Shipments were made directly by eight international shipping lines from the two ports to destinations across the globe.
The excellent prospects of sustained growth of exports from Northern Mindanao, the researchers concluded, lies in the wide variety of products from fruits, and aquamarines in the food sector to heavy industries and precious metals. -- Abe P. Belena, PHILEXPORT News and Features <--back
2. Congress urged to ratify FOI Act
Representatives of over 100 organizations and coalition from a wide range of industries are calling for House ratification of the bicameral conference committee report on the Freedom of Information Act (FOI), stressing this is among the crucial steps towards ensuring a credible transition of power.
“By ratifying the FOI Act and promptly transmitting it to the Office of the President, and by presiding, jointly with the Senate, in an orderly and transparent canvass of votes, the House of Representatives will have given the Filipino people the gift of a credible transition of leadership, and the empowering right of access to information,” the Arangkada FOI alliance said in a statement.
This will provide a strong foundation for the political, social and economic renewal of the country, it said.
The alliance comprises public-interest groups, environmental protection advocates, independent media groups, print and broadcast journalists, farmers’ organizations and support groups, women’s organizations, private and public sector labor unions, migrant workers, businessmen, academic institutions and student and youth organizations.
The grouping noted that its ratification will fulfill the long overdue constitutional duty of Congress to provide the law that will ensure for the nation the full functioning of the country’s constitutional right to information.
It will also realize the duty of the state to implement a policy of full public disclosure of all its transactions involving public interest.
Likewise, various organizations and individuals from around the world considered the adoption of a legislation giving effect to the right to information fundamental to the respect of all human rights and democracy as well.
They said transparency in the public sector enables meaningful participation, promotes accountability, mitigates corruption and contributes to the realization of personal and collective goals.
“This (FOI) will no doubt put the Philippines solidly along the path of strong democracy and enhanced governance, and allow for the greater participation of all Filipinos in true nation-building,” they noted.
Once it is passed into law, FOI would be a historic piece of legislation, they said. This as only Thailand and Indonesia in Southeast Asia have so far enacted a right to information law.
“Should the Philippine push succeed, this will not only benefit Filipinos but will also provide direction and momentum to the whole Southeast Asia region,” they added.
Patrick Chua, research associate of the Makati Business Club, said the FOI bill is critical to the success of efforts to fight corruption.
Citing results of competitiveness surveys run by the MBC, Chua said corruption and bureaucratic red tape are top concerns of business executives as these are adding to business costs.
“Passing FOI will eventually benefit every one; there will be one step closer in ensuring government efficiency, businesses and lives of communities,” he said. -- Danielle Venz, PHILEXPORT News and Features <--back
3. Handicraft exports gear up for Europe market
Handicraft exporters are eyeing Belgium, Germany, Spain and Amsterdam as key distribution channels to ship their products to other nearby European countries.
Salvio Valenzuela Jr., executive director of the Philippine Chamber of Handicraft Industries Inc. (PCHI), expressed optimism that the country’s handicraft products could penetrate several countries in Europe.
Valenzuela cited various efforts of industry players to address price problem.
“They are willing to adjust their prices to tap more importers. Exporters can adjust these through the use of alternative materials and develop custom designs,” he said.
Valenzuela said exporters indicated they would match their product attributes to meet the buyers’ need during the recent special presentation of seasonal and home décor products for the Belgian importers held here.
Delfin Bibat, former Foreign Buyers Association of the Philippines (FOBAP) director and country manager of Southgate Ltd. (The Connor Group), earlier asked exporters to also consider product simplification and production volume discounts in order to make their prices competitive.
Aside from being a major trend, product simplification lowers cost, he said.
Moreover, Valenzuela said under the chamber’s export development program, handicraft exporters including the micro companies target to penetrate several alternative markets this year.
“We eye Japan in July and South America in August. South America is one of the emerging markets now; majority of our buyers of handicrafts now come from Peru, Brazil, Chile and Argentina,” he said.
Valenzuela said Asian countries are another alternative markets. -- Danielle Venz, PHILEXPORT News and Features <--back
4. Strategy that ensures productivity of RP’s resources pushed
The Fair Trade Alliance (FairTrade) is calling for the implementation of trade-development strategy that could ensure the productivity of the country’s resources to provide jobs and make local products competitive.
“The major reason we are not competitive is because our productive resources lie idle -unworked lands and seas. We even like foreigners to own them or develop them for their own profit, as in the case of the junked RP-China farm deals,” it said in a paper.
The group said ensuring the competitiveness of the local goods is crucial amidst these ‘noodle bowl’ of trade liberalization programs.
“We thus reiterate our call to the government to undertake measures to nurse back to health our eroded agro-industrial base and reverse the haphazard and one-sided manner by which we have opened up our economy,” it noted.
