Joseph warns of economic sabotage via cabotage

MANILA, Philippines - The Philippine shipping industry is in grave peril because of a hidden danger that lurks in the guise of fair trade and enlightened consumerism.

Robert Lim Joseph, chairman emeritus of the National Association of Independent Travel Agencies (Naitas), disclosed that foreign interests are asking for skipping cabotage, which is the transport of goods and people between two points within Philippine territorial waters.

He said that foreign-owned vessels are not only asking the Philippine government to be able to operate in the country like domestic shipping companies but also to give them tax exemptions, something which are not enjoyed by local bottoms despite problems like high oil costs.

“This means the death of the local shipping industry,” warned Joseph, who described himself as “provocateur” of nation building for true and real fair trade.  “By any definition, it means economic sabotage through cabotage.”

At present, he said, foreign ships can pick up cargoes from, say, Davao, to Europe and other countries like Singapore. But foreign interests want to pick up goods and passengers from, again, say Davao, to Cebu, Manila and other points in the country.

The Philippine international ports are those in Manila, San Fernando (La Union), Batangas City, Legaspi City, Iloilo City, Cebu City, Tacloban City, Surigao City, Cagayan de Oro City, and Zamboanga City.

Joseph warned that foreign vessels are promising lower fares and freights than Philippine ships, but this is because of tax exemptions they seek to be made available for their operation here.

“Even if they invoke fair trade, this is not a level playing field because they (the foreign interests) want tax exemptions which will not be given Philippine shipping companies,” he stressed.  “This is unfair trade!”

Joseph said the basic position of Naitas and many groups supporting nation building is for fair open skies or fair open seas where there are equal opportunities to all players under a reciprocal arrangement.

He noted that  the airline industry of the Philippines, being a former Commonwealth country, had earlier asked the US government to be granted cabotage for them to pick up passengers and cargoes in Guam to Honolulu and to Los Angeles in California and from the West Coast to the East Coast, but this was rejected.

Previously, there were moves for unregulated open skies, but were foiled by groups like Naitas. It appears that this dark design has been resurrected as open seas.

“The lobbyists want the country to open up by giving up our rights for free, but the lobbyists and their cohorts will be making money at the expense of our country and the future of our children,” Joseph said.