British business group pushes changes in retail trade liberalization

MANILA, Philippines — A group of British firms operating in the country is pushing for the approval of amendments to the retail trade liberalization act to enable the country to attract more investments particularly from the UK.

Despite President Duterte’s order to suspend talks and the signing of loan and grant agreements with countries, including the UK, which backed a United Nations resolution to review the Philippines’ war on drugs, the group said such would not have an impact on the attractiveness of the country as a place to do business.

British Chamber of Commerce Philippines executive director Chris Nelson said in a press briefing yesterday the group has been a key supporter of the proposed measure to amend the Retail Trade Liberalization Law, which failed to get approval in the previous Congress but has been revived in the current one.

“My understanding is that it is going to pass through the House and, obviously, it will go to the Senate… That is just one more signal to invest, as it is something we can promote when we go back to the UK,” he said.

The proposed measure to amend the retail trade liberalization act seeks to reduce the minimum paid-up capital for foreign firms entering the retail industry to $200,000 from $2.5 million.

Nelson said the passage of the bill to amend the retail trade liberalization act would demonstrate openness on the part of the country and encourage foreign investment.

He said there is strong interest from British firms to do business in the Philippines given the opportunities offered by the country’s growing economy and consumer market.

Nelson is set to visit the UK this October along with representatives from other Southeast Asian countries for a two-week long roadshow organized by the UK-Association of Southeast Asian Nations Business Council to promote opportunities in the Philippines.

Asked about the recent move of the Philippine government to suspend negotiations for loan and grant agreements with countries which expressed support to look into the anti-drug campaign, he said this is not expected to affect British firms’ interest in the country.

“These are bilateral discussions. I think that you have to respect both countries. Obviously, the chamber is not involved in those discussions. The UK and the Philippines had long ties and they will continue regardless of any specific discussions and again that is on government-to-government. I think in terms of work we do, it is not affected, right? Let us not forget, we are involved with the private sector. We are involved with SMEs (small and medium enterprises). They are not the ones obviously involved with aid or grant. They are looking to see business opportunities,” he said.

He said what matters more to British firms is the business environment.

The group is also hopeful similar trade preferences under the  European Union Generalized Scheme of Preferences Plus (EU GSP+) would continue even after the UK leaves the trade bloc.

Earlier this year, British trade envoy to the Philippines Richard Graham said with or without a Brexit deal, the UK would continue implementing GSP+.

As a beneficiary country of the EU GSP+, the Philippines enjoys duty-free entry of 6,274 products to the trade bloc.