Businessmirror may 09, 2017

Why create Integrity Circles?

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e, in the Integrity Initiative, understand that the fight against corruption involves more than one agency in the government; but we also know that we have to mobilize the business community and civil society if we want to succeed. I am happy to report that this is happening. The best example is the creation of Integrity Circles, composed of the representatives of the local government units, business and civil society as part of the Integrity for Jobs (I4J) project. »continued on A2

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Tuesday, May 9, 2017 Vol. 12 No. 208

Duterte picks Espenilla as Tetangco’s successor

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By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

ESTOR “Nesting” ESPENILLA JR. is the new Bangko Sentral ng Pilipinas (BSP) governor, taking over from Amando M. Tetangco Jr., who ends his second term at the post on July 3, 2017, and after 42 years of central banking.

Asean Minus X formula to fast-track RCEP–PHL

By Catherine N. Pillas @c_pillas29

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he Philippines has asked fellow negotiating countries in the Regional Comprehensive Economic Partnership (RCEP) to consider the use of “opt out and reciprocity” flexibilities to speed up the conclusion of the negotiations

for the trade agreement.

Trade Secretary Ramon M. Lopez noted that these flexibilities are allowed under the Asean Charter Article 21 (Implementation and Procedure), which states that “in the implementation of economic commitments, a formula for flexible participation, including the See “Asean,” A2

CIMATU TOLD TO REVIEW EXPANSION OF MINE SITES DESPITE MORATORIUM

By Jonathan L. Mayuga @jonlmayuga

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By Henry J. Schumacher

ewly appointed Environment Secretary Roy Cimatu should include in his priority list a thorough review of the amendments made to mineral production sharing agreements (MPSAs) that allowed several miners to expand their mining tenements despite the mining moratorium during the previous administration.

This was stressed by Carlo A. Arcilla, a professor at the National Institute of Geological Sciences of the University of the Philippines in Diliman, saying whoever engineered the mechanism for area expansion under Executive Order (EO) 79 and

its implementing rules and regulation should be held accountable.

Arcilla was reacting to a BusinessMirror exclusive on the Aquino administration’s alleged violation of its own moratorium on new mining deals that allowed the areas covered by MPSAs to increase by about 6 percent at the tail end of its term.

Most of the MPSAs that got area expansion were among those subsequently canceled by former Environment Secretary Regina Paz L. Lopez in February for being within or near watersheds. They were approved in the first six months of 2016, or before the election and subsequent takeover of the Duterte administration.

See “Cimatu,” A12

PESO exchange rates n US 49.9050

Dominguez: “We need to continue to strengthen our financial system, as well as to further open up the sector.”

Finance Secretary Carlos G. Dominguez III made the confirmation of President Duterte’s choice via text message to the BusinessMirror, and indicated this would mean the administration’s push toward the further liberalization of the financial sector.

See “Espenilla,” A2

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Reforming archaic land laws Manny Villar

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THE ENTREPRENEUR ver the years Congress passed hundreds of bills, which, if signed by the President, became part of the law of

the land.

The laws were designed to improve current situations to, for example, boost economic activity or to correct problems that are uncovered by the legislature.

In time, however, situations changed and new problems cropped up, some of which became hindrance to economic activity, or rendered ineffective by the changing environment.

Continued on A10

BMReports Tax justice remains elusive goal for PHL

By Rea Cu

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“[The present tax system] makes the poor poorer, and the rich richer,” Abrea President Raymond A. Abrea told the BusinessMirror. “Middleincome earners, meanwhile, are hardly making any investment since they are burdened by the 32-percent income tax and 12-percent VAT [value- added tax] on every purchase.”

@ReaCuBM

Part Two

HILE some advocates say soc i a l i nequ it y should be addressed though the tax system, this will create a lot of inefficiencies, a member of the non-governmental group Action for Economic Reforms (AER) said.

“Other groups would say that you should also address inequities through the tax system,” AER senior researcher Jo-Ann L. Diosana told the BusinessMirror.

“For us, the most that we can do through [the current] tax system in addressing inequities is to address the vertical equity.”

“If you are capable to pay, then you should pay more,” Diosana added.

“But if it will also address the horizontal equity, the tax system will be more complicated—too complicated—that it will create inefficiencies, loopholes and leakages.”

For the Abrea Consulting Group, Filipino consumers should be concerned with the injustice in the present tax system since the tax burdens make the poor people poorer, and the middle-income earners unable to save funds or make investments for their future.

Exemptions

This April 10 photo shows people filing income-tax returns at the Bureau of Internal Revenue District Office in Makati City. For Abrea Consulting Group President Raymond A. Abrea, Filipino consumers should be concerned with the injustice in the present tax system since the tax burden makes the poor people poorer. ALYSA SALEN

ACCORDING to a report by the non-governmental organization Freedom from Debt Coalition (FDC), tax injustice in the Philippines is buttressed by the state policy of providing huge tax breaks to companies.

There are already a lot of exemptions in the current tax system, according to the AER, which cited the personal income tax (PIT) as example. Currently, there is an exemption for every dependent child in a household, Diosana said. Up to four children at P25,000 per child have tax deductions and this is reasonable, she added. However, things get complicated when tax rates are computed.

“The [AER] proposal is to include all exemptions,” she explained, citing that, currently, the only ones exempted under the PIT are minimum-wage earners.

Continued on A2

n japan 0.4420 n UK 64.8216 n HK 6.4118 n CHINA 7.2299 n singapore 35.5525 n australia 36.9846 n EU 55.0203 n SAUDI arabia 13.3059

Source: BSP (8 May 2017 )

BMReports BusinessMirror

A2 Tuesday, May 9, 2017

www.businessmirror.com.ph

Tax justice remains elusive goal for PHL Why create Continued from A1

Diosana added that the tax threshold should be increased so that personal exemptions are already included, like the number of dependents. “So that’s P25,000 multiplied by four [children] so more or less that is why the proposed rate that is exempted is at P250,000.”

That way, under the proposal, regardless of gender or civil status, there is only one rate imposed for those who will fall under tax exempt, and these are individuals earning P250,000 and below annually, without a need to ask for tax credits. This was noted to be one form of tax justice that is gender neutral, as well, Diosana explained.

Simplification

THE AER views and proposal are also found under the first package of the proposed Comprehensive Tax Reform Program of the Department of Finance (DOF), which is embedded under House Bill 4774 filed under the House of Representatives and still up for discussion under a technical working group (TWG).

Under the current tax bracket

Asean. . .

Continued from A1

Asean Minus X formula, may be applied where there is consensus to do so.”

This, he said, gives unprepared members the option to defer participation in specific agreements, in the process removing significant barriers to the conclusion of the RCEP targeted this year under the Philippine chairmanship of the Asean.

“We want to find solutions as soon as possible, because I think we’re nearing substantial conclusion of the RCEP. So let us find ways to solve these remaining issues,” Lopez said.

Speaking at the opening ceremony for the 18th Meeting of the RCEP Trade Negotiating Committee (TNC) and Related Meetings, Lopez urged trade officials to move forward on agreed issues and have “opt out and reciprocity” principles in place for problematic areas in the agreement.

“On behalf of the Asean economic ministers, I enjoin you to

Espenilla. . .

ANOTHER example of exemp-

tion is the one imposed on socialized housing and its exemption from VAT. The FDC pointed out that funding for socialized housing projects should be derived from the expenditures of the government and not through VAT exemptions.

The lack of shelter among the Filipino families is an injustice to the society when the revenues that should have been derived from the VAT of real estate could have been used to further implement projects aimed at the growth and development of the country, the FDC said.

Based on DOF data, the 12-percent VAT the country currently has is low compared to other economies. It has 59 lines of exemptions under the tax code and 84 additional exemptions under special laws.

“In the Philippines we have a VAT system with numerous exemptions leading to large leakages from people who take advantage of the VAT system to pay less taxes,” the DOF said in a presentation.

Tax holidays given to corporations are also a form of tax injustice, since big corporations have the

ability to pay more taxes and having not much of a need for exemptions and tax perks.

Last year Finance Undersecretary Antonette C. Tionko pointed out that the government is losing an estimated P150 billion annually from leakages arising from VAT exemptions and from tax holidays for corporations.

Finance Secretary Carlos G. Dominguez III said in a televised interview early April that the DOF is eyeing to submit the second package CTRP, or the lowering of corporate income taxes alongside the modernization of fiscal incentives, to Congress by October this year.

The second package of the CTRP aims to reduce corporate income-tax rates from 30 percent to 25 percent, coupled with the rationalization of fiscal incentives.

Earlier in the year, Undersecretary Karl Kendrick T. Chua also pointed out that the DOF is just waiting for data from the Tax Incentives Management and Transparency Act to come in before it proceeds with the crafting of the second package under its CTRP, so that it will be evidence-based.

find solutions for all remaining challenges and discussions. We can apply principles used in the past to reach conclusions and consensus: either a carve out or opt out of cooperations if there are really nagging problems that cannot be resolved and won’t be resolved in the near future,” Lopez told TNC leads and RCEP chief negotiators on Monday.

Lopez said the 16-member RCEP has already agreed on chapters related to small and medium enterprises, economic and technical cooperation and, in principle, on competition.

However, hampering the progress is the nonagreement on the coverage of core market-access areas, specifically goods and services.

“Fourteen to 15 countries have agreed to slash 90 percent of applied tariffs to zero once RCEP comes into force, but if some countries are not ready after so many rounds of talks, there is a way out,” he emphasized.

This is a solution to move forward on the ambitious agreement. Also, this will ensure fair distribution of the benefits of liberalized trade to

those committed, hence the reciprocity principle, added the Philippines’s TNC lead, Trade Undersecretary Ceferino S. Rodolfo Jr. “W hoever can agree to the numbers, then go ahead and agree on them, but there’s reciprocity: if the country can’t commit to the numbers, that’s fine; they won’t receive the benefits either,” Rodolfo explained.

Under the opt-out mechanism of the Asean Minus X formula, any member, while approving an initiative, can back out of a provision or economic commitment it feels ill-prepared for, but may want to join later on.

For instance, Singapore, Malaysia and Thailand moved to integrate their capital markets in 2015, with the monetary authorities in these countries signing a framework to streamline the review process in offering securities outside their borders.

The three countries were the first to move ahead with having common disclosure rules, which form part of the commitments for the Asean integration. The rest of the Asean countries chose to join

the process when they are ready.

Introducing this flexibility can also give the Philippines leeway on a particular “rule” in the agreement it is not yet ready to agree to. Rodolfo, however, refused to say what this agreement is.

With the option now on the table, Lopez, the Asean Economic Ministers chairman, is hoping the RCEP chief negotiators and technical working groups can draft recommendations and solutions before the year-end minister-level meeting of the Asean Summit later this year.

The RCEP negotiation includes trade in goods, services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium enterprises and other issues.

The agreement includes the 10 Asean member-states plus the six Asean free-trade agreements partners Australia, China, India, Japan, South Korea and New Zealand.

The 16 RCEP participating countries account for almost half of the world’s population and contribute about 30 percent of global GDP.

system of the government there are seven brackets, with an annual income of P10,000 and below taxed at a rate of 5 percent. The highest bracket, at an annual income rate of over P500,000, is taxed at P125,000 plus 32 percent of the excess of over P500,000.

As per the DOF-proposed tax bracket scheme, it will be reduced to six brackets, with an annual income of P250,000 and below being tax exempt. The highest annual income of P5 million and over will be taxed at a rate of P1.450 million plus 35 percent of the excess over P5 million.

According to the DOF, employees earning an annual income rate of P250,000 and below comprise an estimated 83 percent of the population of the Philippines, while those earning P5 million and above are at around 0.1 percent.

The simplified tax system was pointed out to enable employees to increase their take-home pay and giving them the opportunity to save more. The DOF pointed out this makes the tax system fairer and more equitable.

Packaging

Continued from A1

“Yes, Nesting Espenilla is the new BSP governor,” Dominguez said. He described Duterte’s pick as “a very wise choice, after a thorough evaluation of the future needs of the country and of all the candidates.” Espenilla heads the Supervision and Examination Sector of the central monetary authority.

The finance chief added, “We were fortunate that Governor Tetangco carefully trained his potential successors.” Tetangco had earlier made known that he preferred to have an “insider” to take his place as BSP chief. Aside from Espenilla, the other front-runner for the post was BSP Deputy Governor Diwa C.

Guinigundo, who oversees the Monetary Stability Sector.

Other candidates included former Trade Secretary and Monetary Board member Peter Favila and East-West Bank President Antonio Moncupa.

In choosing Espenilla, Dominguez said, “We need to continue to strengthen our financial system, as well as to further open up the sector.” Espenilla has always been an advocate of liberalizing the banking sector, for instance, encouraging the industry to dip its hands in financial tools and instruments that would expand its growth, as well as widening the investment choices of depositors.

Espenilla could not be reached for comment as of press time.

For his part, Tetangco, said, “We thank the President for

To be continued

his decision. The choice of an insider in the person of Deputy Governor Espenilla ensures the continuity of policy and thought process in the BSP. DG Espenilla is well respected in the banking community and highly regarded by other central banks and financial regulators both here and abroad. He is also well supported by the BSP family. I am confident that with him at the helm, the BSP will continue to be a pillar of support to the economy, that should remain among the top performing economies in the world.”

Espenilla Jr. has been with the BSP since 1981 and has worked in Economic Research, International Operations, and in the Office of the Governor. He was seconded to the IMF from 1990 to 1992.

He earned a Bachelor of Science degree in Business Economics and a master’s degree in Business Administration from the University of the Philippines, as well as a Masters of Science degree in policy science from the Graduate Institute of Policy Science in Tokyo, Japan.

