He noted that there are some defects of the RKC which may institutionalize smuggling like the release of goods even with incomplete import documents. These defects are already taken advantage of by present smugglers.
If the anti-smuggling bill is already in place, the country will have lead time to accede to the global customs rules, he said.
He further argued that there is no urgent need for the Philippines to be bound by the RKC rules since only 70 countries have adopted them. He however failed to mention that major trading partners of the Philippines - the United States, Japan, the European Union and China - are already included in this list of 70 economies that have already acceeded to the RKC. They buy close to 80 percent of Philippine exports and sell us almost the same rate of imports. -- Abe P. Belena, PHILEXPORT News and Features <--back
2. Sen. Enrile sees gov’t royalties behind costly electricity
Government royalties on indigenous natural gas has been traced by a lawmaker to be behind expensive electric power in the Meralco franchise area and must be limited.
This was the compelling reason why Senate President Juan Ponce Enrile has sought for a cap on government royalties on locally sourced fuel to only three percent.
Background materials on Senate bill 3148 recently filed by the solon from Cagayan indicated that as much as P1.46 per kilowatt hour of what every consumer of electricity in Metro Manila pays goes to government as royalties to the Malampaya gas facilities.
This represented the 60 percent on net profit from Malampaya that the government was receiving as of May 2007 as computed by Enrile's staff.
The Malampaya natural gas mining and pipeline supplies fuel to three big power plants in Luzon, two of which is owned and operated by Meralco’s sister companies while one is owned by the state-owned National Power Corporation.
Enrile pointed out that in comparison, other power plants that use imported fuel pay lower royalties. For coal, this is equivalent to only P0.17 per kilowatt/hour. Oil-fired plants pay P0.20 per kilowatt hour in royalties, while liquefied petroleum gas is slapped P0.29 a kilowatt/hour.
He further pointed out that the royalty from natural gas is much much higher than royalties given to mining companies extracting gold, copper, silver and nickel.
The bias on indigenous fuel has made the cost of electricity very high in areas served by power plants using natural gas, penalizing consumers to pay the second highest electric rates in Asia, next only to Japan.
Enrile also pointed out that the high royalty situation, if not reversed, will serve as a disincentive for further exploration of indigenous and environment-friendly sources of electric power like geothermal, natural gas and renewable energy sources.
He suggested a simple solution, that of bringing down to a uniform three percent, the share of government from the production of indigenous fuel.
The Senator likewise noted that the strategy could immediately benefit the consuming public in lower electricity rates while the government will recoup foregone income in only two years, even as investments in the exploration of fossil and other natural fuel would also be encouraged. -- Abe P. Belena, PHILEXPORT News and Features <--back
3. P280-B export fund yields P1.5B in sales; P1B new subsidy readied
The P280 million in export promotions fund (EPF) used partly to subsidize participation of exporters in international trade last year has generated at least $30.1 million or roughly P1.5 billion in confirmed sales so far.
This report was obtained before the weekend from the Export Development Council (EDC), the private-public sector body on top of export development.
EDC executive director Senen Perlada said that with some projects still under implementation, the program has been proven successful.
Part of the funding was not directly used in export promotions, but in capacity building projects like the fish quality testing laboratory of the tuna industry in Gen. Santos City and the design training programs by the furniture groups in Cebu and Davao.
The report of the EPF’s success came as the EDC said the new Presidential subsidy of P1 billion, now called Export Support Fund (ESF), is now being processed by the Department of Budget Management (DBM).
As of this week, the EDC said nearly P1 billion worth of detailed project proposals have been received out of the P1.6 billion worth of initial proposals received by the EDC. These will be subjected to further review by an evaluation team as to their viability and contribution to the recovery of Philippine exports that have been battered with drastically whittled sales in the past seven months.
