Business sector wants DTI split into 2 deparments

The business sector is increasingly becoming disillusioned with the Department of Trade and Industry with some even suggesting that the DTI be split into two distinct agencies similar to what it was in the 1970s.

According to Henry Leung, president of Petrochemical Corp. of Asia-Pacific and a director of the Federation of Philippine Industries, the DTI appears torn by its dual role of helping industries grow and protecting the rights of consumers.

The DTI, on one hand is supposed to protect the interest of local industries. On the other hand, it also looks after the interests of consumers and at times these interests conflict with one another, Leung pointed out.

For instance, the DTI sided with the local cement industry in its bid for protection from dumping.

However, the DTI took a different stance on the drug issue when it favored parallel drug importation and even accused local pharmaceutical companies of protecting their own interest with high prices and scheming against making cheap imported drugs available to consumers.

According to Leung to avoid such conflict, the DTI should be split into two separate agencies: Department of Trade and Department of Industry.

The Department of Trade should then concentrate safeguarding the interest of all existing industries.

It could also undertake a rationalization of certain industries, addressing their needs, concerns, tariff requirement, etc.

The Department of Trade could also more effectively mediate issues affecting industries without having to worry about consumer issues.

The Department of Trade should also focus more on promoting the Buy Philippines concept and fight for any deferment, when necessary of any unequal treaties that may affect the viability of local manufacturers.

In fact, Leung expressed the view that a Department of Trade should not agree to a hasty move to globalize.

"A Department of Trade should make more effort in involving the private sector in tade negotiations with other countries since it is the local industries which are affected by such negotiations," Leung said.

Businessman Antonio M. Garcia, chief executive officer of the Chemphil Group, also voiced his recent disappointment with the DTI and the Natural Economic and Development Authority (NEDA) for their haste in embracing globalization.

In a recent industry forum held in the University of the Philippines, Garcia said that "the DTI and NEDA should spend more time worrying about job creation and protection in this country rather than promoting the job security of workers in other countries."

Garcia expressed viw that "the consequence of globalization, as it applies here and now and under the current conditions, is to kill domestic industry."

Garcia was also dismayed by the government’s inability to protect local industries from smuggling and dumping.

He warned that smuggling is "a very grave economic problem."

He pointed out that "just about everything is being blatantly smuggled into this country – from rice to sugar, textiles, detergents, petrochemical resins, shoes, tires, batteries, PVC tiles, cement, cars, you name it, and you will find the smuggled item sold almost everywhere."

The DTI should focus on addressing industry’s problems first before travelling to more minister’s meetings, signing more agreements that will effectively kill whatever industries are left," Garcia said.

Even industrialist Raul Concepcion had called on members of President Arroyo’s Cabinet to concentrate on professionally running their departments or step down if they want to concentrate on their political ambition.

Garcia echoed Concepcion’s statement, commenting, "the country’s economic and financial managers need to stare at themselves in the mirro and admit that mistakes have been made both in policy and in implementation and that they must resolve that they will address such problems in a manner devoid of politics and personal interest.

There are concerns that Trade and Industry Secretary Manuel Roxas II’s performance is being affected by his future political plans.