PH, UNIDO to work on Innovation, Capacity Building Programs

Department of Trade and Industry (DTI) Secretary Ramon Lopez discussed with United Nations Industrial Development Organization (UNIDO) Director General Li Yong the 1st UNIDO Country Programme for the Philippines (PH) as well as the technical assistance and support for the Philippine National System of Innovation.

“The partnership between the Philippines and UNIDO will greatly benefit the Filipino people and improve the current state of the country through various technical assistance and support in developmental areas. As the country programme is based on the macroeconomic agenda of President Rodrigo Duterte, it will support the government’s drive to reduce poverty and improve industries through the development of human capital, innovation, and connectivity in the country,” said Sec. Lopez.

The UNIDO Country Programme was crafted in line with the Philippine Development Plan (PDP) 2017-2022. Its framework is based on the country’s national priorities and aims to strengthen collaborations among development cooperation partnerships of the PH government.

DTI has identified priority interventions that will benefit from the support and technical assistance from the partnership with UNIDO. These will focus on promoting innovation, upgrading industries, and facilitating manufacturing resurgence.

During the meeting, the trade chief highlighted PH’s thrust to push for rapid growth in the industry sector through the Inclusive Innovation Industrial Strategy (I3S), an industrialization program that will ensure the development of the micro, small, and medium enterprises (MSMEs) as part of the value chains.

“Our plan is to promote productivity, innovation, and inclusivity in industry development. These will allow participation of those at the bottom of the pyramid and solve the poverty situation,” Sec. Lopez added.

Director General Yong commended the programs of the government that reflects the Sustainable Development Goals (SDG) strategies. He also lauded PH’s growth rate, the country’s initiatives empowering MSMEs, the drive for job and income generation, as well as the government’s efforts of linking MSMEs to the global value chains.

Meanwhile, Sec. Lopez conveyed the need to include and put emphasis on trade as well as building the manufacturing capacity in the country programme. He expressed that greater human capital, innovation, productivity, and resilience are essential in creating stronger manufacturing and export manufacturing base in the country.

“Our success in achieving our goal to balance trade and create surplus depends on capacity building—both physical capacity and human resources. The technical assistance as well as support in these areas are greatly needed,” said the trade chief.

Sec. Lopez also mentioned the need to address the power cost, which is one of the major challenges, as it affects the competitiveness of companies operating in the PH.

The UNIDO Country Programme aims to address key issues including challenges in investment and ease in doing business, competitiveness, innovation in the industry sector, skills mismatch (labor force vis-à-vis industry needs), availability of data and statistics (industry sector, especially MSME), productivity-enhancing support services, infrastructure (agriculture, forestry, and fishery sector), and vulnerability to climate and disaster risks.

DTI has started exploring cooperation with UNIDO in terms of strengthening the innovation ecosystem for industry and support to private sector innovation. This covers measures to strengthen academe-industry linkages for research and development, commercialization, and financing. It also includes firm-level innovation programs for PH’s priority industries such as electronic manufacturing services, automotive and auto parts, aerospace parts, chemicals, shipbuilding, design-oriented furniture and garments, tool and die, agri-business, information technology and business process management, transport and logistics, tourism, and construction. The institutional strengthening of the Department, government, academe, and industry partnerships was also emphasized.

*This is Press Release

DTI finds 85 Counts of Overpricing as it Intensifies Monitoring to 600 Stores Weekly

The Department of Trade and Industry (DTI) found 85 counts of pricing over suggested retail prices (SRPs), as it increased the number of monitored establishments from 400 to 600 weekly.

The 85 counts (referring to product/s in stores) were immediately issued letters of inquiry (LOI), where prices on 77 items were immediately corrected back to SRP levels.  These were considered minor violations as the actual prices were above SRPs by a few centavos.  The other accounts will be apprehended should they fail to respond and correct their pricing.

Price monitoring activities were intensified following the directive of President Rodrigo Duterte to ensure that prices of basic necessities and prime commodities (BNPC) are within the SRP. The monitoring teams now cover at least 120 firms a day.

