DTI’s Pascual calls free trade agreement ‘essential’ to European Union relationship

Trade Secretary Alfredo E. Pascual said a free trade agreement (FTA) with the European Union (EU) is “an essential mechanism in the Philippines’ relationship with the EU” and called for negotiations for an FTA to resume. Speaking at a European Chamber of Commerce of the Philippines (ECCP) luncheon, Mr. Pascual pitched for FTA talks to resume, calling it a means of achieving the EU’s objective of diversifying its suppliers. An FTA with the Philippines “is consistent with the EU’s Indo Pacific Strategy. And it supports the EU’s goal of diversifying suppliers and enhance its cooperation on supply chains in the ASEAN region,” Mr. Pascual said.

EU to expand trade agreements with Asean

The compliance of the Philippines to a preferential trading scheme with the European Union (EU) will determine whether or not to resume negotiations on a free trade agreement (FTA). Philipp Dupuis, head of the trade section of the delegation  of the EU to the Philippines, told a forum yesterday the European Commission is stepping up its work on expanding its economic relationships in  Southeast Asia where FTA talks with some of the member-nations have been stalled. In the same forum, Trade Secretary Alfredo Pascual said the timely conclusion of the Philippines- EU  FTA negotiations will further expand the scope of market access for goods, services, and investments.

NEDA plan eyes sustainability-based economic model

The Philippine economy must be revamped to take on an economic model based on sustainable consumption, the National Economic and Development Authority (NEDA) said. In a forum for the 2023-2028 Philippine Development Plan (PDP), Socioeconomic Planning Secretary Arsenio Balisacan said changes in the country’s production and consumption process are needed to sustain growth that would not be at the expense of the environment. “To achieve transformation, we must introduce systematic changes to our consumption and production patterns, as well as manage our natural capital resources, if we are to sustain a well-functioning and resilient economy,” Balisacan said.

Foreign investment pledges jump 30.1% in Q4 2022

Foreign investment commitments posted a double-digit increase in the fourth quarter of 2022 as the Philippine economy further reopened, data from the Philippine Statistics Authority (PSA) showed Thursday. In a statement, the PSA said foreign investment pledges reached ₱173.61 billion, or 30.1% higher than ₱133.47 billion a year prior. The investment pledges were approved by the country’s six investment promotion agencies: Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA). Meanwhile, no foreign investment commitments were recorded from during the period in Cagayan Economic Zone Authority (CEZA), Poro Point Management Corporation (PPMC), and Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

PH at a disadvantage without RCEP ratification, says DTI chief

Without the Regional Comprehensive Economic Partnership (RCEP), the Philippines will have a "disadvantage" compared to its peers that are already reaping benefits from the deal in form of investments, Trade Secretary Alfredo Pascual said. The RCEP ratification is being deliberated by the Senate. Critics have said that the government must first ensure that the agriculture sector is strong enough to compete with the influx of products.

Zubiri appeals for ratification as RCEP reaches plenary

Senate President Juan Miguel "Migz" Zubiri on Wednesday appealed to colleagues for the ratification of the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement feared for its impact on local industries. Under RCEP, member states of the Association of Southeast Asian Nations (ASEAN) and its trade partners Australia, China, Japan, New Zealand, and South Korea can export goods and services to each other at zero to low tariff rates. Zubiri said it will benefit the Philippines' exports, such as garments, papaya, coffee, fruit cocktail, and alcoholic beverages. The Senate leadership emphasized that the Philippines is the only ASEAN country that has not ratified RCEP while neighboring countries such as Vietnam, China, Thailand, Cambodia, and Malaysia have reaped benefits from it. He also stressed that "highly sensitive agricultural products" such as rice, swine meat, poultry meat, potatoes, onions, garlic, cabbage, sugar, and carrots, are excluded from tariff liberalization.

Pascual tells EU: ‘Don’t be left out in PH’

Trade and Industry Secretary Alfredo E. Pascual warned that EU exports to the Philippines will be “competitively disadvantaged” due to the continuing delays in the EU-Philippines bilateral free trade agreement (FTA). Pascual tried to drive home this point during the European Chamber of Commerce of the Philippines (ECCP) Membership Luncheon meeting that EU exports could face against exports from competitors as the Philippines implements new FTA deals, even as it is concluding new ones, and aggressively forging new comprehensive economic partnerships with other countries.

Multi-stakeholder advisory panel under water regulatory body pushed

The European Chamber of Commerce in the Philippines (ECCP) has hailed the creation of a government body to lead the crafting and implementation of policies for the country’s water sector, taking it as a positive move toward achieving water security. The foreign chamber welcomed  the creation of the Water Resources Management Office (WRMO) as a transitory body pending the establishment of a Water Resource Department. “In line with our long-standing advocacy of attaining water security in the Philippines, the the chamber has long called for the creation of an apex body to lead the crafting and implementation of policies and initiatives for the Philippine water sector, as well as streamline institutions to further facilitate ease of doing business in the said sector,” ECCP said in a statement. “The creation of the WRMO is a welcomed first step in fully realizing this as it aims to strengthen collaboration among various agencies in implementing water management programs in accordance with the Integrated Water Management Plan, to be crafted by the said agency,” the business group said further.

