BusinessMirror October 21, 2019

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STANDING TALL Visiting Indian President Shri Ram Nath Kovind delivers his message at the unveiling ceremony of the bust of India’s beloved leader—and global icon for peaceful change—Mahatma Gandhi at the Miriam College in Quezon City at the weekend. NONOY LACZA

BEYOND DISSENT, NENE WAS A GREAT BUILDER

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HE Senate and the Constitutional Commission (Con-com), two institutions where he best left his mark in public service beyond his immortal image as defender of democracy, deeply mourned on Sunday is the passing of former Senate President Aquilino “Nene” Pimentel Jr. Senate President Pro Tempore Ralph Recto recalled Pimentel’s “courage of conviction” in a statement hours after Pimentel succumbed to complications of lymphoma at age 85. “While others sought comfort in numbers, Nene drew strength from his conviction,” Recto said, recalling Pimentel as “a maverick who could not resist a good fight, many of which by his lonesome, for he believed that one man with courage was enough to make a majority.” Recto noted that Pimentel, who rose to fame as

Cagayan de Oro’s fighting mayor but held national office after the 1986 Edsa Revolt, “paid dearly for being true to his principles and to his people. “He spent years in prison for fighting for the freedoms which were taken from the people he loved,” Recto said, adding that later, “his incurable independent streak lost him the chance to acquire greater power, for he refused to compromise the values he never sold.”

Beyond dissent: Great builder

Still, Recto said “it would be wrong to paint” Pimentel “solely as a great dissenter” because he was “also a great builder—of local autonomy, of just peace among a people fatigued of war, of grassroots democracy, of Mindanao development, of ethics in public service.” Continued on A2

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2018 ejap journalism awards

business news source of the year DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

A broader look at today’s business

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Monday, October 21, 2019 Vol. 15 No. 11

P25.00 nationwide | 6 sections 36 pages | 7 days a week

‘Rice imports safeguard duty won’t spur inflation’

Seoul’s push on tariff cuts stalls FTA talks with PHL By Elijah Felice E. Rosales

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@alyasjah

HE Philippines will no longer see its second bilateral free-trade agreement (FTA) materialize by November, as negotiators slow down talks after South Korea reportedly became more aggressive in pushing for tariff cuts. Trade Secretary Ramon M. Lopez said FTA talks with South Korea are becoming difficult lately, as its negotiators are seeking too many concessions from the Philippines. As such, it will be better to prolong the negotiations, passing on the November deadline in the process, than give in to the demands, he added. “Negotiations there [FTA with South Korea] are becoming difficult. South Korea is demanding too many concessions in exchange of what we are asking. The bottom line is we’re still inching and inching closer [to a compromise],” Lopez told the BusinessMirror. “That’s just how things are: we should not give in to everything their negotiators will be asking just to get our demands. It has to make sense,” he argued. A source privy to the matter said South Korea wants the Philippines to bring down its tariffs on automobile and car parts at a drastic rate and with a faster schedule. “We want them to reduce their tariffs on banana and agricultural products and they are asking us to do the same for automobile parts and industrial items. See “FTA,” A2

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By Jasper Emmanuel Y. Arcalas

@jearcalas

HE imposition of a safeguard duty on rice imports to protect rice farmers from the detrimental effects of an import surge is not inflationary, a former ranking agriculture official said at the weekend, disputing the claim of economic managers. Inflation won’t be an issue since the volume of domestic stocks is already high due to the influx of imported rice after the rice trade liberalization law took effect earlier

this year, former Agriculture Undersecretary Segfredo R. Serrano explained. The National Economic and Development Authority (Neda) had

57.7% The expansion in the country’s total rice inventory as of September 1, 2019—to 1.842 million metric tons from 1.168 million metric tons recorded in the same period last year, per Philippine Statistics Authority (PSA) data

harped on the inflationary impact, which the DA cited as basis for scuttling the safeguard duty investigation. Related story in Agriculture page, A5. “Considering the situation where you have a lot of stocks already, I

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@caiordinario

IBERALIZING trade in services in Southeast Asia will increase the demand for semi-skilled Filipino workers, according to a trade expert. In an Asian Development Blog published by the Asian Development Bank (ADB), Kakali Muk-

PESO exchange rates n

By Lorenz S. Marasigan

don’t think so [that safeguard duties will be inflationary],” Serrano told the BusinessMirror in an interview. “Kasi magse-safeguard ka if may excess [volume which is] prejudicial to your producers. How can it be inflationary if [a] lot of imported rice entered the market due to a deregulated industry?” Serrano argued. Serrano said the economic managers should prove that it is inflationary given the current situation of the rice industry, wherein stocks are high while farm-gate prices are continuously declining. The government, he added, could have opted to impose the safeguard duties and assess after wards if the consequences of the trade remedy are indeed inflationary.

