MANILA, Philippines - The window of opportunity to tap huge foreign markets and massive investments by easing economic restrictions of the Constitution is fast closing, Charter change proponents in the business community and the House of Representatives said yesterday.
At the first hearing of the House committee on constitutional amendments, representatives of the Joint Foreign Chambers (JFC), local business groups and think tanks cited several international developments that could either boost the country’s growth and employment, or lead to its being at the bottom.
The panel, chaired by Davao City Rep. Mylene Garcia-Albano, tackled House Resolution No. 1 that seeks to amend Articles XII, XIV and XVI of the Constitution authored by Speaker Feliciano Belmonte Jr.
The proposal seeks to include the phrase “unless otherwise provided by law†to the provisions, which means the economic restrictions remain until Congress passes a specific amendment and is ratified through a nationwide plebiscite.
Cagayan de Oro Rep. Rufus Rodriguez, one of the proponents of Charter change, said amending the economic provisions is necessary to continue the positive momentum brought about by the Aquino administration.
He said the Philippines is currently enjoying improving anti-corruption as well as credit ratings and sustained growth.
However, despite all these improvements, foreign direct investment (FDI) to the Philippines fell towards the end of 2013 and unemployment went up.
According to data from the UN Conference on Trade and Development, the Philippines attracted FDI of $2.8 billion in 2012, an increase from the $1.8 billion in 2011 for a total of $6.3 billion for 2010-2012, Rodriguez said.
In the same three years, Vietnam got $23.8 billion, Thailand $25.5 billion, Malaysia $31.4 billion and Indonesia $53 billion.
Singapore got $56.6 billion in 2012 alone, he said.
Rodriguez and John Forbes of the American Chamber of Commerce said the Philippines should watch out for the Trans-Pacific Partnership (TPP), a free trade deal between the US, Canada and 10 countries in the Asia-Pacific region (Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, Japan) which is expected to eliminate tariffs on goods and services, tear down a host of non-tariff barriers and harmonize all sorts of regulations.
They said the 12 TPP members would have a combined Gross Domestic Product of $28 trillion and about a third of all world trade.
The lawmaker said South Korea, Thailand and Indonesia are also set to join the TPP. – With Aurea Calica