No perks for auto parts makers

The government is not about to adopt an incentive program for the auto parts industry, according to Trade and Industry Undersecretary Thomas Aquino.

Aquino said the government is still assessing the merit and timing of such a program for the auto parts industry.

He explained that in drawing up incentives for the automotive industry, the government has to take into account the country’s commitments under the World Trade Organization (WTO) which is calling for the phaseout of export incentives

The government also has to assess if granting incentives will indeed improve the competitiveness of the sector, he added.

Aquino pointed out that the government wants to ensure that in coming up with an auto parts export program, there is an auto parts markets to match auto parts manufacturers.

In the case of the Automotive Export Program, Aquino said, there was an assurance that there is a market for completely built-up units and that there is a firm commitment to product it in the country.

The Automotive Export Program was signed into law by President Arroyo in October last year and the implementing rules and regulations for the program are scheduled for publication by the end of January this year.

The AEP program provides incentives to local automotive manufacturers who are able to meet a minimum CBU production level.