Post away folks! :colgate:


Link to Thread 1 (http://www.skyscrapercity.com/showthread.php?t=629890&page=50) in the Archives. :okay:

RP yet to substantially
benefit from free trade

Malaya Business Insights
Dec.4, 2009

The Philippines has yet to substantially benefit from the growth opportunities of free and open markets, according Ambassador Manuel A.J. Teehankee, head of the delegation of the Philippines at the 7th session of the World Trade Organization Ministerial Conference the other day in Geneva, Switzerland.

Teehankee said that while in the last eight years the Philippines did finally achieve a level of economic stability with an average real growth in GDP of 4.8 percent based on policies that are anchored on open markets and economic fundamentals, "our experience and experimentation demonstrates that much more needs to be, and can be, done for or the Philippines to substantially benefit from the growth opportunities of free and open markets."

Even as we have experienced some economic stability, Teehankee said, the Philippines had in the past 20 years experience various boom-bust cycles generated by balance of payment problems, oil embargoes, political instability, global economic slowdowns, the Asian financial crisis, and many internal factors like low savings ratios, and low tax collection rates.

Teehankee said the Philippines had embraced industrialization, trade liberalization, and globalization, in the hope of winning the fight against poverty and underdevelopment.

But without specifying the Philippine experience, Teehankee said developing countries have sometimes adopted trade liberalization measures even without the required capability to compete with the more efficient firms of developed countries.

"To some extent, this has led to the closure of many domestic companies and the unemployment of personnel not prepared or adequately re-trained for other employment," Teehankee said.

"Globalization and trade liberalization have not necessarily improved and corrected persistent inequalities between and within countries," Teehankee said. At the working session 2 on "The WTO’s Contribution to Recovery, Growth and Development," Teehankee warned of the use of non-tariff measures in preventing the Philippines as well as other developing economies, gain market access.

During the session, Teehankee also pointed to making use of "aid of trade" for the Philippines and other beneficiary countries in helping them cope with the global financial crisis.

Teehankee warned the proliferation of non-tariff measures as a challenge that developing countries like the Philippines could face in trying to gain market access through the benefit of reduced tariffs.

"(Such challenge) would slow the phase of our development," Teehankee added.

Teehankee outlined how aid for trade can contribute to the recovery and growth process of beneficiary countries like the Philippines especially in the aftermath of the crisis when additional resources need to be mobilized.

He urged the WTO to spearhead a collaboration which addresses core problems for developing countries such as trade-related infrastructure, productive capacity, and domestic capacity, among others. (Irma Isip)

.... THE NEXT BUBBLE TO BURST....

... print print print ... print print print... :bash::bash::bash:

eZA0qNsf4m0

http://www.youtube.com/watch?v=eZA0qNsf4m0&channel=inflationus

Eto may nagkwenta ng balance sheet ng America. Looks like it validates the video posted by Doggman...:nuts:

Run on the US Dollar

Nov 30, 2009 - 04:33 PM
By: DailyWealth

Porter Stansberry writes: It's one of those numbers that's so unbelievable you have to actually think about it for a while...

Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion.

Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30% of our entire GDP. And we're the world's biggest economy. Where will the money come from?

How did we end up with so much short-term debt? Like most entities that have far too much debt – whether subprime borrowers, GM, Fannie, or GE – the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss."

What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt... at ever shorter durations... at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.

When governments go bankrupt, it's called a "default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists – Alan Greenspan and Pablo Guidotti – published the secret formula in a 1999 academic paper. The formula is called the Greenspan-Guidotti rule.

The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money-management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."

The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.

So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default.

The U.S. holds gold, oil, and foreign currency in reserve. It has 8,133.5 metric tonnes of gold (it is the world's largest holder). At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that's around $500 billion of reserves. Our short-term foreign debts are far bigger.

According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months – an amount far larger than our reserves.

Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.

So... where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40% of GDP.

Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or Russian central banks, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.

So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.

One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea, and Chile. These are the three largest central banks that own the least amount of gold. None owns even 1% of its total reserves in gold.

All of this is going to lead to a severe devaluation of the U.S. dollar... Which I expect to happen within 18 months. I examined these issues in much greater detail in the most recent issue of my newsletter, Porter Stansberry's Investment Advisory, which was published last week. Coincidentally, America's paper of record – the New York Times – repeated our warnings (nearly word for word) last weekend. Word is getting out.

If you haven't taken steps to protect yourself from the coming devaluation – like owning gold and silver bullion, foreign real estate, and farmland – make sure you do it soon. The dollar rout is coming.

Point is, the Philippine economy should be wiser and stop depending to much on the US or even the Japanese economy.

We have to diversify our economy and integrate it with other countries.

Point is, the Philippine economy should be wiser and stop depending to much on the US or eve Japanese economy.

We have to diversify our economy and integrate it with other countries.

strong pa rin ang privatization technique nila...daming little thinktank at daming big brother

RP doing better than most N-11 members

BY JIMMY C. CALAPATI
Malaya Business Insights
Dec 9, 2009

The Philippine economy is seen doing better than other emerging countries in the N-11 basket, according to global think tank Goldman Sachs and Co.

"The BRIC and N-11 economies, collectively, appear to be emerging from the global credit crisis better than the major economies. Within the N-11, Indonesia and the Philippines have positively surprised," Goldman Sachs said in its latest Economics Paper.

The term BRIC, for Brazil, Russia, India and China, was first used by Goldman Sachs economists eight years ago.

In 2005, the same economists coined N-11 or the next 11 economies that are worth keeping an eye on outside of BRICS.

The Philippines is one of these 11.

In Goldman Sach’s latest research note, the Philippines is seen doing better than most in the N-11 basket.

Within the BRIC and N-11 countries, the economists at Goldman Sachs said they can currently identify three groups:

The first group includes economies that have surpassed expectations. China is at the top of the list that, within BRIC, would also include Brazil and India.

"Of the N-11, we would include Indonesia and the Philippines in this group," Goldman Sachs economists said.

A second group contains countries that have largely performed in line with early projections, namely, Bangladesh, Egypt, Korea, Turkey, Nigeria and Vietnam.

The third group includes countries that have largely disappointed: Iran, Pakistan and Mexico.

While overall the BRICs and N-11 saw much sharper contractions than the developed countries, Goldman Sachs said that they also saw much stronger rebounds.

"Within the two groups, this picture is not uniform, and the extent of differentiation in the magnitude and speed of rises and falls is extraordinary," it said.

A number of countries are already back at their pre-2007 levels on a number of metrics, while others are recovering more slowly.

In terms of the differentiation, Goldman Sachs said it can identify three broad groups.

"One group comprises those that have displayed remarkable resilience during the global financial crisis.

This group of "winners" includes Brazil, China, India, Egypt, Indonesia and the Philippines. They have experienced a relatively mild slowdown, and have shown an impressive rebound in growth and activity this year, Goldman Sachs said.

It added that at the other end of the spectrum, Iran, Mexico, Pakistan and Russia have suffered more from the crisis.

"They stand out given the depth of their recessions and sluggishness of recoveries," Goldman Sachs said.

In-between lies another group that includes Korea, Nigeria, Turkey and Vietnam, which have also seen impressive rebounds despite relatively sharp contractions.

