House ‘Cha-cha’ push to ease foreign ownership rules
A PHILIPPINE congressman on Tuesday filed a resolution seeking to amend the 1987 Constitution to ease foreign ownership limits in key industries and reinforce the country’s territorial claims in the South China Sea.
Party-list Rep. Alfredo C. Garbin, Jr. submitted Resolution of Both Houses No. 1 at the House of Representatives, proposing changes to economic provisions of the Constitution.
His measure will insert the phrase “unless otherwise provided by law,” allowing Congress to relax the 40% cap on foreign ownership in sectors such as public utilities, education, mass media and the exploitation of natural resources.
“Our Constitution is not written in stone,” Mr. Garbin told reporters after filing the resolution. “It’s not the 10 Commandments, and it is not an infallible instrument of manifest destiny.”
Mr. Garbin argued that the foreign equity restrictions of the Charter are outdated and have stifled competition.
“These restrictive economic provisions only resulted in monopoly or oligopoly and do not favor competition,” he said in mixed English and Filipino. “This constitutional injunction on foreign equity participation does not help attract investors.”
The proposed measure also seeks to convene Congress into a constituent assembly to discuss the amendments, a move that Mr. Garbin said would ensure transparency and avoid self-serving changes such as term extensions.
“In a constituent assembly, we can propose anything but conclude nothing because there is always the twin requirement, which is the proposal and the ratification by the sovereign Filipino people,” he said.
Charter change (Cha-cha) efforts have been a recurring theme in Philippine politics. Previous attempts have either stalled in Congress or failed to gain public support, partly due to concerns about political motives.
The House passed a resolution in 2023 supporting a constitutional convention, and a year later, it pushed joint discussions on amendments by both chambers of Congress. A signature drive to support Cha-cha also fizzled amid allegations that lawmakers were behind the initiative.
Mr. Garbin’s resolution also proposes changes to Article 1 of the Constitution to bolster the country’s maritime claims. It seeks to explicitly include “exclusive economic zone” and “continental shelf” in the definition of national territory.
“Though the article mentions territorial sea, it is silent on the exclusive economic zone and the continental shelf, which we won valiantly in the arbitral case in The Hague,” Mr. Garbin said. “It is much better that we should expressly incorporate these terms into our Constitution.”
The proposed addition would reinforce the Philippines’ 2016 arbitral tribunal victory against China that voided Beijing’s sweeping nine-dash line claim over most of the South China Sea.
China has refused to recognize the ruling, and tensions have continued to escalate due to its persistent presence within the Philippines’ exclusive economic zone.
Mr. Garbin said support for his resolution is growing in the House, with several political party leaders signaling backing for the measure.
If adopted, the resolution would trigger formal deliberations in Congress on constitutional amendments — a politically sensitive issue that has long divided lawmakers and the public alike. — Kenneth Christiane L. Basilio
