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New ecozones to generate P6.4B in investment

A DOZEN new economic zones approved this year are expected to attract P6.4 billion worth of investment, including seven new zones proclaimed in the last month.

The Philippine Economic Zone Authority (PEZA) said in a statement Wednesday that President Rodrigo R. Duterte signed the proclamation of seven new ecozones starting May 5.

The ecozones include nine information technology (IT) centers, two manufacturing ecozones, and one IT park.

Eight ecozones are in Luzon, while four are in the Visayas and Mindanao.

PEZA did not provide detailed comparative data for recent years, but said that 73 ecozones generating P88.3 billion in investment were approved since 2016.

PEZA Director-General Charito B. Plaza is urging the government to improve fiscal and non-fiscal incentives to support public works, information technology infrastructure, and logistics and transportation hubs.

She requested training programs for workers to match the manpower needs of investors.

“Once these efficiency factors are addressed, it will lower the cost of doing business and will make the country an investment haven in Asia. This will likewise attract more export-oriented industries to the Philippines that would triple the economic gains and inject more investment,” she said.

PEZA manages 408 ecozones, with 4,542 locator companies directly employing 1.6 million workers. — Jenina P. Ibañez

Legislator seeks review of Rice Tariffication Law after gov’t rice imports

MAGSASAKA Partylist Representative Argel T. Cabatbat called for a review of Republic Act No. 11203 or the Rice Tariffication Law (RTL) after the government resumed imports on its own account by declaring an auction for 300,000 metric tons (MT) of rice via government to government (G2G) deals.

In a mobile phone message, Mr. Cabatbat said the plan to import rice by the Department of Agriculture (DA) and the Department of Trade and Industry, through the Philippine International Trading Corp. (PITC), is a “step back” from the original intent of the RTL.

“It disempowers Filipino farmers who deserve to be prioritized and protected because of the impact of coronavirus disease 2019 (COVID-19),” Mr. Cabatbat said.

Mr. Cabatbat asked the DA to clarify why imports were resorted to despite the department’s assurance that there is no impending rice shortage.

“It is more expensive to import rice and it only adds to the burden of our rice farmers, instead of helping them.” Mr. Cabatbat said.

On Monday, the PITC conducted an online auction for rice imports amounting to 300,000 MT, with four countries showing interest.

Myanmar, Thailand, Vietnam, and India have posted bids to supply well-milled long-grain rice with 25% brokens, for delivery to five ports.

Half or 150,000 MT must be shipped not later than July 14 while the other half is due to arrive on or before August 14.

The national government, via the PITC, has allotted P7.45 billion for the G2G imports, while the reference price was set at $497.62 per MT, equivalent to around P25,000.

Mr. Cabatbat said that the reference price indicates that the government is willing to buy rice at double the domestic production cost.

“We have the current supply, and we can produce a metric ton of rice at P12,720,” Mr. Cabatbat said.

“The amount that the DA is planning to spend for imported rice could uplift the rice industry from the visible damage the RTL has visited upon hundreds of thousands of Filipino farmers who found themselves on the brink of bankruptcy during the last planting season,” Mr. Cabatbat said.

On May 12, the DA said that the 300,000 MT of rice will serve as a contingency supply during the lean months.

“This is because the bulk of the rice supply will come from the harvest during the fourth quarter, coupled with continued imports,” the DA said.

According to the DA’s food supply outlook, rice supply at the end of 2020 is sufficient for 94 days.

G2G imports under emergency conditions are permitted under the RTL to ensure adequate supply. — Revin Mikhael D. Ochave

SB Corp. targets full loan disbursement to MSMEs by Aug.

THE Small Business Corp. (SB Corp.) told legislators that it will finish releasing its P1.5-billion loan program to micro, small and medium enterprises (MSMEs) by August.

“Ang pine-prepare po kasi namin, everyday 500 accounts ang aming maa-approve at mare-release ‘yan the following day. ‘Yun pong P1.5 billion namin para dun sa COVID-19 assistance to restart enterprises (CARES), we should be able to complete the approvals within July and by August ubos na po ’yun (We approve 500 accounts per day and release the following day. The P1.5 billion for the CARES program will have all loans approved by July for release by August),” SB Corp. President and Chief Executive Officer Ma. Luna E. Cacanando told the House committee on MSME development in a virtual hearing Wednesday.

