DTI Supports Coastal Communities Through International Food Expo

THE Department of Trade and Industry through its Center for International Trade Expositions and Missions (CITEM) featured the ‘best of the seas’ as it welcomed buyers for the 12th International Food Exhibition Philippines (IFEX) 2018 on May 25 to May 27 2018 at the World Trade Center and Philippine Trade Training Center in Pasay City.

“Marking its return as an annual event, IFEX Philippines 2018 will highlight the country’s finest seafood to fulfill the growing global demand for marine product and coastal cuisines,” said DTI Trade and Investment Promotion Group Undersecretary and CITEM Officer-in-Charge Nora K. Terrado.

Participated in by over 450 Philippine micro, small, and medium-sized enterprises (MSMEs) including those from coastal communities from Northern Luzon and Mindanao, the trade show is composed of four major exhibition halls: Food Philippines Hall, International Hall, Food Artisans Hall, and the Marketplace.

 “This is also our way of supporting the promotion of agribusiness sector in the country that provides employment opportunities especially in the regions,” added Terrado.

Among the municipalities joining the said trade show is the General Santos City, the Tuna Capital of the Philippines.  Local companies will showcase their world‐class tuna varieties, including skipjack, yellowfin, bluefin, and bigeye tuna, in different packaging options during the three-day show.

“General Santos City is home to one of the world’s best‐tasting tuna catches available to the international and local market and we wanted to highlight this as we position the Philippines as a go‐to sourcing destination for high‐quality tuna and tuna‐like species,” said Terrado.

As of 2016, the city’s tuna industry generates 65 percent of the country's over-all tuna catch and employs around 200,000 workers.

According to Southeast Asian Fisheries Development Center (SEAFDEC), the Philippines is top three tuna producer in the world in terms of volume. Eighty (80) percent of Philippines seafood is exported to the United States and the European Union, with a value of approximately US $120 million export earnings per year.

“The Philippines is also currently ranked as the second largest manufacturer of canned and processed tuna in Asia, after Thailand, with a majority of this catch landed in the port of General Santos City,” said Terrado.

SEAFDEC data also showed that tuna is the Philippines’ top export fish commodity valued at PHP19.6 billion pesos in 2014, making up 35 percent of the country’s total fishery export.

IFEX Philippines 2018 is the country’s biggest international trade exhibition on the Philippines’ and Asia's ethnic and specialty food, tropical fruits, vegetables, seafood, beverages, bakery and confectionery products, meat and poultry, Halal-certified products, as well as natural, organic, and healthy food products.

To streamline export deals, DTI-CITEM opened its ‘IFEX Connect’ program, a customized platform for integrated business-to-business (B2B) matching services to help buyers identify and screen potential business partners among the exhibitors, in collaboration with DTI’s Export Marketing Bureau (EMB).

“We expect a more upbeat exchange of trade deals, sealing of partnerships and knowledge transfer through our B2B activities and learning seminars,” said Terrado.

In its previous four editions in 2011 to 2017, IFEX Philippines has already welcomed nearly 6,600 international and local buyers across the world: 1,270 in 2011, 1,259 in 2013, 1,976 in 2015 and 2,092 in 2017—increasing at an average of 14 percent over the past four editions.

From 2009 to 2017, the top 10 countries where these buyers came from are the United States, Japan, Singapore, China, United Arab Emirates, South Korea, Malaysia, Australia, Taiwan and Canada, respectively.

The 12th edition of IFEX is organized by the DTI-CITEM in close partnership with Department of Agriculture (DA), through the Bureau of Fisheries and Aquatic Resources (BFAR) and the Agribusiness and Marketing Assistance Service (AMAS).

*This is Press Release

PH, US open discussions to strengthen trade and investment ties, exploratory talks on possible FTA

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez met with Deputy United States Trade Representative (USTR) Jeffrey D. Gerrish and his delegation to further trade and investment ties and continue with the exploratory discussions for a possible free trade agreement (FTA) between the Philippines (PH) and the United States (US). The two countries agreed that an FTA would be a win for both countries, as both acknowledge there are already opportunities under the current Trade and Investment Framework Agreement (TIFA) that both teams can work on to facilitate immediately more trade.

This follows the meeting of President Rodrigo Roa Duterte and U.S. President Donald Trump during the 2017 ASEAN Summit and the statement of USTR Robert Lighthizer, acknowledging the need to strengthen bilateral relations with countries in the Asia Pacific, including PH during a Congressional hearing last March.

“We are looking forward to exploring a free trade agreement with the U.S. Meanwhile, we can simultaneously pursue low-hanging opportunities like the existing TIFA and the privileges under the Generalized System of Preferences (GSP) of the U.S.,” said Trade Secretary Lopez.