At the same time, DTI Regional/Provincial offices also conduct regular monitoring of prices in the provinces covering 500 more stores.

“Since the implementation of the TRAIN Law, no LOI has ripened into a Formal Charge because the firms have immediately adjusted their prices to SRP. These supermarkets and groceries have been compliant after receiving an LOI,” Trade Secretary Ramon Lopez said.

DTI reminds all establishments that administrative fine of up to Php 1M shall be imposed to firms committing any illegal act of price manipulation, specifically profiteering. This offense may also result in criminal liabilities and penalties.

Nevertheless, except for these cases, prices have remained stable based on price monitoring.

“To be exact in the reporting, we have compared ACTUAL PRICES in June 11-15, 2018 vs. November 2017, and not only the SRPs for BNPC.  Out of 101 SKUs in basic necessities covering canned sardines, milk, coffee, detergent bars, bread, instant noodles, and bottled water, only four showed minimal price increase of 1-7%,” said Sec. Lopez.

For prime commodities like canned meat products, condiments, bath soap, and battery, out of 43 items, only 13 posted increase of 1-8% range, mostly in canned meat category due to higher tinplate costs worldwide.  These are actual price survey database.

“We also compared SRPs during the two periods and there were SRP changes in 26 SKUs out of total 144 SKUs for combined BNPC, but 11 of the 26 items kept the same actual prices despite changes in SRPs,” he added.

Meanwhile, the trade chief reiterated that while he understands the plight of the workers, the requests for wage hike will be left with the Regional Tripartite Wage Board (RTWB).

“This matter really depends on the economic situation per region, such as inflation in the respective areas and other factors, such as the supply and demand for workers.  The various RTWBs are already deliberating this matter,” said Sec. Lopez.

According to Lopez, “It is also better to have a more conducive climate for business and industrial peace to generate more investments and more job opportunities.”

“We call on the labor groups to join us in achieving this more sustainable solution. Let’s show the investors that this is a country with industrial peace where workers are productive, highly-skilled, knowledgeable, and industrious. We are your partners in uplifting the lives of each and every Filipino and sharing the economic gains of the country to all,” he concluded.

*This is Press Release

CIAP-CMDF now an industry partner of PHILCONSTRUCT Visayas

The Construction Industry Authority of the Philippines, through the Construction Manpower Development Foundation was recognized by the Cebu Contractors Association, Inc. and the Association of Carriers & Equipment Lessors, Inc. as an industry partner for Philconstruct-Visayas. The expo which ran from 7-9 June 2018 in Waterfront Cebu City Hotel was attended by key industry leaders, government officials and construction stakeholders.

As industry partner, CMDF conducted 4 Professional Regulation Commission (PRC) accredited programs for the event namely the PMB Asphalt Seminar, Guidelines for the GREEEN (Geared for Resiliency and Energy Efficiency for the Environment) Building Rating System, the Industry Supported Technical Enhancement Seminar for Formworks and Scaffolding, and the Safety Seminar for Workers.

As the construction human resource development arm of the Construction Industry Authority of the Philippines (CIAP), CMDF understands the need to work closely with the industry to further boost the competency and skills of people working for the construction sector, the Industry Supported Program is a new partnership template developed by CMDF to enhance collaboration with industry partners. CMDF will continue to explore different avenues to support the Build! Build! Build! program of the government by equipping our manpower with knowledge and tools to safely deliver high quality results on time.

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STATEMENT ON THE COUNTRY’S PARTICIPATION AT THE 5th CHINA-SOUTH ASIA EXPO AND 25th CHINA KUNMING IMPORT AND EXPORT FAIR

The Department of Trade and Industry (DTI) remains committed in supporting Filipino exporters and traders in maximizing opportunities that will help them gain access to markets such as China.

On 18 June 2018, Philippine Star published ‘PH officials no show in China expo’ mentioning that the country failed to take advantage of the said exposition by not sending representatives that would showcase the country’s products as expressed by the representatives of the Chinese Filipino Business Club Inc. (CFBCI).