As of June 8, SB Corp. has processed a total of 7,333 loan applications under the CARES program. Of these, 287 were approved while P1.22 million covering 12 applications was released.

The loan is open to micro and small businesses which have been in at least a year of continuous operation by March 2020, and those that “suffered drastic reduction” in business during the pandemic.

Loans can be applied to keeping loan amortizations for vehicles and other fixed assets up to date, inventory replacement for damaged perishable stock, and working capital to restart the business.

Micro enterprises with assets of up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger than P10 million may borrow up to P500,000.

With an average loan release of P85,000 per day, Ms. Cacanando estimates that SB Corp. will accommodate 17,000 to 20,000 borrowers.

Deputy Speaker and Ilocos Sur Rep. Deogracias Victor B. Savellano urged SB. Corp to lower its 6% service charge.

“Zero interest but you have a service charge of 6% which I think, hindi na uso ‘yung 6% interest ngayon eh. Kasi ‘yung service charge niyo ano lang ‘yan eh, mapupunta lang sa inyo. (No one charge 6% interest these days, and the funds will do no good if held by the government) You are working with the government, bakit pa tayo may service charge? Dapat babaan pa (Why is there even a service charge? It should be reduced),” he said.

Development Bank of the Philippines (DBP) President Emmanuel G. Herbosa said the bank is developing a “terms of engagement” with SB Corp. to help lend its funds to those MSMEs which have the “potential to become larger.”

“SB Corp. is going to be a partner of DBP to help them process those MSMEs that have potential to become larger. We have to understand that SB Corp. has excellent credit expertise kaya lang po minsan talagang nasasapawan sila (but sometimes they get overwhelmed). So, what we’re doing right now is developing terms of engagement with SB Corp. to help them out,” he said.

Mr. Herbosa said that the DBP can provide loans that exceed SB Corp.’s P5 million limit.

“Ang sinasabi natin sa SB Corp…P5 million ang maximum limit nila. So kung meron pa silang on top of the maximum limit, pwede namin dagdagan for certain borrowers they have (DBP can top up loans beyond SB Corp’s limit). If there’s some good local manufacturing, self fabrication, anything that helps enhance our supply chain, replace imports or foreign suppliers, I’m encouraging Luna to pass the loan to us that’s beyond P5 million,” he said. — Genshen L. Espedido

IMF plans bilateral talks on members’ COVID-19 response

THE International Monetary Fund (IMF) will engage in bilateral talks with member-countries to gauge their policy responses in containing the impact of coronavirus disease 2019 (COVID-19).

“The conversation that we would have with each country on the measures they have in place and whether they work or not… will be discussed bilaterally with countries over time,” IMF Deputy Managing Director Geoffrey Okamoto said in a briefing late Wednesday.

Mr. Okamoto said the crisis has delayed the IMF’s in-depth bilateral surveillance of member-countries.

So far, the IMF has received requests for assistance from 100 countries for emergency financing.

“The IMF’s engagement with its member countries is a continuous process. For the Philippines, the engagement involves both exchanges on policy issues (including those related to COVID-19) and capacity development (technical assistance and training),” IMF Representative to the Philippines Yongzheng Yang said in an e-mail.

In its April World Economic Outlook, the IMF said iprojects Asian economic growth at zero in 2020.

“That’s the worst in the last 60 years. It’s worse than the Asian financial crisis, it’s worse than the global financial crisis,” Mr. Okamoto said.

The IMF’s latest forecast for the Philippine economy is a 3% contraction this year. This compares with estimates of between minus 2% to minus 3% issued by the government’s economic team.

The IMF will release its updated estimates on June 24.

According to Mr. Okamoto, the pandemic’s impact on Asia is evident in supply chain shocks.

“Asia is heavily integrated into global supply chains. And for some of them, right, the supply chain shock or the commodity price shock has been just as bad or worse than the health shock,” he said.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the trade deficit data reveal the extent of the shock.

“Unfortunately, the Philippine economy has a significant level of trade integration that a supply chain shock would definitely impact,” Mr. Asuncion said in a text message.

The Philippine Statistics Authority puts the trade deficit at $499.21 million in April, against the $3.8 billion deficit a year earlier. Exports fell 50.8% to $2.78 billion while imports declined 65.3% to $3.28 billion.

Security Bank Corp. Chief Economist Robert Dan J. Roces said there are bright spots despite the disruptions.

