by admin | Jul 11, 2017 | Headlines, National News
Emphasizes complementation in integration
HONG KONG—In the midst of calls for protectionism and global economic developments, ASEAN stands ready to respond to issues affecting trade and investment, drawing strength from its integrated economies.
Speaking at the Hong-Kong East Asia Summit on 11 July, ASEAN Economic Ministers chairman and Philippine Trade Secretary Ramon Lopez discussed current integration efforts in ASEAN and how these would eventually translate to regional complementation.
“Each economy will be differentiating its products to complement those of other economies. Economies may not necessarily compete, but they may complement each other through product specialization and market segmentation,” explained Sec. Lopez.
The trade chief emphasized that regional integration has resulted to a wider array and selection of products and services offered to ASEAN consumers.
“Regional integration will end up to regional complementation. ASEAN can lead the way and believes in the benefits of regional collaboration. It may work slowly but surely,” he said.
‘Unity in diversity’
“ASEAN shows how integration becomes plausible despite differences in background, culture and stages of development. With all these, we believe there is unity in diversity,” Sec. Lopez added.
As one of the fastest growing regions, ASEAN is the 7th largest economy in the world with a population of over 622 million people. It is also a marketplace with a relatively young, growing labor force and an emerging middle class.
On the benefits of economic integration, Sec. Lopez said that the ASEAN Economic Community (AEC) affords ASEAN a bigger role and a more prominent voice in dealing with fellow global economic players.
According to him, with the AEC, the region’s connectedness combined with its diversity becomes strength as the variety in ASEAN pulls investors in, mindful of the region’s stake in open global markets.
Inclusive growth agenda
The ASEAN Community 2025 Blueprint guides ASEAN with measures to address emerging challenges and to attain region-wide inclusive growth. Sec. Lopez recognized the role played by the micro, small, and medium enterprises (MSMEs) in the region’s integration efforts.
According to him, to attain inclusive economic growth that leads to shared prosperity, MSMEs need to take on a stronger role in boosting the region’s economies as creators of wealth and providers of jobs and livelihoods for the people.
He added that by heightening innovation, technology research, and human resource development, ASEAN MSMEs can also move up the global value chains.
“The big challenge really is how big companies can integrate MSMEs in their value chains—to empower them and make them more competitive and part of the equation, because it is only then we can really talk about inclusive growth,” he said.
The trade chief also cited need for MSMEs to embrace the digital economy through e-commerce, which provides an innovative platform to market, sell and research. In this respect, technology becomes an equalizer.
Concluding RCEP; FTAs
Citing US’ withdrawal from the Trans-Pacific Partnership and the Brexit, Sec. Lopez reiterated the benefits of substantially concluding the ASEAN-led Regional Comprehensive Economic Partnership (RCEP) agreement by end of 2017.
The move towards RCEP means looking at a mega-trade deal, wherein ASEAN ties up with its dialogue partners Australia, China, India, Japan, Korea and New Zealand, unlocking a huge integrated market base of 3.2 billion people or “one half of the world’s population and one third of the world’s economy.”
“The ASEAN-Hong Kong FTA definitely will be a major FTA, too that will allow us to use Hong Kong as gateway to China. This will be a huge benefit for ASEAN,” he said.
The ASEAN-Hong Kong Free Trade Agreement and the ASEAN-Hong Kong Investment Agreement are expected to be signed in November 2017 in Manila
by admin | Jul 3, 2017 | DTI Updates, National News
Department of Trade and Industry (DTI) Secretary Ramon Lopez welcomed the approval of the Office of the United States Trade Representative (USTR) to include Philippine travel goods in its expanded General System of Preferences (GSP) scheme.
Effective 1 July 2017, all US GSP Beneficiary Developing Countries will enjoy duty-free treatment for a number of its travel goods exports to the US. The new GSP program included 23 tariff lines, allowing travel goods such as apparels, bags, wallets and backpacks, luggage, and sport and travel bags made in the Philippines to enter the US market duty-free.
Sec. Lopez pushed for the Philippine advocacy of GSP inclusion and had consistently taken this up with counterparts from the USTR.
“This expansion will boost the local manufacturing industry and eventually provide more employment opportunities for Filipinos, creating 70,000 new jobs and increasing our GDP to 0.5 percent,” he said.
According to the US International Trade Center (ITC), the US imported an estimated total of USD 232 million from the 23 tariff lines of travel goods from the Philippines in 2016, making the country the fifth largest import source of travel goods in the US.
