amends Circular No. 2020-01 issued in September 2020. The two circulars prescribe guidelines on the processing of personal data shared by clients in loan applications, loan releases, and loan collection, including character references and the identity of guarantors.

Privacy Commissioner John Henry D. Naga said that the amended circular seeks to address data privacy concerns following a surge in online lending.

“NPC Circular No. 2022–02 provides amendments that will serve as an added protection to both borrowers and lending companies. The NPC aims for smooth transactions between the two parties, where borrowers are afforded their data privacy rights and lending companies are given the opportunity to ethically conduct their business and establish trust among their customers,” Mr. Naga said.  

The amended circular requires a lender, financing company, and other persons acting as such to provide notice before obtaining consent to process the data gathered in the lending process.

The just-in-time notice informs data subjects on how a specific piece of information they are asked to provide will be processed.

“When providing details of processing to data subjects, the lending company, financing company, or other persons acting as such must consider the accessibility of the information and convenience of the borrowers,” the NPC said.

The amended circular also provides that a lending firm, financing firm, or other related persons are prohibited from conducting unnecessary processing involving sensitive and personal information.  

The NPC said that the amended circular allows the processing of a borrower’s contact information in order to verify the person’s identity and to check the truthfulness of the information provided.

“However, the processing must not be unbridled or unconstrained, excessive, and disproportional to its purpose. This includes processing that leads to harassment; processing for collection of debt outside of the guarantors provided by the borrower; and processing that results in unfair collection practices,” the NPC said. 

The amended circular also protects the data privacy rights of the borrower’s character reference and guarantor.

“For those who were chosen as character references, Section 4(C) of the amended Circular provides that a lending company, financing company, or other persons acting as such shall adequately inform the concerned individuals that they were chosen as character reference of the loan applicant and how their contact details were obtained,” the NPC said.

“They must also provide the character reference with the option of having their personal data removed as a character reference,” it added. — Revin Mikhael D. Ochave

Agri trade deficit widens in third quarter to $3.3 billion

REUTERS

THE deficit in the trade of agricultural goods widened 39.6% year on year to $3.313 billion in the third quarter, according to preliminary data from the Philippine Statistics Authority (PSA).

In a statement, the PSA said that overall trade in agriculture — the sum of exports and imports — grew 17.3% to $7.027 billion, slowing from the 25.4% growth rate in the previous quarter. The year-earlier growth rate was 16.0%.

Agricultural imports grew 23.7% to $5.171 billion, against the 22.1% growth rate from the previous quarter and the 16.3% rate posted a year earlier.

During the quarter, cereals accounted for $1.107 billion or 21.4% of agricultural imports. This was followed by meat and edible meat offal ($628.34 million), and animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes ($542.91 million).

Imports of agricultural products from the Association of Southeast Asian Nations (ASEAN) accounted for 16.0% of the total, equivalent to $1.812 billion. Indonesia was the main source of agricultural imports in the region with $499.96 million.

Most imported agricultural goods from ASEAN consisted of animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes ($497.12 million), cereals ($367.03 million), and miscellaneous edible preparations ($348.65 million).

Exports of agricultural products rose 2.7% year on year to $1.856 billion during the quarter. This compares with the 33.5% growth rate in the second quarter and the 15.3% posted a year earlier.

In the third quarter, exports of animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes accounted for 27.3% of all agricultural exports. They were valued at $506.54 million. Edible fruit and nuts; peel of citrus fruit melons accounted for $470.63 million and preparations of vegetables, fruit, nuts, or other parts of plants $222.49 million.

Agricultural exports to ASEAN amounted to $236.04 million or 7.0% of total trade. Malaysia was the leading destination for agricultural exports at $102.69 million.

Exports of animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes to ASEAN totaled $90.95 million. Tobacco and manufactured tobacco substitutes were valued at $60.94 million and preparations of cereals, flour, starch, or milk and pastrycooks’ products $17.00 million.

In Europe, Spain was the leading source of agricultural goods worth $139.62 million, while the Netherlands was the main export destination with $176.76 million. — Ana Olivia A. Tirona 

Withholding agents as refund claim agents

Without taxes, government cannot function properly. The simple truth of the “lifeblood” doctrine forms the basis for the government taxing individuals and corporations alike. It is also for this reason that the government keeps a tight rein on tax refunds.