HILE the alignment of the future subway system in Metro Manila has been finalized, the Department of Transportation (DOTr) remains open to studying new solutions to further improve the so-called project of the century. Responding to an earlier statement made by Sen. Grace Poe, Transportation Secretary Arthur P. Tugade said a review of the alignment and the cost of the P365-billion railway facility in Metro Manila is already too late at this point, as the plan has already been approved by the National Economic and Development Authority (Neda). “The alignment will not be changed anymore because the

See “Safeguards,” A4

See “Subway,” A2

@lorenzmarasigan

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‘RISKS TO BOP SURPLUS RISING, BEAR WATCHING’ By Bianca Cuaresma

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A farmer in Cordon, Isabela, mounts bags of rice after solar-drying the grains on a multipurpose pavement. The Isabela Provincial Government with support from the Department of Agriculture recently launched the Rice Competitiveness Enhancement Fund (RCEF) program in partnership with the Nagkaisang Magsasaka ng Isabela Agricultural Cooperative (NMIAC) which aims to buy the rice harvest from Isabela farmers. CEASAR M. PERANTE

Asean trade in services lib to boost PHL semi-skilled labor By Cai U. Ordinario

Alignment review for subway ‘too late now’

hopadhyay of the India-based Gokhale Institute of Politics and Economics said this is one of the benefits of trade liberalization. Mukhopadhyay said there is a strong argument to liberalize services in the Association of Southeast Asian Nations (Asean) since members generate 37 percent to 74 percent of their GDP from services. “Thailand and the Philippines

could experience the highest demand rise for semi-skilled laborers, including those engaged in agricultural activities. These economies will have structured gains based on the general orientation of these economies which could provide cost advantage in their trade relations,” Mukhopadhyay said. She explained that Asean services exports grew 12.5 percent to

$291.9 billion in 2013, from $113.6 billion in 2005. Over the same period, services imports increased 9.9 percent to $298.6 billion from $140.7 billion. As such, Mukhopadhyay said service trade liberalization can be beneficial to economic growth and job generation. Estimates showed

@BcuaresmaBM

HE Philippines w il l continue to be a dollarearning economy in the remaining months of the year, but risks to this surplus are slowly creeping up on the country’s foreign currency inflows. In a commentary about the country’s balance of payments (BoP), Security Bank economist Robert Dan Roces said the country’s BoP—the summary of all the Philippines’s transactions against the rest of the world— “will continue to see positive fundamental inflows” in the coming months. Roces said the sustained BoP surplus toward the end of the year will likely be supported by higher receipts in cash remittances from overseas Filipino workers with the approach of the holiday season. The Bangko Sentral ng Pilipinas (BSP) just recently reported that the country’s BoP surplus continued to do well in the first nine months of the year. For January to September, the BoP surplus was at about $5.56 billion in total. This is a stark reversal of the $5.1-billion deficit seen in the same nine-month period in 2018.

$430M Net FDI inflow in June 2019, or 48.5 percent lower than the $836-million net inflows recorded in the same month last year. This is the fourth consecutive month that the monthly FDI inflows has been in decline.

However, a granular look at the data showed that the BoP surplus showed a big surplus drop on a monthly inflow basis—from $493 million in August down to $38 million in September. Roces said the biggest downside risk to the BoP is the continued underperformance of the foreign direct investments (FDI) toward the country. FDI—or the type of investment that is often more coveted, as it stays longer in the economy and creates job opportunities for locals—posted a net inflow of $430 million in June 2019, or 48.5 percent lower than the $836-million net inflows recorded in the same month last year. See “BOP surplus,” A2

See “Semi-skilled labor,” A2

US 51.4860 n japan 0.4739 n UK 66.3758 n HK 6.5634 n CHINA 7.2749 n singapore 37.7353 n australia 35.1289 n EU 57.2833 n SAUDI arabia 13.7270 Source: BSP (18 October 2019 )


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BusinessMirror October 21, 2019 by BusinessMirror - Issuu