With the new GSP scheme, the duty-free treatment could increase Philippine travel goods exports to the US by USD 100 million annually for the first five years.
“The inclusion of travel goods into GSP will certainly provide benefits to our exporters, particularly micro, small, and medium enterprises (MSMEs) and export-oriented agri-businesses utilizing banana and other vegetable fibers and community based industries in the various regions of the country,” DTI Undersecretary Ceferino Rodolfo said.
Meanwhile, DTI Undersecretary Nora Terrado concurred, noting that maximizing market access opportunities from preferential agreements and arrangements such as GSPs and free-trade agreements (FTAs) are an important pillar of the Philippine export strategy as embedded in the Philippine Export Development Plans (PEDPs).
She added that “DTI will sustain and strengthen its advocacy campaign thru the Doing Business in Free Trade Areas (DBFTA) Program to ensure that Philippine exporters use this access and generate jobs.”
Confederation of Garments Exporters of the Philippines (CONGEP) Executive Director Maritess Agoncillo said the decision of the US government was an outcome of the joint efforts of the Philippine government and the private sector to strengthen the Philippine position on pushing for GSP for travel goods.
Sec. Lopez added that he “looks forward to this positive development as a much needed push for expanding employment opportunities and improving countryside development. This will also help contribute to the Duterte administration’s thrust of pursuing inclusive and sustainable growth thru job generation and entrepreneurship.”
The US GSP seeks to promote economic growth and development in developing countries through preferential and duty-free entry to the US market of products from 122 designated beneficiary countries and territories, including the Philippines.
In 2016, the US was the Philippines’ third major trading partner, the second biggest export market, and third top import supplier. A number of US companies are currently manufacturing travel goods in the Philippines, including Coach, Tory Burch, and Michael Kors
by admin | Jun 22, 2017 | DTI Updates, National News
PASAY—Relevant industry players should continue partnering with the Philippine government in developing further the electronics industry, being one of the primary sources of economic growth today, the country’s trade chief said.
Stressing the robust Philippine economy and a booming global market, Department of Trade and Industry (DTI) Secretary Ramon Lopez outlined government initiatives to strengthen the electronics industry, as well as DTI’s partnership with industry stakeholders.
Said initiatives include projects that will move the industry’s capabilities to higher value activities, as well as help identify products and technologies in the developing sectors of electronics in the next five years. DTI and the Board of Investments (BOI) also have active partnerships with other institutions to forward capacity-building programs and exchange of best industry practices.
In his keynote speech at the 14th Philippine Semiconductor and Electronics Convention and Exhibition (PSECE) on 21 June, Sec. Lopez said that closer industry-academe linkages can lead to a stronger electronics industry that will later on “generate inclusive economic growth, reaching those at the bottom of the pyramid.”
As one of the pillars of the country’s industrial growth and one of the top 12 industry priorities of the current administration, the electronics industry is a top export performer with a 51.3% share of total exports in 2016 (worth USD 28.8 billion). The industry has also generated about 2.6 million direct and indirect employments as of 2015.
He also mentioned that as the Philippines chairs ASEAN 2017, the government’s priority is to lead an inclusive, innovation-led growth, which means working to create an enabling environment to develop micro, small, and medium enterprises (MSMEs), and prepare them to become globally competitive, innovative, inclusive and resilient.
“There is a very strong role that innovation plays in helping and enabling a lot of our countrymen to develop an innovation mindset, culture and capability, for them to also have equal chances to success and move up in life,” Sec. Lopez said.
The trade chief noted the need to focus on key areas affecting MSME growth, including the promotion of productivity, technology, and innovation, as well as making these available and accessible to MSMEs.
“If we are able to broaden the capacity and innovation culture to a larger percentage of our population, then we also increase peoples’ chances of becoming successful,” he added.
Sec. Lopez reiterated that Pres. Duterte’s Dutertenomics aims to narrow development gap and widen the gains of economic growth through creation of jobs and income opportunities for all.
Led by the Semiconductor & Electronics Industries in the Philippines Foundation, Inc. (SEIPI), the 14th PSECE provides an avenue, wherein public and private stakeholders gather to strategically identify possible areas of cooperation and to learn best industry practices.