Goldman Sachs said the N-11 contribution to world growth has risen by a modest 1 percent in the last two years to 11 percent.

The contribution from all emerging markets as a whole was over 80 percent, as compared to the 2000-2006 average of 45 percent.

The G7 has only contributed 20 percent in the past two years.

While the 2000-2006 contribution to global growth was almost equally split between the developing and developed world, the last two years saw the trend change sharply, with the divergence mainly driven by the BRICs.

"On an individual country basis, all of the BRICs and seven of the N-11 (Bangladesh, Egypt, Indonesia, Iran, Nigeria, Philippines and Vietnam) contributed more to world growth in 2007-2008 than from 2000 to 2006," Goldman Sachs said.

The Philippine economy posted a modest expansion in the third quarter, backed by consumption, the government reported on Thursday.

The National Statistical Coordination Board (NSCB) said the gross domestic product, or the sum of all goods and services produced within the country, for the July to September period was at 0.8 percent, within the government’s forecast of 0.8 percent to 1.8 percent expansion for the whole year.

In the year’s first half, the country’s economy expanded one percent.

Analysts had said personal consumption expenditures (PCE), boosted by steady remittance from overseas Filipinos, likely supported the economy’s growth in the third quarter. PCE makes up about 70 percent to 80 percent of the GDP.

Climate change: Rich must fund poor nations


Friday, 11 December 2009 00:00
Manila Times

FIRST, it looked like the division of the house in the ongoing UN Climate Change Conference in Copenhagen was clearly between the rich, developed nations and the poor, economically and industrially developing nations together with the poor, rather economically and industrially underdeveloped nations.

To simplify the dichotomy:

The rich countries are neither willing to make larger reductions in their greenhouse gas emissions nor willing to accelerate their reductions so that the goal of nearly no emissions is reached before our planet becomes irreversibly doomed. (The doom scenario is based on calculations of the scientists favored by the UN’s Intergovernmental Panel on Climate Change.)

The poor countries want the rich ones to increase their GHG reduction targets and schedule the reductions faster. They refuse to curb their own emissions according to the targets the rich countries want because this would mean retarding their (the poor nations’) industrial development, economic progress and ability to reach the level of prosperity and global competitiveness enjoyed by the rich.
And the poor nations also want the rich to fund their projects to acquire and develop technology to achieve zero emissions. They make this demand (which President Gloria Arroyo articulated eloquently in the last Asean summit with key developed nations) because they rightly see that the rich and developed countries reached their level of wealth and development by causing much of the ecological harm to our planet.

The harm the industrialization and economic success of the rich countries caused over the past century created the global warming and weather effects that hit the poor countries hardest. These have scant resources to mitigate the severe rains, typhoons, flooding and rising of the sea that devastate their farms and cities (just as Ondoy, Pepeng and Santi recently did to us.) Therefore, the rich countries must make up for their abuse of the planet and endangering the poor countries by funding their climate-change projects.

New division among developing countries

Then, in the past couple of days, however, a new dichotomy has surfaced within the ranks of the developing and poor countries.

China is the perceived—and in effect the self-appointed—leader of the developing countries and the Philippines seems to accept this pecking order. China has been insisting, prior to the opening on Monday of the Copenhagen conference, that (as President Arroyo had also stressed) the developed nations must provide adequate funding to help poorer countries fight climate change and its effects. Chinese officials, the official media of the People’s Republic and of the Chinese Communist Party, have called for “fairness and justice” and for the rich countries to accept the responsibility of helping the poor countries, which contribute so little to global warming, pay for their “transition to cleaner economics.”

“Whether developed nations, as repeatedly promised, can provide short-term financial aid to poor countries, and gradually establish a long-term support mechanism . . . is the key to realizing this fairness and justice,” said an editorial of the state-run Beijing News. And the Communist Party’s People’s Daily ran a commentary, saying: “Developed countries should promise . . . to provide more funding and technical assistance to developing nations, to help them achieve emissions reductions.”

As if to validate the Marxist thesis-antithesis-synthesis description of socio-political progress, in Copenhagen there is now a division within the poor and developing nations’ camp. (The thesis-antithesis-synthesis formulation is wrongly used to describe the thought of Hegel, thus the so-called Hegelian Dialectic. But Hegel never used these terms. Marx and Engels adopted the formulation to elucidate their theory on poverty, society and the political economy.)

As China, the World’s No. 1 GHG emitter, continued to press for more action and aid from rich developed countries, which China again accused of reneging on their promises to cut their emissions and to give financial support to poorer countries to cope with the effects of global warming, Tuvalu, a small Pacific island country, submitted a proposal to have a “legally binding amendment” to the 1997 Kyoto Protocol that would demand stricter and more substantial GHG emission reductions not just on the developed countries but also on China, India and the other richer and more successful emerging economies.

Support the Tuvalu proposal

Tuvalu and other Pacific islands fear being submerged by the rising seas when the ice caps melt. The Tuvalu proposals, backed by the poorest countries most vulnerable to climate change, want the major emerging nations to make heavy reductions in their emissions by 2013. China and India (two of the BRIC nations), Saudi Arabia and other rich developing nations, oppose the Tuvalu proposal.

The tiny island states and African countries reject the goal of limiting the rise in global temperatures to 2.0°Celsius (3.6 degrees Fahrenheit) from pre-industrial levels. This seems to be acceptable to most of the 192 countries in the Copenhagen conference although it was proposed by the world’s richest and most industrialized G-8 nations.

Tuvalu and others want to set a lower temperature rise cap of only 1.5 Celsius (2.7 Fahrenheit). They think this lower increase of heat would give their countries a chance of not being devastated by deep flooding or deadly drought.

Tuvalu’s head delegate, Taukiei Kitara, said on Thursday that the biggest emission constraints would still be on the rich developed countries but there must also be large demands on the rich and most polluting developing economies, foremost of which is China.

Where does the Philippine delegation stand on this controversy in Copenhagen? We tried but failed to get that information up to press time.

The Philippines must support the Tuvalu proposal. Most of our most important cities are extremely vulnerable to high sea rising after all—just like Tuvalu.

Copenhagen, Climate and Globalization

Written by Walden Bello
Monday, 14 December 2009 18:41
Business Mirror

STARTING last week, representatives to the United Nations Climate Conference in Copenhagen started to wrestle with the challenge of climate change. At about the same time, influential actors in the World Trade Organization Seventh Ministerial Conference taking place in Geneva are trying to push for a conclusion to the nine-year-old Doha Round of trade negotiations. The two meetings are at cross-purposes and their juxtaposition highlights a profound reality: The world has to choose between free trade and effective climate management.

The global downturn: Relief for the climate

The last 12 months have seen the unraveling of a particular type of international economy: export-oriented and marked by the accelerated integration of production and markets. This globalized economy has been transportation-intensive, greatly dependent on ever-increasing, long-distance transportation of goods. For instance, a plate of food consumed in the United States travels an average of 1,500 miles from source to table. Transportation, in turn, is fossil-fuel intensive, accounting in 2006 for 13 percent of global greenhouse-gas emissions (GHG) and 23 percent of global carbon-dioxide emissions.