The ESF’s funding coverage has been expanded to three areas of activities by industry groups. These now include the setting up of common service facilities exemplified by the proposal of the ISDA industry cluster in Dipolog City which submitted a proposal to set-up a common cold storage facilities for the cluster of small bottled sardines producers in that city.
Export promotion activities mainly by joining trade exhibits in emerging markets that include Russia and the new trading partners of the Philippines like India, Australia and New Zealand, and the Middle East, proposed by different industries, dominated the proposals accepted by the EDC.
Another field where projects were proposed were in capability building which included product development and training.
A special project was submitted by a group composed of the electronics, information technology and business process outsourcing (BPO) industries to promote the competitive Filipino workers to foreign investors. The goal of the special promotion program is to attract more investors in the electronics, IT and BPO industries to relocate to the Philippines.
The divergent proposals have been lumped into the major export industries like food, handicrafts, furniture, electronics and machine parts for parity and complementation, the EDC said. -- Abe P. Belena, PHILEXPORT News and Features <--back
4. Abaca exports seen reaching $80 million this year
Philippine export earnings from abaca fiber and manufactures are projected to reach $80 million in 2009, slightly lower than last year’s $100 million, although demand for such products in markets abroad remains strong.
Mystic Pelayo, Fiber Industry Development Authority’s (FIDA) supervising statistician, in an interview said such estimate could actually be much higher if earnings of other export industries using abaca for their raw materials are included.
Pelayo said the country’s commodity code classifies only small items such as handbags, placemats and door mats under the sector’s export sales.
She pointed out that the Philippines remains the world’s biggest supplier of abaca fiber with a share of around 86 percent, followed by Ecuador comprising the remaining 14 percent.
FIDA data shows the United Kingdom and Japan are the country’s biggest markets for abaca fiber from 2004-2008; Germany, UK and Japan for abaca pulp; and the United States for abaca cordage, cables, ropes and twines.
“The demand for abaca continues since the 9/11 (2001 US terrorist attacks) because of the opening of markets of Eastern European countries, including Russia,” she said. “In Russia, teabags, cigarettes and meat casings are our markets in specialty paper made of abaca.”
Pelayo recalled that abaca export had been rising for the past few years not until last year when demand was slightly affected by the global financial crisis.
“The US was hit hard by the recession, so our exports were slightly affected, especially for cordage. It is our biggest buyer for cordage, they use it for their marine, shipping and oil exploration,” she said.
But despite this, she expressed optimism that the sector could recover by end of this year.
“Based on our past experience, one year after the 9/11, abaca (exports) recovered,” she reasoned. “Abaca papers are mostly used for food packaging. People will continue eating, smoking and drinking tea and coffee.”
Other uses of abaca are textile materials or as blending material with silk, piña or polyester in the production of high-end fabrics and even for handmade paper such as art media and decoratives, she said.
FIDA administrator Cecilia Gloria Soriano added that abaca is one product that could resist the impact of the crisis.
“I believe it is a commodity that has a niche market. There may be substitutes but the inherent character of the fiber itself gives it a standout (performance) –-long fiber, high porosity, sturdiness it has all of these,” she stressed. -- Danielle Venz, PHILEXPORT News and Features <--back
5. Seaweed farming, a lucrative venture
Seaweed farming is fast becoming a lucrative business for both the local and international markets, now with a share of about $150 million annually to the Philippine economy.
Marine biologist and seaweed consultant Ronald Simbajon in a paper thus urged investors to venture into such business as the market demand has been rising particularly in China, a major raw material buyer.
“There are huge market opportunities especially in China. It requires about 80,000 MT (metric tons) dried seaweeds annually; the industry grows 10 to 14 percent annually,” he said.
Simbajon said apart from countries overseas, other markets for seaweeds are three big major companies serving as key players of the industry with state-of-the-art facilities, 18 local processors and raw seaweed exporters.
The Philippines is the biggest producer of farmed Eucheuma seaweeds supplying about 60 percent of the world’s raw material requirements for carrageenan production. It is a number one aquaculture commodity in terms of production volume, he said.