Tax refunds are construed strictissimi juris against the taxpayer. This means that the burden of proving entitlement to a refund rests with the taxpayer-claimant. That’s because in the event that a refund claim is granted, the government must take out funds from its coffers which it could have otherwise used to finance its spending.

To prove entitlement to a refund, the claimant must show that it met the conditions laid down under the rules. Of the many conditions in a refund claim, one of the main requisites is that the party filing the claim must be a party in interest. In most cases, it is the income payor that files a refund claim, considering that it is the party that overpaid. It is the party that stands to benefit or lose depending on the outcome of the refund claim. Hence, it has the personality to file the claim for refund.

Notwithstanding the foregoing, several court decisions have been rendered confirming that aside from the income payor, the withholding agent also has the personality to file a claim for refund. Recently, the Court of Tax Appeals (CTA), in En Banc Case No. 2359, touched on this issue when the court upheld the decision of the CTA First Division that a withholding agent can file a refund claim.

In that ruling, the Philippine taxpayer/withholding agent contracted the repair services of a non-resident foreign corporation (NRFC). Prior to paying the NRFC, it withheld taxes based on the applicable tax rate per the Tax Code and remitted the same to the BIR. Subsequently, within the period prescribed by law, the withholding agent filed on behalf of the NRFC a claim for refund of erroneously paid final withholding taxes. The refund claim is anchored on the Philippines-Japan Tax Treaty which provides that the business profits/service income derived by a Japanese tax resident that does not conduct business in the Philippines as a permanent establishment are exempt from income tax, and consequently from withholding tax. 

In arguing against the legal personality of the withholding agent to file a refund, the Commissioner of Internal Revenue (CIR) contended that the withholding agent is not the statutory taxpayer who is the proper person to file a claim for refund or tax credit; therefore, it has no legal standing to pursue the refund claim since it is not the real party in interest. The CIR reiterated that it is the NRFC, the statutory taxpayer, that is the proper party to file the claim for refund.

In its decision, the CTA, sitting En Banc, affirmed the ruling of the CTA First Division and denied the CIR’s Petition for Review for lack of merit. In ruling so, the Tax Court stressed that pursuant to Section 204(C) and 229 of the 1997 Tax Code, the person entitled to claim a tax refund is the taxpayer. Moreover, the Tax Court cited the case of CIR vs. Smart Communication, Inc., where the Supreme Court ruled that the withholding agent has a legal right to file a claim for refund for two reasons:

1. He is considered a “taxpayer” under the Tax Code as he is personally liable for the withholding tax as well as for deficiency assessments, surcharges, and penalties, should the amount of the tax withheld be finally found to be less than the amount that should have been withheld under law; and

2. As an agent of the taxpayer, his authority to file the necessary income tax return and to remit the tax withheld to the government impliedly includes the authority to file a claim for refund and to bring an action for recovery of such claim.

The option to have the withholding agent file the refund claim can prove practical and advantageous on the part of the NRFC.

Having the withholding agent file the refund claim may mean that the NRFC may exert less time, energy and resources to support the refund claim. In pursuing the administrative claim for refund, logistics-wise, it may also be easier for the withholding agent to coordinate with the local revenue office. Furthermore, should the need to file a judicial refund claim arise, in comparison to the NRFC, the withholding agent may be more readily available for court hearings. 

Of course, however reasonable, these are mere assumptions, and whether having the withholding agent file on behalf of the NRFC would prove more beneficial would depend on the circumstances of the parties involved. Whatever the case may be, it bears stressing that once a refund claim filed by a withholding agent is granted, the ultimate party with the right over the refunded amount is the party that actually bore the cost of the tax, which is more often, the income payor. Hence, in such case, the withholding agent-customer has the obligation to remit the amount of taxes recovered to the supplier.

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.

 

Kathleen Galano is an assistant manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

kathleen.c.galano@pwc.com

Intact Falcons raring to spring surprises at UAAP Season 86

ACE guard Jerom Lastimosa is back for one last fight for Adamson University Soaring Falcons in UAAP Season 86. — PHILIPPINE STAR/RUSSELL PALMA

WITH ace guard Jerom Lastimosa back in the nest for one last flight, Adamson University brims with confidence that it can replicate its magical playoff run in UAAP Season 85 — or put on a better finish this time around.