The DTI is saddened by the statement provided by CFBCI in the report that mentioned the country’s lack of support to the private sector in taking advantage of the opportunities provided by the said fair. However, the DTI clarifies that the Philippines’ participation at the 25th China Kunming Import and Export Fair 2018 was discussed accordingly with the officials of the province of Yunnan during their visit to Manila last 17 May 2018, a month before the actual trade fair.

During the said visit of the officials of the province of Yunnan, the DTI expressed its support to the said fair. However, it also emphasized the lack of budget and limited time for preparation for the country’s participation at the Kunming Import and Export Fair this year and has offered to take a closer look on the proposal for the possibility of joining the fair in 2019.

On the same meeting, DTI Trade and Investments Promotion Group Undersecretary Nora Terrado also mentioned the process and the strategy implemented by the Department this year in determining strategic country participation at bigger fairs held in China. This is also in relation to the limited budget provided to the Department for trade fair participations abroad.

In record, the officials of the province of Yunnan expressed their support to the DTI’s decision not to participate this year at the 25th China Kunming Import and Export Fair and welcomed the invite of the DTI to meet with the Philippine delegation at the upcoming 1st China International Import Expo (CIIE) in Shanghai this coming November.

With the blooming trade relations between the Philippines and China, invitations and requests to join fairs and expositions in China abound from city, provincial, and national levels.  There has been an increase in inbound missions and support requests from many China-related business associations. DTI endeavors to attend to these requests to the extent of its absorptive capacity and priorities.

For this year, the DTI strategically programmed and planned the country’s bigger participation in nationally organized fairs/expositions which are:  SIAL China 2018 in Shanghai last 13-20 May, China-ASEAN Expo in Nanning on September and the 1st China International Import Expo (CIIE) in Shanghai on November. These are jointly supported by DTI’s Center for International Trade Expositions and Missions (CITEM) and the DTI’s Export Marketing Bureau (EMB) in close partnership with the private sector.

DTI’s Trade and Investments Posts in China (Beijing, Guangzhou and Shanghai) in close coordination with the home offices of DTI have been proactive in facilitating the country’s participation in trade fairs prioritized this year and have been assisting both public and private organizations for smooth coordination and synchronization of trade activities with China’s business support organizations.

In line with this, DTI seeks to gain increased support in the coming years by lobbying for bigger budget and dedicated support for the country’s increased participation in international trade fairs not only in China but also in other markets.

DTI also urges private sector organizations to continue to engage and partner with DTI in maximizing opportunities that the global trade offers to Filipino businesses and products.

*This is Press Release

Phil Trade Training Center: Home of the ASEAN SME Academy

The Philippine Trade Training Center (PTTC) paves the way to a more convenient, wider, and open-access online trainings and resources for the Philippines’ Micro, Small, and Medium Enterprises (MSMEs), as the Center becomes the new administrator of the Association of Southeast Asian Nations (ASEAN) Small and Medium Enterprise (SME) Academy or the ASEAN SME Academy.

The Academy is a one-stop multi-platform online learning and information resource for Southeast Asian SMEs with support from US-AID, ASEAN Coordinating Committee on MSME (ACCMSME) and the US-ASEAN Business Council (US-ABC).

Launched at the 6th Meeting of the SME Advisory Board in Singapore on 31 May 2016, the Academy aims to provide training and mentorship to enhance ASEAN SME’s capabilities to grow and compete regionally and internationally. The Philippines, through the Department of Trade and Industry (DTI), was chosen as the first country to become the Academy’s administrator.

PTTC shall also facilitate online forums that will link MSMEs in the Philippines to SMEs in Southeast Asia for the sharing of experiences on common issues, identifying best practice and replicating excellence to scale.