Based on the central bank’s charter, the BSP governor can serve only two terms of six years each. Tetangco was first appointed in 2005 by then-President Gloria Macapagal-Arroyo and was reappointed by former President Benigno S. Aquino III in 2011.

With about 35 years of central banking experience, Espenilla’s name has been linked to several banking regulation that transformed the local lending industry into one of the most resilient in recent history.

Among his major efforts include the structural reforms in the financial system to promote efficiency, safety, transparency and universal accessibility.

Espenilla also spearheaded that upgrade in the country’s regulatory framework and bank-supervision approach to be consistent with Basel Core Principles for Effective Bank Supervision, as well as the Basel Capital Accord, and fully incorporated standards for the prevention of money-laundering and terrorist financing, promotion of good corporate governance in banks and protection of financial consumers.

Concurrently, Espenilla is the chairman for the Executive Meeting of East Asia Pacific Central Banks Working Group on Banking Supervision, chairman on the Basel Consultative Group Workstream on Financial Inclusion and the BSP’s representative in the Global Policy Forum for Financial Inclusion of the G-20.

Rea Cu, Bianca Cuaresma

Integrity Circles?

Continued from A1

While it is essential that the LGU leadership (governors, mayors, etc.) approve the “Partnership for Integrity and Jobs” and commit to the changes needed, it is essential to note that the creation of Integrity Circles are at the core of this change process:

What are Integrity Circles?

A circle of people representing public/government, private/business, civil/community organizations, or schools, religious/youth groups who voluntarily commit to work together in a sustained manner to promote integrity by helping to strengthen good governance and performance within the organizations/locations they are a part of.

Why create Integrity Circles?

ICs seek to raise awareness, identify integrity-related issues that affect performance, promote fair and good practice, as well as participate in the development of practical tools to help enhance integrity and reduce risks of corruption by strengthening transparency and accountability. ICs aim to promote transparency/trust, improved per for mance, a level play ing field, enhanced competitiveness and attractiveness to business, and the creation of more jobs leading to inclusive growth and sustainable development.

organizations and in dealing with other parties outside the organization. The Code of Conduct provides for the basic principles on proper ethical behavior and specifically focus on areas in the organization where there are potentially high risks of unethical behaviour.

Integrity Standards

ICs will help improve the integrity standards of their organization. ICs will lead the conduct of a self-assessment of the existing integrity system in place and identify policy and operational opportunities for improvements.

A self-assessment tool has been developed by the 14J project team for this purpose. The results of the self-assessment will be validated in coordination with the 14J team.

Upon validation, a priority list of areas for action will be prepared for implementation (action plan) to install the necessary control measures. The ICs shall designate an integrity officer, who will be responsible for maintaining the standards and pursuing continuous system improvement.

Recognition and certification

Organizations that have committed to the integrity path will be recognized and promoted in the national/international marketplace as preferred destination for investments or endorsed for incentives.

Tone from the Top

Let me conclude today’s column by saying that we have moved from nine to 60 LGUs that have adopted the I4J ideas and are part of the integrity process now.

Our aim, of course, is to see all LGUs transforming into the I4J ideas; just give us a “bit” more time, and money (as the funding by the donors, the EU Delegation and the Konrad Adenauer Foundation as stopped). Any volunteers?

Code of Conduct

In the meantime, join the Integrity Initiative, sign the Integrity Pledge and live up to the commitments in the pledge.Visit www.integrityinitiative.com.

Creating ICs requires the concurrence of organizations specifically the commitment of the top management (i.e., Tone from the Top by signing an Integrity Pledge) of stakeholder organizations, such as the public/government (e.g., LGUs), business organizations, civil/community organizations, schools and religious organizations, among others.

ICs will develop and launch a Code of Conduct that will guide their organizations on the ethical way of conducting business within their

Benham. . .

Continued from A12

“The facility will serve as a research base of Filipino scientists and aqua-marine researchers and a monitoring station for illegal fishermen and poachers.

It could also serve as a facility of refuge for Filipino fishermen in the area and docking station of government vessels, which will patrol the vast seas,” he said.

“More than that, the Philippine Benham Rise Research Facility, which will proudly fly our country’s Standards, will be a symbol of our ownership of the resource-rich area, which [the] government will protect and safeguard for the Filipinos of the future,” he added.

The DA chief said he would also ask for additional funds that would be allocated for the procurement and deployment of more “payao”, or fish-aggregating devices (FAD), in Benham Rise to aid Filipino fishermen in monitoring their catch in the area. Citing a local fisherman, Piñol said fishermen could catch as much as 20 metric tons of big fish within a month.

“The MV DA-BFAR will deploy 14 more payaos in the area when they sail back to the Philippine Benham Rise on Monday. I will recommend that government allocate more funds for the deployment of more payaos in the area to further enhance the catch of Filipino fishermen,” Piñol added. “ This is a proactive action to discover how rich Benham Rise is as far as natural resources are con-

cerned. More important, this is also to protect the area from overfishing and to give our fisherfolk priority access to Benham Rise’s marine resources and make them partners in ensuring the protection of Benham Rise,” Piñol said.

He said the government should also intensify its efforts in restricting the entry of foreign vessels in the Philippine-owned resource to protect the interests of Filipino fishermen, particularly their source of income.

“The fishermen in the area reported the continuing presence of Taiwanese Long Line fishing boats, which would sometimes chase the Filipino fishermen who get near their long lines deployed in the waters within Philippine territory,” he said.

“There is a need for the Philippine government to intensify its monitoring of the entry of foreign vessels, especially poachers, in the area to protect Filipino fishermen,” he added.

He said Filipino fishermen could earn as much as P500,000 for every Blue Fin Tuna caught in the area.

“There is a need to declare a Closed Fishing Season in the area during the months when the Blue Fin Tuna and the other big fish species are spawning to attain sustainability,” he said .

Benham R ise is a 13-million hectare underwater plateau that is around 5,000 meters deep from the sea surface and accounts for 43 percent of the total fish catch landed at Dinahican Port in Infanta, Quezon, according to the DA.

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Albay congressman bats for tax-reform bill

By Johnny C. Nuñez Philippines News Agency

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HE Tax Reform for Acceleration and Inclusion (TRAIN) bill approved by the House of Representatives’s Committee on Ways and Means last week, is deemed as the means by which the administration could fulfill its promise to break the inequality between the elite and marginalized Filipinos.

Originally crafted by PDP-Laban Rep. Joey S. Salceda of Albay, TRAIN is a comprehensive package of tax revisions and considered as the most significant reform under the administration of President Duterte.

Sa lceda said the fina l ly approved TR A IN substitute bil l drafted by the committee’s technica l work ing group is “relatively not far from the or ig ina l Sa lceda-DOF [Depar tment of Finance] proposa l, w ith the inclusion of sugar sweetened beverage ta x….”

The House committee merged Salceda’s House Bill (HB) 4688, with another tax-reform bill, HB 4774, authored by Liberal Party Rep. Dakila Carlo E. Cua of Quirino, but retained

most of the provisions as originally formulated and designed, including the unconditional cash transfers for three years.

TR AIN has earned the popular support of both the government and business sectors, the civil society and non-governmental organizations, and ordinary Filipinos who stand to gain from its package of reforms.

The measure was approved on second reading with a 17-3 vote count, with three abstentions, and will be immediately submitted to the House in plenary session for its third and final reading.

Salceda, senior vice chairman of the Ways and Means Committee, said among the benefits the bill aims to deliver is the transfer of some P170 billion annually from the country’s rich to the middle class and low-income households. “It represents the single largest direct transfer of wealth in personal income taxes,” he added.

Salceda said the measure is expected to “ultimately reduce poverty to single digit, grow the economy by 9 percent, and transform the Philippines into an Asian economic powerhouse by 2028, with $1.2-trillion GDP.”

Editor: Dionisio L. Pelayo • Tuesday, May 9, 2017 A3

Napoles beats criminal case over Benhur Luy ‘kidnap’

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By Joel R. San Juan

@jrsanjuan1573

HE Court of Appeals (CA) has acquitted alleged pork-barrel scam queen Janet LimNapoles of the serious illegal detention crime filed by whistle-blower Benhur Luy.

In a 35-page decision, the CA’s 12th Division reversed the ruling issued by Judge Elmo Alameda of Branch 150 of the Regional Trial Court in Makati City in April 14, 2015, that found her guilty of the crime.

The appellate court held that the prosecution’s evidence failed to prove beyond reasonable doubt that Luy was illegally detained by Napoles at Bahay ni San Jose, a retreat house in Magallanes Village in Makati City, to prevent him from divulging his knowledge about the multimillion-peso pork-barrel scam involving mostly legisla-

tors and several government officials.

The CA noted the prosecution’s evidence failed to prove that Luy was forced or involuntarily brought and confined in Bahay ni San Jose.

In fact, based on the pieces of evidence, the CA noted, showed that Luy sought spiritual solace in the said place.

“Taken together, Benhur’s actuations are contrary to that of a person forced to stay with a religious order but are more consistent with the conclusion that he was seeking and enjoying, too, [a] religious retreat,” the CA said.

“From a careful review of the evidence at hand, we can neither infer nor establish from the acts of the accused-appellant any joint purpose and design, concerted action and community of interest to illegally detain Benhur,” it added.

In addition, the CA stressed there was never an attempt on the part of Luy to escape or to tell anyone about his supposed detention at the said retreat house.

The CA also gave weight to the testimonies of Fr. Peter Edward Lavin and Msgr. Josefino Ramirez who suggested that Luy did not manifest any indication that he was coerced.

The appellate court ordered the release of Napoles from detention unless she is being detained for other cases.

Napoles is also facing plunder cases before the Sandiganbayan in connection with the pork-barrel scam.

The CA decision is penned by Associate Justice Normandie B. Pizarro and concurred by Associate Justices Samuel H. Gaerlan and Jhosep Y. Lopez.

Communist insurgency, Moro rebellions, terrorism must prod government to strengthen military–senator

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EN. Richard J. Gordon on Sunday pressed the need to strengthen the country’s military capability to more effectively address the decades-long insurgency problems and terrorism, as well as defend the country from foreign threats.

Gordon said the government

must allocate funds for the purchase of equipment, supplies and other logistical requirements to fortify the capability of the Armed Forces, including the Navy and the Air Force.

“We have two major insurgencies in the country—the [communist] New People’s Army at sa

Mindanao, dati may MNLF [Moro National Liberation Front], naging MILF [Moro Islamic Liberation Front], tapos nagkaroon ng Abu Sayyaf or ASG. Ngayon meron pang BIFF [Bangsamoro Islamic Freedom Fighters], lahat na yata ng letters sa alphabet [nagamit na]. Because our military’s ca-

pability is lacking in terms of type and number of equipment, including enhanced training, the manner we are addressing the problems has to be improved,” Gordon added.

“There is kidnapping by the Abu Sayyaf. We must go after them more swiftly and effec-

tively. How can we defend our territory from foreign threats when we apparently cannot completely stop the insurgents? Kung magkagulo doon sa [Philippineclaimed] Spratlys, makakalaban ba tayo? So, importante na palakasin natin ang ating military,” he added

Gordon warned of the possibility that countries like Indonesia and Malaysia, among others, would enter Philippine territory to rescue their abducted citizens should the Philippine government’s intelligence gathering capability does not improve to end the Abu Sayyaf’s banditry. Butch Fernandez

Economy

A4 Tuesday, May 9, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

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ICTSI: Shipping lines, port users flock to Subic

By Lorenz S. Marasigan

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@lorenzmarasigan

he Subic Bay Freeport has been achieving productivity levels on a par with that of the Manila International Container Terminal (MICT), the free port north of Manila a key international trading gateway in the Philippines, its operator said on Monday.

Roberto R. Locsin, who sits as president at Subic Bay International Terminal Corp. (SBITC), said the two Panamax quay cranes at the New Container Terminal (NCT) 1 recently handled close to 400 twenty-foot equivalent units (TEU) with each crane averaging 40 and 33 moves per hour, respectively.

The productivity levels were achieved during the inaugural call of Evergreen Marine Corp.’s 1,440-TEU boxship Cape Fulmar.

The call signaled the start of Evergreen’s South Korea-Taiwan-Philippines (KTP) service, a new route to facilitate improving regional trade between the three economies. The service plies the ports of Incheon and Kwang Yang, South Korea; Kaohsiung, Taiwan; and Batangas, Manila and Subic Bay, Philippines.

Aside from Cape Fulmar, 1,440-TEU boxship Cape Faro is also chartered to the weekly service.

SBITC is a subsidiary of International Container Terminal Services Inc. (ICTSI).

“It was a great effort and a big

win for ICTSI’s Subic operations.

This goes to show that Subic is on a par with the productivity levels in MICT. We are continuously working on improving our ser vices to attract more shipping lines, and for northern and central Luzon businesses to use the container ter mina ls in Subic,” Locsin said.

MICT, ICTSI’s flagship terminal, primarily serves the Metro Manila market and its adjacent markets, where most of the economic activities of the country happen being the country’s capital.

“Metro Mani la as a market w i l l cont inue to g row. But as the Nor ther n and Centra l Luzon countr yside develop, driven by industrial centers like Subic, Clark, Bataan, and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carr y ICTSI’s brand of ser vice and efficiency.”

IC T S I h a s p o s it io ne d it s e l f in Subic in ant icipat ion of g ro w i n g l o c a l m a r k e t s nor t h of Me t ro M a n i l a .

In 2007 under the Subic Port Development Plan, the Subic Bay Metropolitan Authority awarded SBITC the concession for NCT 1.

In 2011, under the plan’s second phase, another ICTSI subsidiar y, ICTSI Subic Inc., was awarded the concession to operate NCT 2.

Increasing volumes in Subic enabled ICTSI to streamline and interface the operations of NCT 1 and 2. The merged operation has been serving the growing markets of the region, alongside the continued support to facilitate the box market of Metro Manila.