Simbajon estimated that an investor in seaweed venture could get more than 200 percent return on their investment.
“A one-fourth hectare ideal farm size has an investment of P80,000 and an average annual income of P250,000,” he said.
David Ernacio, Bureau of Fisheries and Aquatic Resources-10 regional director, identified key areas in his region as ideal for the seaweed production, including Camiguin, Misamis Oriental and Lanao del Norte.
Apart from these areas, seaweed farming likewise thrives in the farmlands of Zamboanga, Cagayan, Cotabato, Butuan, Davao Region and General Santos in Mindanao.
Ernacio said the BFAR has various programs to support the seaweed industry such as technical assistance for cooperators in coordination with the local government units, provision of free seedlings for new beginners, infrastructures and post-harvest technologies.
“And the government has established nurseries to continue to supply seaweed seedlings in the country and even in the regions,” he said. -- Danielle Venz, PHILEXPORT News and Features <--back
6. Antioxidant–rich fruits offer health benefits, study reveals
Antioxidant has been a buzzword in the health industry. Everyone buys foods with antioxidants.
A study on fruit trends conducted by the Chicago-based Institute of Food Technologists (IFT) identified various health benefits being offered by antioxidant-rich fruits, including traditional apples.
These fruits are acai berry, bilberry, blueberries, cherries, coconut, cranberry, grapes, kiwi, plums, pomegranate and strawberries.
“It has always been known that fruits are an essential part of a healthy diet, but science is continually uncovering specific nutritional components in fruits and revealing specific health benefits,” said IFT’s contributing editor Linda Milo Ohr.
“Blueberries boost memory, cranberries help prevent urinary tract infections, or grape seed extract helps prevent heart disease,” she said.
Ohr said a study suggested the beneficial role of flavonoids-rich strawberries in the management of blood pressure and heart disease risk.
Apart from this, Yale University researchers gave strawberries the highest nutrient-density score of 100 based on findings by the Overall Nutrition Quality Index, a measurement system developed by Yale’s Prevention Research Center and several leading health and nutrition experts.
According to a US-based importer firm of high quality tropical and exotic fruit purees, Ohr further said that “coconut water’s properties are now being recognized internationally and it may be marketed in the future as a sports-rehydration drink.”
She recalled that the Food and Agricultural Organization in 1998 stated that coconut water is a “natural isotonic beverage” because it has the same electrolyte balance that people have in their blood.
Ohr stressed that grade seed extract is associated with cardiovascular health benefits as it can induce apoptosis in leukemia cells, a natural method of removing potentially dangerous cells.
On the health benefits of apples, she said, a research found that apple juice produced less beta-amyloid, a protein responsible for small plaque formation in the brains of those with Alzheimer’s disease.
It concluded “this provides further evidence linking nutritional and genetic risk factors for age-related neurogeneration and underscores that dietary supplementation may be useful to augment therapeutic approaches,” she added.
Citing another study result, Ohar said, the bilberry extract could play an important role in protecting against resistant-stress liver damage.
She said the consumption of berries which also include strawberries, raspberry and chokeberry, could result in “favorable changes in platelet function, increased high-density lipoprotein cholesterol, and decreased systolic blood pressure.”
Moreover, Ohr said cherries can help boost immunity and reduce risk for respiratory infections such cold and flu, lower total blood cholesterol levels and triglycerides, and lower total body weight and fats.
Other antioxidant-rich fruit acai berry was found to be able to protect cells from oxidative damage, kiwi for prevention of constipation, plums for disease prevention and pomegranate for prevention of arthritis and cancer.
To make these readily available for consumers, Ohr said, pear, peach and mixed fruits chunks combined with a blend of fruit juices –-including acai, blackberry, pomegranate, orange, mango and passionfruit are now found in convenient snacks. -- Danielle Venz, PHILEXPORT News and Features <--back
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