A downturn in the export-dependent global economy thus brings about a significant downturn in carbon emissions as well. It spells relief for the climate. In 2009, the drop in the level of greenhouse gas emissions (GHG) has been the largest in the last 40 years. The thousands of ships marooned by lack of global demand in ports such as New York, Singapore, Rio de Janeiro and Seoul means a significant reduction in the use of high-carbon Bunker C oil, which is used in 80 percent of ocean shipping. The cutback in air freight has meant a significant reduction in the use of aviation fuel, which has been the fastest growing source of GHG emissions in recent years.

Deglobalization as opportunity

In response to the collapse of the export-oriented global economy, many governments have fallen back on their domestic markets, revving them up via stimulus programs that put spending money in the hands of consumers. This move has been accompanied by a retreat from globalized production structures or “deglobalization.”

Writes the Economist, “The integration of the world economy is in retreat on almost every front.” While the magazine says that corporations continue to believe in the efficiency of global supply chains, “like any chain, these are only as strong as their weakest link. A danger point will come if firms decide that this way of organizing production has had its day.”

For many environmentalists and ecological economists in the South and the North, the unraveling of the export-oriented global economy spells opportunity. It opens up the transition to more climate-friendly and ecologically sensitive ways of organizing economic life. But the fossil fuel-intensiveness of global transport and freight is merely one dimension of the problem. Environmentalists insist there must be a change in the reigning economic model itself. The global economy must make a transition from being driven fundamentally by overproduction and overconsumption to being geared to real needs, marked by moderate or low consumption, and based on sustainable and decentralized production processes.

Accordingly, the assumption of most policymakers in the North that consumption trends can continue—and that the only challenge is the transformation of the energy mix and the adoption of technofixes such as biofuels, “clean coal,” nuclear power, carbon sequestration and storage, and carbon trading—is not only based on illusions but positively dangerous. Indeed, the climate problem cannot be addressed strategically without addressing the inherently environmentally destabilizing dynamics of capitalism —its incessant drive, motivated by the search for profit, to transform living nature into dead commodities.

Instead of heralding this transition to a much less fossil-fuel-intensive and ecologically sustainable production, most technocrats and economists see only a temporary retreat from export-led growth until global demand makes the latter viable again. The policy debate in establishment circles focuses on who will replace the bankrupt American consumer as the engine of global demand. With Europe stagnant and Japan in almost permanent recession, the hope is that China’s growth will be the basis of global reflation. This is a mirage. China’s 8.9-percent annualized growth in the last quarter is due to their current stimulus, a $585-billion program that has been funneled mainly to the countryside. Domestic demand will likely cease to grow once the money is spent. A limited spurt of cash will not transform Chinese peasants into the saviors of the global economy. After all, because they bore the costs of the country’s export-oriented economy, these peasants have seen their incomes and welfare severely erode over the last quarter of a century.

The Doha dead end

But however this debate over the global consumer of last resort is resolved, the World Trade Organization (WTO) and its most influential members, both from the North and the South, hope that completing the Doha Round at the Seventh Ministerial Meeting in Geneva will bring about a resumption of the carbon-intensive march toward globally integrated production and markets.

The preoccupation of economists and policymakers with the export engine to revive the global economy, which often excludes concerns about the negative impact of export-led globalization on the climate, is a dangerous divide leading up to Copenhagen. Says John Cavanagh, director of the Institute for Policy Studies: “We have economic policymakers concerned with reversing recession and ecological economists concerned with strategic ways of reversing climate change talking past one another.”

State of play on the climate

The climate negotiations have their own share of problems, even without the WTO threat. In the lead-up to Copenhagen, the focus of the climate discussions has been on two issues: mitigation and adaptation. Both are stymied, largely owing to the positions of the industrialized (Annex 1) countries. On mitigation, pivotal developed countries have so far resisted offering legally binding cuts. And what voluntary cuts they have offered are slight. In the case of the United States, President Obama’s nonbinding commitment is to reduce GHG by 17 percent from 2005 levels. This translates into an insignificant 4-percent reduction from 1990 levels, which serve as the benchmark for serious cuts. The Intergovernmental Panel on Climate Change has asserted that a 25-percent to 40-percent cut in GHG by 2020 is the minimum figure that would keep global mean temperature from rising above two degrees centigrade during this century. And, already, the latter is said to be an underestimate.

In the area of adaptation—assisting the poorer countries to prepare themselves for the consequences of climate change—the negotiations have been held up by the rich countries’ reluctance to come up with the minimum amounts of aid necessary, to transfer technology unconditionally, and to channel the sums to the developing world through institutions apart from the World Bank, which they control.

The challenges in these two areas are daunting enough. And yet, unless the question of which economic model or strategy the countries of the world should move toward is front and center in Copenhagen, even the most ambitious agreements arrived at on mitigation and adaptation will be simply a Band-Aid. Unless the negotiators in Copenhagen dethrone the Doha model, the fundamental driver of climate change—an export-oriented globalized capitalist economy based on perpetually rising consumption—will continue to reign.



Walden Bello is a member of the House of Representatives of the Republic of the Philippines, president of the Freedom from Debt Coalition, a senior analyst of Focus on the Global South, and a columnist for Foreign Policy In Focus.

RP to seek inclusion of Subic-Clark-Kaohsiung corridor in Taiwan-China free-trade area


Written by Max V. de Leon / Reporter
Tuesday, 15 December 2009 20:15

TAIPEI—Not wanting to be left behind, the Philippines will be seeking to gain a ticket to the proposed Taiwan-China Economic Cooperation and Framework Agreement (Ecfa) by asking Taipei to include the Subic-Clark-Kaohsiung economic corridor in the negotiations for the planned free-trade area (FTA).

Ambassador Antonio Basilio, resident representative of the Manila Economic and Cultural Office (Meco) here, said there are now concerns that most of the Taiwanese investments that are supposed to go to the Philippines will just again be diverted to China with the forging of the Ecfa.

This, he said, makes it more pressing for Meco to ask the Taiwanese government to consider expanding the Subic-Clark-Kaohsiung economic corridor to include some southern provinces of Mainland China and have it incorporated in the proposed Taiwan-China FTA.

“So this will be our assurance. We will probably formalize this proposal in the next JEC [Joint Economic Conference] meeting [of the Philippines and Taiwan],” Basilio told the BusinessMirror.

The next JEC, which serves as the venue for the Philippines and Taiwan in coming up with new bilateral cooperation programs, is scheduled early next year.

Taiwan and China, on the other hand, are scheduled to negotiate the terms of the Ecfa, which is the initial step in the opening up of trade between the Chinese nations, in the first half of 2010.

Basilio said all the three countries will benefit from the expanded economic corridor because they will be able to complement each other in manufacturing through seamless production lines in their respective economic zones, aside from according all parties larger markets.

He said with the addition of the Philippines in the picture, the products to be produced by China and Taiwan will gain access to the 600-million Asean market. They will also be able to gain benefit from the skilled work force of the Philippines, particularly in the higher end of the value chain.

The Philippines, meanwhile, will be able to get some of the investments.

He said aside from the fears of diversion of Taiwanese investments to China, the Philippines will also lose out more Taiwanese tourists to the Mainland with the Ecfa. “In tourism, we are feeling it now,” he said.

