Cebu furniture industry laments Asean exclusion

Cebu's furniture industry laments over some provisions on the draft of the Association of Southeast Asian Nations (ASEAN) roadmap for economic integration of wood-based industry, saying some provisions appear to be detrimental to the growth of the local industry.

The wood-based industry is one of the 11 priority sectors being looked at for the planned economic integration within the ASEAN. However, the furniture sector had not been given importance, said Ruby Salutan CFIF executive director.

Salutan said the industry is calling for further consultation with the players, as another problem looms for the furniture sector, considering that this is one of Cebu's economic drivers.

"We propose that the entire value-chain should be addressed because furniture is not included in the roadmap," Salutan said.

Members of the furniture export industry in Cebu participated in the focus group discussion (FGD), where the paper on sectoral integration was presented during the recently concluded 4th ASEAN Business and Investment Summit.

According to Salutan, the furniture sector here was surprised to find out that the furniture industry was not included among the provisions presented that would promote the development of the sector.

"We're shocked because furniture is a wood-based sector, yet furniture was not included," she said.

Also, she added that there are some issues and concerns the furniture industry is demanding for answers, especially on the provisions on trade and investment promotion, intellectual property rights, and the free movement of professionals in the 10 member countries of ASEAN.

Furniture industry players are now asking if they are covered by these provisions especially on trade and investment promotion, which aims at intensifying intra-and-extra-ASEAN joint promotion efforts for wood-based products.

One of the several factors that is expected to pose dangerous effects on the industry, is on the promotion of free movement of skilled labor in the ASEAN region, Salutan said this particular provision could further push brain-drain problem in the industry.

Already, furniture makers in Cebu have complained of exodus of designers to other countries especially to China, leaving Cebu with few good designers. If this problem will not be addressed property, Cebu stands to lose its niche in design.

For his part, program committee chairman of ASEAN BIS Mike Vallera, said that the furniture sector could still fight and be heard on their concerns, saying the industry may submit their concerns to the ASEAN Business Advisory Council (BAC), which is currently drafting the recommendation for economic integration that is to be submitted for the ASEAN Leaders' Summit next year.

ASEAN BAC organized the business summit in order to receive inputs and feedback from the sector concerned under the 11 priority industries, which include agro-based products, air travel, automotive products, information and communications technology, electronics, fisheries, healthcare, rubber-based products, textiles and apparel, tourism and wood-based products.

ASEAN secretary general Ong Keng Yong, on the other hand, admitted that the integration roadmaps need to be refreshed because it was done in a "jiffy" due to limited time.

The ASEAN BAC is headed by its chairman Jose Conception Jr. who earlier said that acceleration of a stronger ASEAN economic community integration will be actively pushed, in order to well compete with China, and create a solid negotiating power to deal with the bigger economies.