Trade dept counts on European Chamber of Commerce of the Philippines’ support for resumption of PHL, EU FTA talks  

The Department of Trade and Industry (DTI) is hoping that the European Chamber of Commerce of the Philippines (ECCP), along with European companies, will assist in pushing for the resumption of the Philippines-European Union Free Trade Agreement (PH-EU FTA) negotiations. “The DTI would appreciate ECCP’s unified effort in pushing for the resumption of the FTA negotiations by conducting similar surveys supporting the PH-EU FTA negotiations,” Trade Secretary Alfredo E. Pascual said during the ECCP Membership Luncheon Meeting on Thursday in Makati City. “We request that you assist us in disseminating information to key European companies because we need their support to push for the conclusion of the FTA,” Pascual added.

DTI chief urged European biz to invest in PH defense 

Department of Trade and Industry (DTI) Secretary Alfredo Pascual has encouraged European businesses to explore investment opportunities in the country’s defense sector. In a luncheon meeting with the European Chamber of Commerce of the Philippines (ECCP), Pascual said the country offers huge opportunities in the defense sector as the government continues to implement its modernization program. “We invite the EU to participate in this program so we will have a broader range of options. We would appreciate it if the EU could invest in some, if not all, of the manufacturing processes and equipment in the Philippines,” he said in his keynote speech.

Trade Chief underscores benefits of RCEP, cherishes strong EU-Phl trade relations 

With some reservations from local farmers and lawmakers about the adoption of the Regional Comprehensive Economic Partnership (RCEP), Department of Trade and Industry (DTI) Secretary Fred Pascual bared the Philippine government’s ongoing efforts to create an enabling environment where businesses can thrive during the European Chamber of Commerce of the Philippines (ECCP) Luncheon Meeting. Speaking to the participants and esteemed guests, the Trade Chief unveiled the priorities of the DTI to facilitate increased trade and investment and to improve global competitiveness, “The goal is to grow our economy and develop globally competitive and innovative industries that support inclusive growth and quality of life for all Filipinos”, he said.

More ‘aggressive’ fight vs inflation needed — DoF

The executive department, particularly local government units (LGUs), should be more “aggressive” in the fight against inflation that is expected to remain elevated this year, Department of Finance (DoF) Secretary Benjamin E. Diokno said. “The monetary authorities have done their part; the Executive department, including LGUs, have to do more, be more aggressive and focused. In the fight against inflation, monetary policy is not the only game in town,” Mr. Diokno said in a Viber message to reporters on Saturday. The BSP had also signaled more rate hikes at its next meetings to cool red-hot inflation. “If the Executive department succeeds in controlling the sources of inflation on the supply side more effectively, there will be less reason for monetary authorities to raise policy rates,” Mr. Diokno added, citing the need to implement direct, non-monetary measures to address supply issues and bring down food prices.

PHL likely to hit 6-7% growth target this year

THE “CONTINUED NORMALIZATION” of post-pandemic mobility will help the Philippine economy expand within the government’s 6-7% target this year, but slower growth is likely in 2024, the Bangko Sentral ng Pilipinas (BSP) said. “GDP (gross domestic product) growth is projected to settle within the DBCC’s (Development Budget Coordination Committee) target of 6-7% for 2023, but economic headwinds could result in slower GDP growth in 2024,” the BSP said in its latest Monetary Policy Report (MPR). “The full-year growth forecast for 2023 was adjusted upward from the previous MPR. Meanwhile, the growth forecast for 2024 is lower compared to previous round, reflecting weaker global prospects and the impact of cumulative policy rate adjustments of the BSP,” it added. While the central bank does not give its exact growth forecasts, the DBCC targets 6.5-8% GDP growth in 2024.

CAAP sets P1 billion upgrade of regional airports

The Civil Aviation Authority of the Philippines (CAAP) will invest more than P1 billion to complete the facilities of the Bukidnon Airport and modernize two provincial gateways to improve transport infrastructure in the regions. Based on documents, CAAP is seeking bidders who can undertake development projects worth P970.32 million in Bukidnon Airport that is scheduled to be opened this year. CAAP said the budget would be used to prepare the site for the landside area and build the access road to the airport, as well as for the purchase of lighting equipment, power distributor, drainage system, water distributor and landscaping services. 

Trade chief optimistic on resumption PH-EU free trade talks this year

Trade Secretary Alfred Pascual is optimistic that negotiations for a free trade agreement (FTA) between the Philippines and the European Union (EU) will resume this year, banking on the goodwill that the Marcos administration has so far built with the regional bloc. Pascual said the first step in forging an FTA with the EU is the resumption of the discussion, and this was the reason he has been busy convincing European firms operating in the country to help the Philippines in pushing for this agenda.“They (EU) have to agree to resume negotiations. That’s why I was enjoining European companies who will benefit from this to give a push to our proposition to resume the negotiations of the EU FTA,” Pascual told reporters on the sidelines of a forum organized by the European Chamber of Commerce of the Philippines (ECCP). “In the meantime, we have the GSP (Generalized System of Preference) Plus. That will hopefully be renewed for the country beyond 2023,” he said further.