At present, around 50 training courses on finance/accounting, management, marketing, operation, technology, and trade/logistics from Fortune 500 companies and members of the US-ASEAN Business Alliance for Competitive SMEs are being offered.  The core of the Academy is a series of training materials for SMEs contributed by Baker & McKenzie, Facebook, Google, HP Inc., MasterCard, Microsoft, PayPal, P&G, and International Labor Organization.

In addition, the Academy contains around 350 relevant links to business information and access to a directory of service providers to whom SMEs can reach out for financial advice, corporate programs and networking.

The Academy reports that as of January 2018, it has been accessed by 49,034 people, 2,866 of which are registrants, and 658 users are completing courses on the Academy.

At present, there are 191 Academy Facilitators - 29 from the Philippines; 25 from Lao PDR; 30 from Indonesia; 27 from Cambodia; 28 from Malaysia, 19 from Thailand; and 31 from Vietnam.

The Academy can be accessed at www.asean-sme-academy.org, with link at the PTTC’s website, www.pttc.gov.ph.

The core group together with the Academy Facilitators will convene in PTTC Manila on July 27, 2018 to share knowledge, lessons learned, good practices and tools developed to promote the ASEAN SME Academy to SMEs in their networks and to formally handover the communication management to the new administrator of the ASEAN SME Academy – the PTTC

DTI Revving up for Project One: One Form, One Number, One Portal—Government to use for the first time the Design Sprints technology to improve business registration

The Department of Trade and Industry-Competitiveness Bureau, as temporary secretariat of the Anti-Red Tape Authority (ARTA), following the enactment of Republic Act 11032 known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, is set to implement its first project called Project One. Project One is designed to develop solutions to improve business registration in the Philippines.  The main objective of the project is to improve ease of doing business by streamlining the business registration process in the country, one that is focused on creating a pleasant customer experience (easy, not cumbersome nor confusing), addresses bureaucratic singularity (whole of government, one door policy) and promotes governance (data sharing, data accuracy, access to data, privacy issues).

New Zealand’s Creative HQ won the bid to support the country’s efforts aimed at significantly improving the EODB rankings of the Philippines and general ease of doing business for business owners, entrepreneurs and investors.  New Zealand presents an attractive partner to the Philippines as NZ ranks 1st in the World Bank Doing Business survey and the Starting a Business indicator of the WB DB 2018 survey.

Project One shall make use of a modern innovation format (“Design Sprints workshops”, a method developed by Google Ventures to solve specific business problems and validate potential solutions in just five days.)  The three workshops shall cover the following:

Design Sprint 1 (July 23 – 27, 2018):  Creation of a “Wikipedia” of LGU registration process.  DILG and DICT to collate and publish the most up to date processes for LGUs in one place.  This will increase inter-agency collaboration, and provide highly useful information to business and investors, and increase transparency of LGU related information online. This concept follows the desire expressed by the Philippine Government to create “one portal” for all business-related information held by Government.

Design Sprint 2 (September 3-7, 2018): Develop the implementation framework for a Philippine Business Number to provide a single, unique identifier that can be used by businesses when transacting with any government agency. This concept follows the desire expressed by the Philippine Government to use “one number” for all government transactions.

Design Sprints 3 (October 1-5, 2018): Develop a prototype for an end to end registration application that allows business owners to complete their business registration on one website / application.  This was viewed as the ultimate leadership challenge as this is an excellent opportunity for the Philippines to become one of the first countries to adopt a business registration process that can be completed (end to end) on a mobile phone. This concept follows the desire expressed by the Philippine Government to use “one form, one portal” for all business to government transactions.

“Project One is the perfect start as the Anti- Red Tape Authority (ARTA) carries the torch of initiating the GovTech revolution in the Philippines. With the passage of the Ease of Doing Business and Efficient Government Delivery Services Act, DTI’s efforts at pursuing reforms will be further strengthened.The law mandates all government agencies including LGUs to automate business registration procedures, and we are glad that it will be the first time that our government will use the Design Sprints, as innovation” DTI Secretary Ramon Lopez said. 

