DTI confident US Congress will pass garments bill

MANILA, Philippines - The Department of Trade and Industry (DTI) is confident that the Save the Industries Act Bill that is pending before the US Congress would not be affected by recent efforts of US lawmakers to keep jobs in America.

The Save Act is expected to revive the local garments industry. It allows for the duty-free exportation to America of garments that use raw materials from the US.

In an interview, DTI Undersecretary Adrian C. Cristobal said that since the Save Act would also create jobs in the United States, the bill would not be affected by moves of the US to reduce outsourcing.

At the same time, Cristobal said they remain hopeful that the Save Act would be passed even if US lawmakers are already preoccupied with the upcoming elections.

“The ball is in their corner,” he said. He noted that there is nothing more the Philippines can do to push the bill. The Philippines has already reduced the cut and sew portion of the bill as per the request of some US lawmakers.

The Philippines was asked to remove two to three sections of the cut and sew portion of the Save Act in order to reduce the waived duties of the United States to $200 million.

Earlier, Trade and Industry Undersecretary Cristino L. Panlilio said that some US legislators wanted the waived duties of the United States to be reduced.

Originally the waived duties were at $330 million. It was already trimmed down to $230 million per year but Panlilio said another $30 million must be removed.

Panlilio said they would remove two to three sections in the cut and sew portion.

The Save Act is expected to save the ailing local garments industry because it would allow the duty free exportation of Philippine made garments which use American materials to the US.  

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

 “This is a landmark piece of legislation that would redound to great benefits for both our people. It would revive the Philippines’ garment industry that has been in the doldrums ever since the end of the quota regime and at the same time increase imports of US textile and export from the Philippines and other ASEAN countries of up to $3 billion in the next three years. This is definitely a win win solution,” Panlilio said.