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Gov’t starting informal talks to join Trans-Pacific Partnership

THE PHILIPPINES is starting informal talks with members of a transpacific trade deal as part of the process of indicating interest to join the agreement.

Trade Secretary Ramon M. Lopez last month wrote to the New Zealand government, the depositary of the agreement, that the Philippines plans to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In this letter, he inquired about the process encouraging economies that want to join the deal, which involves starting informal talks with all member countries prior to submitting a formal request.

The Philippines is discussing the market access priorities of the 11 economies that signed the trade pact: Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

“Critical sa atin (for us) is to engage the CPTPP members that are currently not a partner of the Philippines in any FTA (free trade agreement). Second, securing the full support of the CPTPP members which are currently partners of the Philippines,” Trade Undersecretary Ceferino S. Rodolfo said in an online news conference Thursday.

The Philippines has a bilateral FTA with Japan, and it is part of the ASEAN-Australia-New Zealand FTA and the ASEAN Trade in Goods Agreement.

Mr. Rodolfo said some Philippine exports could benefit from the agreement, including automotive parts, raw and processed agricultural products, and garments exports to the Americas.

The Philippines could export more canned tuna and sardines as well as plant-based meat alternatives to Chile, Mexico, and Canada, he added.

“Malayo kasi itong mga lugar na ito so kailangan masolusyunan natin ‘yung logistics (the distance of these markets means we need to firm up the logistics),” he said, noting that shipping raw agricultural goods to the Americas will be challenging.

Chinese President Xi Jinping said last year that China is “actively considering” joining the pact, while the UK at the end of January said that it will ask to join the free trade area and start negotiations this year.

The US under former President Donald Trump pulled out of the deal’s earlier version in 2017. Under the Biden administration, newly confirmed US Trade Representative Katherine Tai at her confirmation hearing before the Senate Finance Committee said that the “basic formula” of the original proposed deal is sound, but noted that much has changed since the earlier negotiations.

Trade department started studying potentially joining CPTPP after the November signing of another trade deal, the Regional Comprehensive Economic Partnership. Mr. Rodolfo has said that the department can now devote its resources to new trade deals after years of negotiations for the 15-country agreement. — Jenina P. Ibañez

India proposes collaboration to upgrade small-farm operations

INDIA has proposed bilateral collaboration with the Philippines in the areas of agricultural technology and financial technology to benefit small farmers, an agriculture industry association said.

The Philippine Chamber of Agriculture and Food, Inc. (PCAFI) said in a statement Tuesday that Indian Ambassador to the Philippines Shambhu S. Kumaran recommended an exchange of technology between the two countries to improve the operations of small farms.

“The Indian government has touched base with Finance Secretary Carlos G. Dominguez III for a possible agricultural technology (agritech) and financial technology (fintech) exchange,” Mr. Kumaran was quoted as saying.

“We should have smart public policies. Food security is an absolute non-negotiable. We have lots of small and marginalized farmers in India. They find it hard to access common assets, so the government needs to come in,” Mr. Kumaran said.

According to PCAFI, the proposed bilateral meeting may happen “sometime later this year.”

PCAFI Chairman Philip L. Ong said the fintech component of the bilateral exchange could involve the group’s own Agrifood Hub technology project that links farmers with potential markets.

Mr. Ong said that since the project’s launch in July, it has linked some 37,343 farmers and 315 groups across 109 municipalities.

Philippine Maize Federation, Inc. President Roger V. Navarro proposed that an Indian financing system, the “Viability Gap Fund,” be replicated in the Philippines for financing corn storage projects.

The Indian financing system was established to fund viable projects by proponents such as small- and medium-sized farmers.

“The fund may come from the penalties imposed under Republic Act No. 10000 or Agri-Agra Law. The penalties amount to billions coming from banks that do not allocate 10 or 15% of their loan portfolios for agriculture or agrarian reform as mandated,” Mr. Navarro said.

“As of 2019, given (the level of compliance) of banks, this agri-agra law fund will have amounted to P1.384 trillion, according to the Department of Agriculture (DA),” he added.

Aside from the bilateral initiative, Mr. Kumaran also announced a $50,000 grant to the corn industry and proposed other initiatives such as a partnership in skills training; a dialogue on garlic market access; solar energy production; an exchange of integrated farming strategies; and partnerships in organic food production.

He also said that India had 1,000 agri-tech startup companies as of 2020.

