BusinessMirror February 07, 2019

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‘RICE TARIFF BILL TO TIE HANDS OF GOVT DURING PRICE SPIKES’ By Jasper Emmanuel Y. Arcalas @jearcalas

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ESS than 10 days before the rice tariffication bill lapses into law, the Federation of Free Farmers Inc. (FFF) warned that the government would be “inutile” to address price spikes and market failures in the future once the measure takes effect. FFF National Manager Raul Q. Montemayor said limiting the National Food Authority (NFA) to buffer stocking would render the agency useless at times of “market disruptions,” especially when retail prices of rice are high. Under the rice tariffication bill, which is mostly

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UN: PHL will gain much from China-US trade row

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By Cai U. Ordinario

@caiordinario

HE Philippines is among the countries that will significantly benefit from the escalating trade tensions between China and the United States, according to the United Nations Conference on Trade and Development (Unctad).

I n it s K e y St at i s t i c s a nd Trends in Trade Pol ic y 2018 report released this week, the Unctad estimated that the Phil-

ippines will gain an addition of 3.2 percent of total exports due to the trade conf lict. However, the Unctad estimated

that this would amount to less than $10 billion for the Philippines. The European Union will see the largest benefit in exports at $70 billion of

$10B The amount in additional exports that the Unctad report estimates will be gained by the Philippines

the US-China tensions. “Other countries would capture substantially less. Although these numbers are not very large in relation to global trade [about $17 trillion in 2017], for many countries they represent a substantial share of export,” Unctad said.

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Rice policy disarmament Rene E. Ofreneo

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NLESS President Duterte vetoes it, the proposed rice tariffication bill forwarded by Congress to Malacañang late last year will lapse into law on February 17. There are urgent reasons the proposed tariffication law should be vetoed. The bill has no constituency among the farmer organizations registered with the Philippine Council for Agriculture and Fisheries (PCAF). Continued on A7

EU envoy: Better labor policies boost PHL bid to retain trade perks

By Butch Fernandez @butchfBM

HE Senate on Wednesday voted to grant the franchise application of Mindanao Islamic Telephone Co. (Mislatel), boosting its bid to challenge the Smart-PLDT and Globe Telecom (Smart-Globe) telco duopoly until 2023. With only three senators— Senate Minority Leader Franklin Drilon, Sen. Panfilo Lacson Sr. and Sen. Risa Hontiveros—casting negative votes, the franchise of Mislatel consortium led by Davao businessman Dennis Uy breezed through the Senate plenary session, paving the way for a threecornered contest to win over telco subscribers. The majority of the senators voted to adopt House Concurrent Resolution 23 that approved “the transfer, sale or assignment of the controlling interest of Mislatel to Uy’s Udenna Corp., Chelsea Holdings Corp. and the state-run China Telecommunications Corp. Based on documents submitted to the Senate, Udenna Corp. and Chelsea Logistics Holdings Corp. own 35 percent and 25 percent, respectively, while China Telecom holds a 40-percent stake, with Mislatel acting as franchise holder. The approved Resolution 23 affirms that Mislatel has “committed to provide Filipinos with

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See “UN,” A2

Senate OKs Mislatel franchise

See “Mislatel,” A2

See “Rice tariff bill,” A2

BusinessMirror

www.businessmirror.com.ph

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based on the Senate’s version, the NFA’s regulatory powers over rice imports would be removed, including its right to purchase the staple from abroad. Also, the NFA would have to source its rice stockpile through local procurement. “This means that cheap NFA rice will not be available anymore in the market, unless there is a declared calamity or emergency. Practically all of the rice will now be supplied by private traders and importers,” Montemayor said in a statement on Wednesday. “If prices start going up, the government will not be able to intervene, unless it declares an emergency,” he added.

By Elijah Felice E. Rosales

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EUROPEAN Union Ambassador to the Philippines Franz Jessen stresses a point at Wednesday’s BusinessMirror Coffee Club forum. ROY DOMINGO

Budget ratification seen; line-item veto backed By Jovee Marie N. dela Cruz @joveemarie

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HE contingents of the House of Representatives to the bicameral conference committee are now ready to ratify the proposed P3.757-trillion national budget for this year. During the plenary session, House Committee on Appropriations

PESO EXCHANGE RATES n US 52.3580

Chairman Rolando Andaya Jr. said that while members of the lower chamber are ready, the body is still awaiting the “word” from Senate before signing the bicameral report. “At this point of time, the House bicameral conference committee is ready to ratify our proposed 2019 budget. But we would like to give courtesy to the Senate and wait for them,” he said without

giving further details. The House of Representatives will stretch its session until Friday to ratify the proposed 2019 P3.757-trillion General Appropriations Act. On Wednesday, the senators agreed to also hold sessions until Friday to have time to ratify the 2019 budget bill, as well. See “Budget,” A2

@alyasjah

OVERNMENT reforms promoting labor welfare and efforts to rehabilitate tourist destinations boosted the country’s bid to retain its trade privilege with the European Union (EU). At the BusinessMirror Coffee Club Forum on Wednesday, EU Ambassador to the Philippines Franz Jessen confirmed the Philippines got a “positive” feedback from the EU delegation that reviewed its Generalized Scheme of Preferences Plus (GSP+) status. He attributed this to government efforts to promote labor rights and environmental conservation. “I think the conclusion [of the past reviews] was quite clear that things are improving over time,” Jessen said. “That is good. In the meetings that I attended, it did not come up directly, but clearly, the cleanup [of Boracay]—from an environmental point of view—was important,” he added. The GSP+ is a trade privilege that permits the entry of 6,274 Philippine products to EU economies at zero duty. With this in place, exports can enter the European market at competitive prices. The country, in return, has to implement 27 international core conventions on labor welfare, human rights, good governance and environmental concern to keep its GSP+ status. Jessen said the EU delegation that assessed the country’s com-

pliance with its commitments appreciated government measures to improve labor conditions—particularly moves to raise basic pay and ban contractualization—and protect the environment. Last year President Duterte issued Executive Order 51 that strictly prohibits all forms of labor contracting, as well as subcontracting. It also granted the labor chief the power to declare activities, which may be considered as contacting. Further, all 17 wage boards augmented minimum-wage rates from P8.50 to P56 in different periods last year, including an increase of P25 in the daily pay of Metro Manila workers. The government also rolled out a six-month rehabilitation of popular island resort Boracay. The tourist destination had to be shut down for six months for the government cleanup and for hotels and resorts to comply with environmental laws. In January of last year Jessen said about P120 billion worth of exports benefitted from the GSP+—mostly in the food and farm sectors—in 2017. This made the EU the country’s second top export market, following Japan and ahead of the United States and China. The largest receipt improvements with the trade benefit in place were recorded in textiles at 145 percent, leather at 77 percent, footwear at 74 percent, fish and marine products at 71 percent, and animal products at 64 percent.

n JAPAN 0.4762 n UK 67.8350 n HK 6.6737 n CHINA 7.8152 n SINGAPORE 38.7493 n AUSTRALIA 37.8810 n EU 59.7771 n SAUDI ARABIA 13.9614

Source: BSP (6 February 2019 )


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