ECCP urges immediate creation of PH flag registry for ships [mention]

The government is strongly urged to establish as soon as possible a Philippine National Flag registry for ships trading nationally and globally to support and promote the country’s maritime sector or the so-called “blue economy”. This was raised among other recommendations during a luncheon meeting of the European Chamber of Commerce of the Philippines (ECCP) with Trade and Industry Secretary Alfredo E. Pascual on Feb. 16. “A Philippine National Flag registry for ships trading nationally and globally should be established ASAP,” said Michael Raeuber, chairman and Group CEO of Royal Cargo Inc. – the country’s largest integrated logistics company. A bill known as the Philippine Ship Registry Act has been filed for that purpose. Raeuber also noted that while the Philippines has crafted the Ten-Year Maritime Industry Development Program, this has yet to be implemented.

Palace: Revamp up in agricultural agencies 

President Marcos announced on Wednesday an unspecified revamp in unidentified agricultural agencies in a bid to boost rice production and even attain rice self-sufficiency in two years. The President did not specify what agencies would be affected when he mentioned the revamp in a meeting with officials of the Department of Agriculture (DA) and the National Irrigation Administration (NIA) in Malacañang. According to him, the government has “a great deal of work to do,” adding that there has to be a “cooperation, convergence and coordination” with other agencies, such as the DA, NIA, Department of Public Works and Highways, and the National Economic and Development Authority.

Economists raise inflation forecasts

Private sector economists raised their inflation outlook for this year through 2025 after the faster-than-expected January print, with most economists expecting the Bangko Sentral ng Pilipinas (BSP) to begin trimming rates only next year. Based on the results of the BSP’s survey of private economists in February, the average inflation forecast of analysts for 2023 jumped to 6% from just 4.9% in the January survey. Economists’ mean inflation forecast for 2024 and 2025 also climbed to 4% (from 3.7% previously) and 4.1% (from 3.6%). “Analysts expect inflation to remain above the upper-end of the government’s target range in 2023 given the higher-than-expected January 2023 inflation print, as well as due to demand-side price pressures and supply shocks,” the BSP said in its latest Monetary Policy Report.

Department of Agriculture readies study on mechanized farming

The Department of Agriculture (DA) will conduct benchmarking studies to determine the mechanization levels on the production of rice, corn and sugarcane as part of its efforts to modernize farmers’ production systems. The DA has formed a technical working group (TWG) composed of experts from various attached agencies of the department and academe to undertake the baseline studies. The TWG is tasked to review and assess the existing methods of computing the mechanization index (MI) of rice, corn and sugarcane. The TWG will also harmonize the varying considerations, methodologies, data capture, forms etc. of the gathered methods of computation to come up with a uniform protocol of MI computation. The TWG will also initiate gathering of pertinent data that shall be used in the computation of the MI for the selected commodities, which includes national inventory of machinery, total area of arable lands used, specifications of the machinery, among others.

DENR reviews clearance process for solar and wind projects, studies alt fuel use for shipping

The Department of Environment and Natural Resources is reviewing the environmental clearance process for onshore and offshore solar and wind projects, and studying the use of alternative fuels for shipping as part of the government's efforts to reduce greenhouse gas emissions, its chief said. Environment Secretary Toni Loyzaga said the government wants to work with the Nordic governments and the private sector to accelerate the decarbonization of different industries in the Philippines."We are reviewing the environmental clearance processes for onshore and offshore solar power. This is to facilitate more capital investments in the renewable energy sector, but also to bring us up to speed in terms of global standards of competitiveness in this regard," Loyzaga said during the Nordic-Philippine Climate Executive Dialogue held at The Manila Hotel.

Marcos sees manufacturing as key to export growth

PRESIDENT Ferdinand R. Marcos, Jr. said he views building up manufacturing to be a key prerequisite to growing the export sector. “If the manufacturing operations (gain momentum), we can also export,” he said in a latest video blog. “That’s a big help because we can expand our business to other countries.” Mr. Marcos said the money saved from foregoing imports can help be invested in the economy. He said public-private partnerships will play an important role in the manufacturing sector. The Presidential Communications Office (PCO) said two major consumer goods companies — one of them Procter & Gamble Co. (P&G) — are currently establishing state-of-the art manufacturing facilities in the Philippines, “with one securing a registration with the Board of Investments.”