“We benefit from the depressed world oil prices — low global oil prices and supply disruptions offset each other thus our low inflation rates,” Mr. Roces said in a text message.

Inflation in May was 2.1%, easing further from the 2.2% in April and the 3.2% a year earlier due to lower food and oil prices. — Luz Wendy T. Noble

ARTA extends deadline for streamlining regulations

THE Anti-Red Tape Authority (ARTA) is extending the deadline for government agencies to report on their compliance with a Palace order to streamline regulation.

The deadline for compliance reports is now July 25. ARTA had asked the Office of the President for an extension of the initial March deadline, citing disruptions due to the lockdown.

Government agencies under Administrative Order No. 23 must reform their processes to do away with excessive, redundant, or burdensome regulation.

ARTA said that all national government agencies, local government units, and government-owned or-controlled corporations must submit compliance reports, which include information on their citizen’s charters.

The citizen’s charter is the official document that outlines the agency’s service standards.

“Other than communicating the service standards of the office, it shall also serve as the basis for establishing liability of all erring government employees involved in unnecessary red tape and corruption,” ARTA said.

The report should include details about the services offered to the public, laws that empower the agency to regulate or provide the services, the list of regulations and issuances, as well as details on procedures, processing time, and fees.

Reports may only be submitted electronically. — Jenina P. Ibañez

Additional options for submission of 2019 ITR and attachments

Prior to the pandemic and the various quarantines imposed in various parts of the country, the hard copy of duly filed Income Tax Return (ITR), along with the required attachments, had to be submitted manually and stamped “Received” at the Large Taxpayers Division (LTD)/Revenue District Office (RDO) where the taxpayer is registered, within 15 days from the statutory due date or date of filing/payment of the ITR, whichever comes later. This year, due to the state of emergency, the filing and payment of income tax have been extended until June 14. However, as June 14 falls on a Sunday, the deadline is automatically extended to the next working day (June 15). Consequently, the submission of the duly filed 2019 ITR and its attachments has been extended until June 30.

Considering social distancing restrictions, taxpayers are now given additional options under Revenue Memorandum Circular (RMC) No. 49-2020 to submit their filed 2019 ITR and its attachments. Accordingly, they may opt to submit their returns through the nearest Revenue Collection Officers (RCOs) or the online eAFS.

OPTION 1 — SUBMISSION THROUGH RCOS
The first alternative is for taxpayers to manually submit their duly filed 2019 ITR with its attachments to the RCOs nearest to them, notwithstanding RDO jurisdiction. For instance, if the taxpayer is registered in Makati City but is currently in Cebu City, the ITR and its attachments can be manually submitted to the RCO of Cebu City. The RCO will then forward the documents to the RDO in Makati where the taxpayer is registered.

For ITRs paid online through the facility of the Authorized Agent Banks (AABs), the RCOs shall stamp “Received” on the first page of the ITR, balance sheet, income statement, and the external auditor certificate. For ITRs filed electronically, the RCOs will only stamp as “Received” the Filing Reference Number generated from the eFPS or the e-mail confirmation from the eBIR Forms System and the financial statements.

OPTION 2 — SUBMISSION THROUGH ONLINE EAFS
As an alternative to physical submission, taxpayers are also given an option to submit the duly filed 2019 ITR and attachments electronically through the eAFS system of the Bureau of Internal Revenue (BIR). The eAFS is available to all types of taxpayers, and there are no requirements for technical specifications or software installation. It is a web-based system and can be used if the taxpayer has access to a browser and a reliable internet connection.

ENROLLMENT IN EAFS
The eAFS or the portal for online submission can be accessed through the BIR webpage at www.bir.gov.ph by clicking the eAFS icon. Enrollment is required, and the taxpayer should supply all the necessary information such as the taxpayer’s data, name of authorized tax agent/representative, and login information. Once all the information has been encoded, the Statement of Undertaking will appear. The taxpayer will have to click “Accept” for the enrollment to proceed.

The confirmation message and an activation link will then be sent to the taxpayer’s designated e-mail. The activation link must be clicked within 72 hours to activate the account. Otherwise, the enrollment will be discarded. Note that the system is Tax Identification Number (TIN) and e-mail sensitive. This means that the TIN and e-mail address can only be registered once; thus, all the information provided must be correct. Once enrollment is done, there is no mechanism for amending the information submitted.

