EDITORIAL - Foreign trade barriers

Instead of declaring war on pollster Pulse Asia over its latest survey showing 88 percent of Filipinos opposing Charter change, congressmen can read the report of the office of the US Trade Representative, which details foreign trade barriers in 59 markets including the Philippines. The USTR report, released on March 29, covers significant barriers overseas to US foreign direct investment, exports of goods and services, and e-commerce export markets.

In the Philippines, the USTR cited “pervasive” corruption as a “longstanding problem” in both national and local government agencies, with the Bureau of Customs meriting special mention. While recognizing the BOC’s modernization program, launched in 2021 to address corruption and efficiency problems, the USTR noted reports of “widespread corruption and irregularities” in customs processing, valuation, inspection and testing of certain products along with inconsistent fee assessments.

Published annually since 1985, the USTR’s latest National Trade Estimate Report on Foreign Trade Barriers also stated: “Both foreign and domestic investors have expressed concern about the lack of transparency in judicial and regulatory processes. Investors have also raised concerns about courts being influenced by bribery and improperly issuing temporary restraining orders to impede legitimate commerce.”

The report did mention restrictions in the Constitution on foreign ownership and the practice of certain professions, which hinder US investments in the Philippines. But the report also cited recent laws relaxing these restrictions. Opponents of the latest push for Charter change have cited these laws in arguing that restrictive economic provisions can be corrected through legislation, with no need for Cha-cha.

What cannot be corrected, either by Cha-cha or additional legislation, is the corruption cited in the report. The BOC in particular has been consistently ranked in all surveys as one of the most corrupt government agencies. But even during the presidency of Rodrigo Duterte, whose promise to kill, kill, kill was no mere hyperbole, corruption continued in the BOC, with even illegal drugs being smuggled into the country by the ton.

Judicial and regulatory corruption, long cited by foreign investors as a serious problem in this country, also cannot be corrected by Cha-cha or legislation, unless Congress wants to increase the penalties for graft. Corruption may be eased if politicians – including lawmakers – are prohibited from having any say in the system of appointment and promotion in the judiciary. But will Congress members agree to lose this power to make members of the judiciary beholden to them?

There are tough laws against corruption in this country, with a detailed code of conduct and ethical standards for government officials and employees. What’s lacking is proper implementation. Also lacking is blind justice that exempts no one from the full force of the law.