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PEDP Strategy 6: Exploit current opportunities and explore new ones
Editor: Efleda P. Campos • Wednesday, July 20, 2016 A9
Exporters warned against cybercrime
By Rafaelita C. Castro Chief, Market Innovation Division DTI’s Export Marketing Bureau
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Business Beyond Borders
N 2015 the Philippines’s top 3 export markets were Japan, China and the United States. These three markets contributed 47 percent to total exports. Other markets in the top 10 ranking were Hong Kong, Singapore, Germany, South Korea, Thailand, Taiwan and the Netherlands. Together, these top 10 markets comprised 83 percent of total Philippine exports. The Philippine Export Development Plan (PEDP) 2015-2017 addresses this need to diversify and expand export markets. Market diversification has become even more imperative today with the current global economic slowdown. This is embodied in Strategy 6, which aims to take advantage of the opportunities brought about by Association of Southeast Asian Nations (Asean) integration, free-trade agreements (FTAs) and other preferential trading arrangements (PTAs). At present, aside from its FTA with the nine member-states of Asean, the Philippines is a signatory to Asean’s FTA with China, Japan, South Korea, India, Australia and New Zealand. The Philippines also has a bilateral agreement with Japan, and recently signed an FTA with the European Free Trade Association (Efta), composed of Iceland, Liechtenstein, Norway and Switzerland, which is still undergoing ratification. These FTAs provide for market access for Philippine goods and services. The Philippines also enjoys preferential tariffs for certain goods under the Generalized System of Preferences (GSP) granted by donor-countries, which include the European Union (EU) and the US. In December 2014 the EU included the Philippines in its GSP+ scheme, which grants zero tariffs to 6,274 products. Last year the US reinstated its GSP, which eliminated duties on about 5,000 products coming from the Philippines. As more than half of Philippine exports are with FTA partners and GSP donor-countries, exporters are encouraged to make use of these preferential arrangements to make their products more price-competitive and to expand their shares in these markets. Exporters are also being alerted
to prepare for market openings to be brought about by other FTAs currently being negotiated by the Philippines, like the Regional Comprehensive Economic Partnership Agreement, or RCEP, which is with Asean and its six partner-economies (China, Japan, South Korea, India, Australia and New Zealand), and the Philippines-EU FTA. Information on these preferential trading schemes is being made available to stakeholders by the Export Marketing Bureau of the Department of Trade and Industry, through its Doing Business in Free Trade Areas (DBFTA) program. The DBFTA is a business-education program that aims to inform businesses of the benefits of FTAs. It has recently expanded to include sessions on Asean integration and GSP schemes. In addition to these preferential trading areas, the PEDP also targets the development of new and upcoming exports markets, like Iran, Israel and South Africa, to increase exports. Rafaelita Castro obtained her Master’s Degree in Public Management and Bachelor of Science Degree in Business Economics from the University of the Philippines. She was a member of the Philippine team that negotiated the Asean-Australia-New Zealand Free Trade Agreement (AANZFTA) and attended the seminar on ChinaAsean Free Trade Area in Beijing, China. She is the division chief of the Market Innovation Division of the Export Marketing Bureau, which spearheads the implementation of the Doing Business in Free Trade Areas, or DBFTA, a DTI advocacy program that encourages businesspeople to avail themselves of the benefits of free-trade agreements, which the Philippines has entered into.
upcoming events Compiled by Louise Kaye G. Mendoza | DTI-EMB Knowledge Processing Division
JULY 19
Event: DBFTA Info Session, Resource Speakers and Rapporteur: Sue Guro, Justinne Santos, RD Velasco, Gina Verdelor Venue: Agusan, Surigao del Sur
JULY 22
Event: DBFTA for DLSU College of Business, Speaker: AD Agnes Legaspi Venue: Yuchengco Auditorim, DLSU, Taft Avenue, Manila
JULY 18-July 20
Event: Halal Advocacy Caravan for Zamboanga City Speaker: Albin Ganchero Venue: Dipolog City Zamboanga Sibugay, Zamboanga del Norte
JULY 20
Time: 6 p.m.-7:30 p.m. Event: Radio Guesting Negosyo at Iba Pa Topic: Philippine Export Development Plan Guest: Director Senen Perlada and Undersecretary Nora Terrado Time: 10 a.m. SIAL OBM Meeting Attended by: DC Rorie Castillo, AD Anthony Rivera Venue: DTI International Building, Makati City
JULY 22
Event: DBFTA for 2016 MSME Provincial Conference Speaker: Vic Soriano, Knowledge Division Chief Venue: Zamboanga Sibugay
JULY 28
Time: 1 p.m. to 4:30 p.m. Event: Session1:2to2:30p.m.OverviewofEMBServicesandExportProcedure Session 2: 2:30 to 4 p.m. Self-Certification under the Asean Trade in Good Agreement Venue: Penthouse, Fifth Floor, DTI International Building, 375 Sen. Gil Puyat Avenue, Makati City.
