PCCI pushes passage of competition law

MANILA, Philippines - The country’s largest business group the Philippine Chamber of Commerce  and Industry (PCCI), is pushing for the passage of a competition policy  to create an environment that would attract more  investments in the country.   

PCCI president Alfredo Yao said the  Philippine economy would benefit from the enactment of a competition  law because it would ensure fair pricing and wider choice of goods in  the market, avoid mergers or trade combinations that would exclude weak  companies from business, and create a level playing field necessary  to attract more foreign direct investments.   

An assurance of fair competition would be conducive for the entry of  new businesses and expansion of existing companies and lead to  employment generation and poverty reduction.   

“These potential benefits – innovation, better products and services,  more choices, and a more competitive economy - are what we all hope to  enjoy as we develop and implement a competition law,” Yao said.   

As the country looks to enter international trade agreements, an  environment with clear anti-trust rules or a structure for fair  competition is necessary.   

“The full realization of ASEAN’s (Association of Southeast Asian  Nations) economic integration and increasing interest to participate  in other free trade agreements such as the Regional Comprehensive  Economic Partnership (RCEP) and the Trans-Pacific Partnership (TPP) –  developments which may require more liberal policies beyond mere  deregulation, privatization and removal of reasonable trade barriers – will definitely affect commercial activity,” Yao said.   

The ASEAN Economic Community to be in place by December 2015, would  allow free flow of goods, services, investments, skilled labor as well  as capital within the region.   

The RCEP aims to consolidate all ASEAN plus agreements into one  regional free trade network by 2015.   

The TPP, being negotiated by the US and 11 Pacific countries such as  Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico,  New Zealand, Peru, Singapore and Vietnam, aims to set standards on  intellectual property, labor rights and environmental protection for a  free trade bloc which would represent more than half of global output  and over 40 percent of world trade.      

While economic partnership agreements have the potential to generate  more investments, these may also bring anti-competitive threats.     

“Government must have the ammunition to ensure that it can continue to  deliver on the mandate of fostering a competitive market,” Yao said.   

Bills seeking to come up with a competition policy and create a  commission that would prosecute those engaged in unfair, deceptive and  other practices which prevent competition are pending at the  Senate and House of Representatives.