It said the country must undertake an integration strategy to the global economy that is “more balanced, fair and sustainable.”
The Asian Development Bank earlier pointed out that the negative business impact may be felt as more free trade agreements (FTAs) under negotiation begin to take effect and the complexity of the Asian noodle bowl intensifies.
In its Asian Development Outlook 2010, the Bank underscored the need to design a “boilerplate regional agreement” which takes the best features from each East and Southeast Asian FTA.
The formation of such a regionwide FTA may make it easier to achieve a deep Doha trade deal if concessions on agriculture and industrial goods are already integrated into the regionwide agreement, it said.
“It would also spur the growth of Asian trade and investment through a larger regional market, the realization of economies of scale, and technology transfer,” noted the ADO.
“Further it would ensure against any rise in global protectionism, which would put Asia’s trade and sustainable economic recovery at risk,” it added. -- Danielle Venz, PHILEXPORT News and Features <--back
5. Gov't agencies receptive to crucial tax refund reforms
Although crucial tax refund reform plans are now being held in abeyance as the country prepares for a smooth power transition, pertinent government agencies have shown to be receptive to these reforms.
DOF Executive Director Bong Plan intimated during the Second Sub-Committee Meeting between Japan and the Philippines on the Improvement of the Business Environment that any proposal regarding tax refund would have to be tackled in the next Administration.
Plan, however, noted that the Department of Budge and Management (DBM), Department of Finance (DOF), Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) are open to proposed tax reforms, particularly the establishment of a tax refund temporary account (TRTA).
The inter-agency Development Budget Coordination Committee (DBCC) is set to discuss the TRTA proposal, Plan mentioned.
The establishment of a TRTA is being pushed for by investors, particularly Japanese investors so as to have a more accurate account of the government’s revenue position, ensuring enough tax refund allocation.
During the same meeting, Japan’s finance attaché Kohei Nada noted that the tax refund system of the country has already become one of the discouraging factors for Japanese firms to continue investing in the country.
Nada mentioned that it takes 3.75 years on the average for companies to get tax refund. This causes serious cash management problems, especially for small and medium enterprises, he pointed out.
A study done by JETRO indicates that the Philippines is the only country in the ASEAN region that refunds tax claims by tax credit certificate (TCC), Nada detailed.
Nada likewise pointed out that the Bureau of Internal Revenue (BIR) is constrained by the Special Provision, Clause 2 of the National Expenditure Program (NEP) to make a tax refund using cash rather than TCC.
As set out in the Special Provision, Clause 2 of NEP, an amount not to exceed five hundred million pesos (P500,000,000) for the refund of excess or erroneous collection of value-added tax and other internal revenue taxes shall be deemed automatically appropriated and shall be charged against the current year’s collection, subject to prior verification of the COA.
Fifty-four Japanese corporations alone have outstanding VAT claims amounting to P1.4 billion. Given the budgetary limit indicated in the NEP, it may take at least two years to settle these tax refund obligations. -- Ritchelle Alburo, PHILEXPORT News and Features <--back
6. Strategic partnership elevates RP-Japan economic ties
The implementation of the Japan-Philippine Economic Partnership Agreement (JPEPA) appears to be infusing vigor into the economic relations of the two economies amid crisis.
This is conveyed by the latest trade and investment figures presented during the recently held Second Sub-Committee Meeting between Japan and the Philippines on the Improvement of the Business Environment.
Japan’s share of the country's total exports inched up to 16.2% while its import share increased to 12.5%. This is despite the 5.7% contraction in the Japanese economy with both Japan's exports to and imports from the world plunging by 31%.
Japanese Ambassador to the Philippines Makoto Katsura attributed the vibrant economic relations of the two countries to the Japan-Philippine Economic Partnership Agreement (JPEPA), which entered into force in 2008.
A number of Philippine exports to Japan have experienced monumental growth rates - shrimps and prawns, mackerel, bananas, coconuts, and women’s coats and skirts in 2009.
Duties on these goods have been substantially pruned as prescribed by the Agreement. For instance, tariff rates on women’s coats and skirts have been reduced from 12.8% and 9.1%, respectively, to zero.
The strength of Japan-RP economic relations manifests even more strongly in the area of foreign direct investments (FDIs) where Japan accounted for a whopping 58% of the country’s total FDI in 2009.
The same can be said in the area of workers’ remittances where Filipino expats working in Japan sent about US$773.6 million worth of remittances in 2009, higher by 34% than in 2008. This growth rate is far greater than the 5.6% overall growth in remittances.
According to the Japanese Chamber of Commerce and Industry of the Philippines, Inc. (JCCIP) President Yasuhiko Mizutani, the Agreement has ushered the two countries onto a higher level of mutual cooperation. -- Ritchelle Alburo, PHILEXPORT News and Features <--back