“India has companies that allow banks to use geospatial data, satellite data to make informed lending decisions. You have the software, the tool which gets all data in a region. It allows banks to cut the risk and understand where and when credit dispersal is viable. They will have a constant stream of data,” Mr. Kumaran said.

“Banks are afraid to lend to agriculture activities as they don’t have mitigation strategies and risk assessment tools to determine what is viable.  But this software makes that possible. We offer the possibility that the Development Bank of the Philippines could have this tool without having to procure it. It will be free of charge.” he added. — Revin Mikhael D. Ochave

PHL freeze on US sugar exports billed as raising farm incomes

THE PHILIPPINES has suspended sugar exports to the US, which industry officials anticipate may raise farmer incomes if they devote all their production to the domestic market.

Sugar Regulatory Administration (SRA) Administrator Hermenegildo R. Serafica signed Sugar Order No. 1-A on March 29 ordering the suspension effective April 4.

The SRA order classifies all sugar output as class “B,” for domestic sale.

The new order amends the SRA’s Sugar Order No. 1 of Sept. 9, which allowed 7% of raw sugar production to be classified as “A” sugar, designated for the US.

Mr. Serafica said the impact of the La Niña phenomenon was worse than initially projected, with heavy rains and flooding in sugar producing areas such as Negros Occidental.

“Because of La Niña, sugar content in cane determined through 50-kilogram bag sugar per ton cane (LKg/TC) is substantially lower, from the 1.97 LKg/TC estimated national average for the crop year in SRA’s Pre-Milling Estimate to 1.71 LKg/TC actual national average as of March 14,” Mr. Serafica said in the sugar order.

Due to the effects of La Niña, Mr. Serafica revised the SRA’s sugar output for crop year 2020-2021 to 2.101 million metric tons (MT), a 4.1% decline versus its previous estimate of 2.190 million MT.

The sugar crop year in the Philippines runs from September to August of the succeeding year. At the beginning of every crop year, the SRA estimates sugar output and allocates quotas for domestic and export markets.

Asked to comment, Emilio Bernardino L. Yulo, SRA board member and planters’ representative, said in a mobile phone message that sugar farmers may realize more income by selling to the domestic market.

“They will have more income as (the export freeze) will increase the composite price. It will also increase the domestic sugar supply,” Mr. Yulo said.

Mr. Yulo added that the Philippines only needs to inform the US Department of Agriculture that the country will be unable to deliver its quota.

National Federation of Sugarcane Planters President Enrique D. Rojas said in a separate statement that the SRA’s decision will translate to more favorable sugar prices because producers will not need to set aside any sugar for the US market.

“This is welcome news for our sugarcane planters since traditionally, sugar output for the US market fetches a lower price that “B” sugar. I also asked the SRA to closely study the projected consumption, considering the drop in demand because of the pandemic,” Mr. Rojas said.

“Once we have a clear picture of the projected demand, we should also conduct a rigid inventory of actual sugar stocks to determine if we really have a shortage. We can ascertain the exact volume of the projected shortage,” he added.

Confederation of Sugar Producers Associations, Inc. President Raymond V. Montinola said the Philippines needs to stop shipping sugar to the US.

“We believe that due to the climate conditions and the demand shifting to raw sugar, it is necessary to stop shipping US sugar in order to meet domestic market demand, and to support our stock balance,” Mr. Montinola said in a mobile phone message.

The Department of Agriculture estimates the retail price of refined sugar to range between P48 and P60 per kilogram, washed sugar P43 and P55, and brown sugar P40 to P55.

The suggested retail price for refined sugar is P50 per kilogram, washed sugar P45, and brown sugar P45. — Revin Mikhael D. Ochave

PHL deemed to have regressed on 5 SDG sub-targets

WWW.UN.ORG

THE PHILIPPINES is regressing on five of the 32 sub-target milestones that make up the 17 Sustainable Development Goals (SDGs), an official with the Philippine Statistics Authority (PSA) said.

Assistant National Statistician Wilma A. Guillen, in an online presentation Tuesday, said the Philippines is on track in meeting seven of the sub-targets.

The SDGs are a series of United Nations development milestones to be achieved by 2030.

Regression was taking place in food security, control of communicable diseases, road traffic accidents, early marriage, and the establishment of legal identity.

Meanwhile, progress was deemed on track in improving skills for employment, reducing violence against women and girls, promoting women in leadership, expanding access to energy, increasing per capita economic growth, providing employment and decent work; and curbing corruption and bribery, she said.