Metro Manila as a market will continue to grow. But as the Northern and Central Luzon countryside develop, driven by industrial centers like Subic, Clark, Bataan, and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carry ICTSI’s brand of service and efficiency.”—Locsin

Job-site teamwork

Hardy construction workers employ teamwork and precise coordination to assemble the gigantic steel frame that will serve as pillars of a skyscraper undergoing completion along W. Diokno Boulevard in Pasay City, amid the summer construction boom. ROY DOMINGO

House prioritizes proposals to replace QR with rice tariff

By Jovee Marie N. dela Cruz @joveemarie

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he chairman of the House Committee on Agriculture and Food on Monday said the leadership of the 17th Congress has agreed to include in its priority bills his recently filed measure replacing quantitative import restriction on rice with tariffs.

In an interview, Committee Chairman Rep. Jose T. Panganiban Jr. of Anac-IP said he personally asked the leadership to prioritize the passage of his House Bill (HB) 5433.

“We will try our best to pass it at the committee level. But I don’t think we can approve it at the plenary before our adjournment sine die this month,” Panganiban said.

The QR on rice or quotas on rice import is set to expire on June 30 this year.

Moreover, Panganiban’s HB 5433 also seeks the creation of the rice competitiveness enhancement fund (RCEF).

The measure also seeks to amend for the purpose Republic Act (RA) 8178, as amended by Republic Act 9496, further amended by RA 10848, or “an act replacing QR on agricultural products, except rice, with tariffs, creating the agricultural competitiveness enhancement fund (RCEF) and for other purposes.”

Under the bill, it is the policy of the State to make the country’s agricultural sector viable, efficient and globally competitive. The State adopts the use of tariffs in lieu of nontariff import restrictions to protect local producers of agricultural products, and to establish, as well, rules and regulations governing the importation of rice for food security and national buffer stocking purposes and to license, impose and collect fees and charges for said importation.

The bill added that, in lieu of quantitative restrictions, the maximum bound rates committed under the Uruguay Round Final Act shall be imposed on the agricultural products whose quantitative restrictions are repealed by the act, as amended, the President shall issue the correspond-

ing tariffs beginning 1996 up to year 2000; provided, that the schedule of the initial and final applied rates shall be consistent with the country’s tariff binding commitments.

It also said in case of shortages or abnormal price increases in agricultural products, whose quantitative restrictions are lifted under the act, as amended, the President may propose to Congress, revisions, modifications or adjustments of the minimum access volume (MAV), provided, however, that in the event Congress fails to act after 15 days from receipt of the proposal, the same shall be deemed approved.

The bill also said that, in lieu of the quantitative restriction on rice, the maximum bond rate shall be as notified by the Philippines to the World Trade Organization.

The measure added the RCEF of the rice fund shall be created. The rice fund shall consist of all duties collected from the importation of rice and MAV mechanism for five years from the start of the effectivity of the act.

It added, the rice fund shall be automatically credited to a special account in the general fund of the National Treasury, provided that, fund release shall not be subject to any ceiling set by the Department of Budget and Management (DBM).

Any remaining balance at the date of expiration of the collection of duties for the rice fund shall not revert to the general fund but shall continues to be used for the purpose for which it was collected and set aside.

Under the bill, the rice fund shall be set aside and released to: enhance productivity and income of rice farmers; modernize farm and marketing processes and strengthen the commodity’s value chain; enhance research, development and extension on rice; expand insurance coverage for rice and expand credit to include acquisition and establishment of production, postharvest and processing machineries, equipment and facilities of rice farmers and their cooperatives and associations and micro and small-scale enterprises.

Preferential attention should

also be given to rice farmers adversely affected by the ratification of the QR on rice.

The bill said the use of the rice fund shall be consistent with the policies and priority thrusts under the RA 8435, as amended, or the Agriculture and Fisheries Modernization act vis-a-vis the medium-term Philippine Development Plan and the use of the rice fund shall be complementary and supportive of the various and current funding assistance windows or programs of the Department of Agriculture (DA) and other government institutions.

To ensure the attainment of the objectives of the rice fund, the bill said the RCEF executive committee shall be created and shall be headed by the secretary, the DA, Land Bank of the Philippines and a representative of rice farmers associations and cooperatives.

The bill also stated that the congressional oversight committee on agricultural and fisheries modernization shall conduct a periodic review of the use of the rice fund.

It said upon its the enactment, the DA, together with relevant agencies, shall be given a maximum of 180 days to finalize the rice roadmap to restructure the government's delivery of support services for the sector. As part of the roadmap, a 5-year rice program shall be implemented to provide alternative livelihood for those who will be affected by the shift in the import policy.

It added the DA shall provide a list of farmers in the government's transition program in which they will eventually graduate into a more appropriate industry.

Besides Panganiban’s HB 5433, Rep. Gloria Macapagal-Arroyo of Pampanga and House Committee on Economic Affairs Chairman Arthur Yap of Bohol have also filed two separate bills, seeking to place safety nets for Filipino rice producers by imposing tariffs in lieu of QRs on rice imports and to amend the RA 8178 or the Agricultural Tariffication Act.

Palace prods Congress on ₧150-B revenue package

By Butch Fernandez @butchfBM

T

he Duterte administration is lobbying for the early passage

by Congress of a P150-billion revenue package to bankroll its various infrastructure projects and social service programs.

Sen. Sherwin T. Gatchalian, chairman of the Senate Commitee on Economic Affairs, said the revenue target was disclosed in a recent briefing for Senators by the Department of Finance on the Com-

prehensive Tax-Reform Package (CTRP) endorsed by Malacañang for approval by lawmakers.

“The net target is P150-billion,” Gatchalian told the BusinesMirror, adding it would involve adjustments in personal income tax, expanding the value-added tax base and excise tax, among others.

He hinted that the Senate version is likey to introduce several amendments in the House-approved CTRP bill.

“We expect many changes in the House version,” the Senator said, but

did not go into details of other CTRP amendments so as not to preempt upcoming Senate hearings on the Palace tax package.

Gatchalian, however, noted, the Duterte administration is also targetting to raise P2.3-billion from “new revenues in the next 5 years” through the CTRP. Senate Majority Leader Vicente T. Sotto III, in a separate interview, confirmed that Palace officials have conveyed to Congress leaders that income-tax reforms remain high on the list of administration priorities.

news@businessmirror.com.ph

AseanTuesday BusinessMirror

Taiwan wants ‘friendly’ China ties amid Asean tilt

T

aiwan’s premier said he isn’t opposed to stronger economic ties with China, even as the administration looks to boost its trade links with the US and Southeast Asia.

China is a big market and many industries across the strait complement each other, Lin Chuan, 65, said in his first interview with foreign media since he was sworn in almost a year ago. “We shouldn’t push it away,” Lin said at his offices in Taipei on May 5.

“As it is a huge market over there in mainland China, it behooves Taiwan to maintain friendly, smooth economic relations,” Lin said. “In doing that, there’s no downside for Taiwan.”

“So as far as trade and the division of labor are concerned, the cross-strait economic relationship isn’t something that should be avoided,” Lin said.

The cabinet chief’s comments come as President Tsai Ing-wen proposes a new model for cross-strait relations with a focus on structural cooperation. It’s a careful balance: Some lawmakers in Tsai’s ruling Democratic Progressive Party criticized her predecessor for a perceived over-reliance on China, which accounted for as much as 41.8 percent of the island’s exports during Ma Ying-jeou’s tenure.

While Lin’s portfolio includes the economy, relations with China are overseen by Tsai. Lin said Taiwan also wants to foster trade links with other nations to reduce domestic anxiety over a dependence on China. Chinese opposition to such moves could hurt ties, he added.

“He was addressing the objective reality,” according to Alexander Huang, chairman of the Taipei-based Council on Strategic & Wargaming Studies. “The high reliance results from the choice of businesses, like Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group, instead of governments.”

Tensions between the diplomatically isolated Taiwan and China have been elevated since Tsai’s pro-independence DPP swept the Beijing-friendly Kuomintang from power last year. Tsai, who has angered Beijing by refusing to endorse the One-China framework, has sought to bolster the island’s military and reduce its trade dependence on China.

Free-trade deals are necessary for a small, open economy like Taiwan, Lin said. “We will adopt low-key and pragmatic measures to establish better economic relations with other countries,” said the former finance minister and statistics bureau head.

CHUAN

Lin said a US free-trade pact could help enhance the competitiveness of Taiwanese products, though he added it would depend on US interest in having such talks. Taipei could also seek discussions with the European Union, he said. Tsai said in March Taiwan and the US should engage in talks on trade as a matter of priority. “Both sides should have frank and substantive discussions and work toward a new bilateral trade agreement,” she said.

Asean links

Tsai’s administration is also seeking closer ties with Australia, New Zealand, the 10 members of the Asean and six South Asian countries. In the June to March period, inbound visitors from those areas surged 23 percent onyear to 1.63 million, according to a cabinet statement.

Still, “China will see this as not just an economic issue but a political one,” Lin said, adding “that’s regrettable for us.”

“China should think these things through more clearly,” he said. “If Taiwan establishes better economic ties with other countries, it’s not just good for Taiwan, it’s good for economic ties across the strait.”

Diversified economic relations could help counter domestic objections to economic links with Beijing, Lin said. “Only when Taiwan has better economic relationships with other countries can Taiwan and China share closer economic ties and more opportunities,” he said.

Bloomberg News

Editor: Max V. de Leon • Tuesday, May 9, 2017 A5

Cambodian logs being smuggled to Vietnam $13M A n environmental watchdog has accused the Vietnamese government and military officials of taking payoffs to ignore vast smuggling of lucrative lumber from neighboring Cambodia.

The estimated bribes reportedly received by Vietnamese officials from Cambodian timber smugglers since last November

Millions of dollars in bribes have been paid by Vietnamese timber traders to both Vietnamese and Cambodian officials, the report issued on Monday by the UK-based Environmental Investigation Agency alleges.

It said the Vietnamese officials are paid off in exchange for granting import quotas for the timber and Cambodians are paid to open up logging areas and smuggling routes.

The logging itself in Cambodia is often illegal, taking place in protected areas, such as national parks.

Cambodia has banned the export of logs and since early 2016 has closed its border with Vietnam to timber, as well. However, Vietnam has official quotas for such imports, which are also taxed.

Vietnam’s Ministry of Foreign Affairs did not respond to the Associated Press’s request for comment on the report. Sear Ra, deputy chief of Cambodia’s Forestry Administration, noted such exporting was

seen for years,” the group’s senior forests campaigner, Jago Wadley said in a news release. “Vietnam must address this weak approach to any agreement with the EU to combat illegal logging and the associated trade.”

The report points out the illegal trade comes as Vietnam is working hard to protect its own forests, even as Vietnam’s government “has promoted the rapid expansion of an export-oriented wood processing sector, which has become the sixth largest in the world”. It said Vietnamese exports of wood products are projected to total $8 billion this year, while imports account for at least 80 percent of the raw materials consumed by its factories.

Cambodia and Lao PDR, another neighbor of Vietnam, together provided Vietnam with illicit timber worth almost three quarters of a billion dollars in a single year, the report said, noting that a crackdown in Laos has shifted the smugglers’ attention to Cambodia. AP

stopped in 2016, and if it had happened since then, it would have been done secretly and illegally. Cambodia has one of the highest rates of deforestation in the world, much of it due to illegal logging and corrupt land deals. Much of the timber trade is protected by military units that profit from deals with the loggers.

Vietnam’s official quotas facilitate the smuggling from Cambodia and even allows Vietnam to profit by taxing the smuggled logs, the report said. “Approximately 300,000 cubic meters of logs have been smuggled out of Cambodia and laundered in Vietnam under these quotas,” it said, estimating the kickbacks have totaled more than $13 million since the beginning of November 2016.

The watchdog noted Vietnam and the European Union (EU) are expected to sign an agreement to try to ensure only legal timber is exported from Vietnam.

“This is the single largest logsmuggling operation that we have

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The World BusinessMirror

Tuesday, May 9, 2017

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Kushners court investors in China

S

HANGHAI—Like many US firms that come to China looking for money, Kushner Cos. tried to woo a Shanghai audience with promises of big returns and a path toward living in the US. But for Bi Ting, who attended the Kushner event on Sunday, part of the appeal was political: Jared Kushner is the son-inlaw of—and a powerful adviser to—President Donald J. Trump.

Virtually unknown in China just months ago, he is now recognized here as a deeply influential figure in US politics.

“The Trump relationship is an extra point for me,” Bi said, adding that she and her husband had not decided whether to invest.

Kushner Cos.’s China road show, promoting $500,000 investments in New Jersey real estate as the path to a residency card in the US, moved to Shanghai last Sunday after a similar pitch on Saturday in Beijing.

Security was tighter in Shanghai than it had been in Beijing, where reporters for The New York Times and The Washington Post brief ly attended the event before being kicked out.

At the event in Beijing, Kush-

$500K

The amount of investments in New Jersey real estate that the Kushner Cos.’s China road show was promoting in China as the path to a residency card in the United States

ner’s sister, Nicole Meyer, cited her brother’s service to the company, which he led as chief executive until January. She said the project in Jersey City “means a lot to me and my entire family”.

Kushner has said he has stepped back from the day-to-day operations of the family business. But government ethics filings show that he and Ivanka Trump, his wife and the president’s daughter, continue to benefit from Kushner

Cos.’ real-estate and investment businesses, a stake worth as much as $600 million.

The Shanghai event, at the opulent Four Seasons Hotel, was patrolled by burly security guards who screened those in attendance and kept journalists outside, in an elevator lobby.