BoI expects P1-T investment goal to be 80-90% filled by midyear

TRADE Secretary Alfredo E. Pascual expects the Board of Investments (BoI) to hit its P1-trillion investment target for 2023 following “serious interest” from foreign investors. “With investment prospects being very positive, and as we continue to receive serious interest from global investors, we are definitely on track to meeting our annual investment target of P1 trillion. We are not even through with the second month of the year and we already have secured nearly half of our full-year target for investment approvals,” Mr. Pascual said in a statement. The BoI is an investment promotion agency (IPA) of the Department of Trade and Industry. Mr. Pascual said the BoI could hit 80% to 90% of the target before the middle of the year as the IPA is still following up on other investment leads.

SEC introduces crowdfunding to raise capital for MSMEs

Crowdfunding portals can provide much-needed access to additional capital for micro, small, and medium enterprises (MSMEs), including those in the agricultural sector. This as the Securities and Exchange Commission (SEC) has initiated a roadshow for capital formation which kicked off here on Wednesday, February 15. “There are willing lenders (to provide funding to MSMEs),” said Aquino, pointing out that these portals will “hand-hold,” or help borrowers access the fund that is needed to grow their small businesses.

Prices of agri products rose faster in Q3 of 2022

Prices of agricultural goods rose at a faster pace in the third quarter of last year as crops, livestock and poultry registered growth while fisheries slowed down, according to the Philippine Statistics Authority (PSA). In a report, the PSA said the producer price index (PPI) for agriculture registered an annual growth rate of 15.2 percent from July to September 2022 against a gain of 10 percent in the same period a year prior. As explained by the statistics agency, the agriculture PPI measures the changes in the average prices received by farmers for the sale of their agricultural products relative to a base year.

DTI: Access to BNPCs assured amid global spikes

THE Department of Trade and Industry (DTI) assured consumers at the weekend they will have access to affordable basic necessities and prime commodities (BNPCs) amid the global inflation. “We, in DTI, would like to ensure that consumers will have access to affordable basic necessities and prime commodities (BNPCs) amidst the global inflation,” Trade Secretary Alfredo E. Pascual said in a statement on Saturday. The Trade chief said they are mobilizing their monitoring teams from the Consumer Protection Group (CPG) to “regularly” conduct price monitoring on these BNPCs.

Local, foreign biz groups push for RCEP okay

Saying the country cannot afford to be left behind much further, local and foreign business chambers have expressed support anew for Senate ratification of the Regional Comprehensive Economic Partnership (RCEP), which top Senate leaders endorsed in plenary last week.

Food crunch to fuel inflation, BSP warns

THE Bangko Sentral ng Pilipinas (BSP) warned that various food supply problems, including potatoes and fish, could exacerbate the country’s accelerating inflation.In its February economic outlook, the BSP listed the various key commodities seeing elevated prices because of supply constraints that will “further add to the upside risks to inflation.” These are: livestock, poultry, fish, onions and even potatoes.

Carbon tax on electricity use pushed by lawmakers

Lawmakers seek the speedy congressional approval of a proposal to impose a first-ever carbon tax on electricity use (CTE) to raise extra funds for climate action initiatives and, thus, help the Philippines meet its ambitious de-carbonization target of cutting the greenhouse gas (GHG) emissions by 75 percent by 2030. Camarines Sur Rep. LRay F. Villafuerte emphasized said that the enactment into law of the proposed CTE—to be tucked into monthly electricity bills—is urgent in light of government’s tight fiscal space after a whole-of-government approach to stem Covid-19. Villafuerte’s House Bill (HB) 4939 proposes a carbon tax on electricity use equivalent to P1 for every kilogram (kg) of CO2 emission per kilowatt hour (kWh). The revenues from the CTE are to be used for programs on climate-change mitigation and adaptation.

House backs RCEP passage to boost investment outlook

The leadership of the House of Representatives has expressed its full support for the immediate ratification by the Senate of the Regional Comprehensive Economic Partnership (RCEP) agreement. In House Resolution 728, which supports the Senate’s ratification of RCEP, Speaker Martin Romualdez said by immediately ratifying the RCEP agreement, the Philippines can sooner benefit and take the advantages of this mega-trade deal that could attract more foreign investors, create more job opportunities, and curb unemployment and poverty rates in the country. In the resolution, lawmakers noted Trade Secretary Alfredo Pascual’s statement that the tariff liberalization under the RCEP will make preferential market access easier for Philippine exporters, thereby allowing the country to capitalize on potential market gains.

Philippines’ dollar reserves back to $100-B mark

For the first time in seven months, the Philippines rebuilt its foreign exchange reserves back to the crucial $100-billion level at end-January, as the Bangko Sentral ng Pilipinas (BSP) replenished the ammunition earlier deployed to curb local currency volatility. The country’s balance of payments (BOP) posted a surplus of $3.1 billion in the first month of the year, reversing the $102-million deficit recorded in the same month last year. “The BOP position reflects an increase in the final gross international reserves (GIR) level to $100.7 billion as of end-January 2023 from $96.1 billion as of end-December 2022,” the BSP said.