RP seeks help of US senators in saving local garment sector

MANILA, Philippines - The Philippines is now looking at getting some US senators to sponsor the Save Act in the US Senate to fast track the passing of the bill which will help the local garments industry.

In an interview, Trade Secretary Peter B. Favila said that Trade Undersecretary Elmer C. Hernandez reported to him that he has spoken to several US senators who are willing to sponsor the Save Act.

Hernandez, together with some representatives of the local garment industry was in Washington early this month to ask congressmen to help pass the Save Act.

Favila said that based on the report of Hernandez, the Save Act will not be passed during the first half of the year. “I don’t see that (passing of the bill) in the next couple of months.”

“We are continuing with the initiatives but the United States have their own priorities,” Favila explained further.

According to Favila, there are a number of related side issues that need to be addressed.

Favila said that the Philippines has four to six sponsors in the US Congress who are continuously pushing for the passage of the bill.

Hernandez said that they are asking the US Congress to pass the bill on time because the country will lose competitiveness if the bill is delayed further.

Hernandez said that they have been in consultation with local garments exporters who said that they will only expand their investments here if only the bill is passed in the US. Likewise, Hernandez feared that some current investors will leave to more attractive investment destinations.

When enacted into law, House Resolution 3039 or the Save Act would allow Philippine garment manufacturers to import and use US textiles for reshipment to the United States as finished garments under the cut-and-sew concept, duty-free. The normal tariff for such goods is 30 percent to 40 percent.