Last year, the New Zealand government provided assistance by conducting a scoping mission to identify hurdles in business registration and showcase New Zealand’s expertise in EODB.

“We are ready to initiate online application, One Form, One Number, One Portal for business registration, and we could realize this by putting technology to work. We do not just automate the process but transform the way government is doing business.” Lopez added.

DTI REPORTS ON EASE OF DOING BUSINESS REFORMS Sec. Lopez calls on gov’t agencies to “Execute, execute, execute” reform initiatives

The Department of Trade and Industry (DTI) announced during the 6^th Ease of Doing Business (EODB) Summit on 13 June 2018 at the PICC in Pasay City that the government has already implemented nineteen reforms that it hopes will have an impact in the 2019 World Bank Doing Business Survey Report.

DTI Secretary Ramon Lopez, chair of the EODB/Anti-Red Tape Advisory Council, enumerated the following reform initiatives undertaken by various agencies that will have an impact on 7 out of 10 indicators of the DB Report.

These indicators include: (1) starting a business, (2) dealing with construction permits (3) getting electricity, (4) registering property, (5) protecting minority investors, (6) trading across borders, and (7) enforcing contracts.

The following reforms have been implemented:

1. Company Registration System (CRS) implemented by the Securities and Exchange Commission (SEC) on November 2017. 
2. Executive Order 11 issued by Quezon City creating a One-stop Shop (OSS) for business and building permits. Barangay clearances shall no longer be held as a prior requirement for business and building permit application.
3. Single Window Transaction initiated by the Bureau of Internal Revenue (BIR).
4. Setting up of Quezon City Construction Permits One-Stop Shop for single, integrated application and approval for building permits, locational clearances, fire safety evaluation clearances, certificates of occupancy, fire safety inspection certificates, tax declarations (new warehouse), certificates of final electrical inspection, and certificates of machinery operation.
5. Issuance of a DILG/DPWH/DTI Joint Memorandum Circular on Construction Permits. This sets uniform standards for processing building permits and certificates of occupancy, including application forms, requirements, steps, processing time, one-time assessment, and payment of fees.
6. Implementation of the CXE (Customer eXperience Engine) by MERALCO.
7. Setting up a MERALCO Booth inside the Quezon City Hall, a channel to receive service applications and to inform contractors and customers on how to apply for electricity and submit requirements online.
8. Implementation of Executive Order No. 11 s 2017 where the Certificate of Final Electrical Inspection (CFEI) is now part of the application.
9. Implementation of the Land Titling Computerization Project (LTCP) by the Land Registration Authority (LRA).
10. Land Registration Systems (LARES) uploaded with LRA’s annual statistics tracking the number of transactions in their website to allow the public access to the data. Majority of the title/ deed records and plans in Quezon City have been converted electronically and are now fully digital. Users are now able to check a specific title's encumbrance information using its electronic database.
11. Implementation of the Supreme Court's Philippine's Enterprise Information Systems Plan (EISP) and the roll-out of the e-Court system in Quezon City.
12. Implementation of the Electronic Certificate Authorizing Registration (eCAR).
13. SEC issued Memorandum Circular No.8, s.2018, which mandates all publicly-listed companies to seek shareholders' approval on any change/s in the company's external auditor.
14. Issuance of a SEC Memorandum Circular requiring the boards to have a separate audit committee exclusively comprised of board members.
15. The Goods Declaration Verification System (GDVS) provides real time updates on entries filed, which lessens face-to-face transactions at the Bureau of Customs (BOC) and its stakeholders.
16. The Super Green Lane (SGL) institutes advance cargo clearance for shipments of highly compliant importers. This allow advance processing and clearance of importations from the country’s topmost qualified importers without compromising BOC’s function of assessment and collection of revenue.
17. Mandatory 100% x-ray inspection on red lane shipments and removal of redundant scrutiny of cargoes.
18. Terminal Appointment Booking System (TABS) is an innovative online system that schedules the withdrawal and delivery of containerized cargoes at the international ports of Manila. It reduces the road congestion in the port vicinity, which will benefit the surrounding communities, other road users, and the environment in general.
19. Deployment of electronic case management system through the eCourts project

The reforms implemented have resulted in the reduction in the processing time and steps on applications in Quezon City, the representative city monitored by the World Bank.