Deputy USTR Gerrish said that “President Trump has made clear his commitment to the Indo-Pacific region, and the United States values our very important trade relationship with the Philippines,” and that “greater engagement on trade and investment will benefit both countries.”

PH currently enjoys preferential duty-free entry to the US through its GSP scheme. In 2017, GSP exports accounts for 17.6% of PH exports to the US, valued at US$ 1.492 billion. Leading GSP exports include tires, sugar, electronics, and fruit and vegetable juices. The GSP was also recently renewed to be effective for three years, instead of the annual review.

The renewed GSP also extended the duty-free treatment to travel goods such as suitcases; vanity and attaché cases; handbags; backpacks; travel, sports and similar bags and cases. The DTI wishes to use this momentum to add footwear to the GSP list. This, in turn, will promote Filipino-made shoes and to encourage foreign shoe manufacturers to locate in the Philippines.

DTI Undersecretary Ceferino Rodolfo likewise pointed out that under the current TIFA, both side are working on addressing policies and rules that can facilitate at once the flow of goods between the two countries, such as those governing import valuation mechanism, and clarification on tariff application on certain goods.

DTI Undersecretary Nora K. Terrado also noted the PH creative industry is benefitting from being excluded from the USTR Special 301 Watch List, a list of countries with deficient intellectual property protections, for the 5th straight year. Usec. Terrado also said that the DTI is planning a trade roadshow in the US to promote PH products.

*This is Press Release

DTI RECEIVES QUICK CHARGING STATION TO PROMOTE E-VEHICLES IN PH

Department of Trade and Industry (DTI) Secretary Ramon Lopez (right) and Mitsubishi Motors Philippines Corporation (MMPC) President and CEO Mutsuhiro Oshikiri (left) unveiled an electric vehicle (EV) quick charging station at the Board of Investments (BOI) compound in Makati City on 21 May 2018. In line with the government’s push to create an EV ecosystem in the Philippines, MMPC donated the quick charging facility to DTI to complement their two Mitsubishi EVs, the I-Miev and the Outlander. This is part of the EV Research Study initiative being done by DTI-BOI, MMPC, and a consortium of universities composed of De La Salle University, University of the Philippines, Technological University of the Philippines, Mapua University, and Ateneo de Manila University. “We know that the future automobile is going to be transformed and driven by forces such as autonomous drive, electrification, diverse mobility, and connectivity. The cars of the future are going to be greener, electric, connected, and autonomous,” said Sec. Lopez. The results of the EV Research Study will serve as important inputs for the formulation of EV policies and programs. These cover environment, transportation, energy, and industrial policies necessary for environmental protection and the development of the EV industry.

DTI Encourages Micro Enterprises to Avail of Incentives Under BMBE Law

The Department of Trade and Industry (DTI) encouraged underground micro entrepreneurs to make formal their businesses and avail incentives readily available to them through the Barangay Micro-Business Enterprise (BMBE) Law.

“We highly encourage micro enterprises to register their businesses and avail of the incentives under the BMBE Law,” DTI Regional Operations Group Undersecretary Zenaida Maglaya said.

Maglaya explained that micro enterprises who have registered BMBEs can avail of government incentives that include exemption from payment of income tax for income arising from the operation of the enterprise, exemption from the coverage of the minimum wage law, special credit window from government financing institutions that will service financing needs of BMBEs, business assistance from other government institutions, as well as technology and marketing assistance.

Under Republic Act No. 9178 or the BMBEs Act of 2002, a micro enterprise is referred to as any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.

Per statistics, 30.5% of 99.6% of total business establishments are micro enterprises (MSMEs). Micro enterprises also provide 62.8% or 2,372,678 employment to Filipinos.

BMBE certificates are registered free of charge at the Department of Trade and Industry (DTI) offices or Negosyo Centers. To date, there are over 800 Negosyo Centers nationwide that assist micro enterprises to facilitate BMBE applicants.

A total of 28,531 micro enterprises have registered under BMBE as of April 31, 2018 since DTI started accepting applications in January 2016.

Maglaya said formalization of business will not only help the entrepreneur but will also provide benefits to business and employment to Filipinos, which, in turn, will spur economic activities in the countryside.

The DTI issued Department Administrative Order (DAO) No. 16-01 last April 22, 2016 which provides guidelines on registering BMBEs at Negosyo Centers. Under DAO 16-01, DTI is the sole agency which shall issue a Certificate of Authority (CA) to registered BMBEs at Negosyo Centers or at DTI offices.

Prior to the issuance of the DAO, BMBEs must register at the city or municipal treasurer’s office where the business is located.

Republic Act 9178 or the BMBE Act of 2002 recognizes the role of BMBEs as an essential driving force for the country’s economic development. According to the law, BMBEs are “seedbeds of Filipino entrepreneurial talents and strengthening them would increase job generation, provide livelihood and augment Filipinos’ quality of life.”