UPLOADING TO EAFS
The attached documents are grouped into three types: Income Tax Return (File 1), Audited Financial Statements (File 2), and the Other Required Attachments (File 3). The taxpayer must attach the appropriate documents to upload to every file box. To upload and submit the files thru eAFS, the taxpayer must scan the documents, save them as PDF files, and name them accordingly as prescribed in the RMC.

The eAFS will acknowledge the successful submission by issuing a system-generated Transaction Reference Number (TRN) and an e-mail confirmation with the TRN to the taxpayer. The TRN shall serve as proof of submission by the taxpayer, in place of the manual “Received” stamping. In case of corporations and other juridical persons who also need to submit the audited financial statements (AFS) to the Securities and Exchange Commission (SEC), the TRN shall serve as proof of submission to the BIR. The taxpayer must print the TRN and attach it to the AFS for submission to the SEC.

RETENTION PERIOD
After submitting the ITR and its required attachments, the taxpayer shall keep the original copies of the digitally submitted documents as required under Section 235 of the Tax Code. Under Revenue Regulations (RRs) No. 17-2013 and 5-2014, all books of account, subsidiary books, and other accounting records must be kept by the taxpayer for 10 years. For the first five years, the preservation of accounting records must be in hard copy. For the sixth to the tenth year, accounting records may be preserved only in electronic form based on the guidelines of the RR.

Based on RMC No. 49-2020, the options to submit to the nearest RCOs or online would seem to apply only for calendar year taxpayers with respect to their 2019 ITRs and their attachments, in the absence of a provision including in the coverage the submission of amended ITRs and AFS for prior years, and those with a fiscal year ending Jan. 31, 2020, or onwards. It would be good for the BIR to release a circular clarifying this matter, especially since Jan. 31 year-end taxpayers are due to submit the same documents by July 15. Not only will it dispel confusion but also minimize the influx of taxpayers at the RCOs given the restrictions on social distancing.

Thinking even further ahead, it would certainly be a big boost to the country’s ease of doing business status if the eAFS option is made available on a more permanent basis. Perhaps it could even be expanded to include other documents that are still manually filed (or in electronic format but still physically filed) like the annual inventory lists and withholding tax certificates issued to employees (BIR Form 2316) with the accompanying certified list of employees qualified for substituted ITR filing. Online tax filing and payment was introduced by the BIR 18 years ago back in 2002, but it is only now that full electronic filing of all documents has been possible. Here’s hoping that the eAFS and similar online portals become available all year round, which could be one silver lining we can attribute to the unfortunate COVID-19 cloud.

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.

 

Anthony Tampoco is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

anthony.c.tampoco@pwc.com

Coronavirus cases near 24,000 as local death toll rises steadily

THE DEPARTMENT of Health (DoH) reported 740 new coronavirus infections on Wednesday, bringing the total to 23,732.

The death toll rose to 1,027 after 10 more patients died, while 159 more patients have gotten well, bringing the total recoveries to 4,895, it said in a bulletin.

Of the new cases, 452 results were reported in the past three days, while 288 were reported late.

DoH said there were 17,239 active cases, 816 of whom did not show symptoms, 16,340 were mild, 64 were severe and 19 were critical. There were now 56 laboratories licensed to test coronavirus samples.

Health Undersecretary Maria Rosario S. Vergeire said zoning guidelines for specimens to be processed by laboratories would help address the backlog.

Under the rules, a laboratory will handle and process specimens from a specific area, she told an online news briefing.

Meanwhile, the palace said infections should ease somehow before the lockdown in Manila, the capital and nearby cities could be eased further, presidential spokesman Harry L. Roque told the ABS-CBN News Channel.

“We are still looking for some kind of data that would indicate that Metro Manila will not spark a second wave,” he said. “We cannot afford a second wave.”

President Rodrigo R. Duterte locked the main Philippine island of Luzon in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown on the island twice and thrice for Metro Manila, where COVID-19 infections are mostly concentrated. The lockdown in the capital region has since been relaxed from an enhanced to a general community quarantine. Some businesses have been allowed to reopen with minimal workforce.

Metro Manila and Cebu were placed under a general community quarantine on June 1 along with Cagayan Valley, Central Luzon, Calabarzon (Calamba, Laguna, Batangas, Rizal and Quezon), Pangasinan, Albay, Mandaue City, Zamboanga City and Davao City.

Others were put under a more relaxed modified general community quarantine.