Sec. Lopez called all government agencies to implement fully these reforms identified by the EODB Task Force. He said: “Our thrust is to ‘Execute, execute, execute.’ We must continue to implement these reform initiatives and identify the obstacles to our progress.”

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Lopez noted that the recent passage of the EODB/Efficient Government Law or Republic Act No. 11032, should compel all agencies of government to comply with streamlining and reengineering. This he said, effectively broadens the scope of the interagency task force.

DTI Augments Prices and Supply Monitoring of Basic and Prime Goods

The Department of Trade and Industry monitored 43 groceries and supermarkets on Wednesday, 06 June 2018, to check if prices of basic necessities and prime commodities are sold within Suggested Retail Prices (SRPs).

“Upholding our commitment to ensure consumers’ access to reasonably-priced basic and prime goods, the DTI intensifies its price monitoring efforts by increasing the number of firms that the Department will monitor to 1,210 business establishments nationwide. 610 firms are now being monitored in NCR and 600 more across the rest of the regions,” said DTI Secretary Ramon M. Lopez.

The price monitoring activity led by the Fair Trade Enforcement Bureau (FTEB) of the DTI covered the cities of Quezon, Taguig, Las Piñas, Malabon, Pasig, Marikina, Mandaluyong, Caloocan, Parañaque, and Manila.

Two (2) groceries in Parañaque and Marikina were issued with Letters of Inquiry for selling one brand of laundry soap higher than the SRP. This requires the groceries to submit a written explanation within 48 hours before the DTI.

Per verification, the subject laundry soap brand had recently submitted a proposed price adjustment before the Department. Pursuant to DTI Department Administrative Order No. 17-09, Series of 2017 on the implementation of SRP of basic and prime goods, any price adjustment can only take effect after 30 days from date of notification to provide a period of review by the DTI in determining reasonableness for its price increase.

The written explanation that will be submitted by the monitored groceries will greatly aid the DTI in addressing the variables that are affecting prices of basic and prime goods.

DTI Chief Opens Bagong Buhay Boracay Store

Department of Trade and Industry (DTI) Secretary Ramon Lopez led the opening of the Bagong Buhay Boracay store, the latest program of the agency in providing market access to the products of micro, small, and medium enterprises (MSMEs) from Boracay.

“This is just the beginning of bringing Boracay products to the mainstream market. We will continue to extend financial, technical, design, and marketing support to our MSMEs in the area even after the island re-opens,” said Sec. Lopez.

Following the closure of the island to tourists and a series of consultations with the local government and MSMEs in the island, DTI Regional Operations Group, DTI Region VI, Bureau of Domestic Trade and Promotion (BDTP), and Design Center of the Philippines (DCP) pooled their expertise and resources in launching the store in Makati.

The store, located at the BDTP West Wing Showroom, features food delicacies, wearables, fashion accessories, home décor, and souvenir products from 21 MSMEs in the island, comprising of 7 food processing businesses and 14 craft manufacturers. These exhibitors have over 150 beneficiaries in Boracay. Some items available for sale are products of social enterprises supporting out-of-school-youths in Boracay and Aklan.

DTI will also bring Aklanon products to malls, supermarkets, pasalubong centers, airports, seaports, jetty ports in Manila, Cebu, and Iloilo. In a recent development, some items featured in the Bagong Buhay Boracay store will also be carried by Kultura in SM Megamall.

“We guarantee our MSMEs that DTI will keep on providing holistic assistance for their products in terms of microfinancing support through the Pondo sa Pagbabago at Pag-asenso (P3), product development, and innovation. Apart from these, we also help them in branding, marketing strategy development, and market access through Go Lokal! stores as well as of One Town, One Product (OTOP) Philippine hub,” Sec. Lopez added.