To prevent this from happening, Basilio said the Philippines will have to sell the idea of an expanded version of the economic corridor involving southern China.

The Philippines and Taiwan are now in the final stages of the completion of the requirements in the Subic-Clark-Kaohsiung economic corridor, which is supposed to funnel Taiwanese investments to the economic zones of Subic and Clark, where they will enjoy preferential treatment.

Former finance secretary says RP
to benefit from US interest in Asia

BY JIMMY CALAPATI
Malaya Business Insights
Dec.16, 2009

Former finance secretary Roberto de Ocampo yesterday said that he sees a vision of hope for the country next year, adding that the country "is fortunate to be in the right part of the world."

"Expected improvement in global conditions will provide greater impetus for growth. The US is actively re-engaging with Asia where growth is projected to be highest, compared to other regions in 2010," said De Ocampo, in a forum organized by the Asian Institute of Management.

He stressed that domestic demand will strengthen next year, supported by election spending.

He also sees improvement in the labor market due to a rise in business confidence in the second half on the assumption of a smooth election and transition in government.

For 2010, the former finance chief said that he sees gross domestic product (GDP) growing between 3 to 4 percent, remittances growing between 4 to 6 percent and exports staying in the positive territory after slumping by around 20 percent this year. "Net exports are expected to make a slight contribution to GDP growth," De Ocampo said. But if there are good news, De Ocampo also sees possible bad news for the economy.

"Despite the Philippines’ projected growth for 2009 and 2010, hurdles will keep the Philippines from achieving pre-crisis level growth, top of which is a non-conducive business environment, as illustrated by the country’s dismal ranking in competitiveness surveys," De Ocampo said.

The Economist Intelligence Unit conducts a survey that spans five years on business environment rankings (BER) in 82 countries with first place being the most conducive for business.

For 2004-2008, the Philippines ranked 51st It ranked 52nd for 2009-2013.

For the World Bank’s Doing Business Report, economies are ranked on their ease of doing business, from 1 – 183, with first place being the best.

A high ranking on the ease of doing business index means the regulatory environment is conducive to the operation of business. The Philippines ranked 144th and 141st out of 183 economies for 2009 and 2010 respectively.

Also, the Philippine economy ranks 104th freest of 183 countries included in the 2009 Index.

Its score, 56.8, is 0.8 point higher than last year, primarily reflecting improvements in monetary freedom and investment freedom.

The Philippines ranks 20th out of 41 countries in the Asia–Pacific region, and its overall score is slightly below the world average.

But foremost among De Ocampo’s bad news is the increasing deficit, which he projects will reach between 3.5 to 4.2 percent of GDP next year, roughly around P375 billion, P100 billion more than this year’s year-to-date deficit of P266 billion.

"The government’s ambitious revenue targets may not be reached since it has not been able to win legislative approval for revenue-strengthening proposals, such as excise tax reforms and changes in fiscal incentives to investors," De Ocampo said.

Also, while overseas demand for Filipino labor in healthcare and other basic services is projected to remain strong, adjustments in the global economy could result in lower demand in some sectors.

"Filipino seafarers would be affected by the slow growth in world trade volume and (other OFs will also be affected by) the projected continuation of high unemployment in advanced economies," De Ocampo said.

So how to avert the bad news?

Strengthening revenue collection efforts was foremost in De Ocampo’s mind.

"My advice would be to not think of raising taxes, rather collect much better," De Ocampo said.

He also suggested that a better economic strategy be adopted.

"Focus on what we can best offer – service and tourism. Learn from the crisis. No need to be export-led like Japan," De Ocampo said.

The government should also increase business confidence, which De Ocampo said is likely to happen if the country is able to peacefully elect the next President. "Therefore, the elections must take place and be perceived as clean," De Ocampo said.

Subregional trade scheme
eyed for RP-Taiwan

BY IRMA ISIP
Malaya Business Insights
Dec.16, 2009

TAIPEI. -- The Philippines is eyeing the expansion of a trade and investment preferential treatment scheme with Taiwan to include the southern region of China so the country will not be left out of a looming closer integration of the economic ties between China and Taiwan.

Antonio I. Basilio, resident representative and managing director of the Manila Economic and Cultural Office (MECO), said the Philippines is tapping the sub-regional arrangement as Taiwan and China prepare to forge a free trade agreement, the negotiation of which could start as early as next year.

The Taiwan-China deal has spawned fears that Taiwan’s investments, which are focused on Southeast Asia, would go to China instead.

The Philippines and Taiwan earlier forged an alliance under the Subic-Clark-Kaohsiung economic corridor, giving preferential treatment to locators in the economic zones.

Basilio said the Philippines is floating the idea of expanding the arrangement to include the southern part of China, covering Guangzhou, Fujian and Hainan, provinces which host a lot of Taiwanese locators, and areas that complement the Philippines’ and Taiwan’s industrial and agricultural sectors.

He said the plan, leveraging on the strong relationship with Asean, could also be widened further to include the Brunei-Indonesia-Malaysia-Philippines East Asean growth area or BIMP-EAGA, leveraging on Taiwan’s involvement with Asean that it is trying to push an FTA with the bloc as Asean+3½.

But Basilio does not see the sub-regional scheme taking off until Taiwan gets an FTA with China.

"This is a concept or vision to get people interested," he said.

But Basilio admitted that the existing economic corridor concept has not resulted in significant investments from Taiwan to Subic and Clark as Taiwanese locators in these zones cannot sell in the domestic market.

"The key here is for them to be able to sell to the domestic market," Basilio said.

The Philippines and Taiwan have yet to agree on the rules of origin which define the local content requirement of goods made by Taiwanese locators in Subic and Clark.

"They (Taiwanese) are not comfortable with the current formula," Basilio said.

Taiwan wants a lower 25 percent local content while the Philippines is asking for 40 percent. The current formula limits to 30 percent of the entire production that the firm can sell to the local market. Products beyond the hurdle are imposed the regular tariffs.

Basilio said if the local content hurdle is met, companies would be able to increase the volume of sales.

So far companies like Golden Sun and Tong Lung have expanded their operations in Subic under the economic corridor agreement.

One positive impact of the economic corridor is the harmonization of customs procedure for goods entering Subic, Clark and Taiwan

Point is, the Philippine economy should be wiser and stop depending to much on the US or even the Japanese economy.

We have to diversify our economy and integrate it with other countries.

strong pa rin ang privatization technique nila...daming little thinktank at daming big brother

Not only that. Their governments got control of TECHNOLOGY especially US. Knowledge is really power, not just wealth. We know that US is running a huge trade deficit with China. If China suddenly withdraws their Dollar reserves in favor of Euro or Gold, it might trigger the Third World War because US won't simply pay their debts that run into trillions of dollars when China is demanding assurance. There's a reason why America doesn't want to simply sell their failing car and other heavy industries from a technological point of view.

The Philippines should develop their own body of knowledge through education and hard research and development which the government barely pays attention. Only through that means the country can find the ways to become economically self sufficient enough to create a working domestic economy that doesn't rely too much on external trade further exposing itself in a failing global economy. It's about time to abolish the labor export industry.