The organizers had refused last Saturday to allow late registration as word spread of the Beijing event. One guard at the Shanghai event was heard saying that at least some of the participants would be leaving through a private back exit.

But some who attended described an investor pitch similar to the one in Beijing, and Donald Trump’s political power was palpable at the Shanghai event, even if his name went unsaid.

Last Saturday in Beijing, one slide that was presented to the Shanghai audience, describing who will decide the future of the visa program for foreign investors, included a photograph of Trump, according to a snapshot taken by an audience member.

Kushner Cos.’s marketing push comes as Kushner emerges as a crucial voice on China relations, brokering meetings between his father-in-law and top Chinese government officials.

While the Trump connection piqued the interest of many people in attendance, such events solicit-

ing investors for projects in the US are not unusual in China.

The EB-5 visa program awards foreign investors the right to live in the US for two years and a path to permanent residency, in exchange for investments of at least $500,000 in US development projects. A bright red line near the top of the posters in the Four Seasons lobby prominently mentioned EB-5 visas.

About three-quarters of the roughly 10,000 investor visas issued last year went to Chinese nationals. Although the program was created as a way to finance projects in economically troubled neighborhoods, it has instead turned into a form of cheap financing for luxury real-estate developers. Applicants are primarily seeking the visa, so they typically do not seek a significant return on their investment.

The US Government Accountability Office, the investigative branch of Congress, has criticized the visa program for its lax safeguards against illicit sources of money.

K u s h ne r C o s . h a s t ap p e d the program before: T he fir m raised about $50 mil lion from Chinese investors in EB -5 f unding for another project in Jersey Cit y, a Tr ump-branded lu xur y apar tment tower that opened in late 2016. As part of the marketing effort to fi-

nance that building, a firm used

by Kushner Cos. distributed a Chinese-subtitled video leading viewers behind the wheel of a car in New Jersey accompanied by “Woke Up This Morning”, the theme song from the television show The Sopranos.

Kushner Cos. has declined to identify the investors it found for that building.

Kushner was a manager or president at several entities associated with the Jersey City projec t t h at i s now see k i ng Chinese investors. He divested his interests in that project by selling them to a family trust of which he is not a beneficiary, said Blake Roberts, a lawyer at WilmerHale who is advising Kushner on ethics issues.

Ku sh ner h a s d ivested h i s stakes in dozens of entities used to hold family company investments, although he remains the beneficiary of trusts that hold stakes in hundreds of others.

“Ms. Meyer wanted to make clear that her brother had stepped away from the company in January, and has nothing to do with this project,” said Risa Heller, a Kushner Cos. spokesman. “Kushner Cos. apologizes if that mention of her brother was in any way interpreted as an attempt to lure investors. That was not Ms. Meyer’s intention.”

New York Times News Service

China’s migrant workers: Older, smarter, better paid

A

t y pical C h i nese m ig ra nt worker is now less likely to be a teenager trekking across the country for a factory job in a southern boom town.

Instead, as China’s economy matures, its migrant worker force is also aging, staying closer to home, and increasingly working in stores and restaurants rather than on assembly lines.

These are some of the conclusions from an annual report on migrant workers recently published by China’s National Bureau of Statistics.

First, one definition: The migrant worker category actually refers to “peasant workers”—that is, rural workers who no longer farm the land they’re registered for. Whether in the village down the road or a city far away, their growth is slowing, standing at 281 million in 2016, up 1.5 percent yearon-year. That’s still close to the population of the US. The category of men and women who’ve left their home for better economic futures in expanding urban centers have served as a major pillar of the labor force for more than two decades—without enjoying the same social services as

N. Korea detains another American

S

EOUL, South Korea—Nor th Korea has detained another American citizen accused of committing unspecified hostile acts against the countr y. The countr y’s official Korean Central News Agency (KCNA) said Kim Hak Song was detained on Saturday, and that “a relevant institution is now conducting detailed investigation into his crimes”.

He worked at Pyongyang University of Science and Technology (PUS&T), the same workplace as another American, accounting instructor Kim Sang Dok, whose detention was announced last Wednesday. The KCNA didn’t say whether the two cases are connected.The university said in a statement early on Monday that Kim Hak Song was doing agricultural development work at an experimental farm. It said his detention was not related to his work at the university and therefore it could not comment further.

In Washington, the State Department said it was aware of the report of the new detention and that “the security of US citizens is one of the department’s highest priorities”.

Kim Sang Dok, the former accounting instructor at the Pyongyang university, was arrested at the Pyongyang International Airport on April 22, the KCNA said. It said he was “intercepted for committing criminal acts” to overthrow the North’s government, but didn’t elaborate. AP

urban residents. But this class is now shrinking, and stands at 60.1 percent of all “peasant workers” in 2016, down from 62.8 percent in 2011.

With the general workingage population declining, lower mobility by rural residents could boost wage gains, posing a competitiveness challenge.

Still, the labor force is better equipped. More held college deg rees or above t han

2015—more than 9 percent— and the age profile is shifting with almost a fifth now being over 50. And if there are fewer stories of teenagers from poor central regions traveling to a Shenzhen factor y job, that’s actually government policy.

Officials wary of unmanageable growth in key cities, including Shanghai and Beijing, have strictly capped the population while encouraging workers to

move to smaller provincial hubs.

Confirming this trend, even though there can be a huge gap between rural and urban wages, countryside pay is growing at a faster pace.

While 52.9 percent of “peasant workers” had jobs in manufacturing and construction sectors, the usual destinations for most of them a decade ago, more are being employed in services: 46.7 percent had jobs in

the tertiary sector, led by with wholesale, retail, residential services, hotel and catering.

That’s up from 44.5 percent in the previous year.

Services accounted for 56.5 percent of China’s economy in the first quarter. Technology, commercial services, real estate, transportation, and lodging and catering all expanded faster than the economy’s 6.9 growth rate.

Bloomberg News

beijing’s exports remained resilient

C

hina’s overseas shipments held up in April amid recovering global demand, and as the threat of a trade war with the US dissipated. Exports rose 8 percent in dollar terms from a year earlier, less than the 11.3-percent increase economists projected in Bloomberg survey, Imports increased 11.9 percent, compared with an estimate for 18-percent growth Trade surplus widened to $38.05 billion.

China’s export outlook has improved on recovering global demand and as the threat of a trade war with its biggest trading partner fizzled. The International Monetary Fund boosted its estimate of global growth this year, brightening the outlook for external demand. Still, both exports and imports missed economists’ estimates, adding to recent evidence that growth may be pulling back after a strong first quarter.

“The latest numbers are consistent with signs of a slowdown from April business surveys,” Bloomberg Intelligence economists Tom Orlik and Fielding Chen wrote in a report. “If the peak for 2017 growth is already in the past, China’s space for progress on a challenging deleveraging agenda will be limited. Diminished scope for higher interest rates will also add pressure for yuan weakness.”

“Growth in expor ts shows robust global demand,” said Xia Le, a Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria SA. “China’s financial deleveraging has just started, and will weigh on the domestic economy. Imports will reflect that trend first.”

“The broader context for China’s export stabilization is the recovery of global economy,” said Tommy Xie, an economist at OCBC Bank in Singapore. “China’s own economy is also off a good start in the first quarter, and the momentum seems to have carried onto April.”

“The upward trajectory for imports and exports is unlikely to hold,” said Michael Every, head of financial markets research at Rabobank Group in Hong Kong. “On the import side, commodity prices are tumbling and credit is being tightened, for now. On the export side, China can’t realistically think it can find a market for its goods 14 percent bigger than last year.”

Shipments to the US climbed 11.7 percent, easing from a 19.7-percent gain in March. Exports to the European Union increased 4 percent, the customs agency said on Monday. Crude imports slipped from a record to equivalent of 8.4 million barrels per day. Bloomberg News

www.businessmirror.com.ph • Editor: Lyn Resurreccion

The World BusinessMirror

Tuesday, May 9, 2017

A7

Macron wins; offers big relief to EU

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ARIS—Emmanuel Macron, a youthful former investment banker, handily won France’s presidential election on Sunday, defeating the staunch nationalist Marine Le Pen after voters firmly rejected her far-right message and backed his call for centrist change.

Macron, 39, who has never held elected office, will become the youngest president in the 59-year history of France’s Fifth Republic after leading an improbable campaign that swept aside France’s establishment political parties.

The election was watched around the world for magnifying many of the broader tensions rippling through Western democracies, including the US: populist anger at the political mainstream, economic insecurity among middle-class voters and rising resentment toward immigrants.

Macron’s victory offered significant relief to the European Union, which Le Pen had threatened to leave. His platform to loosen labor rules, make France more competitive globally and deepen ties with the EU is also likely to reassure a global financial market that was jittery at the prospect of a Le Pen victory.

Her loss provided further signs that the populist wave that swept Britain out of the EU and Donald J. Trump into the White House may have crested in Europe, for now.

“I understand the divisions of our country that have led some to vote for extremists,” Macron said after the vote.

“I understand the anger, the anxiety, the doubts that a great part among us have also expressed.”

Macron pledged to do all he could in his five-year term to bring France together. “I

will do everything I can in the coming five years to make sure you never have a reason to vote for extremism again,” he said later on Sunday evening, standing before the glass pyramid in front of the Louvre, once the main residence of France’s kings, as thousands of flag-waving supporters gathered in the courtyard to celebrate.

But the election results showed that many people chose not to vote for either candidate, signaling skepticism about his project.

But Macron quickly made clear that he understood the magnitude of the task before him after an often angry campaign.

“It is my responsibility to hear and protect the most fragile,” he said.

With nearly 100 percent of the vote counted, Macron had 66 percent, compared with 34 percent for Le Pen, according to the official count from the Interior Ministry.

The outcome was a watershed for Le Pen’s party, the far-right National Front, giving it new legitimacy even though the results showed that the party remains anathema to much of the French electorate for its history of anti-Semitism, racism and Nazi nostalgia.

As significant for France and for Macron’s future, nearly 34 percent of eligible voters did not cast a ballot or cast a blank or null one, suggesting that a large number of people could not bring themselves to vote

French President-elect Emmanuel Macron holds hands with his wife Brigitte during a victory celebration outside the Louvre museum in Paris, France, on May 7. Speaking to thousands of supporters from the Louvre Museum’s courtyard, Macron said France is facing an “immense task” to rebuild European unity, fix the economy and ensure security against extremist threats. AP/Thibault Camus

for him. The abstention rate was the highest since 1969.

That lack of support presaged a difficult road ahead as Macron tries to build a legislative majority to push through his program. French parliamentary elections are next month. Currently, he has no party in Parliament.

“We saw the emergence of very strong anticapitalist forces,” said Gaspard Koenig, the director of the French think tank Generation Libre. Those forces also spoke to the odds stacked against Macron, a former economy minister in the departing Socialist government.

“You have 50 percent of the electorate that reject the market economy in a very radical way,” Koenig added. “Thus, he must during the next five years convince people that there are alternatives to the destruction of capitalism that can help them.”

The runoff election was groundbreaking for being a choice between two political outsiders, as well as for its rancor and for an apparent attempt to sway the vote, with the hacking of Macron campaign e-mails, similar to the attack directed at last year’s election in the US.

Le Pen, 48, conceded the election not long after polls closed in France, saying voters had chosen “continuity”, denying Macron his outsider status and linking him to the departing Socialists.

The vote was a record for the National Front and, she said, a mandate for it to become a new “patriotic and re publ ic a n a l l i a nce” t h at would be “the primar y opposition force against the new president”.

Le Pen earned 10.6 million votes, close to twice the number her father, Jean-Marie Le Pen, received when he ran a

losing presidential campaign against Jacques Chirac in 2002. The 34 percent of the vote Le Pen won was the highest share the French had ever given to her party.

The election was also the first in which the National Front candidate—rather than being a pariah who was shut out of debates and kept off the front pages of major newspapers, as happened in 2002— was treated more like a normal candidate despite the party’s anti-Semitic and racist roots.

After taking over the party leadership in 2011 Marine Le Pen worked to distance the National Front from her father, its founder. Stéphane R av ier, a Nat ion a l Front senator and a close adviser to Marine Le Pen, said the party needed to go further in remaking its identity.

“We will need to make some changes, do things differently,” he said in an interview as the returns came in. “We will have to talk about our positions on the euro with more pedagogy. We may also have to change the name of the party.”

In her concession speech, Le Pen acknowledged that the party had to “profoundly” renew itself to become a “new political force”.

New York Times News Service

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The World BusinessMirror

Tuesday, May 9, 2017

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Bahrain reserves tumble again amid lower oil prices

briefs

Republicans to be rewarded for health-care vote, WH says

WASHINGTON—The Republican Party will be rewarded for doing “what’s right” by voting to overhaul a “failing and collapsing” health-care system. That’s according to White House chief of staff Reince Priebus.

Priebus made that claim as Democrats and at least one outside group began planning to challenge the GOP for control of the House in the 2018 midterm election. The health advocacy group Save My Care is launching a six-figure TV and digital advertising campaign beginning this week, targeting 24 Republican House members who voted to repeal the health-care law.

A political group with ties to House Republican leadership, American Action Network, says it’s buying $500,000 in television time to promote the bill.

Priebus scoffs at the notion that Republicans will lose control of the House in 2018. AP

B

ahrain has been unable to stem the decline in its foreign reserves, as lower oil prices strain the smallest economy among Gulf Arab monarchies. Net foreign assets dropped 11 percent to 645.2 million dinars ($1.7 billion) in February, from the 725.9 million dinars in January, Bahrain’s central bank reported last Sunday.

Overall, they’re down 71 percent from a peak of 2.24 billion dinars in November 2014, according to data compiled by Bloomberg. Bahrain, which pegs the dinar to the dollar, has been more vulnerable to slumping oil prices and regional political instability than richer Gulf Cooperation Council (GCC) states.