Soaring Falcons mentor Nash Racela admitted heaving a sigh of relief upon being informed by Mr. Lastimosa himself as early as last week of his decision to stay in San Marcelino, setting the stage for an intact squad raring to spring surprises anew in the UAAP Season 86.

“That’s what he told me before the New Year. It’s welcome news to our team. Still, we have the same goal of trying to crash the Top 4 and hopefully get a better finish,” Mr. Racela told The STAR.

Mr. Lastimosa, after a month of contemplating since Adamson’s Final Four exit in UAAP Season 85, finally broke the news on Tuesday that he will play out his final year with the Soaring Falcons.

That was despite rosy interests and offers for him to go professional abroad, particularly the Korean Basketball League (KBL), where a list of Filipino collegiate standouts is growing led by Rhenz Abando, SJ Belangel, RJ Abarrientos and Dave Ildefonso.

The 24-year-old gunner gained traction from overseas teams following an impressive campaign behind averages of 15.0 points, 4.1 rebounds, 3.6 assists and 1.0 steal to lead Adamson University to the Final Four.

His best outing was a 22-point eruption in the Soaring Falcons’ 80-76 knockout game win against De La Salle University to clinch the last ticket in the Final Four, where they bowed to eventual champion Ateneo De Manila University, 81-60.

For Mr. Lastimosa, that was the main reason why he opted to come back as he looks to help Adamson University end a long UAAP title drought since last winning in 1977 led by the great Hector Calma — on top of his vow to his parents to finish his studies.

Now, Mr. Lastimosa and the Soaring Falcons set their sights to the ultimate prize with still ample time to prepare before UAAP Season 86 returns to action midway through the year. — John Bryan Ulanday

Rald Ricafort is PLDT High Speed Hitters new coach

FRESH from his memorable coaching debut in the Petro Gazz Angels’ fantastic PVL Reinforced Conference title conquest late last year, Rald Ricafort has brought his act to the High Speed Hitters. — PVL

RALD Ricafort will try to weave his championship magic with another Premier Volleyball League (PVL) team — the PLDT High Speed Hitters.

Fresh from his memorable coaching debut in the Petro Gazz Angels’ fantastic PVL Reinforced Conference title conquest late last year, Mr. Ricafort has brought his act to the High Speed Hitters where he will take over from George Pascua starting in the Open Conference unfurling Feb. 4.

Mr. Ricafort also brought with him Arnold Laniog, a former Petro Gazz head coach himself, as the former’s lead assistant.

“Yes, Rald Ricafort is our new coach,” PLDT team manager Bajjie del Rosario yesterday told The STAR.

The acquisition of Mr. Ricafort is a shocking development as the Manny V. Pangilinan-owned franchise snatched a young, vibrant mentor just a month after proving his worth with a championship with a rival squad.

Nobody really expected Mr. Ricafort to be available after his impressive feat.

But he was and PLDT was quick to pounce on their prized new catch.

And Mr. Del Rosario said more changes are forthcoming after they released key cogs Toni Rose Basas and Heather Guino-o.

“…We’re still waiting for answers from the players we tendered offers. Hopefully we could finalize everything this week,” said Mr. Del Rosario.

PLDT is doing everything to finally hit it big after failing short in its championship bid in its two seasons with the country’s only pro volley league.

And it hopes Mr. Ricafort is just what the doctor ordered for them. — Joey Villar

Animam back after suffering from ligament injury

THE 24-YEAR-OLD ace Jack Animam will mark her official court comeback for Lady Macbeth Riots 3x3 Team. — FIBA

GILAS Pilipinas women stalwart Jack Animam is set for her much-awaited return a year after suffering an unfortunate anterior cruciate ligament (ACL) tear injury.

The 24-year-old ace will mark her official court comeback for Lady Macbeth Riots 3×3 Team in the Manila Hustle 3×3: Philippine Women’s 3×3 International Invitational on Feb. 4-5.

In the stacked squad, she is joined by other Gilas veterans Janine Pontejos, Khate Castillo, Trina Guytingco, Clare Castro and top national team prospect Kacey dela Rosa, who won Rookie of the Year honor in UAAP Season 85.

