US bill seen to save RP garments sector

MANILA, Philippines - The Philippine-proposed bill “Save Our Industries Act of 2010” which is expected to save the ailing local garments industry has been filed in both Houses of the US Congress.

The measure was introduced by Congressman Jim McDermott and Congressman Brian P. Bilbray in June 2009 which had a total of 10 sponsors. A companion bill S. 3170 was introduced by Senators Kit Bond and Daniel Inouye. 

President Arroyo met with the proponents of the bill when she visited Washington last week.

Under the 809 component of the program, US made fabrics and yarns cut and wholly assembled in the Philippines would qualify to reenter the United States free of taxes. In addition, garments made of US spun yarn or extruded yarn formed in the Philippines, may reenter the United States at 50 percent of the most favored nation (MFN) duty.

The Philippine garments export industry, during its peak, employed around 600,000 workers but was whittled down to 150,000 as cheaper garments are now being manufactured from neighboring countries.

The Philippine delegation was able to convince US legislators on the positive impact of the bill. In 2008, US exports to the Philippines amounted to $20 million. 

The bill will significantly increase US exports to the Philippines and sustain thousands of US jobs for over a 10-year period.  

The bill drew positive response from members of Congress and we now count around 150 of them voting for its passage, the contingent observed.

To ensure strict customs enforcement and prevent transshipment of apparel, the Philippine government assures the US that it continues to enforce the Memorandum of Understanding Concerning Cooperation in Trade in Textile and Apparel Goods it signed with the United States in August 2006. The Philippines will also establish procedures to allow the US government access to information for shipments before they reach US Customs, similar to the Electronic Visa Information System (ELVIS), which had previously been in force in the Philippines.

In Washington, President Arroyo met with US Senators Kit Bond and Daniel Inouye to thank them for sponsoring the bill in the Senate. 

The Save Our Industries Act is a win-win trade program that will revitalize the US textile industry and the Philippine apparel industry. It will help workers in both countries through increased trade activity and expanding job opportunities.