Somali officials to visit Manila; anti-piracy cooperation on agenda

MANILA, Dec. 19 (PNA) -- Somali Deputy Prime Minister Abdurahman Aden Ibrahim Ibbi heads a high-level delegation due to officially visit the Philippines on December 21 to 23, the result of an invitation by President Gloria Macapagal-Arroyo when she met a few African Union leaders in Tripoli last August.

In announcing the high-level visit, the first since Foreign Minister Abdurahman Jama Barre came to Manila in 1979, the Department of Foreign Affairs (DFA) said it is "expected to boost the Philippines’ anti-piracy efforts."

The DFA indicated that Manila and Mogadishu would explore possibilities of cooperation and training in maritime security, combating piracy, aquaculture development, search and rescue, law enforcement operations, marine environmental protection, and human resource development.

"The visit is expected to boost the Philippines’ anti-piracy efforts," DFA announced, noting that "as the supplier of about a third of the world’s shipping manpower, the Philippines is directly affected by the scourge of piracy."

Ibbi, who is also the Minister of Fisheries and Marine Resources of Somalia, is scheduled to meet with officials of the Philippine Coast Guard, the Philippine Navy, the Bureau of Fisheries and Aquatic Resources, and the Civil Service Commission.

The Jakarta-based Somali resident ambassador to Manila, Mohamud Olow Barow, and Somali Navy Commander Admiral Farah Ahmed Omar complete the entourage.

Training Somali maritime authorities may help curb piracy off the coast of Somalia, where numerous international vessels have been hijacked by Somali pirates in recent years, DFA added.

Somalia is known to Filipinos in the Mindanao peace process as a member of the Organization of Islamic Conference (OIC) Committee on the southern Philippines conflict resolution.

But its sea coast and territorial waters are also infamous as a hotbed of high-seas piracy, where a number of Filipino seafarers -- 54 at the latest estimate -- are still among international captives held by pirates in inland Somalia. Many of such pirates are supposedly indentured fishermen looking to kidnap ransoms as a quick source of livelihood.

President Arroyo was in Tripoli last August 31 and appeared at the Special Summit of the African Union, where she drummed up participation in the now-deferred Non-Aligned Movement Special meeting which Manila was to have hosted this month.

At the sidelines, she met with Somali President Sheikh Sharif Sheikh Ahmed and extended the invitation, offering the Philippines’ assistance in training and strengthening the capabilities of the Somali Coast Guard and civil service.

Manila-Mogadishu diplomatic relations have not fully developed, partly due to the prolonged civil strife in Somalia.

DFA Undersecretary for Policy Enrique A. Manalo will host a luncheon for the Somalian guests. (PNA)

PGMA calls for new world order in fight against global warming

COPENHAGEN, Dec. 18 (PNA) -- President Gloria Macapagal-Arroyo late Thursday issued an appeal for collective action by all nations to address the harsh effects of global climate change, as she stressed that participating countries must not leave the unprecedented summit “without a deal.”

Speaking before other top delegates to the climate change summit at the Bella Center in this Danish capital, the President warned that the hour is late and the need to do something about global warming is urgent.

“We come to Copenhagen in partnership with other nations to find a way to meet the harsh impacts of climate change and avert a global crisis,” the President said. “The problem will certainly take years to solve, but we need to start the process now.”

The United Nations Climate Change Conference, held Dec. 7-18, is hosted by the Kingdom of Denmark. Some 183 countries have sent in their president or prime minister making the affair the biggest gathering of top-level government officials in history. It also attracted tens of thousands of print and broadcast journalists, members of non-governmental organizations, tourists and curiousity seekers.

Taking her scheduled slot a few speakers after President Nicolas Sarkozy of France, President Arroyo urged developed countries of the world to own up to their responsibility.

According to President Arroyo, developing countries are the least responsible for the global warming but they suffer the most from its ill-effects.

The Philippines, for instance, emits only 1.6 tons of greenhouse gases per capita, while the world’s average is six tons per capita. For any meaningful progress in the effort to avert disaster, recent studies suggested, emission must be brought down to three tons.

Tragically, “we are one of the top 12 countries, identified by the United Nations at risk from climate change,” she said. “Two recent typhoons cost the Philippines $ 4 billion or 2.7 percent of GDP. Over 600,000 hectares of farmland were destroyed.”

The same typhoons affected nine million people and claimed 900 lives.

“We cannot afford to leave Copenhagen without a deal,” the President told her fellow top-level delegates.

But for an equitable outcome, she said, developed countries must lead in reducing emissions “under the principle of common but differentiated responsibility.”

The President appealed to rich countries to establish a financial mechanism that will facilitate a seamless transfer of technologies necessary to fight the global warming phenomenon.

“We applaud Secretary [Hillary] Clinton’s ground breaking announcement that the United States is prepared to work with other countries toward a goal of jointly mobilizing $ 100 billion a year by 2020 to address the climate change needs of developing countries,” she said.

The President said that equally essential to the establishment of global funds from which developing countries can draw is their replenishment from time to time when there is need for it.

“Humans started the problem,” she said. “Humans can solve it.” (PNA)

Chinese Pig and Geese Farmers Hoarding Metals :nuts:

Before getting into to the relationship between copper and pork products, I want to draw your attention to what makes me nervous, have a look at these photos from China. They are excerpted from a China Central Television Channel (CCTV) program documenting private speculation and hoarding of metals throughout the country. According to an associate of mine at an Asia-focused hedge fund who was just in China, “It’s pervasive; people are piling this stuff up in their backyards.”

(“It’s pervasive”)

Some of the more telling lines from a translated script of the CCTV program (which I assume to be accurate) include:

* Wang Chao lived in Anxin county of Hebei province (rural area). He is in charge of a metal scrap collecting company. He used to purely take commissions for collecting scrap. Since 1H 2009, he started stocking scraps. He told CCTV his business now is like 'gambling'. Not only him, Mr Wang said many people in his town have stocked a lot of metal at their home.

* They told CCTV they believe the metal prices will 'certainly rise', and they have 'a lot of' stocks. For example, he said, in Laohetou county, every household has dozens to hundred tonnes of copper. Nobody wants to sell. They believe copper price will goes back to Rmb70,000/tonne from currently Rmb40,000/tonne.

* Traders in Wenzhou city of Zhejiang province: A business man told CCTV, they use a lot of bank loans and bought a lot of metals for stocking. For one warehouse, he stocked at least 15 Kt to 20 Kt of copper. For his total personal metal inventories, he invested Rmb1-2 bn. He believe all metal prices will surge with inflation.

* A non-ferrous metal warehouse manager, Mr Qin Baoqing in Wusong District of Shanghai. He said many metals cannot be put in their warehouse, so they have to leave them in the backyard. Many stocks have not been moved for 3 months now. For example, he said, they have many aluminium stocks from Lanzhou Aluminium, Guizhou Aluminium etc.

* He Jinbi from Maike (metal trading company). He told CCTV they saw many farmers in Guangdong province stocking more than 100 tonnes of aluminium at home. These people used to raise geese for living.

* Because the interest rate is too low in China. Many farmers could make hundreds of RMB profits per tonne, with dozens of Rmb per tonne cost of interests. They use their existing inventories to borrow more from banks. Banks are very 'happy' to lend to them.