Ms. Animam plunged back to full-contact training as early as October, joining the scrimmages of the Gilas women team after missing time since January when she went under the knife.

The 6-foot-5 Ms. Animam last played here in the Philippines in the 2019 Southeast Asian Games when she anchored the country to a historic double-gold medal in the traditional 5-on-5 and 3×3 basketball.

She played overseas since then, suiting up for Shih Hsin University in Taiwan and in Serbia for Radnicki Kragujevac.

Ms. Animam and Lady Macbeth, however, will be in for a strong challenge against seasoned local squads and capable visitors in the Manila Hustle 3×3 that is presented by Uratex and Smart with the Samahang Basketbol ng Pilipinas as one of the major sponsors.

Completing the cast are other Philippine bets Uratex Dream, Uratex Tibay, Discovery Perlas, Army Altama and Angelis Resort as well as overseas teams Zoos Tokyo and Owl.Exe Kujukuri from Japan, Korea’s 1Eyehansol and G2L2, Thailand’s Shoot It Dragons, and Singapore’s Jumpshot. — John Bryan Ulanday

Brazil bids farewell to beloved soccer legend Pelé

FANS queue to see and give their last tributes and farewell to Pele. — REUTERS

SANTOS, Brazil — Emotional crowds bid Brazil soccer legend Pelé a final farewell on Tuesday, lining the streets of Santos to watch his coffin taken to its final resting place from the city’s stadium where 230,000 mourners had filed past his open casket.

Young and old embraced as the funeral procession wound its way through the coastal city’s streets for hours, with some fans in tears and others cheering and drumming for a national hero who rose from barefoot poverty to become one of the greatest and best-known athletes in modern history.

“It’s an irreparable loss for Brazil,” said Brazil’s newly sworn-in President Luiz Inacio Lula da Silva. “Pelé, in addition to being the best soccer player in the world, was a humble, simple man.”

Pelé died last week at the age of 82 after battling colon cancer for a year. He was laid to rest at the city’s Ecumenical Memorial Necropolis, a 14-storey vertical cemetery with views of the soccer field in Santos that made him a star

Pelé’s funeral procession had left the city’s Vila Belmiro stadium, home of Santos Football Club, on Tuesday morning. Pelé played from 1956 to 1974 for the team, scoring more than 1,000 goals. During a 24-hour wake fans queued for hours to pay their respects, even overnight.

One of Tuesday’s most moving moments came when the firetruck bearing his coffin halted outside the home of Pele’s 100-year-old mother. Crowds there applauded and chanted “Pele is our king,” before holding a minute’s silence.

Pelé’s sister Maria Lucia Nascimento, 78, watched in tears from a balcony and thanked the crowds in a brief TV interview.

Pelé’s son, Edson Cholbi Nascimento, addressed the crowd by the cemetery as fireworks greeted the arrival of the coffin and mourners sang the Santos anthem.

“I wanted on behalf of the whole family to thank you for all the love, the respect,” he said. “It’s an honor, it’s a great pride. Once again thank you. Now he will rest.”

The mausoleum where Pelé now lies will be open to the public within seven days, the cemetery said.

On the streets of Santos, the city of 430,000 where Pelé lived for most of his life, some struggled to come to terms with his loss.

“I’m still trying to get my head around this. No matter how much we prepare, we are never ready for the farewell,” said Pelé fan Marcelo Caverna. “We are not just saying goodbye to our king, we are saying goodbye to a genius, a legend of the Brazilian people.”

“You can see that the whole city has stopped. The whole world stopped,” said mourner Ezequias Leonardo.

STADIUM WAKE
FIFA President Gianni Infantino was one of the first to attend the stadium wake on Monday and said he would ask football associations around the world to name a stadium after Pelé, the only man to win the World Cup three times as a player.

Some soccer stars attended the wake, including former Brazil midfielder Ze Roberto, who helped place Pelé’s coffin in the center of the field on Monday.

“Long live the king,” read a giant banner inside the stadium.

Mr. Lula had stood for about 30 minutes next to Pele’s casket, draped with a Brazilian flag, in the center of the soccer field and he comforted Pelé’s family members. — Reuters

Richard Bachmann takes oath as PHL Sports Commission chairman

RICHARD Bachmann takes his oath of office in Malacañang. — PSC

PHILIPPINE Sports Commission (PSC) Chairman Richard Bachmann was officially sworn in yesterday and, for the first time, reported for duty in the same day at the agency’s Malate, Manila office.