The findings are based on the anticipated progress index of the United Nations (UN) Economic and Social Commission for Asia and the Pacific, which considered 51 main indicators and 113 sub indicators.

Based on the UN’s current status index, the Philippines’ progress in 16 out of the 17 SDGs remained below the level they should have been at last year en route to meeting the 2030 deadline. The Philippines has only exceeded 2020 levels in terms of promoting gender equality, where it is judged to be at about 75% of achieving the goal.

Ms. Guillen reported that progress is greater than expected in 12 indicators, but is behind the pace in 13 indicators, according to assessments made in November. The most advanced progress was noted in the proportion of women in managerial positions, in which the Philippines is reckoned to be 13.1 years ahead of the pace.

On the other end of the scale, the area in which the Philippines lags the most is economic growth, reckoned at 15.4 years behind the pace.

The SDGs set out targets for addressing issues like poverty, inequality, climate change, environmental degradation, peace and justice, among others. — Beatrice M. Laforga

DoE soliciting comment on draft incentive eligibility rules

THE DEPARTMENT of Energy (DoE) is soliciting for comment a draft circular outlining how energy efficiency (EE) projects will be endorsed to the Board of Investments (BoI) for fiscal incentives.

In a notice on its website, the DoE asked interested parties to e-mail their comments and suggestions to the Energy Utilization Management Bureau (EUMB) by April 7.

The draft defines EE projects eligible for BoI registration, and classify EE projects by complexity. The draft also details the application process and criteria for evaluating EE projects interested in applying for fiscal incentives.

In the draft, the DoE said that an EE project must be able to meet the minimum 15% “project boundary” and involve an investment of at least P10 million. Based on the proposed guidelines, a project boundary refers to the “percentage range of energy savings to avail of an income tax holiday (ITH).”

Those with a project boundary of under 15% will not be entitled to an ITH, but their registration will not be cancelled.

The department also proposes to classify EE projects as either simple or complex. Simple EE projects are those that involve new installations, upgrading or retrofitting of equipment or devices. Meanwhile, complex EE projects are the ones that require installing, upgrading or retrofitting a system or a combination of systems.

In its draft, the DoE sets a minimum of eight required documents for submission by applicants.

It added that the EUMB’s Energy Efficiency and Conservation Program Management and Technology Promotion Division will conduct the technical evaluation, and determine whether the project is simple or complex.

“The evaluation process including the issuance of certificate of endorsement to BoI shall be completed within 20 working days from receipt of all required documents,” the DoE said in its proposed guidelines.

A copy of the draft guidelines and call for comments can be found on the DoE’s website.

According to the 2019 implementing rules and regulations of the Energy Efficiency and Conservation Act, energy efficiency projects that wish to avail of fiscal incentives must first be certified by the DoE and registered with the BoI. — Angelica Y. Yang

Economic value of marine turtles, parrots seen at $70-M/year

A RESOURCE valuation system has reckoned the economic worth of Philippine marine turtles and blue-naped parrots at up to $69.8 million a year, the Department of Environment and Natural Resources (DENR) and Asian Development Bank (ADB) said.

Some marine turtles and the blue-naped parrot are included in the International Union for the Conservation of Nature’s Red List of threatened species.

The paper, known as “Philippines: Protecting and Investing in Natural Capital in Asia and the Pacific,” said economic use value considers the traded price generated in the sale of the animals based on government regulations, ecological services and contribution to tourism activity.

“Marine turtles generate a total use value ranging from around $57.9 million to almost $63.9 million per year, while the blue-naped parrots’ total use value is around $724,510… to $5.9 million per year,” according to a copy of the report obtained by BusinessWorld.

A marine turtle is estimated to have an economic use value of up to $95,948 throughout its 57-year lifespan, while a blue-naped parrot is projected to have an economic use value of a maximum of $3,719 in its 6-year lifetime.

“By calculating the economic value of the lost benefits should the species or even taxonomic group become extinct, members of society and policy makers can be informed of what the social, environmental, and economic costs of trade are, which is challenging but essential, especially for illegal and unregulated trade where information is scant,” according to the study.

The report is not yet available online, but its findings were cited in a statement issued by the DENR on Monday.

“We hope that in popularizing the findings, we can entice more Filipinos to think about the long-term benefits of our wildlife such as marine turtles and blue-naped parrots, and not just short-time gains,” DENR Secretary Roy A. Cimatu was quoted as saying.

