TRADE-RELATED ASSISTANCE FOR DEVELOPMENT PROJECT NOVEMBER 2013

T R A D E This newsletter is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents of this newsletter are the sole responsibility of the TRADE Project and do not necessarily reflect the views of USAID or the United States Government.

(Left to right) TRADE staff led by Dr. Habito, Gigo Alampay and Dr. Clarete (partly hidden) discuss the project with the

House delegation led by Speaker Belmonte, Rep. Villar, Rep. Collantes, Rep. Cojuangco, Rep. Quimbo, and Rep. Ungab.

TRADE meets with Speaker, House committees’ chairmen BOC Forms Counterpart

Team to TRADE Project

In a special order issued by Bureau of Customs (BOC)

Commissioner Ruffy Biazon, the BOC TRADE

counterpart team has been created, led by three Deputy

Commissioners, to provide guidance and support to and

work together with TRADE’s experts and advisers. The

special order also provides for the formation of a

secretariat and technical working groups to help

implement activities pursued in line with TRADE’s

objectives. The order, dated 19 November, came soon

after TRADE gave an orientation session to BOC’s newly

appointed Deputy Commissioners Primo Aguas, Edita

Tan and Agaton Uvero, and representatives of Deputy

Commissioners Jessie Dellosa and Myrna Chua. The

orientation session was also attended by USAID

representatives Kevin Sharp, Ryan Evangelista and Ria

Orca.

TRADE’s objectives include supporting customs

modernization, trade facilitation and the effective

implementation of the National Single Window (NSW).

The project is designed to provide assistance to the

Bureau in the adoption of key and internationally

accepted trade facilitation measures, particularly via their

inclusion in the pending Customs Modernization and

Tariff Act (CMTA) as well as in appropriate executive

issuances. It also hopes to help ensure the prompt

formulation of appropriate implementing rules and

regulations once the CMTA is passed, and the setting up

of a modern, transparent and well-coordinated customs

clearance system. TRADE will help analyse the

effectiveness of the NSW initiative, and support the

development and implementation of an ATA Carnet

system in the Philippines. (continue to Page 2)

In a post-meeting huddle during TRADE’s orientation (L-R)

are deputy commissioners Agaton Uvero, Edita Tan,

TRADE’s Dr. Habito and Ms. Cecille Reyes, Collector John

Simon, USAID Kevin Sharp, and deputy commissioner

Primo Aguas.

Key personnel of TRADE, led by Chief of Party Dr. Ciel Habito, presented an overview of the project to House

Speaker Sonny Belmonte and Congressman and Committee on Trade and Industry chairman Mark Villar on 5

November at the House of Representatives. Also in attendance were the chairmen of other economic-affairs

related House committees: Reps. Enrique Cojuangco (Economic Affairs), Nelson Collantes (Banks and

Financial Intermediaries), Romero Quimbo (Ways and Means) and Isidro Ungab (Appropriations).

Dr. Habito explained TRADE’s main objective of promoting higher inclusive economic growth for the

Philippines, particularly by way of achieving AEC 2015 compliance as well as the country’s eventual readiness

and participation in the Trans-Pacific Partnership agreement. He reiterated that TRADE is prepared to provide

technical assistance to legislators and their technical staff on key items in legislation, particularly the

Competition Policy law and the Customs Modernization and Tariff Act (CMTA). (continue to Page 2)

Former ministers share views on redefining public utilities

TRADE, through subcontractor Center for the Advancement of Trade Integration and Facilitation (CATIF), recently

invited three key economic policymakers in the 1970s to share their views on the topic of refining the definition of

“public utilities” toward increasing investment activities open to foreign equity participation. In an informal roundtable

discussion with CATIF experts and TRADE staff last November 8 in Makati City, former ministers Cesar E. A. Virata

(Finance), Vicente Paterno (Industry) and Dr. Gerardo Sicat (NEDA) provided a historical perspective to the evolution

of foreign investment policies in the Philippines. CATIF’s Dr. Emmanuel De Dios and Atty. Raphael Perpetuo Lotilla

steered the discussion, which was in line with TRADE’s efforts to provide technical basis for the amendment of the

Public Service Act of 1936. The discussion was also attended by other CATIF professionals including Drs. Florian Alburo

and Joy Abrenica, Loreli de Dios and Atty. Elaine Collado, along with TRADE staff. (continue to Page 2)

(L-R) former Economic Planning Minister and NEDA Director General Dr. Gerardo Sicat, former Trade and Industry Minister Vicente

Paterno and former Prime Minister and Finance Minister Cesar Virata with competition policy specialists Justin Chan, Elaine Collado,

Isabela Villamil and Irish Almeida, and TRADE COP Ciel Habito. Also in photo is former Energy Secretary Raphael Perpetuo Lotilla

(lower right front).