[a side bar here: China’s 4 trillion stimulus package equals about 15% of GDP and according to the Financial Times, bank loans are up ~140% this year to ~8.6 trillion Yuan and official State investment accounts for 88% of GDP growth. What we are witnessing is Chinese savers experiencing negative real interest rates in their savings accounts: much worse than in the US. At the same time they are able, in fact motivated, to borrow money at rates that are less than the inflation rate. Hence, the massive government stimulus combined with unlimited cheap money has fueled a soaring stock market, real estate prices, and as presented here, commodity speculation. Approximately 60% of the stimulus money is estimated to have gone into these speculative sectors.]

* On the other hand, many stock brokerage firms in China have become futures trading companies this year. Stock brokerage firms are very rich of cash. Private investors plus those brokers have at least invested Rmb20-30 bn in metal futures market. In 2008, only 50 bn Rmb were in the Shanghai futures market. This year, the number has increased to 80 bn Rmb. Everyday, he said, there are more money flowing into the market.

The CCTV program concludes, “Many speculations in metals have sent mis-leading signals to the government and disordered the market. The government should pay enough attention to it.” (the Chinese version can be read here.)

A September 17 Bloomberg story by Singapore-based Glenys Sim reports that “Private investors in China, the world’s largest metals user, have stockpiled ‘substantial’ quantities of copper as the government ramps up stimulus spending to spur the economy.” The article points out that pig farmers and other speculators have amassed in the order of 50,000 tonnes of copper. That is about half the level of inventories tallied by the Shanghai Futures Exchange.

Point is, the Philippine economy should be wiser and stop depending to much on the US or even the Japanese economy.

We have to diversify our economy and integrate it with other countries.

Most ng mga pinakamalalaking trading partners natin e.g USA and Japan eh nasa gitna ng krisis. Sana naman mabalance yung dependency natin at huwag lang puro sa America at Japan.

Most ng mga pinakamalalaking trading partners natin e.g USA and Japan eh nasa gitna ng krisis. Sana naman mabalance yung dependency natin at huwag lang puro sa America at Japan.

Tama ka roon.

Dapat pagtuunan natin ng pansin ang iba pang bansa outside Japan, US and Europe.

We should try strengthening our trade relations with ASEAN, China, Africa and Latin America.


We should also try to trade with former Eastern bloc countries like Poland, The Baltic States, Central Asia and Middle East.

Tama ka roon.

Dapat pagtuunan natin ng pansin ang iba pang bansa outside Japan, US and Europe.

We should try strengthening our trade relations with ASEAN, China, Africa and Latin America.


We should also try to trade with former Eastern bloc countries like Poland, The Baltic States, Central Asia and Middle East.

Don't forget INDIA..:lol:

yung mga Latin American countries like Mexico, Brazil, Venezuala atbp. ay maganda ring gawing major trade partners.

^^ ... and Canada! :):cheers:
http://www.x-rates.com/d/USD/CAD/graph120.png

Ottawa talks up loonie as reserve currency (http://www.ft.com/cms/s/0/0d117e12-efae-11de-833d-00144feab49a.html)

By Peter Garnham

Published: December 23 2009 11:26 | Last updated: December 23 2009 22:33

The Canadian dollar advanced on Wednesday after Jim Flaherty, Canadian finance minister, extolled the virtues of the loonie as a reserve currency.

Mr Flaherty said it would not surprise him if China and Russia, two of the world’s largest holders of foreign exchange reserves, were to raise the share of the Canadian dollar in their stockpiles, adding that many investors were “looking around the world to invest in market currencies that are reliable”.

Analysts said it was notable that the Canadian dollar had outperformed the resurgent US dollar since the US unit hit a 16-month low on a trade-weighted basis late last month.

Camilla Sutton, of Scotia Capital, said many of the factors that had led to the recent US dollar rally were also supportive of the Canadian dollar.

She said the upward pressure on the US dollar had been caused by the realisation that there were many hurdles ahead for the eurozone, including sovereign risk, and that fundamentals in the US were improving faster than many had previously thought.

“Canada has limited sovereign risk and what is fundamentally good for the US is also good for Canada and therefore the Canadian dollar,” said Ms Sutton. “Accordingly, we think the recent outperformance of Canadian dollar is justified and expect it to be an ongoing trend.”

In late trade in New York, the Canadian dollar was up 0.8 per cent to C$1.0487, its strongest level in almost two weeks.

Meanwhile, the Swiss franc made ground as traders continued to test the Swiss National Bank’s tolerance towards a stronger currency.

After breaking through SFr1.50 against the euro at the end of last week, a level that the Swiss National Bank had been defending since March in its fight against inflation, investors have been pushing the Swiss franc steadily higher in an attempt to provoke a reaction from the central bank. Jane Foley, of Forex.com, said traders were “playing chicken” with the SNB.

“Signs that the Swiss economy continues to improve has strengthened the notion that the SNB will allow the Swiss franc to appreciate versus the euro,” she said. “However, no one has the confidence to expect that the SNB will step away from the market completely.”

The Swiss franc was up 0.4 per cent to SFr1.4887 against the euro and climbed 0.9 per cent to SFr1.0397 against the dollar.

The pound dropped to a two-month low against the dollar after the minutes of the Bank of England’s monetary policy committee showed all nine members voted to keep interest rates at record low levels and maintain the asset purchasing target.

The MPC said it was difficult to identify with any degree of certainty whether the economy had turned.

The pound fell to a low of $1.5921 against the dollar, its weakest level since October 14, before paring its losses later in the session, to $1.5950. Weaker-than-expected November US new home sales undermined demand for the US currency.

The dollar, which surged to its highest level in almost four months on a trade-weighted basis on Tuesday, also lost ground elsewhere. The dollar fell 0.6 per cent to $1.4350 against the euro and was down 0.1 per cent to Y91.71 against the yen.

Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Some interesting articles about a new type of reserve currency valued in Kilowatt hours or joules (energy) instead of limited silver and gold reserves or speculative sensitive fiat money that is so prevalent today.

http://www.energybackedmoney.com/chapter7.html

http://www.alternet.org/blogs/echochamber/39284/

http://www.gaianeconomics.org/pdf/ebcu.pdf

If something is to replace a US dollar or precious metals, why not use energy as a logical and convenient storage of value?

Some interesting articles about a new type of reserve currency valued in Kilowatt hours or joules (energy) instead of limited silver and gold reserves or speculative sensitive fiat money that is so prevalent today.

http://www.energybackedmoney.com/chapter7.html

http://www.alternet.org/blogs/echochamber/39284/

http://www.gaianeconomics.org/pdf/ebcu.pdf

If something is to replace a US dollar or precious metals, why not use energy as a logical and convenient storage of value?

Panalo Pinas yan in the future.

Our DENR claimed that we are one of the most "mineralized" country in the world.

In other words, we sit on a goldmine.We can produce food for our people for many many more years.

Resource poor but rich countries like Japan, Korea, Taiwan and Singapore will be dead in a few years. Because money will became obsolete and their products useless if food and energy became more scarce.

Tama ka roon.

Dapat pagtuunan natin ng pansin ang iba pang bansa outside Japan, US and Europe.

We should try strengthening our trade relations with ASEAN, China, Africa and Latin America.


We should also try to trade with former Eastern bloc countries like Poland, The Baltic States, Central Asia and Middle East.

