By Raffy Ayeng, The Daily Tribune
The American Chamber of Commerce of the Philippines expects the “urgent” passage of Republic Act 8762 or the Retail Trade Liberalization Act, which is now in the hands of the Senate.
AmCham-Arangkada Philippines Project senior advisor John Forbes said they are eyeing the passage of the said law by the end of this year, as promised by Senate President Vicente Sotto III.
“Efforts are underway to amend the anachronistic provisions in the Retail Trade Act, with sufficient protections for Filipino micro, small and medium enterprises, to promote productive investment to lower prices for Filipino consumers, create more jobs, assist small manufacturers, and stimulate economic growth.
The bill amending the Retail Trade Act has been passed by the House of Representatives and is in an advanced stage of deliberation by the members of the Senate Committee on Trade, Commerce, and Entrepreneurship,” according to AmCham.
The bill was among those certified as urgent by President Rodrigo Duterte, days before the adjournment of the 17th Congress in June 2019. But due to lack of time, the measure was not acted upon.
Proposed amendments on RA 8762 included: Inclusion of Retail E-Commerce, Reduction of the minimum paid-up capital requirement for foreign players from $2.5 Million to $200,000; Retention of the Reciprocity Requirement; Removal of the Pre-qualification requirement; Employment requirement of at least 50 percent Filipino employees of the total workforce; Reduction of the minimum investment requirement per store/branch from $830,000 to $150,000; and Review of the minimum paid-up capital requirement every five years by the DTI, Bangko Sentral ng Pilipinas and the National Economic Development Authority (NEDA).
Meanwhile, the government’s economic team has supported the RTA amendment, as it was identified by NEDA, Department of Trade and Industry (DTI), and 14 other business groups as an urgent bill for the 18th Congress.
During the virtual Special Reform Legislation Discussion Series on the Retail Trade Act Amendments on Friday, Atty. Elly Jean DC Portoza of the DTI Board of Investments (BOI), said they are in full support of the measure, as it connotes opportunities to the country, including the production of high-quality products at a competitive price, increase in the flow of capital into the country as an opportunity that would provide access to needed capital, and sound business practices/technological transfers.
Portoza said that although the bill will benefit the country, the BOI also sees some challenges, which include capability of local retailers to face foreign competition, balancing the production of high-quality goods and competitive pricing, and the high-level of competition that might discourage entry of new players in the market.
Source: https://tribune.net.ph/index.php/2020/09/12/passage-of-trade-liberalization-eyed/