$1.7B

Syrian rebels, families start leaving Damascus area

BEIRUT—Syria’s state TV and an opposition monitoring group say hundreds of rebels and their families have begun boarding buses to leave a besieged rebelheld neighborhood of the capital, Damascus, under an agreement between the warring sides.

The evacuation from Damascus’s northeastern Barzeh neighborhood is the first such population movement in this area. Over the past months, tens of thousands of people living in besieged areas around Damascus, Homs and Aleppo—Syria’s largest city—have surrendered after prolonged sieges in exchange for safe relocation to opposition-held areas elsewhere in the country.

The Britain-based Syrian Observatory for Human Rights said hundreds are expected to leave Barzeh to head to the country’s north. It says around 1,500 are expected to leave on Monday and more stages will follow in coming weeks. AP

Pentagon: I.S. in Afghanistan leader killed in April raid

WASHINGTON—A military raid last month killed the head of the Islamic State (IS) affiliate in Afghanistan, the Pentagon said last Sunday night.

The death of Abdul Haseeb Logari had been suspected after the April 27 raid on a compound in Nangarhar, a province in eastern Afghanistan, but officials said then that they were not certain.

Logari was among several high-ranking leaders of IS in Afghanistan who died in the raid carried out by Afghan Special Security Forces in partnership with US forces, the Pentagon said in a statement. AP

Taiwan pushes for inclusion in global health summit

BEIJING—Taiwan is pushing for a last-minute invitation to a World Health Organization (WHO) summit amid rising pressure from Beijing to isolate the island.

Online registration for the 10-day event closed on Monday.

Although Taiwan has attended as an observer since 2009, China has been stepping up diplomatic pressure on Taiwan’s government over President Tsai Ing-wen’s refusal to endorse Beijing’s view that Taiwan is Chinese territory.

Tsai tweeted last Sunday that the self-governing democracy deserves inclusion at the summit scheduled for late May in Geneva.

She linked to an article detailing Taiwan’s “medical magic” and cross-border humanitarian efforts. WHO representatives in Asia and Geneva did not immediately respond to questions. AP

The volume of foreign assets of Bahrain in February Former President Barack Obama is presented with the 2017 Profile in Courage award by former US Ambassador to Japan Caroline Kennedy (left) as former first lady Michelle Obama looks on during ceremonies at the John F. Kennedy Presidential Library and Museum in Boston on May 7. AP/Steven Senne

Obama defends health-care act

W

ASHINGTON—Days after President Donald J. Trump boasted in the White House Rose Garden about the House’s vote to dismantle the Affordable Care Act (ACA), the law’s biggest champion, Barack Obama, left the jibes virtually unanswered last Sunday night during his first major address since leaving the presidency.

Obama, accepting a “Profile in Courage” award from the John F. Kennedy Presidential Library and Museum in Boston, offered only a glancing reference to Thursday’s repeal vote and the efforts by Trump to unwind his legacy.

The former president told an audience of supporters that when it came to health care in America, “the great debate is not settled, but continues”. He said he hoped that members of Congress, “regardless of party, are willing to look at facts and speak the truth, even when it contradicts party positions.”

Obama defended the 2010 health measure, his signature domestic achievement, as the right thing to do, and he praised Democratic members of Congress for voting to pass it despite

the risks to their political future.

“It takes little courage to aid those who are already powerful, already comfortable, already influential,” Obama said, “but it takes great courage to champion the vulnerable and the sick and the infirm.”

Last Thursday Trump celebrated with House members who had voted to repeal major parts of the ACA, declaring, “Welcome to the beginning of the end of Obamacare.”

Obama did not mention Trump during his speech last Sunday, and he did not directly address the attempts to unravel the ACA. As he has throughout his three months out of office, he also avoided any hint of criticism of Trump’s sometimes-chaotic debut.

To weigh in, Obama believes, would be a violation of his duty

as a past president to let his successor operate without hindrance from him. That determination has frustrated some of Obama’s longtime supporters, who are eager to see him challenge Trump’s policies.

Instead, Obama used his address to speak broadly about the need for politicians and citizens to be courageous.

He said Americans were living in a time of “great opportunity, but also great uncertainty and inequality”, made more difficult because of the political discord in Washington and the anger among citizens throughout the country.

“At such moments, courage is necessary,” Obama said. “We need courage to stand up to hate, not just in others, but in ourselves. At such moments, we need the courage to stand up to dogma, not just in others, but in ourselves.”

The award, which recognized Obama’s accomplishments during his eight years in the White House, is meant to evoke the spirit of Kennedy’s 1957 book, Profiles in Courage.

In that work, Kennedy told the stories of eight senators who took unpopular positions despite the risk to their political careers.

“The Kennedys symbolized a set of values,” Obama said to the audience, which included Caroline Kennedy, the former president’s daughter, and Jack Schlossberg, her son. Obama said the Kennedy family epitomized “the idea that

politics, in fact, could be a noble and worthwhile pursuit.”

A statement on the library’s web site called Obama “a moral leader, offering hope and healing to the country”, and described him as a president who “consistently reflected in so many ways, big and small, the definition of courage that John F. Kennedy cited in the opening lines of Profiles in Courage: ‘grace under pressure’.”

Kennedy’s family created the award in 1989 to honor him. Past recipients have included Presidents Gerald Ford and George H.W. Bush; Sen. John McCain, Republican-Arizona; and Rep. John Lewis, Democrat-Georgia and a civil-rights leader.

Obama’s remarks were his second in public in the past two weeks, after months of post-presidential vacationing. He has been criticized for agreeing to deliver private, paid remarks; he reportedly earned $400,000 for a discussion with Doris Kearns Goodwin, a historian.

He is also set to receive $400,000 for a speech at a Wall Street healthcare conference last September.

A spokesman for Obama said in a statement issued late on Sunday that the former president would travel to Milan on May 8 and 9 to visit former Prime Minister Matteo Renzi, participate in a dinner hosted by the Institute for International Political Studies and give a speech at a global food conference.

New York Times News Service

Authorities increased spending in response to the global recession in 2009 and civil unrest two years later as sectarian tensions escalated in the Gulf island nation.

The further drop in foreign reserves comes nearly a month after the International Monetary Fund warned that Bahrain, a close Saudi ally and the home of the US Navy Fifth Fleet, needs to make significant spending cuts to restore stability to its budget and improve investor confidence.

“We expect FX reserves to remain under pressure this year, in part due to financing the current account deficit,” said Carla Slim, Dubaibased economist at Standard Chartered. With authorities expected to preserve the peg, “Bahrain will likely either tap international markets or receive support from other GCC governments” if it needs to boost reserves, she said.

The government went to domestic and international markets last year to finance the country’s 2016 budget deficit of 1.5 billion dinars. Economic growth is forecast to slow to 2.3 percent this year, the lowest level since 2011, according to data compiled by Bloomberg.

The Washington-based International Monetary Fund said in April the drop in crude prices has largely offset “significant fiscal measures that were implemented”, causing the budget deficit and public debt in 2016 to stand at 18 percent and 82 percent of GDP, respectively.

It said fiscal measures could include valued-added taxation and further rationalizing of spending on subsidies and social transfers. Bloomberg News

Appeals court to weigh challenge to revised Trump travel ban

R

ICHMOND, Virginia—After a series of stinging legal defeats, President Donald J. Trump’s administration hopes to convince a federal appeals court that his travel ban targeting six Muslim-majority countries is motivated by national security, not religion.

The 4th US Circuit Court of Appeals on Monday will examine a ruling that blocks the administration from temporarily barring new visas for citizens of Iran, Libya, Somalia, Sudan, Syria and Yemen. It’s the first time an appeals court will hear arguments on the revised travel ban, which is likely destined for

the US Supreme Court. Pointing to the Republican’s promises on the campaign trail to bar Muslims from entering the country, a federal judge in Maryland found in March that the policy appeared to be driven primarily by religious animus.

Attor neys for the US Justice Department say the court shouldn’t rely on Trump’s statements, but on the text of the policy, which they say is necessary to protect the country from terrorism. The banned countries represent just a fraction of the predominantly Muslim countries worldwide, they note.

“The court should have focused

on official acts, not perceived subjective motivations,” the attorneys say in court documents.

The American Civil Liberties Union (ACLU) and National Immigration Law Center say Trump wants the courts to “blind themselves to the ample, public and uncontested evidence” that the policy targets Muslims.

“The basic question in this case is whether the mountain of evidence that exists as to the improper motive is going to be looked at by this court or swept under the rug,” said Omar Jadwat, director of the ACLU’s Immigrants’ Rights Project, who will argue the case on Monday.

In an extraordinary move signifying the importance of the case, the 4th Circuit decided to bypass the three-judge panel that typically first hears appeals and go straight to the full-court hearing.

While the 4th Circuit was long considered one of the most conservative appeals courts in the country, it moved to the center under President Barack Obama, who appointed six of the 15 active judges.

Now, nine judges are Demo c r at ic ap p oi nt e e s a nd f i ve judges are Republican appointees. Chief Judge Roger Gregory was given a recess appointment to the court by President Bill Clinton and was reappointed

by President George W. Bush.

It will likely be weeks before the 4th Circuit issues a decision. And even if the court sides with Trump, the travel ban will remain blocked unless the president also wins in another appeals court.

A federal judge in Hawaii has also blocked the six-country travel ban, as well as the freeze on the US refugee program. A three-judge panel of the 9th US Circuit Court of Appeals will meet next Monday to hear arguments in that case.

Audio of the 2:30 p.m. EDT 4th Circuit will be broadcast live on C-SPAN. The court will also provide a link to the audio feed on its web site. AP

The Regions BusinessMirror

news@businessmirror.com.ph

Editor: Efleda P. Campos • Tuesday, May 9, 2017

A9

Cebu hosts consultation on reintegration program for OFWs

By Charles R. Pepito

C

Correspondent

EBU is hosting the Visayas-wide “Consultation on Enhancing the Reintegration Program for OFWs” (Erpo) on Tuesday at the Cebu Grand Hotel in Cebu City.

This is the last leg of the series of cluster consultation dialogues held this year participated by overseas Filipino workers (OFWs) and representatives from the private business sector, civil-society organizations, national government agencies (NGAs) and local

Beach festival to cap Subic summer bash

By Henry Empeño Correspodent

S

UBIC BAY FREEPORT—The much-anticipated “Summer Siren” beach festival, touted by organizers as one of the country’s most exciting destination festivals, is scheduled to be the culminating event in the tourism repertoire of the Subic Bay Metropolitan Authority (SBMA) this summer.

The three-day festival—set from May 12 to 14—is expected to be the biggest entertainment fare here before the summer break officially closes with the opening on classes on June 5.

The event will transform Subic’s waterfront strip “into a giant entertainment park with beach, music and arts theme,” said SBMA Administrator Wilma Eisma, as she announced the event in a briefing last week.

She said festival organizers have agreed with partner resorts in the area to put up a series of themed pool parties, art workshops and fitness activities by the shore, and evening concerts featuring some of the country’s biggest rock, alternative and pop acts.

The featured artists will include Ron Poe, Quest, Ronthug, Ace Ramos, Borhuh, David Ardiente, DJ Highrise, Up Dharma Down and Gab and John of Urbandub.

“This brings the Subic summer experience to a whole new level,” Eisma said. “We’re very much excited because this has been one of the entertainment concepts for Subic that we really like to push.”

This year’s staging of the Summer Siren Festival is expected to open the floodgates of fun along the waterfront area here and provide a whole new experience to summer visitors in this premier tourist mecca.

Eisma said the SBMA, along with the Subic Bay Freeport Chamber of Commerce (SBFCC) and the Subic Bay Hotels, Attractions and Tourism Stakeholders Visitors Board (SBHATSVB), will sponsor the event.

The festival was previously staged at beach venues in Zambales, but the SBMA and festival organizer Travel Factor signed a memorandum of agreement last week to bring it to the free port.

Eisma said the event will certainly push the already-high number of visitors in the Subic Bay Freeport to record-breaking figures.

Noting Subic has previously been named by the Department of Tourism as the No. 1 tourist destination in Central Luzon, she said the Summer Siren spectacle “would push Subic’s tourism ranking even a notch higher.”

Eisma also said the SBMA will be implementing strict security measures to keep the Summer Siren Festival “drug-free and safe for everybody”.

government units (LGUs).

Dexter F. Paro, regional coordinator of the National Reintegration Center for OFWs (NRCO-7), said sectoral dialogues are sequels of the same activity conducted last year in Luzon, the Visayas and Mindanao.

“This consultation dialogue

will be in line with the Migration Development and Crisis Management Frameworks in the country, a project, whose forefront implementers include the Department of Labor and Employment (DOLE), the Overseas Workers Welfare Administration (OWWA), and NRCO in partnership with the International Organization for Migration.

Apart from host Region 7, other participating regions include Region 6, Region 8 and the Negros Island Region, who are sending participants, including non-governmental organizations and church-based organizations, to the event.

“With this activity, we hope to be able to validate the main and significant action points raised and

tackled in the previous consultation dialogues conducted,” Paro said.

The consultation session would center on reintegration opportunities; policy and program reforms and service systems delivery improvement; and the competitive program commitments on reintegration.

Also to be given premium during the event would be the validation session of the National Reintegration Summit Declaration, expected to be signed during the National Reintegration Summit in June 2017.

“We hope to get substantial inputs from our social partners during the activity, which are instrumental in strengthening the reintegration services provided by the DOLE, OWWA and

NRCO,” DOLE 7 Director Elias A. Cayanong said.

The OWWA and NRCO will be presenting the current National Reintegration Policy, Program and Structure; while the National Economic Development Authority shall be presenting in detail the general economic outlook in the Visayas, as well as the Philippine Development Plan for 2017 to 2022.