RP, Syria sign 6 economic agreements to boost trade ties

By BERNIE CAHILES-MAGKILAT
December 26, 2009, 1:40pm
Manila Bulletin

Philippines and Syrian governments have signed six agreements to enhance and expand bilateral economic relations ranging from cooperation in tourism, IT, real estate, and micro, small and medium enterprises.

Trade and Industry Secretary Peter B. Favila and Syrian Deputy Prime Minister for Economic Affairs Abdullah Dardari led the bilateral negotiations held in Malacañang recently.

There were four government-to-government Memoranda of Understanding (MOU) and two bilateral agreements signed during the meeting. The signing of the various agreements was done in Malacañang and witnessed by no less than the Philippine President, H.E. Gloria Macapagal Arroyo. DFA Secretary Alberto G. Romulo and Press Secretary Cerge Remonde of the Office of the President were with President GMA at the signing ceremony.

Favila said that economic cooperation and cultivating new initiatives topped the agenda of the bilateral meeting.

The bilateral agreement on the Promotion and Protection of Investments is geared towards creating and maintaining conducive environment and favorable conditions for two-way flow of investments.

The agreement on trade and economic cooperation establishes the framework to develop and promote bilateral trade and to collaborate on initiatives in accordance with development needs and cognizant of mutual benefits.

The MOU on Tourism, signed by DoT Secretary Joseph Ace Durano and Syrian Deputy Prime Minister Dardari, provides for the development of tourism and as avenue for exchange and sharing of culture and history.

The MOU on One-Town-One-Product (OTOP) Promotion and MSME development adopts the OTOP business model to flourish trade and industry in the MSME sector.

OTOP is a Philippine government’s priority project that aims to promote local entrepreneurship and job creation by highlighting the diversity and distinctiveness of every municipality through the development and promotion of a handcrafted product or services, which the MSMEs produce or render with competitive advantage.

While the MOU on IT serves as an anchor for information and technological competency-sharing between the Philippines and Syria, the MOU in the field of housing and construction seeks to promote cooperation on regional planning, engineering and consulting, tendering and bidding, and contracting.

Philippine and Syrian officials put themselves to task by negotiating and concluding bilateral agreements that will broaden trade, investment and economic relations. Assessment of bilateral economic relations and the review of the action plan drawn up during the inaugural meeting also figured out prominently in the discussions.

From the private sector side, it is worthy to note that the International Container Terminal Services, Inc. (ICTSI), established in the Philippines in 1987, entered into a ten-year Investment Agreement with Syria’s Tartous Port General Co. to operate in Syria with an option to extend it for five more years.

In 2008, Syrian Arab Republic ranked as the Philippines 120th overall trading partner, 130th as export market and 138th as import supplier.

For the same period, Syria was the country’s 13th trading partner and occupied the 12th slot both as an export market and import supplier in the Middle East region. Philippines top exports to Syria consist of bleached, refined and deodorized oil, coconut (copra), pineapples, and woven, knitted and crocheted fabrics as well as powdered milk and cream. Major imports from Syria consisted mainly of articles of iron and steel.

From January to July 2009, Syria ranked as the Philippines 116th trading partner, 107th as export market and 117th as import supplier.

Panalo Pinas yan in the future.

Our DENR claimed that we are one of the most "mineralized" country in the world.

In other words, we sit on a goldmine.We can produce food for our people for many many more years.

Resource poor but rich countries like Japan, Korea, Taiwan and Singapore will be dead in a few years. Because money will became obsolete and their products useless if food and energy became more scarce.

It makes more sense than using a hard currency like a dollar because energy is relatively scarce and is dependent on effort of production, in other words, manipulation of values through money supply controls are more difficult than printing paper money that is not backed by any precious commodity. Energy is much closer and more connected to our existence and growth of our advancing civilization than a piece of paper or any precious metals. Since the values will be in kilowatt hours, any payment that produces energy of equal amounts will be acceptable (whether it will be in coal, natural gas, or other fuels), which are scarce themselves and this allows more room for improvements in the future. Advances in research and development of renewable energy resources and any new discovery of energy sources (i.e. deuterium (http://en.wikipedia.org/wiki/Deuterium) for fusion technology (http://en.wikipedia.org/wiki/Nuclear_fusion)) will always be a welcoming possibility.

I think the world economy will be a ton better if kilowatt hours or joules of energy is the basis for the value rather than dollars, euros, yens, pounds and other 'hard' currencies out there because they represent real assets - energy which our civilization is depending on.

Looming 2010 Global Food Crisis

http://www.marketoracle.co.uk/Article16063.html :ohno:


Looks like the US is getting a fair share of unusual weather patterns brought on by climate change...

USDA Primary Natural Disaster Area Designations

http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=edn&newstype=ednewsrel

In other words, we sit on a goldmine.We can produce food for our people for many many more years.

[/QUOTE]

^^ Ay naku, friends, 2nd tayo sa mundo sa deposit ng gold, pangatlo tayo sa copper at pang anim tayo sa deposit ng chromium sa buong mundo. 73 provinces out of 79 ay may mga mineral deposits- ganyan kayaman ang mahal nating Pinas, May deuterium pa sa Philippine deep at oil so paano mo sasabihing tayo ay mahirap sa yamang mineral? Kalakhan nga lang sa ating mga Pinoy ay mahirap. :ohno:

RP sees P9B in losses from free trade deals

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 19:57:00 01/20/2010


MANILA, Philippines--Free trade agreements with large neighboring markets that took effect starting Jan. 1 and provide for the gradual removal of tariffs will pare off up to P9 billion from government revenues this year.

Finance Secretary Margarito B. Teves, however, said the negative effect of dismantling tariffs would be “quickly compensated” by the expected rise in the traffic of goods in general.

“Certain tariff lines will be affected, but there will be additional importation of raw materials that will become inputs for finished products,” Teves said.

For 2010, the net effect of reduced tariffs would be revenue losses of between P7 billion and P9 billion,” he said.

The Association of Southeast Asian Nations, of which the Philippines is a founding member, last Jan. 1 kicked off two agree ments establishing free trade areas (FTAs) with China, Australia and New Zealand.

Initially signed in February 2009, the Asean-Australia-New Zealand FTA hopes to create a trans-Pacific free trade zone comprising a market of 600 million people with a combined $2.7-trillion output of goods and services.

Under the agreement, tariffs will be reduced gradually starting Jan. 1, 2010, until a zero-tariff regime is realized by 2015 or at least those of Australia, New Zealand and the so-called Asean6—the Philippines, Indonesia, Thailand, Malaysia, Singapore and Brunei.

The newer Asean member states—Cambodia, Laos, Myanmar (Burma) and Vietnam—have longer time frames.

On the other hand, the Asean-China FTA came into full force after a prelimary “early harvest program” spelled out under the Comprehensive Economic Cooperation that, for the Philippines, started in 2006.

The program gave Asean members an advance low-tariff entry before the free trade agreement takes effect on condition that Asean markets be open to Chinese products.

The Philippine-China EHP covered 209 tariff lines that include plant, animal and marine products.

Panalo Pinas yan in the future.

Our DENR claimed that we are one of the most "mineralized" country in the world.