Major infra to boost tourism

The country’s big infrastructure projects will boost tourism in far-flung areas and unlock economic potential in the provinces, according to Transportation Secretary Jaime Bautista. During the general membership meeting of the Philippine IATA Agents Travel Association on Wednesday, Bautista touted the transport projects being undertaken by the agency that will help cement the Philippines as a prime tourism destination and ensure tourists enjoy their travel and vacation. “Improving and modernizing the country’s transportation system will be crucial to ensure tourists enjoy their travel and vacation experience,” Bautista said in a statement. The Department of Transportation (DOTr) and the Department of Tourism are also working together to increase tourist arrivals and encourage foreign tourists to visit the Philippines, Bautista said.

PH, Japan boost cooperation on ICT 

The Philippines and Japan are set to collaborate on projects involving the enhancement of broadband infrastructure and 5G rollout in the country. The Department of Information and Communications Technology (DICT) said it had inked a memorandum of cooperation (MOC) with Japan’s Ministry of Internal Affairs and Communications (MIC) on Feb. 9, which aimed to strengthen cooperation in the ICT field. “The Philippine government and the government of Japan have a long history of collaboration and the signed MOC will only strengthen our cooperative efforts. As a developing country, we are sure to gain valuable insights and support from Japan, especially in the field of ICT,” he added.

Marcos says PH closer to rice self-sufficiency in 2 years with ‘major reorganization’

President Ferdinand Marcos Jr. believes that country will be closer to rice self-sufficiency in two years if the government will implement “major reorganization” in its agencies. The president made the comment on Wednesday following a meeting with the officials of the Department of Agriculture (DA) and the National Irrigation Administration (NIA) at Malacañang Palace. The chief executive also said the plan needs “cooperation, convergence, and coordination” with the DA, NIA, Department of Public Works and Highways (DPWH), and the National Economic and Development Authority (NEDA). According to Malacañang, the government has been implementing strategies to increase rice production, such as convincing irrigators associations (IA) and farmers to plant hybrid rice, adopting alternate wetting and drying as a water-saving technology for irrigated lands, harvesting in September during the wet season, and ratooning after the wet season harvest.

Philippines to import fresh 440,000 MT of sugar

The board of the Sugar Regulatory Administration (SRA) unanimously approved the plan to bring in 440,000 metric tons (MT) of refined sugar to stabilize retail prices and shore up the country’s buffer stock. Pablo Luis Azcona, who represents planters on the SRA board, said the sugar importation order was signed on 13 February and would soon be transmitted to Malacañang for final approval. Once President Ferdinand Marcos Jr. signs the order, the SRA can proceed with the importation that will be done in three tranches, with the first 100,000 MT expected to arrive by April at the latest. Broken down, 200,000 MT will be allotted for consumer use—which also covers industrial users—while the remaining 240,000 MT will be set aside for the two-month buffer stock. 

House panel OKs bill allowing president to suspend PhilHealth contribution hike

The House Committee on Health approved on Wednesday a bill seeking to grant the president the power to suspend the scheduled rate hikes in the monthly contributions of Philippine Health Insurance Corp. (PhilHealth) members. House Bill 6772, which counts House Speaker Martin Romualdez among its authors, seeks to amend the Universal Health Care (UHC) Act to allow the president, upon the PhilHealth board's recommendation, to suspend or adjust the period of implementation for the scheduled rate hikes during national emergencies or calamities, or when public interest so requires.

BSP set to hike 2023 inflation forecast

The BSP will likely raise its average inflation forecast for this year after the faster-than-expected headline print in January. BSP Deputy Governor Francisco G. Dakila, Jr. said that the Monetary Board “will take the January inflation into account” as they hold a policy meeting on Feb. 16. “The January inflation was higher than what we had projected. The BSP’s projection for January was only up to 8.3%, but inflation rose to 8.7%, so it was above our projected range,” Mr. Dakila said. Asked if the 4.5% inflation forecast for 2023 will be increased, Mr. Dakila said: “Most likely.” Headline inflation quickened to 8.7% in January from the 8.1% in December, marking the highest in 14 years or since the 9.1% in November 2008.  

Marcos OKs adopting 'hybrid rice' to boost rice production: Palace

President Ferdinand Marcos, Jr. has agreed to adopt hybrid rice in an effort to boost farm yields, Malacañang said. The Presidential Communications Office said a 2-year study by the Department of Agriculture and several local government units showed that hybrid seeds had better yields than conventional seeds. Farmers who used hybrid rice harvested around 7 to 15 metric tons (MT) per hectare as compared to the average of 3.6 MT per hectare for non-hybrid seeds, the Palace said citing the study. Marcos said the government will provide subsidies and loans to farmers to promote the shift to hybrid rice.