Theresa M. Tenazas, the DENR Biodiversity Management Bureau-Wildlife Resources Division OIC chief, said that the economic valuation study will “support efforts to amend the 20-year Wildlife Act.”

According to the DENR’s updated list of threatened animals as of 2019, hawksbill and leatherback turtles are classified as critically endangered, while loggerhead, green and olive ridley turtles are endangered. Meanwhile, the blue-naped parrot is considered critically endangered.

The DENR said the study was conducted under the auspices of DENR-ADB/Global Environment Facility Project on Combating Environmental Organized Crime in the Philippines.

The study is a technical assistance consultant’s report prepared by Environmental Economist Agustin L. Arcenas. — Angelica Y. Yang

Palace: Companies can’t buy vaccines at will

By Vann Marlo M. Villegas, Reporter

PRIVATE companies still can’t import coronavirus vaccines on their own until regulators approve these for commercial use, according to the presidential palace.

“The importation would still be through tripartite agreements,” presidential spokesman Herminio L. Roque, Jr. told an online news briefing on Tuesday.

President Rodrigo R. Duterte on Monday night said he would allow the private sector to import coronavirus disease 2019 (COVID-19) vaccines at will to boost the government’s vaccination drive.

“I have ordered Secretary Carlito Galvez to sign any and all documents that would allow the private sector to import at will,” he said in a televised speech. “Whatever amount they want,” he said in Filipino.

The private sector would be allowed to buy vaccines immediately because state vaccine supply had been limited amid a “ruckus” in the global vaccine trade, Mr. Duterte said.

The government had prevented companies from importing coronavirus vaccines unless it was in coordination with the Health department.

But Mr. Roque said companies must import vaccines under a deal with the government and drug makers because the state would shoulder the liability in case people get sick from the vaccines.

Mr. Galvez, the country’s vaccine czar, said Mr. Duterte’s order was to fast-track the order process. “That was his directive, that there should not be any delay so the government won’t be perceived as controlling the procurement,” he told the same briefing in Filipino.

The local Food and Drug Administration had only approved coronavirus vaccines for emergency use.

Mr. Duterte in February signed into law the COVID-19 Vaccination Program Act, which created a P500-million indemnification fund for patients.

Under the law, local government units and companies may buy vaccines through an agreement with the Department of Health (DoH), the National Task Force Against COVID-19 and the vaccine maker.

Meanwhile, senators praised Mr. Duterte for his order to allow the private sector to buy vaccines on their own.

In a statement, Senator Juan Miguel F. Zubiri said private companies could boost the government’s vaccination program.

He said he had introduced an amendment in the second stimulus law that allows private companies to conduct research, develop, manufacture and buy COVID-19 vaccines from registered pharmaceutical companies.

“It should pave the way for more acquisitions by the private sector,” Senator Juan Edgardo M. Angara said in a statement.

Senator Risa N. Hontiveros-Baraquel said she welcomes Mr. Duterte’s order but people should have equal access to coronavirus vaccines.

The Management Association of the Philippines also lauded the President’s order. “We hope the legal issues surrounding this can be addressed immediately,” it said in an e-mailed statement.

The group also asked the government not to extend the strict lockdown in Manila, the capital and nearby cities and provinces after April 4 because “large businesses are hurting and many smaller ones are on the verge of closing or have closed.”

CASE TALLY
The Department of Health (DoH) reported 9,296 coronavirus infections on Tuesday,  bringing the total to 741,181.

Tuesday’s tally was lower than Monday’s 10,016 cases, the highest daily tally since the pandemic started last year. The death toll rose by five to 13,191, while recoveries increased by 103 to 603,310, it said in a bulletin.

There were 124,680 active cases, 96% of which were mild, 2.3% did not show symptoms, 0.6% were critical, 0.7% were severe and 0.39% were moderate.

The Health department said nine duplicates had been removed from the tally, while one recovered case was reclassified as death. Nine laboratories failed to submit data on March 29.

About 9.5 million Filipinos have been tested for the coronavirus as of March 28, according to DoH’s tracker website.

The coronavirus has sickened about 128.3 million and killed 2.8 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 103.5 million people have recovered, it said.

Meanwhile, the Budget department said it had authorized the Treasury bureau to release P22.9 billion in cash that Mr. Duterte approved for local governments in the National Capital Region (NCR), Bulacan, Cavite, Laguna and Rizal or the so-called NCR Plus.

The fund would help 80% of the population of NCR Plus belonging to poor households, the agency said in an e-mailed statement. Each person will get P1,000 provided the aid does not exceed P4,000 per family.