Mr. Bachmann took his oath of office in Malacañang with Executive Secretary Lucas Bersamin presiding the simple rites that was also witnessed by Senior Deputy Executive Secretary Hubert Guevarra.

The former player, PBA executive and UAAP commissioner, who took over from Noli Eala, was accompanied by his daughters Ciara and Sophia Bachmann.

He actually reported early at 7:30 a.m. ahead of most of the sports-funding agency’s workforce and didn’t waste time checking the facilities at the Rizal Memorial Complex.

After more than a couple of hours, he left to take his oath at the Palace that made his tenure as the PSC’s 12th chair official.

He traveled back to his office and quickly held his very first board meeting with commissioners Olivia “Bong” Coo and newly sworn Ed Hayco and Walter Torres, a discussion that was still ongoing at press time.

Mr. Bachmann got the ball rolling for a country that is going to be bracing for bigger battles ahead as Filipino athletes prepare for this year’s Phnom Penh Southeast Asian Games and Hangzhou Asian Games and the biggest one of all — the 2024 Paris Olympics. — Joey Villar

OKC Thunder blast Boston Celtics

DESPITE playing without leading scorer Shai Gilgeous-Alexander, the Oklahoma City Thunder (OKC) shot 59.2 percent from the field and earned a 150-117 home victory against the Boston Celtics on Tuesday night.

Gilgeous-Alexander, who is averaging 30.8 points per game, was a late scratch with a non-COVID illness. He also leads the Thunder in assists (5.8 per game) and steals (1.7 per game).

The Thunder made 58 of 98 shots from the field, including 20 of 40 3-point attempts. The Celtics allowed 40 points in the second quarter and 48 in the third.

All five Oklahoma City starters scored in double figures. Josh Giddey led the way with 25 points. Luguentz Dort had 23, Jalen Williams scored 21, Aaron Wiggins finished with 17 and Kenrich Williams tossed in 10.

The Thunder also received 21 points off the bench from both Tre Mann and Isaiah Joe. Mr. Mann made five of his eight 3-point attempts.

Jaylen Brown (29 points) and Jayson Tatum (27) led the Celtics’ offense. Malcolm Brogdon and Payton Pritchard each finished the game with 17 points. — Reuters

Measuring food waste

A POST FROM MANNYPIÑOL’S FACEBOOK ACCOUNT

Most of the gifts we received for Christmas were food and grocery items. And with today’s inflated prices, these gifts were very much appreciated. The fully stocked pantry minimized the number of market trips meantime. And, with food and groceries usually accounting for most of my family’s monthly budget, these gifts were a relief indeed. Nothing like eating for free.

And, luckily, we managed to minimize waste as well. We had only one case of spoilage during the holidays, the result of improper storage. Studies indicate most food waste occur at the consumer level. Many people buy more than they can consume, or perhaps stock up unnecessarily, but later end up disposing inventory due to spoilage or expiry.

It turns out, however, that waste is common not only in households but in farms as well. And these fall under the broader category of “food loss,” which refers to “any edible food that goes uneaten at any stage.” Food waste, on the other hand, normally refers to food already produced and marketed but discarded by retailers or consumers for one reason or the other.

So, if world hunger is the issue, then food loss may be more to blame than food waste itself. Food waste occurs mainly at the consumer level. But the problem of food loss is a bigger concern as it has greater impact on global food supply. Remember past incidents when local farmers ended up dumping their produce for lack of buyers? That is a perfect example of food loss.

A recent report from the UK by WWF-UK and Tesco highlights what they referred to as “hidden waste” in food production in the UK. The report elaborated on problems plaguing UK farms, and how issues with government policies and support as well as “poor system practices and policies” have resulted in high loss rates for farmers and food waste.

“In the UK food loss and waste (FLW) is reported as 9.5 million tons with 70% occurring in citizen homes. However, this figure excludes food loss and waste occurring on UK farms and therefore masks the true extent of food waste in the UK and its catastrophic environmental impacts. This study finds that in UK primary production alone an estimated 3.3 million tons of food is lost and wasted on farms in the UK each year,” reads the 2022 report titled, “Hidden Waste: The scale and impact of food waste in UK primary production.”

