As tensions churn on the high seas, Filipinos find peace on another front

(Conclusion)

“We focus on our military and security cooperation, and I do a lot of lobbying with the Pentagon and the State Department, President Bill Clinton, Arkansas Gov. Mike Beebe, and top officials of Fortune 500 companies and educational institutions.

“We focus on our military and security cooperation, and I do a lot of lobbying with the Pentagon and the State Department, but I also meet with the [Office of the US Trade Representative] and try to get the Commerce Department to organize trade missions to the Philippines,” he said.

To that end, he’s pushing hard for passage of the Save Our Industries Act.

Introduced in the Senate by Daniel Inouye (D-Hawaii) and in the House by Jim McDermott (D-Wash.), the SAVE Act now has eight bipartisan Senate sponsors and 21 bipartisan House sponsors. If passed, it would allow Philippine apparel made of US fabric to enter the United States duty-free. The Philippines is particularly known for its needlework skills, as well as the ability to assemble more tailored, embellished products at the mid- to high-end market tier.

Cuisia said that over time, it’s becoming more difficult for Philippine apparel manufacturers — whose workers now earn $300 to $400 a month — to compete against their much lower-wage Chinese rivals. At present, the Philippine share of the US garment market stands at 2 percent, compared to 38 percent for China.

“We’re trying to push this SAVE bill to enable us to be more competitive. I’ve spent a lot of time trying to explain this to legislators,” the ambassador said, noting that he’s also attempting to get the word out to the 2.5 million Filipino-Americans in the United States.

Maria Alvero, commercial counselor at the Philippine Embassy, said the SAVE Act “is a stepping stone to the Trans-Pacific Partnership,” which the Philippines has expressed interest in joining.

But that can’t happen, Cuisia warned, until his country relaxes its rules on foreign investment in critical sectors of the Philippine economy. Under current law, foreigners are limited to between 20 and 60 percent of equity in specific ventures depending on the type of business in question.

“We’d have to amend our constitution. There are certain economic provisions that restrict foreign ownership in retail trade, education, advertising and shipping,” he said. “That’s why for us to qualify under TPP, we have to remove all those restrictions. Generally the business sector is in favor, but it’ll take time.”

(Larry Luxner is news editor of The Washington Diplomat.)