“With all inputs and ideas shared and concerns discussed during the event, we hope we will be able to craft a more effective reintegration program that engages the strategic roles of local government, the business community, civil society and other executive agencies of the government,” he said.

PHL, US begin this year’s Balikatan

By Rene Acosta @reneacostaBM

T

HE Philippines and the US formally opened on Monday the Balikatan, with a US military official looking forward to its success despite the pruning of activities as wanted by President Duterte.

After this year’s launch, the joint military exercise will move to the country’s different naval stations in Luzon and the Visayas, including those in Panay, Leyte, Palawan and Samar.

The 11-day joint training exercise between Filipino and American troops was opened at Camp Aguinaldo by exercise directors Lt. Gen. Oscar Lactao and Lt. Gen. Lawrence Nicholson, with the latter saying they were expecting a “great” exercise with their counterparts.

“We’re looking forward to a very productive 33rd Balikatan exercise, and I think this year’s themes were discussed, focusing on the humanitarian aspect, disaster relief and counterterrorism. They are important topics that affect all the nations in the region, and so we are looking forward to a great couple of weeks,” Nicholson said.

Unlike the previous Balikatans, this year’s bilateral exercise has been scaled down, with its activities only focusing on counterterror ism and humanitarian assistance and disaster response, leaving out its joint sea, air and land military operations aspect.

Duterte originally wanted the Balikatan to be included in the list of erased military training activities with the US.

However, it was covered by an existing agreement with the Americans. Duterte said he would honor every agreement the country has with foreign states.

However, while the President allowed the annual bilateral exercise to remain, he said it should only focus in areas of humanitarian assistance and counterterrorism, and nothing more.

Nicholson said they were not disappointed the exercise would only cover counterterrorism and

humanitarian response under its scaled-down activities, noting the scope of the bilateral exercise changes every year.

“I can tell you that every marine, sailor, soldier coming to the Philippines for the exercise will not be disappointed,” he said, adding they are excited with the lined-up activities.

Nicholson said the US considers every opportunity to work with the Armed Forces of the Philippines (AFP) as a privilege.

CHILD-FRIENDLY FESTIVAL QUEEN Before her float paraded around the city, Bb. Santiago City and Balamban Festival 2017 Queen Lachmi Rejoice Lalwani poses with young Nonie as a gesture of her child-friendly advocacy. Santiago City became an independent component city on May 5, 1994. LEONARDO PERANTE II

Pampanga preps up for ‘Big One’

C

LARK FREEPORT—An earthquake contingency plan was drafted as the Pampanga provincial government on Monday gathered public- and privatesector members of the Provincial Disaster Risk Reduction and Management Council (PDRRMC).

The PDRRMC organized the three-day workshop as a study of the Philippine Institute of Volcanology and Seismology (Phivolcs) showed “Pampanga is also at high risk to the effects of the so-called Big One and “we should prepare for the worst before it strikes”, PDRRMC officer Angelina Blanco said.

Phiviolcs said the Big One refers to a scenario where a 7.2-magnitude earthquake would occur as triggered by a shift in the Valley Fault System (VFS), which last moved between 400 and 600 years ago.

The West VFS stretches more than 100 kilometers through Bulacan, Rizal, Metro Manila, Cavite and Laguna. The East VFS runs 10 kilometers in Rizal province.

“Anytime we get a chance to work with the AFP is a privilege for us, and so whether it’s other exercises, whether it’s Balikatan, whether it’s smaller individual efforts, when we get a change to train with the AFP, that’s great for us,” he said.

For operational reasons, the militar y did not disclose the number of US and Filipino soldiers participating in this year’s exercise, although the previous Balikatans were usually attended by more than 7,000 soldiers.

“Pampanga does not sit on a fault line but the fault lines in Bulacan and Zambales are expected to affect us,” Blanco said. “Should cracks happen on Angat Dam in Norzagaray in Bulacan, coastal Pampanga will likely be a catchment of water.”

While earthquakes are among the hazards being addressed by the PDRRM plan, the contingency plan is hazard-specific and contains actual mechanisms for responding to earthquakes, Blanco said.

Vice Gov. Dennis Pined a, PDRRMC vice chairman, said a “contingency plan is deemed vital to ensure that we are prepared and organized to efficiently and effectively respond when it strikes.”

The Office of Civil Defense (OCD) is helping facilitate the workshops in the planning.

The PDRRMC, chaired by Gov. Lilia G. Pineda, consists of the Pampanga provincial government; Pampanga River Flood Forecasting and Warning Center; Philippines Atmospheric, Geophysical and Astronomical Services Administration

(Pagasa); the Department of the Interior and Local Government; Philippine National Police; Armed Forces of the Philippines; the Department of Trade and Industry; National Food Authority; National Telecommunications Commission; the Bureau of Fire Protection; the Philippine Information Agency; Land Transportation Office; the Department of Education and the Department of Public Works and Highways.

The PDRRMC also includes the Association of Barangay Health Workers of Pampanga, Pampanga Association of Water Districts, Pampanga Disaster Response Network, Center for Emergency Aid and Rehabilitation Inc., Pampanga Chamber of Commerce and Industry, Filipino-Chinese Chamber of Commerce and Industry, Philippine National Red Cross and the Pagasa Youth Association.

The provincial government has also updated its DRRM plan through workshops on May 2 and 3, 2017. It incorporated more climate-change mitigation efforts. Ashley Manabat

Crowded port terminals expected for this year’s Guimaras mango fest

I

LOILO CITY—The Philippine Coast Guard (PCG) is preparing for the influx of passengers traveling to the island province of Guimaras for the Manggahan Festival slated from May 11 to 22.

PCG-Iloilo Lt. Comm. Ramil Palabrica on Monday said preparations had started with the deployment of two “floating assets” in the waters of Iloilo and Guimaras this week. Rubber boats with PCG personnel onboard are on standby.

Additional PCG personnel, meanwhile, will be deployed in ports to look after possible overloading of motor bancas.

In coordination with the Guimaras Police Provincial Office and the Iloilo City Police Office, Palabrica said that random inspection would be conducted in port terminals, specifically at the Ortiz Wharf and the Iloilo Ferry Terminal.

Carrying of deadly weapons, firearms and illegal drugs is strictly prohibited. Cindy B. Ferrer/PNA

Tarlac rep deplores House Bills 4774, 4468

By Ashley Manabat Correspondent

C

L ARK FREEPORT—“ The government should not tax the poor.”

Thus, said Rep. Victor Yap of the Second District of Tarlac as he assailed House Bills (HBs) 4774 and 4468, which intend to tax cooperatives like ordinary businesses.

“The removal of any exemption that caters to the poor will certainly be passed back to the poor,” Yap said.

This developed as more than 1,000 cooperative members held a rally at the Maria Cristina Park in Tarlac City on April 29 against HBs 4774 and 4468.

The rally was organized by the Tarlac Provincial Cooperative Council chaired by Gov. Susan Yap-Sulit.

HB 4468 was authored by Rep. Dakila Carlo R. Cua, while HB 4774 was endorsed by Rep. Joey S. Salceda. Both bills intend to generate more revenues to the government by amending the National Income and Revenue Code (Republic Act 9337).

However, HB 4688 also repeals Article 61 (2)(B) of RA 9520, which specifically provides for tax exemptions to cooperatives.

Cooperatives, under the Philippine Cooperative Code of 2008 (RA 9520) and RA 9337, are exempted from other taxes.

During the “anti-HB 4468/4774 rally,” officials from the different cooperatives of the province took turns in lambasting the house bills which they claim are antipoor.

Bernie Fajardo, chairman of the Tamogepa Transport Service Cooperative, questioned the intent of the house bills and said in Filipino, “Why are the elected representatives taxing the poor? Why don’t they tax big business and big-time tax evaders? Wasn’t it reported that government gave a big oil company an over P200-billion tax discount?

Why are they making the poor suffer more?”

Fajardo’s group has been complaining the more than 200 unregistered UV vans have been plying their franchise route since 2010.

Sol Gonzales, chairman of the Abagon Compact Farm and Seeds Growers Multi-Purpose Cooperative of Gerona, Tarlac, noted that “once co-ops are imposed with taxes, they will lose their competitiveness and this will eventually lead to the closing down of cooperatives.”

“The bills will make the Cooperative Code of the Philippines senseless. The tax-free privilege of co-ops is the core of the Republic Act 9520 [Cooperative Code],” Gonzales said, whose group produces hybrid palay seeds, which are sold to farmers and local government units (LGUs) at prices much below the commercial varieties.

“Electricity and water are basic needs. The best and most equitable way we can give the poor an advantage is not to tax them. But those consuming higher could be taxed,” said Yap, who is a former three-term governor of Tarlac.

Nap Ferrer, one of the local critics of the two house bills, noted that the effect of taxing electric cooperatives will hike the cost of power rates and this will be passed on to the poor consumers.

The majority of the households in Tarlac are powered by the Tarlac Electric Cooperative (Tarelco) I and II. Tarelco’s power rate is around P10 per-kilowatt-hour, while the privately owned Tarlac Electric Inc., which powers Tarlac City, charges more than P12 per kWh.

A10 Tuesday, May 9, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial Going backdoor

T

he 30th Asean Summit in Manila may not have resulted in a stronger united stand against China’s aggressive behavior in the South China Sea. But away from the limelight, perhaps, backdoor diplomacy could produce more significant results than official statements and posturing in terms of easing tensions.

Backdoor diplomacy is basically conducting politics out of the view of the public and could be significant in the territorial disputes between the Philippines and China, where neither nation is willing to be seen as backing down or being inferior to the other.

The failure of the Asean to come up with a stronger stand against China’s militarization and land-reclamation activities in the South China Sea at the end of their meeting makes backdoor diplomacy all the more crucial.

President Duterte’s chairman statement did not mention Asean’s concerns nor its member’s individual disagreements with China in the disputed waters. He also did not mention the 2016 Permanent Court of Arbitration’s favorable ruling over the Philippines’s complaint against China’s nine-dash line claim.

We believe Asean must show stronger solidarity on South China Sea issues, since four of the six claimants over its disputed waters are Asean members. Indeed, China seems to be taking its cue from the passive and rather wimpy Asean responses to its aggression.

Asean is a big market for China and pressure from a major trading partner could make China more reasonable, responsible and amenable to finding mutually acceptable solutions.

Asean members must realize they can’t act on threats only when it directly concerns their own countries. They need to work together and act as one to project more strength, especially when dealing with a superpower like China.

We need a stronger, tougher Asean to deal with China, to make it bargain in good faith and treat its neighbors with civility.

But this does not also mean the Philippine government should unnecessarily strain our country’s relations or encourage Cold Front-like tensions with China with sophomoric statements and diplomatic posturing that are only meant to score points with the populace.

Let us not shut our doors to parallel tracks of diplomacy, like those provided by the constant and stable trade relations between Chinese and Filipino business groups.

China is set to be the Philippines’s top trading partner in 2017, according to Trade Secretary Ramon M. Lopez. China is also a significant donor to the Philippines. Duterte’s visit to China last October reportedly yielded about $24 billion worth of deals, including loan facilities and private-sector agreements across different industries.

Some may object to China’s “checkbook diplomacy”, which may be a kind of backdoor diplomacy, too, but we don’t see the harm if such long-standing financial aid could enhance our bilateral ties, for as long as the money given is accounted for transparently, spent as it should be on development projects and doesn’t line the pockets of corrupt government officials.

Our point, again, is that when tensions among nations are at their highest, the more we need to strengthen connections, the more we need to find means and build bridges for maintaining ties, the more we need backdoor diplomacy.

Who knows, we may just find new areas of cooperation with China that could help offset its aggression in the region and, perhaps, even dissuade its incursions and construction of permanent structures in disputed waters.

Backdoor diplomacy is also part of a vigorous national defense, just as valuable as strong, security alliances with other nations. It could certainly bolster our measly military strength and help expand our defense options and security arrangements against any direct or indirect aggression.

Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors

T. Anthony C. Cabangon

THE Entrepreneur Continued from A1

L

aws, as well as procedures in implementing them, must keep up with the changing times if they are to remain true to their intent.

This is why I commend moves in the Senate to tackle laws that have become archaic with the passage of time.

One area that I believe deserves attention is land administration, including titling, because of its huge impact on the current housing shortage and investments.

I’m talking about reforming laws on titling and patenting. Right now, it is very difficult to secure titles and even tax declarations.

The process takes a long time. The landowner needs to hire a lawyer, gather the required documents, pay for a cadastral survey and follow up with government offices, a process

that takes one or more years.

Landholders feel secure if they have titles because they can use their lands as collateral for loans, according to Racho Glicerita Racho, chief of the operations unit of the Provincial Project Implementation Office of the Department of Environment and Natural Resources (DENR), which oversees the Second Land Administration and Management Project (LAMP2).

In a paper presented at the Expert Group Meeting on Secure Land Tenure: New Legal Frameworks and Tools, United Nations Economic and Social Commission for Asia and the Pacific—in

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

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The paper described the land administration system in the Philippines as, generally, neither efficient nor effective because of multiple and conflicting laws on titling, multiple land titling process, poor land records information and management system, multiple agencies on titling and on land valuation and multiple taxes on land transactions.

Bangkok, Thailand in December 2005, Assistant Environment Secretary Analiza Rebuelta-Teh said about 47 percent of the Philippines’s total land area of about 30 million hectares are classified as alienable and disposable lands.

These consist of 24.2 million parcels, but only 13.1 million are titled.

She noted that 60 percent of the real property of the Philippines were being held without legal titles.