Meanwhile, the local government of Malay, Aklan expressed their gratitude to the efforts of DTI in helping the affected MSMEs in the island. Mr. Rowen Aguirre of the Office of Malay Mayor Ciceron Cawaling emphasized the importance of providing new market access to the micro and small entrepreneurs, which primarily depend on their daily income to survive.

DTI will also provide skills training and start-up kits to the residents who wish to engage in other alternative livelihood activities. This include siomai making and screen printing.

“In the coming weeks, we will be launching other events to bring the Boracay experience to the metro. We will have Boracay Festivals in Manila wherein apart from the products we can buy in the island, we will also bring in the activities the island is famous for, such as fire dancing, tattoo artists, hair braiders, caricature artists and more,” said Sec. Lopez.

“We encourage everyone to support our brothers and sisters in Boracay and Aklan by visiting the Boracay Stores and buying their products,” Sec. Lopez concluded.

*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.

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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.”

DTI Holds Roundtable Meeting with Papua New Guinea PM, PH Biz Execs

The Department of Trade and Industry (DTI) organized a Roundtable Meeting with top Philippine business executives to welcome Papua New Guinea (PNG) Prime Minister Peter O’Neill and Ministry of Finance James Marape last 16 May 2018. The meeting was organized to spur trade relations between PNG and the Philippines (PH).

“We are committed in having Papua New Guinea as a strategic economic partner through greater bilateral trade and investment ties, as well as substantive engagements in APEC. We are optimistic that even as we develop broader links of friendship between our two countries, we can expand opportunities for trade and investment,” said DTI Secretary Ramon M. Lopez.

According to the trade chief, PNG can look into investment opportunities in agricultural products as well as oil and gas exploration in PH.

Likewise, PH can export more processed food, electronics, machineries and equipment, packaging materials and appliances to PNG. To strengthen trade relations between the two countries, DTI is also proposing a bilateral economic cooperation through a Joint Economic Commission (JEC).

Meanwhile, Prime Minister O’Neill said: “Our relationship with the Philippines is very strong. We believe in the same principles.”

The Prime Minister also opened the discussion on an agricultural partnership. He highlighted the vast agricultural land in PNG and their small population, which is an opportunity for PH to produce rice in PNG. “We want to promote rice in Papua New Guinea, and we want it be a Filipino partnership, rather than anyone else.”

Department of Agriculture (DA) Secretary Emmanuel Piñol agreed in getting Filipinos to invest and plant rice in PNG.  “We can help them produce their requirements and export to us the surplus.  We can be assured of a steady rice supply,” the Agriculture Secretary said.  He further explained that, “Philippine land resources are finite, but the population is growing too rapidly, the offer to use PNG land for our rice makes sense.”

“Our relationship with Papua New Guinea in terms of agriculture will be simple: we will train their people, help them develop their areas. And in return, they will assure that we will have enough rice for our people,” said Sec. Piñol. 

There were 24 top business executives invited to the forum, like International Container Terminal Services’ Ricky Razon and Christian Gonzalez; First Pacific Company’s Manuel Pangilinan; LT Group of Companies’ Dr. Lucio and Michael Tan; SL Agritech’s Henry Lim Bon Liong; Jollibee’s Ernest Tanmantiong; Double Dragon’s Injap Sia; DMCI Sid Consunji; Century Canning’s Chris Po; Frabelle’s Francis Tiu Laurel; and SM Holdings Inc.’s Jeffrey Lim. 

The event was also attended by PH Ambassador to PNG Bienvenido Tejano and PNG APEC Authority CEO Christopher Hawkins.

PH-PNG trade has also covered areas in training and assistance in Airline and Health & Medical Services. There are also Filipino businesses located PNG like the LT Group, and the RD Fishing PNG Ltd and Frabelle (PNG) Ltd., which are both involved in fishing.

On November 2018, President Rodrigo Roa Duterte is set to visit PNG along with a group of business delegates.

*This is Press Release