Truckers wary of entry of foreign competition

MANILA, Philippines — The Confederation of Truckers Association of the Philippines (CTAP) is opposing a proposed law that would open up the local trucking industry to foreigners.

In a position paper submitted to the Senate public service committee on June 24, CTAP said Senate Bill 2094 could result in business and job displacements to over a million Filipinos in the trucking sector.

SB 2094 seeks to amend the 85-year-old Public Service Act by opening the transportation sector to majority foreign ownership.

“Allowing the entry of foreign-owned and/or controlled corporations into the country’s trucking sector will dampen industry growth, and its impact to local truckers would be tremendously disastrous,” CTAP said.

The group pointed out that there is no shortage of equipment in the trucking sector to allow foreign-owned and controlled companies to enter into the local trucking industry.

Local truckers fear the entry of foreign-owned and controlled firms will tip the industry’s level of competition to their advantage, especially at this time when truckers are faced with the challenge of complying to the government’s Transport Modernization Program.

According to the truckers’ group, allowing foreign-owned and controlled entities to operate in the domestic market could displace small and medium Filipino-owned firms and lead to the loss of jobs to millions of Filipinos.

The trucking industry is a vital component of the economy as it serves as the nation’s lifeline. CTAP argued it would therefore be dangerous to allow foreigners to dominate the local trucking industry for reasons of national security.

CTAP had asked for a thorough review by the Senate committee of the bill and consider their suggestions to provide safeguards, protect national security, and avoid the displacement of jobs and businesses.

SB 2094 is among the bills certified by Malacanang as priority to stimulate the nation’s economic recovery from the pandemic-triggered recession.