The report adds, “This suggests food loss and waste in the UK totals 12.8 million tons and that farm stage represents over 25% of food loss and waste (FLW) in UK, more than that occurring in manufacturing, retail and the hospitality and food sectors combined. This has a huge environmental impact, with FLW in UK primary production contributing 6 million tons of CO2eq., equivalent to approximately 10% of UK agricultural emissions and requiring an area of land half the size of Wales.”

But the report also notes that “previous research has demonstrated that much of the food loss occurring on farms is beyond the control of the farmers, driven by poor system practices and policies. Forty-eight percent of the food loss which occurs is pre-harvest, i.e., food left on fields, driven by decisions made post farmgate (e.g., standards and specifications) and an inflexible, broken food system. As such, farmers require support and system changes in order to support them in reducing loss rates and their impacts.”

The study also finds “that food lost on farms carries a value of £1.8 billion, value which could potentially be handed back to farmers and which previously studies suggest can lead to an average increase in profitability on farms of 20%. Farmers stand to see significant benefits from food loss reduction but a key step in this is measuring the loss occurring in order to better understand the drivers and ensure policy and practice changes which help reduce their impact on loss rates.”

Moreover, “2.9 million tons, or 6.9 billion meals’, worth of edible food is wasted on UK farms each year. Given the current cost-of-living crisis and a growing number of people in the UK facing food insecurity and poverty, this can no longer be ignored. Despite the potential of this wasted food to help combat food insecurity, and the role of such waste in driving environmental degradation, food waste on farms is not referenced in the UK’s Government Food Strategy, Nationally Determined Contributions, Net Zero strategy, or the plans for mandatory food waste reporting.”

Given the report’s findings, it is obvious that even UK farmers have reason to gripe, just like our local farmers. But we need to be able to gather reliable, credible, and comprehensive local data and statistics on food loss and food waste. Government and private sector data capture demand and production, but they should measure loss and waste as well.

In the UK, the recommendation is for action to support farmers “in beginning to measure, report, and reduce waste.” Among these actions is the “mandatory reporting of food surplus and waste.” The WWF-UK report also calls for “binding targets” to reduce food waste “from farm to fork” as well as subsidies for the “redistribution and reuse of food.”

Locally, suitable recommendations can be made but only if we have comprehensive research and data that include food loss and waste. Such can help policymakers make informed decisions on how to best improve local food production and supply. A balance between local production and calibrated importation will help stabilize supply and prices, and ensure that local demands are met. But how can we best quantify what we actually need if we do not know how much is actually lost and wasted in farms and on household tables?

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Consequences of lack of transparency

GR STOCKS-UNSPLASH

On Jan. 26, 2022, we wrote this in our column, entitled, “No End in Sight”: “On March 11, 2020, the World Health Organization (WHO) declared the Novel Coronavirus outbreak a pandemic and reiterated the call for countries to take immediate actions and scale up their response to treat, detect, and reduce transmission to save people’s lives, per official resources. That was from a regular bulletin issued by WHO almost two years ago (at the time we wrote the column).

“While the WHO declared COVID-19 a pandemic on March 11, 2020, some 45 days short of its second anniversary on March 11, 2022, online newsletter Inside History (IH) states that the virus which would spark a pandemic was first reported in (Wuhan) China on Dec. 31, 2019. Halfway across the world, on Jan. 19, 2020, a man who had returned home to Snohomish County, Washington state near Seattle on Jan. 15 after traveling to Wuhan, checked into an urgent care clinic after seeing reports about the outbreak.

“The IH report states that, “experiencing a cough, fever, nausea and vomiting, the US Centers for Disease Control and Prevention (CDC) announced on Jan. 21 that the 36-year-old had tested positive for COVID-19. He was hospitalized, where his condition grew worse and he developed pneumonia. His symptoms abated 10 days later. A nonsmoker, the man had visited family in Wuhan.”

As we start 2023, and after almost three years of what The Economist calls, “self-imposed isolation,” the paper explains the situation thus: “…China is opening up again. The domestic travel restrictions, mass-testing requirements and draconian lockdowns of the ‘Zero-COVID’ policy were scrapped in early December (2022).”