Local governments will decide whether to distribute the aid in cash or kind, it added.

Mr. Duterte approved the subsidy after he placed Metro Manila and nearby provinces under a week-long strict lockdown until April 4 amid a fresh surge in infections.

Metro Manila and the provinces of Bulacan, Rizal, Laguna and Cavite were placed under a week-long enhanced community quarantine this week to ease pressure on dwindling hospital beds amid a spike in daily cases.

Active coronavirus cases in the Philippines may almost quadruple to 430,000 by the end of April if stricter quarantine measures were not imposed, the DoH said on Monday.

Metro Manila and the provinces of Bulacan, Cavite and Rizal were at “critical risk” given the swift rise in infections, while Laguna is at high risk, Health Undersecretary Maria Rosario S. Vergeire said.

FDA warns against use of ivermectin versus coronavirus

THE LOCAL Food and Drug Administration (FDA) reiterated its earlier warning against the experimental use of Ivermectin as a treatment for the coronavirus, after lawmakers called for an inquiry that seeks to include the anti-parasitic drug as part of the country’s medical response to the pandemic.

During a House of Representatives hearing on Tuesday, FDA Director General  Rolando Enrique D. Domingo said the only ivermectin products available locally are topical creams for humans and anti-parasitic drugs for animals.

Pills and injections that are available locally are strictly for veterinary use, he added.

While other countries sell oral Ivermectin tablets for humans, no such product is registered locally. The consumption of the veterinary Ivermectin “can be highly toxic for humans.”

“Ivermectin is not approved by the FDA for treatment of any viral infection,” Mr. Domingo told the House health committee hearing.

Some lawmakers have asked the government to look into Ivermectin’s use as a coronavirus disease 2019 (COVID-19) drug since other countries have started using it for that purpose.

Mr. Domingo said the FDA had not received any applications on Ivermectin trials for COVID-19 treatment but added if there was, the agency would evaluate it with “diligence and priority.”

Meanwhile, Anti-Red Tape Authority Director-General Jeremiah G. Belgica said the agency met with the FDA on Tuesday to discuss the use of Ivermectin as a treatment for the coronavirus.

“The application for drug emergency use is the most convenient option,” he told an online news briefing, citing Mr. Domingo. “However, these only apply for drugs that are included in the COVID-19 treatment protocol which is being given by the Department of Health.”

The FDA this month issued an advisory  saying it had not approved the use of Ivermectin for the treatment of any viral infections.

It said Ivermectin products in the country for human use are used to treat external parasites and skin conditions. Ivermectin products approved for animals seek to prevent heartworm disease and other parasites.

The regulator also said the use of the Ivermectin veterinary product for prevention or treatment of COVID-19 should be avoided because its safety and benefits had not been established.

Mr. Domingo told an online briefing on Monday those who wish to use Ivermectin as a treatment for the coronavirus may apply for a compassionate special permit with the FDA. —  Gillian M. Cortez and Vann Marlo M. Villegas

DoJ junks business groups’ plea to defer law on data privacy

THE DEPARTMENT of Justice (DoJ) rejected a call to suspend the country’s law on data privacy, saying the government should instead improve its contact-tracing system in connection with the coronavirus.

“The solution is not to suspend the Data Privacy Act, but to make the system of contact-tracing more thorough, efficient and far-reaching,” Justice Secretary Menardo I. Guevarra said in a Viber group message on Tuesday.

He said the law had taken effect and could not be suspended unless allowed by Congress.

The Philippine Chamber of Commerce and Industry, Philippine Silk Road International Chamber of Commerce, Employers Confederation of the Philippines and Philippine Exporters Confederation in Sept. asked the government to build decent quarantine facilities in strategic local government units in the capital region.

They also said the P5-million budget for contact tracers should be cut and channeled to more quarantine facilities.

Once the budget for contact tracing is cut, people should voluntarily disclose if they have been infected or exposed to someone infected with the coronavirus, they said.

To supplement the voluntary disclosure, the business groups asked the state to suspend the implementation the Data Privacy Act, “including the patient confidentiality clauses, as part of government prerogatives in this crisis.”

