DESPITE repeated pronouncements from Malacañang that it is against Charter change, the Philippines would have to amend its Constitution at some point to be able to participate and benefit from trade pacts that have high liberalization ambitions like the United States-led Trans-Pacific Partnership (TPP).
Trade Secretary Gregory L. Domingo, in a forum with the editors, staff members and columnists of the BusinessMirror and its sister companies Philippines Graphic and DWIZ on Tuesday, said the Philippines remained keen on joining the TPP and concluding a free-trade agreement (FTA) that has high ambitions with the European Union (EU).
But the country’s participation in these trade pacts will be anchored on the condition that the Philippines would be given enough time to fulfill its commitments, particularly those that would require amendments to its Constitution.
“When we enter these [TPP and PHL-EU FTA], it is with the colatilla that we will need some time to allow us the flexibility in terms of meeting the ambitions, and they are open to those arrangements. We cannot just do them overnight,” Domingo said.
He noted that even Vietnam, which is one of the nine original negotiating countries of TPP, is not also 100-percent compliant yet.
The same is true with Korea in its FTA with the US. Domingo said Korea needed to make some 200 changes in its laws to meet the ambitions of the agreement.
At some point, Domingo said, the Philippines will also have to revise its laws, regulations and its Constitution, especially “when we get to the high-level ambition agreements.”
But he made it clear he was not recommending Charter change to Malacañang at this time.
Foreign chambers based here have been clamoring for some revisions in the economic provisions of the Constitution to ease the entry of more foreign direct investments (FDI) to the country.
The Bangko Sentral ng Pilipinas (BSP) has just reported that FDI inflows to the country only totaled $837 million in the January-to-April period. This prompted the BSP to lower its full-year FDI inflow projection to $1.2 billion, or about the same total in 2011.
But Domingo said this appears to be too low, which is why he wants a review of the FDI numbers.
He said he ordered a direct survey from foreign firms that registered their investments with the Board of Investments (BOI) and the Philippine Economic Zone Authority (Peza).
Based on preliminary reports, he said the BOI and the Peza registrations alone were already in the multiples of $1.2 billion. Not included are those that registered with other investment-promotion agencies like the Subic Bay Metropolitan Authority, as well as those that did not register their new projects, like Coca-Cola and Nestlé.
“When we have a more complete picture, we will publicize the report,” Domingo said.
He said a lot of foreign firms are no longer registering their dollar infusions into the country after the country‘s foreign-exchange deregulation.
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Source: Max V. De Leon, Business Mirror (17 July 2012)
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