Reports indicate that on Jan. 8, China will reopen its borders too. In a surprising move that smacks of spiting liberal democracies and local protesters who demonstrated violently against Zero-COVID, people arriving from abroad will no longer be required to quarantine upon arrival in China. As if to show the world that it was back in business and continues to be very involved in the world economy, more flights will be allowed. As expected, visas will be given to business travelers and students. Curiously, tourist visas are not yet to be granted. To top it off, in a society where freedom to travel is not a right, as it is in democracies, Chinese will be allowed to travel overseas without having to explain to government the purpose of travel. One gets the impression that the Chinese are saying, “We don’t have a COVID problem (as the West and the rest of the world and the World Health Organization, or WHO, define it) and so we allow our nationals to freely travel. If they happen to have COVID (as you guys define it), that’s your problem.”

But the rest of the world do not agree with the Chinese “viewpoint.” The US, the world’s biggest economy, is the latest country and territory (after Japan, India, Italy, Taiwan, and other countries), to require COVID testing on visitors from China after Xi Jinping’s regime announced the reopening of the country.

On Wednesday, Dec. 28, the US said that the lack of “adequate and transparent” COVID data in China had contributed to the decision to require COVID tests from Jan. 5 (today) for travelers entering the country from China, Hong Kong, and Macau, according to bbc.com.

The US Centers for Disease Control and Prevention (CDC) said this was needed “to help slow the spread of the virus as we work to identify …any potential new variants that may emerge.”

The Biden administration, with eyes on 2024, is expected to come down hard on this issue, knowing fully well that COVID and its mishandling sent the Trump gang scurrying in defeat in different directions like the proverbial headless chickens. Then-candidate Joe Biden realized the impact that COVID would have on the US economy and the presidential elections of 2020 and studiously analyzed the technical aspects of the pandemic with the aid of experts and epidemiologists. He spent hours in his Delaware home going over voluminous detailed briefings while campaigning online. In contrast, Trump, who regarded COVID as a non-political issue and more of a nuisance, went around all over the country ignoring both the US government’s own CDC and other experts’ advice and sarcastically announcing that “Biden was holed up in his Delaware basement.”

Geopolitically, these requirements on Chinese travelers and limits on Chinese nationals’ and businesses’ movements is another tool that the US will most likely utilize to discourage China from providing any kind of aid to Russia. The Kremlin has been assiduously courting the Chinese to form some kind of alliance against the West in the war which Putin has declared.

So far, China has been non-committal and pragmatic although Xi Jinping has agreed to visit Moscow in the spring. One can understand the cautious, sigurista approach of China. They are more active in world economic affairs than in the floundering and battered Russian economy. They’re bound to sustain more economic damage if they support the Russian invasion. Militarily, Russia has nothing to add value to the Chinese military arsenal in case the latter wishes to mimic Russia’s Ukraine invasion with a Taiwan land grab. The former’s conventional armed forces have just suffered an embarrassing defeat at the hands of the Ukraine forces and its arsenal has been neutralized to some respectable degree by Ukraine. Xi Jinping is just diplomatically returning the favor granted by Putin for the imports by China of Russian natural gas at a 50% discount over a defined period.

The response of the international community to the Dec. 24, 2022 announcement to end quarantine for arrivals and effectively reopening travel in and out of the county for the first time since March 2020, has been almost uniform.

In Japan, travelers from China will be tested for COVID upon arrival. Those who test positive will have to quarantine for up to seven days.

In India, bbc.com reports that people traveling from China must produce a negative COVID test before arriving.

In Italy — one of the hardest hit countries in 2020 by the pandemic owing to the great number of travelers from China to Milan — mandatory COVID testing on travelers from China has been imposed. The Italians learned their lesson but at a heavy and painful cost.

In the UK, the BBC reported that the government was set to announce a new arrival policy requiring a negative COVID-19 test for all arrivals from China.

As we start 2023, while we look with renewed hope for world peace and stability, it appears that a number of developments bear watching for how they will impact inflation, energy prices, climate change, income inequality, and the rule of law in the world and in individual countries.

A joyous 2023 to all!

 

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as secretary of Agrarian Reform during the Corazon C. Aquino administration.

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