Roxas likely to okay Ford’s proposal to import CBUs

Trade and Industry Secretary Manuel Roxas II is "favorably disposed" to the Ford Motor Co.’s proposal to import completely built up (CBU) units under the ASEAN Industrial Cooperation (AICO) agreement.

Roxas, however, qualified that any final decision on the matter would have to take into consideration Thailand’s position.

Ford Motor Co. Philippines Inc. is seeking preferential duties for its plan to import CBU units under the AICO agreement.

Earlier, Ford presented to President Arroyo its plan to implement the AICO agreement which would allow the firm to avail of preferential duties.

Under the AICO scheme, Ford plans to produce the Ford Lynx, Laser, and Mazda 323 models here in the Philippines. Ford would then export these units to Thailand.

In return, Ford would produce its Ford Ranger and Mazda Fighter pick-up models in Thailand which it would then ship here.

Part of Ford’s plan includes the production of the Ford Escape sports utility vehicle and Tribute here which it would then export to Thailand in exchange for the latest Volvo sedan.

Ford is seeking preferential duties of zero to five percent for the CBUs it will bring in.

Participants of the Motor Vehicle Development Program (MVDP) are slapped a 30-percent duty on CBUs.

Under the AICO scheme, which is a precursor to the implementation of the ASEAN Free Trade Agreement (AFTA), members are entitled to preferential duties.

The country is expected to benefit more from the scheme as its exports of motor vehicle would increase.

"The AICO scheme would provide additional market for our products," Roxas said.