“Available data from health authorities may be utilized for contact-tracing without compromising the privacy of individuals,” Mr. Guevarra said. — Bianca Angelica D. Añago

Nationwide round-up (03/30/21)

DoT lobbies for inclusion of more tourism workers in vaccine priority list

THE DEPARTMENT of Tourism (DoT) has asked the national task force handling the coronavirus response to expand the list of the industry’s workers who are included in the priority group for vaccination. “We have asked Secretary Carlito Galvez, Jr., the chief implementor of the country’s COVID-19 vaccination program, to widen the vaccination priority list for frontline workers of the tourism industry to include tour guides, operators and other accredited workers and service providers,” the department said in a statement on Tuesday. “The frontline nature of the jobs of these workers requires face-to-face interaction with individuals and groups as we prepare for the recovery of the industry,” it said. The DoT noted that before the pandemic, the tourism sector contributed almost 13% to the country’s 12.7 percent of the country’s economic output. “Not only will vaccination protect these workers from the COVID-19 virus as we prepare to welcome foreign and domestic tourists; it also serves as a firewall of sorts that will restrict the spread of the virus in our tourist destinations,” DoT said. Under the current priority list, first in line for vaccination are medical workers, followed by senior citizens, persons with comorbidities, and frontline personnel in other sectors, including tourism but limited to those assigned at airports and hotels accredited as quarantine facilities. “The lifting of travel restrictions and the quick recovery of the tourism industry — and the national economy as a whole — hinge heavily on the health and safety of our tourism workers,” DoT said.

Lawmaker wants building workers prioritized for coronavirus vaccines

CONSTRUCTION Workers Solidarity (CWS) Party-List Rep. Romeo S. Momo is calling on the government to add construction workers in the priority list for coronavirus disease 2019 (COVID-19) vaccination, citing their crucial role in economic recovery through the administration’s infrastructure program. In a statement on Tuesday, Mr. Momo said the industry’s workers are indispensable in ensuring that projects under the Build, Build, Build program continue unhampered. “Our very productive construction workers are our economic frontliners as well, they are one of those who will bring about the very much needed economic recovery and growth of our country, that is why they must also be given protection against the virus,” he said. — Gillian M. Cortez

Duterte appoints new head of toll board

PRESIDENT Rodrigo R. Duterte has appointed Alvin A. Carullo, a lawyer, as executive director of the Toll Regulatory Board (TRB). In a joint statement on Tuesday, the TRB and Department of Transportation (DoTr) said Mr. Carullo’s appointment took effect March 15. Transport Assistant Secretary Goddes Hope O. Libiran told reporters via Viber that Abraham P. Sales, the former TRB executive director, resigned in Jan. Prior to Mr. Sales’ resignation, the TRB was facing issues regarding the implementation of the non-contact Radio Frequency Identification payment scheme. Mr. Duterte, in a speech in December, threatened to fire officials involved in the matter that was deemed important in helping mitigate coronavirus transmissions. “If you cannot perform what is expected of you, then the best that you can do is resign and do not wait to be fired,” the President said. Mr. Carullo on Tuesday vowed to improve the TRB’s performance. “I intend to inculcate the culture of competence, integrity, and good public service in the TRB,” he said. The DoTr and the TRB said Mr. Carullo would be taking a look at pending applications of tollroad operators for rate increases. “Toll rates should not be too low as to be confiscatory nor so high as to be oppressive,” Mr. Carullo said. — Arjay L. Balinbin

Top gov’t lawyer defends military officer’s social media posts vs anti-terror law petitioners

THE Office of the Solicitor General (OSG) defended Lt. General Antonio G. Parlade, Jr.’s social media posts against petitioners questioning the anti-terror law, saying these were made in a personal capacity and so do not violate the Bill of Rights. Mr. Parlade, an active military officer, is the spokesperson of the government’s task force against communist rebels. “There can be no violation of the Bill of Rights when committed by a private individual,” the OSG said in its official response to the Supreme Court on March 19. The Supreme Court is currently hearing more than 30 petitions against the Anti-Terrorism Act passed last year. Before the oral arguments started in Feb., the petitioners filed before the high court a manifestation and motion for “possible intimidation” pertaining to the post of Mr. Parlade. The military officer’s cited posts on his Facebook page include describing the petitioners as “the noisy and belligerent minority” who are members of the Communist Party of the Philippines–New People’s Army-National Democratic Front, and who act “as if they represent the Filipino people.” — Bianca Angelica D. Añago

Regional Updates (03/30/21)