“As we gain insight and appreciation on the issues affecting the electronics industry, we are confident that whatever we learn will help us in our efforts to create broad-based growth that generates jobs, fosters entrepreneurship, and gives Filipinos more opportunities,” Sec. Lopez said.
by admin | Jun 9, 2017 | Business, DTI Updates, National News
MARIKINA—Following President Rodrigo Duterte’s instruction to revive and to strengthen the country’s footwear industry, Department of Trade and Industry (DTI) Secretary Ramon Lopez and the members of the Philippine Footwear Federation Inc. (PFFI) identified possible solutions to existing obstacles that hamper the shoe industry’s growth.
“Technological improvement remains an industry concern. While there are patrons who prefer manually-produced shoes citing their durability, still, innovation is crucial for the shoe industry to flourish and expand,” Sec. Lopez said.
In a series of site visits recently (8 June), Sec. Lopez and DTI officials explored ways to level-up current industry practices with PFFI. For one, DTI already has a sustainable Shared Service Facilities (SSF) Project with PFFI that houses machines and equipment that serve as common service facilities for efficient, quality and innovative production.
Among the SSF projects is the High Value Custom-Made Footwear, which intends to capture market that prefers custom-made shoes, featuring new methodologies in shoe engineering, footwear design and manufacturing. It also uses state-of-the-art scanner that automatically produces a 3D model of the foot in seconds for measuring and size estimation.
“Small shoemakers take turn in using the equipment. They need to expand the capacity and add more and newer machines,” Sec. Lopez added.
Within the compound where the SSF is located is DTI’s Negosyo Center-Marikina and the Philippine Footwear Academy that aims to produce job-ready workers for the Marikina footwear industry. The Academy is considered the first and only footwear school in ASEAN.
Meanwhile, the trade chief guaranteed PFFI that DTI remains committed in supporting the Marikina shoe industry from the policy and program level that will improve access to raw materials and supply chain, as well as enjoin government and private sectors to give preference in buying locally-made shoes.
Assistance on design creation through the Design Center of the Philippines up to provision of market access and promotion through the Go Lokal! stores in malls, national and international trade fairs and exhibitions, and the internationally-recognized Manila FAME will also be provided.
Headed by its president Roger Py, PFFI is composed of footwear manufacturers, retailers, cooperatives and allied industries from Marikina, Laguna, Bulacan, San Mateo and Cebu, whose members belong to the sector of micro, small and medium enterprises (MSMEs).
On the same day, Sec. Lopez visited production facilities of Gibi Shoes Manufacturing, Bristol Shoes and micro-enterprises like Ruperta Enterprises, all of which are Marikina-based. He called on industry leaders to initiate the kind of entrepreneurship that is idea-based, demand-driven and innovation-led.
He also visited Marikina’s pride Rolando “Tatay Oly” Santos, the shoemaker, who gave President Duterte a pair of shoes as a gift, which the president wore during his international meetings with heads of state. Sec. Lopez learned the common sentiments of small Marina shoemakers in terms of machines, shoe molds and working capital.
Tatay Oly, who is currently borrowing from 5-6 loan sharks, got emotional when he was assured of working capital assistance from President Duterte’s Pondo para sa Pagbabago at Pag-asenso or the P3 micro-financing program.
The trade chief also talked to some of Marikina’s talented and hardworking designers and artisans, who also serve as trainers in DTI’s SSF project for MSMEs aspiring to take part in reviving Marikina’s shoe industry.
“The Filipino artisanship and craftsmanship in designs, plus the highly-skilled, highly-trainable workforce that showcase ingenuity despite stiffer market competition will help bring back the glory of Marikina as the country’s shoe capital,” he concluded.
by admin | Jun 6, 2017 | DTI Updates, Headlines, National News
ILIGAN CITY—In response to a report that prices of goods, specifically rice, have suddenly doubled, reaching almost PhP 5,000.00 per 50 kilograms, National Price Coordinating Council (NPCC) Chair and Department of Trade and Industry (DTI) Secretary Ramon Lopez, DTI Undersecretary for Consumer Protection Ted Pascua and DTI-Fair Trade Enforcement Bureau officials immediately conducted ground inspection and price monitoring in Iligan City on Monday (5 June).
Sec. Lopez reported that based on the monitoring, prices of goods in Iligan City remain stable. He reiterated that with Mindanao still under Martial Law, any upsurge in prices in the region is considered illegal and therefore violators and profiteers will face appropriate sanctions.