The paper described the land administration system in the Philippines as, generally, neither efficient nor effective because of multiple and conflicting laws on titling, multiple land-titling

‘Money Monster’ and the PSE

Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug

Ruben M. Cruz Jr. Angel R. Calso

MEMBER OF

Manny B. Villar

Jun B. Vallecera

Online Editor Social Media Editor

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Reforming archaic land laws

John Mangun

OUTSIDE THE BOX

H

ollywood has never been flattering to Wall Street.

Perhaps, the first in 1932 was The Crash, a story about the philandering wife of a stockbroker who trades marital infidelity for hot tips on the market from other investment gurus.

Reading the lines from some of the most notable films gives you a clear idea of what the film industry and, probably, the public thinks of the stock market. Gordon Gecko in Wall Street: “The point is, ladies and gentleman, that greed, for lack of a better word, is good”. Boiler Room has the main character Seth Davis saying, “So I went the white boy way of slinging crack-rock: I became a stock broker”. And also, “We lie, we’re liars”.

A recent film based on a true story, as are many of them—The Wolf of Wall Street—also pulled no punches and included this exchange between the two protagonists. “The name of the game; moving the money from

the client’s pocket to your pocket”.

“But if you can make your clients money at the same time it’s advantageous to everyone, correct?”

The answer is simply “no”.

The latest installment in the saga is a George Clooney tale called “Money Monster”. It is definitely a film for stock-market participants. There are various subthemes, such as high-frequency trading and corporate fraud. But the trust is the responsibilities the “gurus” and “experts” owe to the people that follow their words of wisdom.

While absolutely a “work of fiction”—at least according to the disclaimer—there is no doubt to any-

one that knows the stock market that this is taken from real-life “expert” Jim Cramer and his famous Mad Money financial news television program.

Cramer is a very rich former hedge-fund manager who is also very famous—as is Clooney in the movie —for his stock-market advice.

In particular, Cramer told a call-in viewer on Tuesday, March 11, 2008, that “No. No. No. Bear Stearns is fine.

Do not take your money out. Bear Sterns is not in trouble. Don’t move your money from Bear. That’s just being silly. Don’t be silly”.

Bear Sterns shares were trading at $68 when Cramer said that.

By Friday, March 14, the share price was $54.24 and when Monday, March 17, came, the closing price of Bear Sterns was $3.17, down 95 percent. Like they say, truth is stranger than fiction.

Mad Money is still going strong.

Bear Sterns lies rotting in the grave, washed by the tears of some investors who took Cramer’s advice.

The question of why Filipinos do not invest on the Philippine Stock Exchange (PSE) has many answers.

The 1970s was a period of stockmarket cronyism. Stock investing tends to be hereditary. Filipinos

process, poor land records information and management system, multiple agencies on titling and on land valuation and multiple taxes on land transactions.

The situation resulted in a highly inefficient and inequitable land markets in the country. In turn, this resulted in reduced economic activity and government revenues, thereby hampering economic growth and development.

The DENR paper was presented in 2005, but the situation it describes persists to this day.

I hope, this time, our lawmakers will focus on reforming land laws so landowners will be able to benefit from their properties.

In addition, an efficient land administration system will encourage more investments in the property industry, including housing and industrial zones.

This is significant, considering that the 6 million units of housing backlog and the need to open up sites for factories and industries. It’s a huge capital that will remain idle unless we reform our land administration system.

For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

need to be more financially literate. Disposable income is not yet large enough after other financial needs for stock investing.

But the truth is, Filipinos do not trust the stock market. They do not trust the stock brokerage firms. They do not trust the stockbrokers in general. They do not trust the “gurus” and “experts”.

And why should they?

There is nothing inherently or systemically crooked with our stock market. But even the lightest question about any impropriety by the brokers or listed companies is met by the exchange with vigorous denial and defense. There is rarely, if ever, a public response, such as, “Maybe we should look into this issue a little deeper”. It is usually, “Absolutely not true. Next question?”

Trust, especially when it comes to your money, is earned, not simply given until broken. And if public participation is any indication—and it is—the PSE has not gained public confidence, deservedly or not.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

opinion@businessmirror.com.ph

PCO rises to the occasion Our precious soil Ernesto M. Hilario

ABOUT TOWN

I

F the recent Asean Summit in the Philippines was a smash hit, credit should go to President Rodrigo R. Duterte as chair of the event.

But those who worked behind the scenes to make the event a highly successful one were the officials and staff of Presidential Communications Office (PCO) headed by Presidential Communications Secretary Martin M. Andanar. They worked hard to ensure that information regarding Asean 2017 would be properly disseminated to both mainstream and social media.

As lead agency of the Asean 2017 Committee on Media Affairs and Strategic Communications (CMASC) the PCO spared no effort to make Filipinos and the international community gain better awareness and understanding of what Asean 2017 was all about.

The CMASC took charge of setting up the International Media Center at the Conrad Hotel for the summit. The Media Center accommodated over a thousand local and international media personnel, with state-of-theart equipment, high-speed Internet, news rooms, comfortable lounges and free food.

The CMASC also provided media support, registration and accreditation for the meetings and various communication activities to promote better appreciation of the goals and programs of Asean.

The committee created a web site and opened several social media accounts as channels of information to promote strategic messaging direction and content for Asean 2017.

These included over a hundred news and feature articles used in both mainstream and social media, as well as photo services. Media coverage reached a broader audience via livestreaming of the events handled

by Radio-TV Malacañang.

The CMASC worked closely with the National Commission on Culture and the Arts (NCCA) to launch the official music video on Asean 2017.

They also conducted school tours to promote awareness of Asean and the significance of Philippine chairmanship of the regional bloc, that is celebrating its 50th anniversary this year. Apart from these, they produced a digital show entitled, “#ASEAN2017 in Focus”, to highlight the importance of our chairmanship of this year’s event.

PCO also conducted roadshows around the country to explain to the public Asean’s current thrusts and activities 50 years after its founding, how it is relevant to the people and how it can impact their daily lives especially in uplifting

As lead agency of the Asean 2017 Committee on Media Affairs and Strategic Communications, the PCO spared no effort to make Filipinos and the international community gain better awareness and understanding of what Asean 2017 was all about. their economic situation.

What is even more remarkable is that the PCO worked practically round the clock as it had only six months to make the necessary preparations for Asean 2017.

Harbor Link project

Malacañang recently unveiled “DuterteNomics,” the inclusive growth and development strategy of the administration anchored on an ambitious infrastructure buildup. At about the same time, government officials and executives of the Metro Pacific Investments Corp. (MPIC) conducted an inspection of the soon-to-be-finished Segment 10 of MPIC’s North Luzon Expressway (Nlex) Harbor Link Project.

The Harbor Link road underscores the pivotal role that MPIC, under the leadership of its chairman, Manny V. Pangilinan, now plays in the Duterte administration’s much-touted “Golden Age of Infrastructure.”

The 5.7-kilometer Segment 10 is the second and last portion of the Nlex Harbor Link and forms part of the government’s “Build, Build, Build” agenda.

The project is significant for several reasons.

First, it serves as the opening salvo of this year’s infra buildup.

Second, it directly addresses the worsening traffic situation along Edsa and C-5.

Third, it is expected to drive trade and commerce between the Manila harbor area and Central and North Luzon, creating new jobs and business opportunities, while finally solving the congestion in Manila ports.

Fourth, it has been heralded by its builders as an “engineering marvel”, given the construction innovations used to speed up the completion of this all-elevated expressway.

To be continued

E-mail: ernhil@yahoo.com.

Edgardo J. Angara

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he Philippines remains among the world’s most vulnerable to climate change. German Watch’s recent Climate Risk Index 2016, for instance, ranks the Philippines fourth in the world’s top 10 countries most affected by climate change in the past 20 years.

According to the study’s authors, “tropical storms and heavy precipitation and flooding” were among the primary reasons the Philippines often lands on the index’s top 10.

This ranking, however, does not even take into account other factors that make the country even more vulnerable to climate change.

Sea-level rise in the Philippines is among the fastest in the world. And land degradation is an unabated

problem the Philippines has been battling for decades.

The Philippines encompasses roughly 30 million hectares of land area, 41 percent of which (around 9.516 million hectares) were considered agricultural in 2014 by the World Bank. According to the latest estimates of the Bureau of Soils and Water Management, up to 45 percent of the country’s arable lands are either moderately or severely eroded

Tuesday, May 9, 2017 A11

due to massive deforestation and use of unsustainable land management practices, such as excessive use of urea for farming.

Climate change exacerbates land degradation, as more extreme weather turns formerly arable lands into deserts, impairing their agricultural productivity or their capacity to sustain biodiversity. This has farreaching consequences. More and more Filipinos will be dependent on fewer and fewer parcels of land for food and other resources.

We should now give considerable thought to how the country should use its increasingly limited land, making it all the more important for land-intensive industries, like mining, to ensure their operations are responsible and sustainable.

Several cases around the world, including the Philippines, have been documented on how poorly monitored mining operations have contaminated not just the underground and surrounding waters,

but also the adjacent lands. Heavy metal contamination of soil and gravel deeply jeopardizes whatever use future generations would have for such lands and waters.

In 2014 UP Los Baños scientists, led by Dr. Edwino Fernando, reported the discovery of a new species of plant that naturally consumes large amounts of nickel from the soil. Such an unusual trait makes the plant (R. niccolifera) a prime candidate for use as an effective biological tool to rehabilitate former mining sites.

For the mining industry to become, and perceived to be, a helpful rather than a hazardous instrument of development, more of such bio-remediation species must be identified and deployed extensively in our mines. That would nicely complement more bio-friendly and responsible mining.

E-mail: angara.ed@gmail.com, Facebook and Twitter: @edangara.

Callamard must be held liable for spreading disinformation Cecilio T. Arillo

database

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fficials of the Philippine Commission on Human Rights (CHR) are liable for allowing United Nations (UN) Special Rapporteur Agnes Callamard to spread lies and disinformation about the country’s drugs problem, which tend to besmirch the reputation of President Duterte.

Talking before CHR officials and human-rights advocates last Friday, Callamard was quoted as saying: “In April 2016 the general assembly of the world’s government recognized explicitly that the war on drugs does not work.”

The UN resolution, adopted by the General Assembly on April 19 at its 13th Special Session, a copy of which was made available to Database, never made such a declaration in any way.

The resolution read in part: “We recognize that, while tangible progress has been achieved in some fields, the world drug problem continues to present challenges to the health, safety and well-being of all humanity, and we resolve to reinforce our national and international efforts, and further increase international cooperation to face those challenges; “We reaffirm our determination to tackle the world drug problem, and to actively promote a society free of drug abuse in order to help ensure that all people can live in health, dignity and peace, with security and prosperity, and reaffirm our determination to address public health, safety and social problems

resulting from drug abuse; “We note with concern that the availability of internationally controlled drugs for medical and scientific purposes, including for the relief of pain and suffering, remains low to nonexistent in many countries of the world, and we highlight the need to enhance national efforts and international cooperation at all levels to address that situation by promoting measures to ensure their availability and accessibility for medical and scientific purposes, within the framework of national legal systems, while simultaneously preventing their diversion, abuse and trafficking, in order to fulfill the aims and objectives of the three international drug-control conventions; “We recognize that the world drug problem remains a common and shared responsibility that should be addressed in a multilateral setting through effective and increased international cooperation and demands an integrated, multidisciplinary, mutually reinforcing, balanced, scientific evidence-based and comprehensive approach; “We reaffirm our unwavering commitment to ensuring that all

Talking before CHR officials and human rights advocates last Friday, Callamard was quoted as saying: “In April 2016, the general assembly of the world’s government recognized explicitly that the war on drugs does not work.”

The UN resolution, adopted by the General Assembly on April 19 at its 13th Special Session, copy of which was made available to Database, never made such a declaration in any way. aspects of demand reduction and related measures, supply reduction and related measures and international cooperation are addressed in full conformity, with the purposes and principles of the Charter of the United Nations, international law and the Universal Declaration of Human Rights, with full respect for the sovereignty and territorial integrity of States, the principle of nonintervention in the internal affairs of States, all human rights, fundamental freedoms, the inherent dignity of all individuals and the principles of equal rights and mutual respect among States; “We underscore that the Single Convention on Narcotic Drugs of 1961 as amended by the 1972 Protocol, the Convention on Psychotropic Substances of 1971-74 the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988 and other relevant international instruments constitute the cornerstone of the international drug-control system; “We reaffirm our commitment to implementing effectively the provi-

sions set out in the political declaration and plan of action, mindful of the targets and goals set therein, as well as to addressing the general challenges and priorities for action identified in the Joint Ministerial Statement adopted at the high-level review in March 2014; “Law enforcement interventions aim to restore the rule of law, the cornerstone of governance and sustainable development, and can also influence the availability of drugs in illicit markets, not only by reducing supply through interdiction but also by increasing the risk for traffickers, which raises the price of drugs in consumer markets.”

In its resolution the UN also reaffirms its “unwavering commitment to ensuring that all aspects of demand reduction and related measures, supply reduction and related measures...with full respect for the sovereignty and territorial integrity of States and the principle of non-intervention in the internal affairs of States”.

This is exactly what President Duterte is doing in his relentless campaign against users, pushers, manufacturers, smugglers and most of all, drug lords, whose tentacles spread in all sectors of society.

According to the Philippine Drugs Enforcement Agency, the illegal drugs trade is a P120-billiona-year industry that supplies illegal drugs in many parts of the country.

In less than eight months of President Duterte’s anti-drugs campaign, some P14.49 billion worth of illegal drugs have been confiscated.

Spreading lies and disinformation is a crime, more so if CHR officials have colluded with Callamard.

To reach the writer, e-mail cecilio.arillo@ gmail.com.