Inflation may remain high until Q3

Headline inflation is likely to peak in February or March, which may prompt the Bangko Sentral ng Pilipinas (BSP) to continue tightening until May, ANZ Research said. “Even if inflation starts to descend from its peak, it will remain at elevated levels in the second quarter and third quarter. Any meaningful decline is only possible when domestic demand weakens and favorable base effects kick in,” ANZ said.

CAMPI targets 10-15% sales growth this year

Vehicle sales in the Philippines may exceed pre-pandemic levels this year as the economy continues to recover, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said. CAMPI President Rommel R. Gutierrez said the industry is targeting to grow sales by 10% to 15% this year.

PERA contributions increase by 30% in 2022

Contributions of voluntary members in the Personal Equity and Retirement Account (PERA) reached P329.55 million in 2022, the central bank said. Data from the Bangko Sentral ng Pilipinas (BSP) showed PERA contributions climbed by 30% last year, from P253.35 million in 2021. The number of PERA contributors also jumped by 16% to 5,100 in 2022 from 4,382 in 2021, the BSP said. About 3,600 employed individuals contributed P223.71 million to the fund last year. This is followed by overseas Filipino workers (721) and self-employed individuals (785) who invested P60.58 million and P45.25 million, respectively.

PH likely to sign free trade deal with South Korea 'very soon': DTI

The Philippines and South Korea may sign a free trade deal "very soon" as officials of the two countries continue discussions, Trade Secretary Alfredo Pascual said Wednesday. Pascual said that following President Ferdinand Marcos, Jr.'s trip to Japan, the government is eyeing to invite South Korean leaders to the country. A free trade deal will cut tariffs for select products to zero which is seen to boost commerce between participating nations.

Cash remittances at $32.54 billion, personal remittances hit record $36.14B in 2022

Cash remittances from overseas Filipinos coursed through banks reached $32.54 billion in 2022, higher by 3.6 percent from $31.42 billion in 2021, data from the Bangko Sentral ng Pilipinas released Wednesday showed. In December, cash remittances grew 5.8 percent to $3.16 billion, the central bank said in a statement. "The expansion in cash remittances in December 2022 was due to the growth in receipts from land- and sea-based workers," the BSP said.

PBBM to Zelenskyy: We’re with you in your search for peace

President Ferdinand R. Marcos Jr. has assured Ukrainian President Volodymyr Zelenskyy that Filipinos are with him for a peaceful resolution in the raging Russia-Ukraine conflict. For his part, Zelenskyy thanked Marcos for supporting the sovereignty and territorial integrity of Ukraine

Cruise ships dropping anchor anew in PHL

The Philippines is regaining its allure as a leisure destination for international cruise lines. The Philippines has often been bypassed as a cruise destination because of the lack of dedicated cruise port facilities. The DOT earlier developed a National Cruise Tourism Strategy that aimed to promote the country as a major cruise destination in Asia, and estimated that P6.1 billion in investment was needed to develop major cruise ports and terminals in Manila and other key cities.

BSP hikes interest rates as inflation battle continues

The country's central bank raised borrowing costs anew following a surprise January inflation, pushing the key policy rate to 6% — the highest level since August 2008. The Monetary Board's move to increase the policy rate by 50 basis points (bps), or half of a percentage point, follows the 50-bp hike in December. It also raised interest rates on overnight deposit and lending facilities to 5.5% and 6.5%, respectively.

The new rates take effect Friday, Feb. 17.

DBM: LGUs to have more autonomy when ‘full devolution’ starts

Local government units (LGUs) will have more autonomy in managing projects and resources when the “full devolution” starts, the Department of Budget and Management (DBM) said on Wednesday. Budget Secretary Amenah Pangandaman said the transfer of functions from the national government to the local governments would be good for the LGUs as they would have more autonomy in managing projects and resources with the increase in their national tax allotment (NTA) shares.

Marcos says PH closer to rice self-sufficiency in 2 years with ‘major reorganization’

sident Ferdinand Marcos Jr. believes that country will be closer to rice self-sufficiency in two years if the government will implement “major reorganization” in its agencies. The president made the comment on Wednesday following a meeting with the officials of the Department of Agriculture (DA) and the National Irrigation Administration (NIA) at Malacañang Palace.

‘Restatement’ to help farmers in RCEP pledged

The Department of Trade and Industry (DTI) has committed to the Senate a “restatement” of what the government will do to support  farming communities under the Regional Comprehensive Economic Partnership (RCEP) as it seeks  the ratification of the deal.DTI Secretary Alfredo Pascual said following the sponsorship  by Senate President Miguel Zubiri, he expects the ratification of the RCEP to happen “very soon.” Pascual, who attended the plenary proceedings for the Senate concurrence to the ratification of RCEP agreement on Wednesday afternoon, said  Zubiri and Senate President Pro Tempore Loren Legarda sponsored RCEP for approval and concurrence.

Pascual in a televised interview said joining RCEP, and even the World Trade Organization (WTO)  “are not magic remedies or magic cure” to the agriculture sector.