In a memorandum dated April 18, 2001 which updates President Arroyo on US-RP trade issues, specifically the 2001 National Trade Estimate (NTE) report, Roxas said there is growing clamor to penalize the Philippines for its perceived failure to enforce IPR laws by putting it back under the so-called priority watch list of International Property Rights violators.
The NTE report is prepared annually by the Office of the US Trade Representative (USTR) on foreign country practices that are perceived to restrict access of US exports, investments and services based on submission of affected US industries and association.
Three years ago, the status of the Philippines was upgraded by the US from the priority to the ordinary watchlist after coming up with a law toughening up the IPR Code to eliminate piracy.
Roxas warned that if the Philippines is placed again under the priority Special 301 list, the country would "become vulnerable to calls by vested lobby interest that the US government withdraw benefits from the Generalized System of Preferences (GSP) which mainly come in the form of zero duties."
Roxas said a loss of the US GSP duty-free previleges could mean a drop of as high as P821 million in the country’s export earnings, based on 1999 trade figures.
He said the 2001 NTE report may have relied too heavily on trade figures given by certain lobby groups such as the International Intellectual Property Alliance (IIAP).
The IIAP claims that US companies have lost about $51 million in 1999 alone due to the country’s rampant selling and utilization of fake computer software.
Furthermore, the IIAP also claims that US companies lost about $140 million in 1999 from copyright piracy.
Roxas is disputing the IIAP figures, arguing that the losses claimed by the group "may be overvalued due to the use of an overly simplistic methodology."
Roxas said the DTI is taking the necessary steps to argue the Philippine case.
The US trade representative, Ambassador Robert B. Zoellick, has been informed of the Philippine objection to the 2001 NTE and the country’s achievements in the area of protection and enforcement of IPR.
"The Philippines is encouraging the US government to acknowledge the significant strides made and should at least give due recognition to our earnest efforts that would warrant, at worst retention of the Philippines in the ordinary watch list or, ideally, removal from such list," Roxas appealed.