Natl Committee on Intellectual Property Rights: Key element of IPR enforcement Josephine Rima-Santiago

Intellectual Property Matters

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pecial 301 Report. For four years in a row, the Philippines has been out of the United States Trade Representative (USTR) Special 301 Watch List, after having been included for more than 20 years. Significant legal reforms, most notable of which was the amendment of the Intellectual Property Code in 2013 providing enforcement powers to the Intellectual Property Office (IPOPHL) and strengthening the copyright laws, were instituted.

The Special 301 mechanism for annual review by the US seeks to evaluate the level of protection and enforcement of intellectualproperty rights (IPRs) of its trading partners. The recently released 2017 USTR Report puts eleven countries on the Priority Watch list, while 23 are on the Watch List. The

Philippines maintained a positive momentum, and has continued to enhance the IP regime by addressing issues and challenges, effectively meriting a net positive rating for the country. This key development capped off the celebration of the National Intellectual Property Rights Month in April.

National Committee on Intellectual Property Rights (NCIPR).

On June 21, 2008, then President Gloria Macapagal-Arroyo signed Executive Order 736, creating an interagency body that would formulate and implement plans and policies, as well as strengthen the protection and enforcement of intellectual property rights in the country. The NCIPR is composed of 12 members, with the Department of Trade and Industry as chairman and the IPOPHL as vice chairman.

The other NCIPR members are the Department of Justice, Department of the Interior and Local Government, Bureau of Customs, National Telecommunications Commission, National Bureau of Investigation, Philippine National Police, Optical Media Board, National Book Development Board, Food and Drug Administration and the Office of the Special Envoy on Transnational Crime.

This strategic partnership has

The Special 301 mechanism for annual review by the US seeks to evaluate the level of protection and enforcement of intellectualproperty rights of its trading partners. The recently released 2017 USTR Report puts 11 countries on the Priority Watch list, while 23 are on the Watch List. The Philippines maintained a positive momentum, and has continued to enhance the IP regime by addressing issues and challenges, effectively meriting a net positive rating for the country.

been lauded by other countries and IPOPHL’s international partners as a “best practice”, because the collaboration among the agencies provides a holistic government approach to the challenges of curbing IPR violations. Reducing, if not eliminating, IPR violations is one of the key objectives of the NCIPR to ensure the

protection of the welfare and health of Filipino consumers.

The IPOPHL, as vice chairman of the NCIPR, is tasked to lead the coordination efforts among the memberagencies and ensure the continued conduct of activities by the NCIPR. NCIPR activities include the organization of high-level meetings among the member-agencies to establish ownership of the enforcement-related activities by the decision-makers; the annual IP Summit that brings together key players from the government and the private sector, including international organizations and partners, IP owners and IP practitioners; and conduct of education and awareness campaigns under the auspices of the IPOPHL. In 2016 alone, the combined efforts of the NCIPR members resulted in the seizure of counterfeit and pirated goods with a total estimated value of P6.2 billion. The goods seized were mostly watches and jewelry (P2.15 billion), cigarettes

and alcoholic beverages (P1.61 billion), optical media (P1.05 billion), handbags, shoes and computer/ICTrelated items, including medicines.

The NCIPR members will serve as key resources in the formulation of the National Intellectual Property Strategy (NIPS) of the Philippines, a project also being undertaken by the IPOPHL in collaboration with the World Intellectual Property Organization, which will be launched on May 30. The development of the NIPS follows a “whole of government” approach and will involve key players in the government and the private sector.

The NIPS to be formulated is key to the future development of the IP system in the Philippines.

Josephine Rima-Santiago, Ll. M., is the director general of the Intellectual Property Office of the Philippines. She has more than 20 years of extensive experience in the area of intellectual property as a public official, an educator, practitioner and researcher. E-mail: jrsantiago@columnist.com.

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www.businessmirror.com.ph

No final decision yet on Duterte visit to US as Manila awaits formal invite T

By Elijah Felice E. Rosales

@alyasjah

he administration is not totally discounting the possibility of President Duterte visiting the White House, as the Department of Foreign Affairs (DFA) said it is still awaiting formal invitation from Washington before a decision could be made, the DFA’s spokesman disclosed on Monday.

At the sidelines of a news briefing in Malacañang, DFA Acting Spokesman Robespierre L. Bolivar said the Palace and the White

House have yet to discuss about the possibility of Duterte meeting his United States counterpart Donald J. Trump anytime soon.

“We have yet to receive a formal invitation from the White House,” Bolivar said. “If a formal invitation comes and if the President accepts it, we will formally convey the acceptance and then we will work out the diplomatic details after that.”

Bolivar noted that Duterte can only accept or reject an invitation if it comes under the standard diplomatic practice, which does not include a mere phonecall conversation between two leaders. But the foreign affairs a c t i n g s p ok e s m a n a d m it t e d Manila is look ing for ward to Washington’s inv itation.

Trump called Duterte on the night of the Asean Summit on April 30. Notably, the Philippine leader on the same day said he

If a formal invitation comes and if the President accepts it, we will formally convey the acceptance and then we will work out the diplomatic details after that.”—Bolivar

would plead Trump to not go to war with North Korea.

Citing the inevitable damage of a nuclear crackdown, Duterte played the peacemaker role in the row between Pyongyang and Washington.

“Who am I to say that he should stop? But I will say, ‘Mr. President [Trump], just see to it there is no war because my region [Asean]

will suffer immensely—the first fallout would be us and Asia.’

It’s very near and very dangerous,” Duterte said in a previous news briefing.

“I’m sure President Trump by now is cautioning his military to just hang on there and not to start something that they cannot control. And it behooves upon

America who wields the biggest stick just to really be prudent and patient,” he added.

Diplomatic relations between the Philippines and the US somewhat dampened last year, when Duterte verbally lambasted former President Barack Obama for criticizing his war against drugs.

On the contrary, Trump expressed support for Duterte’s brutal crackdown, which already claimed thousands of lives and gathered international condemnation.

The White House has since defended Trump’s decision to invite Duterte, saying the issues facing the world right now, particularly the development in North Korea, were so serious the US needs to cooperate with its partners in the region.

PIÑOL WANTS BENHAM DECLARED AS FOOD SUPPLY EXCLUSIVE SITE

By Jasper Emmanuel Y. Arcalas @jearcalas

NEW TERMINAL With the operation of a new terminal for south bound provincial buses, the Metropolitan Manila Development Authority has advised the public of the changes in the respective routes of city buses and all Cavite and Batangas provincial buses bound for Metro Manila in line with the transfer of the Southwest Integrated Provincial Terminal from Coastal Mall in Parañaque City to the HK Sunplaza in Pasay City. NONIE REYES

World will get to know Dutertenomics at WEF

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he so - c a l led Duter te nomics is set to take spotlight in the global arena, as President Duterte is scheduled to present the administration’s economic thrust at the World Economic Forum (WEF) on Wednesday, the Department of Foreign Affairs (DFA) revealed on Monday.

“The President has been given the opportunity to address international investors regarding his economic plan,” DFA Acting Spokesman Robespierre L. Bolivar said in a news briefing in Malacañang.

“In particular, the organizers of WEF have given the President, I think, a press conference to address the business leaders and CEOs who are present to promote Dutertenomics and his socioeco-

Cimatu. . .

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A study conducted by the BusinessMirror revealed that 16 companies engaged in ore extraction, cement production and quarrying were able to expand their mining areas through amendments of their existing MPSAs. With this, mining areas grew by a total of 35,067.35 hectares.

There are currently 317 existing MPSAs covering a total of 603,158.21 hectares as of April 30, according to the Mines and Geosciences Bureau’s (MGB) web site. Some of the MPSAs have expired, consolidated, or canceled, but with some still under appeal.

nomic agenda,” Bolivar added.

Dutertenomics, which was unveiled more than two weeks ago, is aimed at completing big-ticket infrastructure projects, such as the North Luzon Expressway Harbor Link, Luzon Spine Expressway, Philippine National Railway North and South Rails and the Metro Manila Subway.

This earned the administration’s economic plan the label “golden age of infrastructure”.

Bolivar said Duterte is most likely to discuss connectivity projects with his fellow leaders, given that it was the administration’s focal point and the Asean’s as well, which he chairs this year.

“We expect that it [connectivity and infrastructure projects] will be

a main topic of discussion and one of the agenda items that the President will push for in the forum,” the DFA official noted.

The administration has allocated P3.6 trillion for its infrastructure over the next three years, most of which directed toward transportation projects in Metro Manila and other major cities.

Duterte’s economic managers said they intend to spend P8.6 trillion on 64 big-ticket projects, comprised of new roads, railways, bridges, airports and seaports.

They view infrastructure spending as key toward boosting the country’s economic activity and competitiveness.

On the other hand, the Asean recently launched the roll-on, roll-

off (Roro) cargo shipping between the Philippines and Indonesia. The newly operated Roro is aimed at connecting Davao City with General Santos City, located south of Mindanao, and with Bitung City in eastern Indonesia.

The Roro cargo shipping promised to cut shipping time and eventually the cost of travel, from the usual three weeks to five weeks down to a mere 36 hours.

Duterte is set to fly to Cambodia on May 10 for the WEF, before heading to Hong Kong on May 11 to meet with the large Filipino community there. His three-state swing will end in China, where he is set to participate in the Belt and Road Forum to be held on May 14 and 15. Elijah Felice E. Rosales

The expansion of mining areas was done through “annexation” of areas covered by existing MPSAs, ironically despite the ban on new mining projects and the processing of mining application following the signing of Executive Order (EO) 79 by former President Benigno S. Aquino III in July 2012. Aquino’s mining policy sets the framework that will guide the government and other stakeholders in the implementation and operationalization of mining laws, rules and regulations.

The annexed areas are covered by separate mining-permit applications, including exploration. Interviewed on the sidelines of a mine tour at the Masbate Gold Project mine in Aroroy, Arcilla, also president of Solid Earth Sciences of Asia Oceania Geosciences Society,

said the expansion of mining tenements not within the regular procedure of mining tenement acquisition is “highly suspicious”.

“I know that during the time of P-Noy [Aquino], P-Noy was against mining, as shown by the moratorium, not on mining, but on new tenements,” Arcilla said. “If indeed there have been expansion not within the regular procedure of tenement, for the sake of transparency, it must be looked into,” he said.

The process of tenement acquisition is carefully laid under the Philippine Mining Act of 1995, he said. Under the law, he added mining companies have to do “a lot of things”as part of the permitting process before securing a mining tenement. This is to ensure that

safeguards are put in place and that there will be minimal environmental impact in the area to be developed or exploited.

According to Arcilla, expanding an area covered by the MPSA by merely amending it to annex another area is highly irregular.

Arcilla said that EO 79 is an EO that threads on established law—referring to the Philippine Mining Act of 1995.

“An EO is like a presidential decree, it is like Marcosian dictatorship. It’s basically an EO that steps on the Philippine Mining Act that was debated upon for many years by no less than the Supreme Court,” he lamented.

Arcilla said the mining industry, particularly the Chamber of Mines of the Philippines (COMP), is to be blamed for not questioning the legality

T

he Department of Agriculture (DA) said it will oppose oil exploration in the 13-million hectare Benham Rise, as it would threaten the “abundant” fish supply in the area.

Agriculture Secretary Emmanuel F. Piñol said on Monday he would propose to President Duterte to declare the Benham Rise a “Protected Food Supply Exclusive Zone” to shield it from possible mineral and oil explorations.

“Just like any delicate ecosystem, there is a need to protect and conserve the Philippine Benham Rise as a food source for future generations of Filipinos. I will recommend to President Duterte that the Philippine Benham Rise should be declared as a Protected Food Supply Exclusive Zone,” Piñol said in a statement on May 8.

“As such, the Benham Rise should be protected from destructive mining and oil exploration. It is my belief that the country will benefit more if it will protect and conserve the Philippine Benham Rise because, while minerals and

of Aquino’s mining policy.

“The Chamber of Mines should challenge EO 79. They are soft on it. It’s like Johnny come lately. If it is true, that an expansion or annexation was done not under established law, but on basis of an IRR of an EO, it is travesty of justice,” he said.

President Duterte on Monday appointed Cimatu as environment secretary. Cimatu is also the special envoy to the Middle East.

“We welcome with cautious optimism the appointment of former AFP Chief of Staff Roy Cimatu as secretary of environment.

We hope that his appointment finally answers our long-held call for a DENR secretary who has a balanced appreciation for environmental protection and natural

oil supply are finite, the capacity of the fish species in the area to multiply is limitless,” Piñol added.

The agriculture chief made the pronouncement following his three-day expedition to Benham Rise, which started on May 5. Piñol led the expedition together with a team from the DA and the Bureau of Fisheries and Aquatic Resources (BFAR), which conducted a research on the production potential of Benham Rise.

“During the 17th Cabinet Meeting in Malacañang today [May 8], I will make a report to President Duterte and members of the Cabinet on the outcome of the three-day Philippine Expedition to the Philippine Benham Rise,” Piñol said.

Piñol said he would recommend to Duterte and the Cabinet the construction of various facilities in Benham Bank, the shallowest portion of Benham Rise, including a research center for marine scientists, a dock for the local fisherfolk, an ice-making plant to keep fish catch fresh, a station for the Coast Guard and a weather radar station.

See “Benham,” A2

resources management. His sterling record in government service speaks well of Gen. Cimatu, and we look forward to meeting him in the near future,” Ronald Recidoro, vice president for Legal and Policy of the COMP, said in an official statement.

Kalikasan-People’s Network for the Environment said as former AFP chief, Cimatu’s appointment does not bode well with environmentalist. Antimining group Alyansa Tigil Mina said the former AFP chief of staff “has a lot to prove that he can champion the poor and marginalized sectors against destructive mining companies. We hope that he was not appointed to be a simple ‘yes man’ of mining companies and the corrupt government officials.” With Elijah Felice E. Rosales