FRANCIS Señora, an investigative agent II of the National Bureau of Investigation, discusses how to avoid cybercrime in export transactions during the Philippine Export Competitiveness Program seminar series for exporters held on July 14 at the DTI International Building in Makati City. ROY DOMINGO
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By Leandro Anton Castro | Special to the BusinessMirror
N a forum hosted by the Department of Trade and Industry (DTI) on July 14, an agent from the National Bureau of Investigation (NBI) warned local exporters against cybercrime that can potentially harm their businesses.
During the forum organized by the Export Marketing Bureau (EMB) under the DTI, Francis Señora of the NBI’s Cybercrime Division warned local businessmen who aspire to venture and those currently venturing in export against cybercrime. Señora said millions of pesos are on the line during cybercrime attacks against businessmen. These attacks are usually in the form of e-mail spoofing, fraud or phishing. E-mail spoofing refers to forgery of a header so as to make an e-mail appear to come from a particular source. Señora said cyber criminals usually spoof e-mails to make it appear to come from a legitimate source. E-mail fraud or phishing is the practice of acquiring important information, such as usernames and passwords, from Internet users by creating a web site that masquerades as a legitimate one.
DTI-EMB to hold DBFTA in Caraga
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HE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) is conducting a series of seminars on Doing Business in Free Trade Areas (DBFTA) and the Generalized Scheme of Preferences (GSP) from July 19 to 21 in Agusan del Sur, Surigao del Sur and Agusan del Norte, respectively. The DBFTA program is an initiative that aims to increase the awareness of Filipinos regarding the benefits of free-trade agreements (FTAs) and GSP. Exporters, would-be exporters, entrepreneurs, government agencies, local government units, faculty members and students are encouraged to attend the sessions to learn more about the preferential tariff treatments enjoyed by the Philippines. Discussions will also highlight export opportunities and consumer trends in the European Union, the United States, Canada and other FTA trading partners of the Philippines. The speakers for the DBFTA sessions are Suraida U. Guro, assistant chief from the EMB; Justinne Marie D. Santos and Rudolph Jay D. Velasco, Trade and Industry Development specialists from the EMB. For more information and inquiries regarding the Caraga DBFTA, please contact EMB at (02) 4653300 and look for Gina Verdeflor (local 208) or Justinne Santos (local 222). Justine Marie D. Santos
A 2014-2015 report by the Department of Justice said cybercrime attacks in 2014 more than doubled, with 614 recorded cases, compared to 288 cases recorded in 2013. It said 22 percent of the recorded cybercrime cases came from Internet fraud, making it the most rampant. However, the investigative agent said only 2 out of 10 of these cases,
especially those concerning local exporters, are solved. “First of all, jurisdiction is a hindrance. Most of these transactions, since exports, ang ka-transact ninyo ay nasa ibang bansa. Ang pera niyo ay napunta sa ibang bansa. How can we compel foreign banks, if our jurisdiction prevents us so?” Señora said. “Nobody controls the Internet. That’s the anonymity of the Internet. It has no jurisdiction; it’s a cyberspace,” Señora added. He cited the Bank Secrecy Act, which has also been an obstacle to their investigations. The act prohibits banking institutions from disclosing information on deposits made to them. However, the investigative agent said cybercrime attacks can be prevented. He said the creation of “super passwords” is one of many security measures businessmen can take. Señora urged the exporters to
deviate from creating passwords that have personal associations to them, such as birthdates or names, and use mnemonics and numbers, instead. He also said the longer the password, the safer it is from being cracked by hackers. More so, he said businessmen should also start investing in information-technology (IT) security by availing themselves of paid e-mail services, instead of the free ones, and acquiring the best firewall and antivirus software available. Señora also stressed the creation of IT infrastructure plans, especially for large companies. “They should have an IT infrastructure plan. Mayroon dapat kayong guide on how to use your electronic devices sa loob ng offices,” Señora said, adding that, even the use of the smallest devices, such as flash drives, must be monitored.