MANILA, Philippines - The government may include Mindanao in the coverage of a proposed measure that will give duty-free entry to the US for goods produced in areas damaged by Super Typhoon Yolanda.
Philippine Ambassador to the US Jose Cuisia Jr. told reporters that while the proposed measure will particularly cover goods produced in Yolanda affected areas, the government might also include Mindanao.
“It is for (Yolanda) affected areas but we might also be able to include Mindanao with the peace agreement. It also presents opportunities for us to maybe establish businesses. It is still being studied,†he said.
Earlier, Trade Secretary Gregory Domingo said the government is planning to work with a foreign consultancy firm for a draft bill that will give duty-free access for products made in Yolanda hit areas.
“We are proposing a minimum of seven to 10 years for the trade preference,†Domingo said.
The draft bill is intended to encourage firms to set up operations in the affected areas.
Cuisia said the government wants to ensure the proposed measure will be in compliance with World Trade Organization (WTO) rules and other international agreements, noting that the trade preference arrangement may raise some concerns from other countries.
Asked if the government is giving up on the Save Our Industries (SAVE) Act which seeks to give duty-free entry for Philippine-made apparel using American fabrics to the US, he said no formal decision has been made yet.
“We cannot do two things. Go to Congress and ask for two different things, we cannot. We have to make a choice and focus on that,†he said.
The SAVE Act which was first filed in Washington in 2009, needs a new sponsor after its primary sponsor Hawaii Senator Daniel Inouye passed away in 2012.
The measure is seen key to save the local garments sector amid decline in export sales and jobs after the WTO’s elimination of quota on shipments in 2005.