Mr. Roque separately told state broadcaster PTV-4 the government was having a hard time to bring down the number of infections, unlike New Zealand.

The South Pacific nation, with a population of five million lifted all domestic coronavirus restrictions on Monday after its final coronavirus disease 2019 patient was cleared.

The country has had 1,154 confirmed COVID-19 cases and 22 deaths. Prime Minister Jacinda Ardern said strict border controls would remain in place but restrictions such as social distancing limits on public gatherings were no longer needed, AFP reported.

Mr. Roque said the Philippines, which has more than 100 million citizens, would have a hard time eliminating the virus.

“We are already 40 million in Metro Manila alone and we are cramped,” he said. New Zealand, on ther hand, is just the size of Luzon, he added.

Mr. Roque said an inter-agency task force made up of Cabinet officials had approved a resolution allowing local governments to impose lockdowns in smaller subdivisions where infections have been rising.

The task force is expected to meet this week to discuss a decision on the metro lockdown. — Vann Marlo M. Villegas and Gillian M. Cortez

Measure that seeks to boost e-commerce market filed at Senate

A SENATOR has filed a bill that seeks to protect consumers from unscrupulous online traders and boost the country’s e-commerce market.

Senator Sherwin T. Gatchalian’s Senate Bill 1591 or the proposed Internet Transaction Act will create an e-Commerce Bureau under the Trade department that will act as a consumer complaint desk.

The agency will also develop programs to boost the country’s online retail sector.

Citing a Google and Temasek study, Mr. Gatchalian said the Philippine Internet economy posted a gross merchandise value of $7 billion last year.

This was lower than other Southeast Asian countries such as Malaysia with $11 billion, Vietnam and Singapore with $12 billion, Thailand with $16 billion and Indonesia with $40 billion.

“The country’s e-commerce market remains at 1.6% of the gross domestic product,” said Mr. Gatchalian, who is vice chairman of the economic affairs committee.

The proposed law will give incentives to entry-level micro enterprises by exempting them from national and local taxes in the first two years of operation.

It will also penalize online sellers that fail to register either as a sole proprietor, one-person corporation, partnership, corporation or cooperative with a fine worth 100% of the amount of the digital goods sold.

Online platforms that fail to show registered online sellers, their addresses and contact numbers and a clear breakdown of prices will be fined P500,000 to P5 million. — Charmaine A. Tadalan

Canada donates P41M to help in Philippine fight versus COVID-19

CANADA has donated CA$1.1 million (P41 million) to help the Philippines fight a novel coronavirus pandemic.

“The COVID-19 pandemic is a global threat that does not recognize borders and can only be overcome through coordinated action around the world,” the Canadian Embassy in Manila said in a statement on Wednesday.

The aid included a donation of 120,000 N95 masks worth CAD$782,0000. It is part of Canada’s CA$4.5-million in-kind contribution to six member states of the Association of Southeast Asian Nations.

It will also contribute CA$400,000 to a Philippine project on sexual health and empowerment that aims to ensure sexual and reproductive health services during the pandemic.

Canada said the project has provided health services to more than 85,000 women of reproductive age as well as adolescent girls and boys in conflict-stricken areas.

“This investment complements ongoing response activities,” the embassy said, citing the establishment of an emergency hotline for both health and gender-based violence.

It has also helped in procuring personal protective equipment for village health workers.

Canada has also helped in capacity-building for the ASEAN BioDiaspora Virtual Center within the ASEAN Emergency Operations Center Network.

“The Philippines is also one of the beneficiary-countries identified to receive COVID-19 diagnostic equipment, testing kits, reagents and laboratory consumables as part of a the CA$5-million global project,” it said. — Charmaine A. Tadalan

Regional Updates (06/10/20)

Food manufacturer commits to expand in balik probinsya sites

DAVAO City-based food manufacturer Eng Seng Food Products has committed to expand in areas identified as pilot sites for the government’s Balik Probinsya program that aims to encourage people to return to their home provinces and boost development in the countryside. Secretary Emmanuel F. Piñol, chair of the Mindanao Development Authority (MinDA), said Eng Seng President John Tan offered to open processing facilities for young coconuts for export to China and bottling facilities for Spanish sardines. The company, Mr. Piñol wrote on his Facebook page, “has offered to establish processing facilities in Lanao Del Norte and Zamboanga Del Norte to provide jobs to returning informal urban dwellers under the Balik Probinsya, Bagong Pag-asa Program (BPBPP).” He added that Eng Seng, along with several other food processing companies, are looking for an area in the Northern Mindanao Region where they can set up an export processing zone for products from Mindanao, especially those produced in the Balik Probinsya communities. MinDA coordinates the implementation of the program in Mindanao. Mr. Piñol said the first group of BPBPP beneficiaries are expected to arrive in Zamboanga Del Norte on June 17. They will stay in a quarantine facility for 15 days, during which they will also be undergoing training organized by the Technical Education and Skills Development Authority. — MSJ

