‘Sans FTA with US, PHL semicons losing millions’ By Andrea E. San Juan @andreasanjuan
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SELLING PHL IN LONDON Tourism Secretary Christina Garcia Frasco and Ambassador to the United Kingdom Teodoro L. Locsin Jr. form a heart sign, inviting the world to “Love the Philippines” during the opening of the Philippine booth at the World Travel Market in London on November 5, 2024. Also in photo: Rep. Kristine Singson Meehan, Rep. Duke Frasco, and Mrs. Louie B. Locsin. Right photo: the Philippine booth showcases cultural and traditional designs, including the solihiya motif, which is commonly used in crafting Filipino wood chairs. The WTM, running from November 5 to 7, is the premier travel trade event attended by influential buyers from around the globe. STELLA ARNALDO
HE Philippine semiconductor and electronics industry has lost around $5 million to $10 million since last year because of the absence of a free trade agreement (FTA) with the United States. “We’ve actually lost some opportunities in the US because of the absence of an FTA. There’s such a thing called [Trade Agreements Act] TAA. And you know, this is more on the [electronics manufacturing services] EMS side, the finished products,” Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) President Danilo C. Lachica said at a forum on Monday in Mandaluyong City. “When companies want to export to the United States and they’re not TAA—compliant, then they can’t export to the US,” explained the Seipi chief. Lachica said this was brought to his attention last year.
He explained that there is a preferential treatment on countries who are TAA compliant. “Yes, they will not accept the products. Unless US multinational, they won’t accept the product kung walang [ if there is no] FTA with the country.” “Since they know we don’t have any FTA, some companies may just not want our EMS companies to produce for exports to the US,” added the Seipi chief. To address this issue on electronics exports and being TAA-compliant, he said the answer is, simply, “Do the FTA,” adding that “You can’t circumvent the law. We have to work on the FTA.” Lachica noted that the US is the second top export destination of Philippine electronics shipments. “To give you the idea of numbers, 20 percent goes to Hong Kong. Still, that’s about $12 billion and 16 percent goes to the US to the tune of about $7 billion and 8 percent goes to China to the tune of $3.6 billion.” See “FTA,” A2
A broader look at today’s business www.businessmirror.com.ph
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Wednesday, November 6, 2024 Vol. 20 No. 28
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
OCT INFLATION AT 2.3%; RICE INFLATION IS 9.6% By Cai U. Ordinario
DOF to rice traders: Let people feel low tariffs
@caiordinario
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HE country’s food staple has not seen even a P1 reduction in price since the implementation of reduced rice tariffs in August, data from the Philippine Statistics Authority (PSA) indicated on Tuesday. The impact on the October rice inf lation print – at 9.6 percent from 5.7 percent in September.—did not go unnoticed by top officials of the land. President Ferdinand Marcos Jr. vowed on Tuesday more government interventions to provide consumers access to affordable rice. In a social media post, the chief executive said he tasked the Department of Agriculture (DA) and the National Irrigation Administration to expand the P29 Rice-for-All program and increase the number of Kadiwa ng Pangulo centers from 21 to 300 by mid-2025. “ This will bring affordable rice within reach for more communities across the countr y,” Marcos said. To help boost rice production, the President also urged local government units (LGU) to buy palay directly from farmers. “This way, our farmers receive fair prices for their hard work, and we can secure a steady supply of rice for everyone,” he said. He said he already tasked the Department of Finance and the National Economic and Development Authority to “address the rising input cost and climate impacts that affect food prices.” “This is a united effort to support our farmers and keep rice prices within reach for every Filipino family,” Marcos said.
PSA DATA
Based on the price monitoring efforts of the PSA, regular milled rice prices averaged P50.22 per kilo in October 2024, only 0.44 centavos less than the P50.66 per kilo posted in August 2024. PSA Undersecretar y Claire Dennis S. Mapa, the National Statistician and Civil Registrar General, said the implementation of the lower rice tariffs at
By Reine Juvierre S. Alberto
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FINAL STRETCH This side-by-side shows Democratic presidential nominee Vice President Kamala Harris rallying in Philadelphia on September 12,
2024, and Republican nominee former President Donald Trump in Warren, Michigan, on November 1, 2024. With both candidates closing out their campaigns in the battleground state of Pennsylvania, Filipino-American communities and the Philippines are watching closely, as the election outcome could shape USPhilippines relations on foreign policy, national security, and economic fronts. Harris has emphasized diplomatic stability in Asia amid rising tensions with China, a stance critical for the Philippines. Trump, meanwhile, has maintained a tough-on-immigration approach and strong nationalist tone, potentially impacting Filipino migrants and overseas workers. The choice before Americans could bring lasting effects across the Pacific. AP PHOTO
HE Department of Finance (DOF) urged rice traders to ensure that reductions in rice tariffs are passed on to consumers after rice inflation accelerated to 9.6 percent in October. The DOF said this on Tuesday as the October inflation print increased to 2.3 percent from 1.9 percent in September. The reminder is meant to ensure that the lower rice tariffs will help all Filipinos. Despite the reduction of rice tariffs to 15 percent from 35 percent effective on July 2024, rice inf lation still increased to an alarming 9.6 percent in October from 5.7 percent in September. Average retail price of imported rice in the National Capital Region during the second half of October 2024 declined by P3.5 per kilogram from the second half of June 2024, See “DOF,” A2
FULLY-INTEGRATED DIGITAL TRAVEL CLEARS DRY RUN By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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HE future is here. The “One ID” digital initiative of the largest group of airlines in the world has gone beyond an idea, having been pilot-tested recently in Hong Kong and Tokyo. The International Air Transport Association (IATA) said the organization and its partners have successfully demonstrated that the industry is ready to deliver a fully digital air travel experience. “This was achieved in a proof-of-concept
[PoC] involving two passengers using different digital wallets and travel credentials on a round-trip between Hong Kong and Tokyo,” said IATA in a news statement on Monday. Participating in the test run conducted on October 21 and 22 were Cathay Pacific, Hong Kong International Airport, Narita International Airport, digital platform and biometric solutions providers Branchspace and Facephi, digital wallet providers NEC Corp. and Neoke, and trust registries Northern Block and SICPA. “The airport elements of this PoC were conducted in a live environment,
building on an initial PoC carried out in a test environment in 2023,” IATA added. During the pilot test, two travelers used digital wallets containing their digital passport, company ID, and frequent flyer credentials to obtain personalized offers, book a flight, obtain a visa, check their travel documentation, check-in and receive boarding passes. The travelers used biometric identification to manage airport processes in a live environment without repeatedly showing their travel documents. See “One ID,” A2
See “Inflation,” A2
PESO EXCHANGE RATES n US 58.2380 n JAPAN 0.3828 n UK 75.4648 n HK 7.4932 n CHINA 8.2012 n SINGAPORE 44.1330 n AUSTRALIA 38.3439 n EU 63.3513 n KOREA 0.0425 n SAUDI ARABIA 15.5148 Source:
BSP (5 November 2024)