According to the initial report, PhP 100.00 per kilo of rice, whose price monitoring is under the Department of Agriculture (DA), is being sold in Marawi City and adjacent areas, amidst the ongoing encounter between state forces and Maute-ISIS group.
Sec. Lopez reiterated the importance of consistent price monitoring for both basic and prime goods under DTI and for rice under DA, as well as the sustained flow of supply to prevent price increases in Iligan City.
Iligan City instantly cradles refugees from Marawi City. There are reportedly 130,000 Marawi refugees, who currently stay in Iligan City.
Sec. Lopez also called on state forces based in Marawi City to urgently report anyone, who intend to take advantage of the situation and sought help for the safe delivery of rice supply.
Iligan City Mayor Celso Regencia, meanwhile, called on sectors for help, especially for those directly affected by the crisis situation.
DTI coordinates with DA and the National Food Authority to ensure rice supply in areas near Marawi City, including Baloi and Tamparan.
DTI also confirmed that Cagayan de Oro also has normal supply and prices, and within the price freeze levels.
by admin | May 31, 2017 | DTI Updates, Headlines, National News
Micro entrepreneurs around the country will now have access to cheap and easy credit
as the Pondo sa Pagbabago at Pag-asenso (P3) will now be made available nationwide
on May 31, 2017.
DTI Undersecretary for Regional Operations Zenaida Maglaya said the administration’s
brainchild of micro-finance facility encourages micro entrepreneurs to borrow money
from P3 that will help them finance their businesses.
“P3 is intended to help the underprivileged Filipino entrepreneurs who want to grow
their businesses. With this program, they can access cheap and easy credit without any
hassle. After filling out a half-page application and presenting necessary documents,
the money can be released within the day,” Maglaya explained.
With sufficient funds to provide to borrowers, the Department of Trade and Industry
(DTI) and its micro-financing arm Small Business Corporation (SB Corp) will lead the
implementation that will assist micro entrepreneurs financially and enable them to grow
their businesses.
Being the administration’s program to provide an affordable
micro-financing for the country’s micro entrepreneurs, the P3
funding program provides micro enterprises an alternative
source of financing that is easy to access and made
available at a cheapest cost.
“After we’ve launched the P3 in Tacloban, Occidental
Mindoro, and Sarangani in January 2017, P3 is now going
nationwide. We hope this will encourage micro entrepreneurs to patronize the government’s program so we can eliminate loan sharks,”Maglaya said.
National conduits and local Micro-financing Institutions (MFIs) have already been
accredited by the SB Corp to assist in distributing the funds to micro entrepreneurs. The
national level conduits are Radiowealth Finance Company (RFC), Taytay sa
Kauswagan, Inc. (TSKI), and Mindanao Alliance of Self-Help Societies – Southern
Philippines Educational Cooperative Center (MASS-SPECC).
Meanwhile, 18 local (MFIs) are accredited in Luzon, 6 in Visayas and 3 in Mindanao. A
total of P104.9 million have been released to P3 conduits as of today
The Pondo sa Pagbabago at Pag-asenso (P3) is a P1 billion financing program
intended to give MSMEs better access to finance, and to reduce their cost of borrowing.
The fund will also give priority to the country’s 30 poorest provinces.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending
system, the P3 is also seen to help stabilize supply and cost of commodities in public
markets, encourage small entrepreneurs to grow their businesses, eliminate loan
sharks, and offer employment and generate income for Filipinos.
The P1 billion fund of the P3 program from the Office of the President will be coursed
through the SB Corp. with accredited partner institutions such as non-bank MFIs,
cooperatives, and associations to serve as conduit for the P3 funds. With borrowers
identified through these, collection of repayments will be efficient.
The P3 Program was launched in Tacloban in Leyte on January 25, San Jose,
Occidental Mindoro on January 27, and Alabel, Sarangani last January 30. A total of
P7.7 million have been released to individual borrowers in these pilot areas: P3.5
million in Mindoro, P2.2million in Sarangani, and P1.8 million in Leyte.
The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs
that do not have easy access to credit. These include market vendors, agribusinessmen
and members of cooperatives, and industry associations.
P3 will also make it easy for borrowers since it will only require minimal documentation
requirement; easy to access with only one (1) day processing of application; low cost
interest at 2.5% per month; and easy payment with collection on a weekly or daily
basis, as necessary.
Loan amounts to end-borrowers range between P5,000 and P100,000, with no
collateral requirement.