Davao City business chamber exploring agri trade with South Africa

THE Davao City Chamber of Commerce and Industry, Inc. and the South African Embassy in the Philippines have started discussions on potential trade in agricultural products. “It’s going to be more of (Davao) agricultural products going there (South Africa),” Davao City Chamber President Maria Lourdes G. Monteverde said during the business group’s membership meeting last week. She said they had a virtual meeting with South African Ambassador Bartinah Ntombizodwa Radebe-Netshitenzhe on March 17 for initial ideas on trade links. “They really like our agricultural products, so they look forward to our products as part of the export possibilities or opportunities. But we are still looking into the logistics sector,” Ms. Monteverde said. “South Africa has been here for the past 10 years already and they have a lot of infrastructure projects that they would want to connect with us. They would want to invest here also,” she added. — Maya M. Padillo

ILO, Japanese government deliver water system in Wao, Lanao del Sur

SIX villages in the town of Wao now have a water supply system, considered the biggest connected network in Lanao del Sur province, through the Water and Sanitation Project of the International Labor Organization (ILO) and the Japanese government. In a statement on Tuesday, the ILO said the system benefits about 10,000 people in underserved communities that had limited water resources for two decades. “Water has become more valuable during COVID-19 especially for areas facing multiple burdens such as extreme poverty, conflict, and climate change,” said Khalid Hassan, Director of the ILO Country Office for the Philippines. “We are grateful to the Government of Japan for giving us the opportunity to take part in Mindanao’s development through this water project that creates decent work, provides safe water and promotes peace,” Mr. Hassan said. The P17-million water system is also seen to boost productivity in the areas where people depend on agriculture for livelihood. — Gillian M. Cortez

P914-M irrigation projects completed in Bohol

FOUR irrigation projects worth P913.7 million were recently completed in Bohol, the National Irrigation Administration (NIA) said on Tuesday. The projects are: Benliw Small Reservoir Irrigation project in Ubay; Catigbian Small Water Impounding project in Buenavista; the Oghob Small Irrigation project in Batuan; and the Kagawasan Communal Irrigation project in San Miguel. Of the four, the P645-million Benliw project is the biggest with storage capacity of 2.86-million cubic meters of water. It is expected to benefit 400 hectares of farmland and 600 farmers in Ubay. “Aside from irrigation, the project is also expected to provide other incidental benefits, such as flood control, watershed management, aquaculture as a supplementary food source to the residents in the area, and soil conservation since it prevents the soil from eroding or reducing fertility caused by overusage,” NIA said in a statement. NIA Administrator Ricardo R. Visaya said the Ubay infrastructure is also a potential destination for agricultural tourism with its scenic views. The Catigbian irrigation project, worth P260 million, can store 322,000 cubic meters and cover 60 hectares of agricultural land. The P4.5-million Oghob project will provide irrigation water supply to 44 hectares of farms while the P4.2-million Kagawasan project, a part of the Comprehensive Agrarian Reform Program, will serve at least 25 hectares. — Revin Mikhael D. Ochave 

Statistics agency updating livestock, poultry data in Laguna, Bukidnon

THE Philippine Statistics Authority (PSA) is currently updating the list of livestock and poultry establishments in the provinces of Laguna and Bukidnon as part of initiatives to improve the quality of available data that guide policy decisions. “This updating activity covers a total of 1,145 barangays in the provinces of Laguna and Bukidnon,” the PSA said in a statement. The information gathering activities cover establishments already in the database and new ones. PSA appealed to business owners and managers to take part in the initiative and give the necessary and true information. “The success of this undertaking is very important for the delivery of a reliable and updated statistics as a basis for government planning and policy formulation,” the PSA said. “The initiative is a special activity being conducted as part of the pilot survey in relation to the redesigning of the commercial livestock and poultry survey (CLPS). The CLPS is being redesigned to improve the survey estimates for livestock and poultry statistics,” it said. — Revin Mikhael D. Ochave

End of Suez snarl marks start of new stress on global trade

NOW REMOVED from the Suez Canal’s main channel, the Ever Given leaves in its wake several weeks or months of disruptions across a world economy where the pandemic revealed both the sturdy backbone of global trade and an Achilles’ heel.

“It’s not a cork-out-of-a-bottle moment,” said Peter Aylott, director of policy at the UK Chamber of Shipping. “We could still be days away from the canal being completely free.”

The reopening kicks off a new wave of stress on supply chains -— the intertwined network of ships, ports, trucks, trains and warehouses that shuttle products from a factory on one side of the planet to a retail shelf or production line on the other. A surge in e-commerce means even greater consumer demand for speed, putting added strain on transportation and boosting freight rates to record highs.