Another arrest warrant issued against 4 Yanson siblings for taking vehicles of disputed bus firm

AN arrest warrant for carnapping charges has been issued against four Yanson siblings, who are in an ownership battle against two other siblings and their mother over the family’s bus firm Vallacar Transit Inc. (VTI). Judge Sue Lynn Lowie-Jolingan of the Bacolod City Regional Trial Court Branch 53 issued warrants of arrest on June 5 and 6 against Emily, Roy, and Ricardo Yanson Jr., and Maria Lourdes Celina Yanson-Lopez and three accomplices for violation of the New Anti-Carnapping Act of 2016. No bail was set. The case stems from a complaint filed by VTI Operations Manager Gary Manayon for grave coercion and carnapping when the four, along with their security guards, tried to take possession of VTI’s main office in Bacolod City in July 2019, according to a press statement from the company on Wednesday. The carnapping case involves a Mitsubishi L-300 vehicles and two Foton wing-vans. VTI legal counsel Gerry Llena said in a text message that as of June 10, “no report yet from the police insofar as the service of the warrant.” Another arrest warrant for the coercion charge was issued in May by Judge Abraham A. Bayona of the Bacolod court Branch 7. In a report to the court, Police Col. Anthony C. Gantang, officer-in-charge of Negros Occidental police Criminal Investigation and Detection Group, said the four accused were not in their residences and reportedly abroad when they tried to enforce the warrant on May 31 and June 1. VTI is the country’s biggest bus company, operating through Ceres Liner and sister firms Rural Transit of Mindanao, Inc., and Bachelor Express, Inc. Leo Rey Yanson, supported by the family matriarch and sister Ginette, was reappointed president during the shareholders’ meeting held at the company’s head office on Dec. 7, 2019. On the same day, another shareholders’ meeting led by the four was held at the Seda Hotel Bacolod where Maria Lourdes Celina was elected president. — MSJ

Nationwide round-up

DoLE plans to extend emergency employment program for informal sector

THE Department of Labor and Employment (DoLE) plans to extend the period of its emergency employment program for informal sector workers who lost their livelihood due to the coronavirus disease 2019 (COVID-19) crisis. In a briefing on Wednesday, Labor Secretary Silvestre H. Bello III said they plan to prolong the program’s employment period to up to six months from only 10 days. “Ito iyong (This is the) emergency employment program na originally 10 days, now we will make it three to six months emergency employment para sa ating mga (for our) informal workers,” he said. He was referring to the TUPAD program, which stands for Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers. Mr. Bello said the plan will depend on the budget that will be approved by Congress. Under the TUPAD program, beneficiaries are paid based on their location’s corresponding daily minimum wage. — Gillian M. Cortez

Law establishing National Academy of Sports signed

PRESIDENT Rodrigo R. Duterte has signed into law the bill for the establishment of the National Academy of Sports, a secondary education institution that will be built within the New Clark City in Tarlac. “It is about time that we establish a learning institution focused on sports,” Senator Christopher Lawrence T. Go, one of the bill’s authors, said on Wednesday. The New Clark City has a new sports hub that was first used as venue during the 30th Southeast Asian Games in December 2019. The academy will offer a secondary education program, integrated with a special curriculum on sports. Mr. Go said full scholarship will be offered to qualified natural-born high school students. “I firmly believe that with this law, we will be able to catch up with the rest of the world in terms of sports development,” Mr. Go said in a statement. The law, which goes into the books as Republic Act No. 11470, was signed June 9 in a ceremony in Davao City. The bill was among the priority legislative measures mentioned by Mr. Duterte in his fourth State of the Nation Address. — Charmaine A. Tadalan