2 TRADE / NOVEMBER 2013

TRADE PROJECT STAFF Chief of Party: Dr. Cielito F. Habito • Deputy

Chief of Party: Gareth J. Davies • Senior

Adviser for Trade Policy: Dr. Ramon L.

Clarete • Trade Policy Specialist: Myrene

Bedaño • Component Lead for Trade

Facilitation: Cecilia V. Reyes • Adviser for

Trade Facilitation: Edmund C. Guamen •

Component Lead for Competition Policy:

Gigo Alampay • Monitoring and Evaluation

Specialist: Miguel V. Guioguio •

Communications Specialist: Kimi Tuvera •

Research Assistant: Abigail Dumalus •

Director of Operations: Mitos Q. Aldave •

Project Accountant: Imelda L. Mallari •

Administrative Assistant: Rose Catindoy

TRADE meets with Speaker from Page 1

The Philippines can best enhance its membership

in the ASEAN Economic Community (AEC) by

ensuring that it meets its commitments under

the AEC Blueprint. Dr. Habito stressed to the

lawmakers that the economy is poised to

experience a “breakout” due to a resurgence in

manufacturing growth, and that the Philippines

could capitalize on attracting more investors to

settle here and grow their companies.

Opportunities in the AEC, he said, lie in the

regional value chains or production networks.

Also discussed was the possible redefinition of

specific laws, the alternative to charter change if

the latter would not be possible to ease foreign

entry in still-restricted investment activities.

Speaker Belmonte spoke of current efforts being

undertaken to relax foreign ownership

restrictions, such as a review of the Negative List

in the Foreign Investments Act, and amendments

to the Public Service Act to redefine the scope of

definition for “public utilities,” which are

particularly restricted to Filipino ownership

under the Constitution. Speaker Belmonte urged

TRADE and the Committee Chairs to work

together toward the objective of the 16th

Congress to achieve a truly “investment grade”

economy.

Former ministers from Page 1

TRADE aims to help identify innovative approaches

to ease anti-competitive regulatory burdens on

selected sectors of the economy. The discussion,

which was a ‘trial run’ for a planned series of expert

discussions dealing on competition issues, sought to

examine the rationale for classifying certain

industries as public utilities or public service facilities.

Redefining the scope of the term “public utility”

through new legislation is expected to encourage

greater investment and competition in, among other

areas, information and communications technology,

energy and transport services.

According to former Senator Paterno, there is no

official definition for “public utility” in the law, as the

Public Service Act only defines “public utility or

public service” by enumerating examples. Redefining

or liberalizing the definition of “public utility” is

relevant to the formulation of a national competition

policy framework, a key activity being pursued by

TRADE. Dr. Sicat observed that foreign capital has

been used as an engine of growth in our neighboring

economies, whereas the Philippine economy has

been left behind. Traditional lack of domestic savings

should have been compensated by foreign capital to

propel overall investment and economic growth.

The three former ministers agreed that technological

change has made the re-definition of “public utility”

necessary. They discussed alternative approaches by

which existing foreign ownership restrictions on

investment may be eased, thereby make the

Philippines ready to participate in more ambitious

trade agreements like the Trans Pacific Partnership.

Scenes from TRADE and i3 Offices’ Blessing Last November 20

Father Ram Rigunay of Greenbelt Makati reads the

opening prayer at the entrance of the TRADE/i3 offices .

i3’s Maricor dela Cruz and TRADE staff led by COP Habito,

DCOP Davis, Rose Catindoy and Dr. Clarete with Father

Rigunay .

Father Rigunay blesses the TRADE/i3 Christmas tree .

Blessing of the technical staff cubicles.

Dr. Gilbert Llanto of PIDS, Dr. Clarete. Father

Rigunay and Dr. Habito

BOC from page 1

TRADE is conducting a peer review of the CMTA

for consistency with the provisions of the

Revised Kyoto Convention (RKC) and the

Philippines-US Trade Facilitation Protocol

(PUSTFP). The Bureau’s International Affairs

Chief, John Simon, was tasked to be the regular

direct point of contact for TRADE on behalf of the

counterpart team.