Even a temporary clog in a major artery like the Suez is problematic because the world’s nearly 6,000 container ships run on schedules, with a finite number of steel boxes to go around. They can’t be repositioned to where demand pops up or quickly shifted away from regions where economic activity is slow. Capacity can be tweaked by adjusting the speed of vessels but also with a blunter tool: canceling sailings that aren’t possible anymore or aren’t economically viable. The Suez incident may unleash plenty of those.

That leaves the owners of cargo — and all the logistics industries handling imports and exports — at the mercy of the container carriers.

TOPPLING DOMINOES
“The metaphorical dominoes have already been toppled,” said Lars Jensen of SeaIntelligence Consulting. “We will continue to see the unfolding of congestion issues in Europe as the cargo arrives, blank sailings resulting from the severe delay of many vessels, as well as a deterioration of the equipment situation.”

In the near term, ports from Europe to Asia are bracing to be inundated with goods held up near Egypt for almost a week.

The Port of Rotterdam, Europe’s largest seaport, late last week counted 59 container ships ensnared in the Suez congestion that were headed its way, though it wasn’t possible to estimate when they’d arrive. In Spain, ports in Algeciras, Barcelona and Valencia were reviewing revisions to arrival schedules and preparing contingency plans for more working hours to handle the unpredictable flow of ships.

The disruption spreads well beyond container shipping: scores of oil, gasoline, natural gas and other tankers and vessels were halted by the blockage, stunting normal supply and delivery routines across the energy and chemical sectors. Before the Ever Given ran aground, about 2 million barrels of crude and petroleum products transited the canal every 24 hours.

In the near term, the traffic jam may hamper efforts by European gas buyers to restock inventories eroded by winter demand. That may present US gas exporters with an opportunity to grab market share, said Andy Weissman, chief executive of EBW Analytics.

Freight rates for bulk ships used to haul grains and metal may also remain elevated. The Baltic Dry index recently hit an 18-month high amid strong Chinese corn and soybean buying, and growing metal demand.

Meanwhile, a Chinese logistics executive warned that the impact on global trade could linger as backlogs in Europe worsen.

ONE 748
Ports are already struggling to handle normal shipping volumes because of the pandemic, and now they’ll need to cope with many delayed vessels all arriving at once or in quick succession, said Max Wei, general manager of international business at Speedaf Logistics Ltd.

Under the best-case scenario, it will take a month or more to work through the congestion, he said.

With ocean freight maxed out, importers are looking for other modes even if they are more expensive.

Vivian Lau, a Hong Kong-based logistics executive, said the surge in demand for air freight is set to continue even after the Suez logjam clears. Online shopping and the scarcity of available containers are among reasons why sellers and buyers will continue to scramble.

“Over the weekend I was up trying to find a few 747s,” said Ms. Lau, vice chair and group chief executive officer of Pacific Air Holdings. “I was able to find one, I wasn’t able to find a few.”

In a sign of that demand, Abu Dhabi’s Etihad Airways will temporarily convert a fifth Boeing Co. 777-300ER jetliner to cargo duty.

While the squeeze on air freight was already happening without the Suez blockage, Ms. Lau sees another legacy from the past week’s events: more debate on reshaping supply lines.

“You can’t just sit in one part of the world assuming that things are going to be running like clockwork and you don’t need to keep any inventory because they will arrive ‘just in time’,” she said. “The Suez Canal blockage is just another reminder.”

Sigrid Nikutta, a DB Cargo management board member, said rail offers another option when barriers arise.

“During COVID, we have seen that trains can go through borders where roads were closed and we see this at the moment, when the seaway is closed trains can go on,” she said Monday in an interview with Bloomberg Television.

The Suez-related turmoil may ripple beyond Europe and Asia.

Charlotte, North Carolina-based Premier Inc. helps more than 4,000 hospitals manage purchasing and supplies. Last year, huge increases in demand caused shortages for items like gloves, gowns and masks. While crisis-level shortages have abated, it left U.S. hospitals and suppliers with less inventory on hand and more sensitive to fresh hiccups in the supply chain.

“For many, many, many products, there is no safety stock in the channel,” said David Hargraves, Premier’s senior vice president of supply chain.

The Suez backlogs are just the latest in a series of cascading events that will delay a key input to plastic medical gear: resins. The company has warned member hospitals to prepare for “a higher number of shorter duration or sporadic shortages,” Hargraves said. —  Bloomberg

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