Rep Biazon calls on gov’t to set joint task force on Facebook clone accounts

MUNTINLUPA Rep. Rozzano Rufino B. Biazon called on the administration to create a joint task force that will handle the proliferation of Facebook clone accounts, citing risks to safety and private data of users. The task force will be composed of representatives from the Department of Information and Communication Technology, National Bureau of Investigation, Police Cybercrime Group, National Privacy Commission, and other concerned agencies. Mr. Biazon also filed a resolution for a House of Representatives inquiry into the breach, which he said “opens up its users, particularly the youth, to a slew of exploitations like the threat of cybercrime such as online bullying, harassment, identity theft, violations of privacy and others.” Quezon City Rep. Anthony Peter D. Crisologo filed a similar resolution on Tuesday. The Department of Justice said on Monday that it has started looking into “all possible angles and leads” on the duplicate accounts. — Genshen L. Espedido

DoH says benefit distribution almost done for health workers who have died, severely-ill from coronavirus

THE Department of Health on Wednesday announced that it has distributed almost all of the cash benefits for health care workers who were severely-ill and the families of those who died due to coronavirus infection at the June 9 deadline set by President Rodrigo R. Duterte. In a statement, DoH said 30 families of the 32 health care workers who died have received the P1 million check. “The Department is coordinating with the heirs of two fallen health care workers who are based abroad,” it said. Claimants of two other health care workers were delisted as they were found ineligible based on the diagnoses specified in their death certificates. The 19 health care workers who contracted the disease and were classified as severe cases have also received their P100,000 cash grant each. The cash benefit is mandated under the Bayanihan to Heal as One Act, which authorized the President to realign budget in response to the coronavirus pandemic. — Vann Marlo M. Villegas

The world needs an effective WTO more than ever

By The Editors, Bloomberg Opinion

THE DIRECTOR-GENERAL of the World Trade Organization, Roberto Azevedo, recently said he was stepping down early. Exasperation over the WTO’s diminished standing appears to have been a factor. That’s understandable. Step by step, governments have pushed an institution with an essential role in promoting global growth toward complete irrelevance.

Azevedo’s departure offers a moment to reflect. His replacement should certainly be a heavyweight, to affirm the WTO’s value. More crucial is that governments from now on allow and empower the body to do its job. The US, especially, should learn to see the WTO once again as a global asset and not a confounded nuisance.

The WTO has two main functions. It provides a way for governments to settle trade disputes in an orderly fashion, so that squabbles don’t escalate into tit-for-tat trade wars. And it serves as a forum for negotiating big new agreements to promote trade and hence growth.

In both respects, the body has been undermined. President Donald Trump and his advisers mistakenly think the dispute-settlement system puts the US at a disadvantage. They’ve paralyzed this part of the WTO by blocking the appointment of judges to its appellate body. And governments everywhere have long conspired to block the trade-expansion mission, preferring smaller regional deals to a new global pact. The last big round of trade-reform talks fizzled out after years of getting nowhere.

Governments should revive both functions. Orderly settlement of disputes is better for all concerned than the worsening breakdown in trade relations that the Trump administration has engineered. Washington’s tactics haven’t just harmed the global trading system, they’ve directly backfired, leaving US consumers and producers worse off. If unresolved trade disputes are left to proliferate in this way, everybody loses — all the more so amid the risks arising from the COVID-19 pandemic.

For now, the WTO’s other main purpose — lowering trade barriers — might seem less valuable, but it’s a mistake to think so. Existing trade accords need to be kept up to date, because technological change is driving new patterns of commerce and raising new issues. Other challenges arise as well. In particular, China has put the system under increasing stress because its non-market model is an awkward fit, and its government still relies heavily on trade-distorting subsidies. New approaches are needed to deal with this. And though previous rounds of talks cut most tariffs to very low levels, administrative and other impediments to trade persist. All these frictions serve, in the end, to curb living standards.

So there’s no lack of new trade-promoting work for the WTO to do. The method preferred of late — smaller pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — is second best, because it creates insiders and outsiders, with external economic borders that divert and distort trade. Wider multilateral accords are hard to do, admittedly, but that’s what the WTO was for and it’s still the right goal. The idea worked superbly for decades after 1950, and it could work again, given the political will.

For the moment, to be sure, that critical ingredient is missing, especially in the US. One can only hope this might change, and that discussions about Azevedo’s successor remind governments of what they risk losing if they let the WTO fade to nothing.

BLOOMBERG OPINION

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