By TED CORDERO, GMA Integrated News
Published February 27, 2024 5:30pm
The Joint Foreign Chambers of Commerce in the Philippines (JFCCP) is backing the proposal to remove economic restrictions in the 1987 Constitution.
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JFCCP counts as members the American Chamber of Commerce of the Philippines, Australia-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines (ECCP), Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce of the Philippines, and Philippine Association of Multinational Companies Regional Headquarters.
“Our group supports the easing of restrictions of foreign direct investment (FDI) wherever this is possible. We are of the opinion that the removal of economic restrictions would facilitate increased FDI in sectors where such investment is restricted,” JFCCP said in a letter to Speaker Martin Romualdez.
The business organization was invited to comment on Resolution of Both Houses No. 7 (RBH 7) pending before the House of Representatives, which mirrored the constitutional amendments proposed by the Senate.
On Monday, Romualdez announced that the House of Representatives would adopt the Senate’s proposed amendments to the economic provisions of the 1987 Constitution under the upper chamber’s Resolution of Both Houses No. 6 (RBH 6) “in toto” to dispel doubts that the lower chamber’s efforts to amend the Charter were “politically motivated.”
With this, JFCCP said that it recognizes the government’s mandate to protect vital national interests by placing some restrictions on FDI.
“In this respect, we note that most national economies use legislation or executive regulations to respond to such an important consideration,” said the joint foreign chambers.
“The advantage of using legislation or executive regulation is that it allows both the Legislature and/or the Executive to quickly adjust the regulatory environment for FDI in order to adapt to changes in technology, comply with requirements of international treaties, or take advantage of new opportunities to benefit in the global economy,” JFCCP said.
The group recognized Congress’ efforts to ease economic restrictions in the Philippines through its amendments to the Public Service Act, Foreign Investment Act, and the Retail Trade Liberalization Act.
“We have noted various proposals made previously to remove constitutional restrictions to foreign investment, including either removing these altogether or inserting as an alternative the phrase ‘… unless otherwise provided by law,’ as proposed by RBH No. 7 for the sectors of advertising, basic education, and public utilities,” it said.
“This second alternative provides the Congress the power to adjust restrictions as it deems necessary,” it added.
However, the group said that while it is unlikely to send a “strong signal” to foreign investors as to what a direct revision of the restrictive provisions can do, JFCCP said “it could still help in addressing changes in the global economy from the time the Constitution was framed in 1987, including signing of free trade deals and joining free trade blocs.”
“Many of these developments emphasize the need for free movement of capital across borders and a level playing field between foreign and domestic investors without undue restrictions,” the group said.
Speaking recently before the Senate subcommittee on constitutional amendments, ECCP Executive Director Florian Gottein said the issues surrounding Charter change has caused “uncertainty” to some of its members. — VDV, GMA Integrated News
Source: https://www.gmanetwork.com/news/topstories/nation/898798/joint-foreign-chambers-back-removing-economic-restrictions-in-constitution/story/