In other words, we sit on a goldmine.We can produce food for our people for many many more years.

Resource poor but rich countries like Japan, Korea, Taiwan and Singapore will be dead in a few years. Because money will became obsolete and their products useless if food and energy became more scarce.

the problem is that the one's whose earning the most out of these minerals are foreign companies so in turn the money goes out of the country.. what we get is atleast jobs and taxes. :ohno:

Public Lives

Those cheap Chinese products

By Randy David
Philippine Daily Inquirer
First Posted 00:02:00 01/23/2010

FASCINATED BY THE GROWING NUMBER OF Filipinos who have found instant—sometimes suicidal—mobility in very affordable motorbikes from China, I recently got myself a new Chinese-made 125cc underbone for the price of a branded Japanese helmet. Light and handy, the bike handles pretty well on short commutes. My friends, with whom I share a passion for big bikes, warned me not to ride it on rough terrain. Before you know it, they told me, it will start falling apart like one of those 10-peso plastic toys you find in a tiangge. How much of this, I wondered, is undeserved prejudgment arising from China’s reputation as a source of cheap but inferior products, and how much is factual?

Well, on my first ride, the bike did feel like it was going to wash out from under my seat. It began to rattle and wiggle so wildly I thought I would lose the handle bar itself. The rattling, I found out, was due mostly to a chain that had too much slack and a plastic fairing that was not tightly screwed onto the frame. Both problems were easily cured. They were not intrinsic to the vehicle’s basic construction. The wiggling, on the other hand, stemmed from my attempt to steer the ultra-light bike as if it was a Ducati Monster. Like an unbroken horse from unknown parts, it began to respond better when I showed it more respect, and stopped assessing it by the standards of an Italian café racer. What needed correction was the initial attitude I brought into the steering of the bike rather than the engineering of the bike itself. This is a bike made for practical purposes rather than for leisurely sports riding.

In a superficial way, we might find in this little tale a fundamental insight into modern China’s role in the global economy. This is a country that is transforming itself in a phenomenal way by producing goods mainly for the world’s masses. It started with canned meat loaf known locally as “Ma Ling,” that quickly displaced the American brands of Hormel and Spam from the shelves of our neighborhood groceries. But, in less than three decades, China’s manufacturing juggernaut progressed from processed food to motorcycles and cars, and, believe it or not, to aircraft. Not many people know that many of those high-performance European and American motorcycles and sports cars
are packed with precision parts and instruments that are made in China. How did China do it?

I think the simple answer to that question is: By releasing the creative energy and initiative of their people while making sure they do not politically disintegrate as a society. This is not as easy as it may seem. We are wont to think of an economic and political organization as subject to the same principles. Thus, if a nation wants to open up economically, how long can it remain closed politically?

The conventional theory states that a free market economy can only be sustained in the long term by the democratization of political life. But the Chinese experience shows there are no hard and fast rules on economic development and political stability. Ironic as it may be, China has created a vibrant capitalist economy under the tight leadership of its communist party. Party leaders still prefer to call it “market socialism.” So be it.

The Chinese reform process did not occur overnight. Deng Xiaoping’s promotion of “rethinking socialism” was formulated to proceed hand in hand with adherence to the so-called Four Fundamental Principles. These political non-negotiables are: leadership of the communist party, Marxism-Leninism and Mao Zedong thought, the socialist road, and the people’s democratic dictatorship. Together they constitute ideological shorthand for party supremacy.

The re-assessment of socialism in China began in 1976. By around 1982, the communes, those principal signifiers of Chinese socialism, had vanished. In 1983, a conference on export-processing zones brought me to China for the first time. I remember Beijing, with its wide socialist boulevards, as a city of bicycles. At the meeting, the Chinese were keen to know the mechanics and the problems of export enclaves that would host foreign investments.

But the reform process was derailed by the ferment that was already rapidly unfolding in Eastern Europe and the Soviet Union itself in the ’80s. The fall of socialism in Eastern Europe in 1989 and the dissolution of the Soviet Union in 1991 made the Chinese re-think the re-assessment. A clear line had to be drawn between the re-thinking of socialism and the abandonment of the socialism itself. This period led to the purging of liberals like Zhao Ziyang from the party leadership.

In 1990, more than a year after the Tiananmen protests, I joined a group of about 30 other professors from various parts of the world to view developments in China. As we all suspected, the real agenda was to hear the official line on the Tiananmen incident. This was confirmed when we were received by Premier Li Peng himself. Here is what I recall him saying: “I am sure that in coming to China at this time, you carry with you an attitude that is critical of the way the government handled the Tiananmen incident. We have tried to explain what happened. But, as unfortunate as it may be, we cannot allow this incident to distract us from what we need to do to keep our country together, and to prevent our people from going hungry. A China that is unable to govern itself will not be the Chinese people’s problem alone; it will be the whole world’s problem. If China is thrown into chaos, millions of our people will want to flee. Will your countries be able to summon enough generosity to welcome our boat people?”

* * *

public.lives@gmail.com

We are afraid of pursuing a Buy Pinoy policy because our major trade partners are warning us not to. And yet its ironic that the US and Japan who opposed protectionism are the very first one who practice protectionism.:bash::bash:

What a bunch of hypocrites! All they want is to maintain their status as rich countries.:bash::bash:


Japan changes auto program
after US objects

Malaya Business Insights
Jan.30, 2010

WASHINGTON - Japan has changed its auto replacement incentive program to give US cars more chance to qualify after the United States complained its automakers were shut out, the Japanese government said.

President Barack Obama’s administration welcomed the move, which also prompted a senior US lawmaker from the hard-hit auto state of Michigan to postpone a hearing on barriers US automakers face in Japan and South Korea.

"I welcome the news ... that Japan is going to drop the complete exclusion of US automobiles from their Cash for Clunkers program," said Sander Levin, chairman of the House of Representatives Ways and Means trade subcommittee.

"But the problem of their closed market requires our vigorous and renewed focus, as increased exports must be part of our economic recovery and job creation efforts," Levin said, adding the hearing originally set for Thursday would be rescheduled to give lawmakers more time to prepare.

US Trade Representative Ron Kirk said Japan agreed to open its program, but US officials were still evaluating details of the announcement "to ensure it meets the concerns my office has been raising with Japan since last fall."

Japan, in a statement from its embassy in Washington, said cars imported under a "preferential handling procedure" (PHP) established in 1986 for US automakers would be able to participate in a Japanese program to subsidize purchases of more fuel-efficient vehicles.

US automakers had complained their cars would not qualify for the subsidy, even though the "cash for clunkers" program created by Congress last year was open to all imported cars.

Japanese autos accounted for almost half of the 677,842 vehicles sold under the $3 billion US auto purchase incentive program, which ran late July to late August. Many of the Japanese cars were made at US plants.

Representative Betty Sutton and many other Midwestern lawmakers complained that Japan’s program was tilted against US cars and urged Kirk’s office to file a World Trade Organization complaint unless Tokyo opened it up.

US automakers General Motors, Ford Motor Co. and Chrysler also wrote to Kirk in December to complain about Japan’s program.

The problem arose because cars imported under the PHP program face less testing in Japan than other cars, a Japanese embassy official said.

Now, US automakers will be able to submit their own fuel economy data to see if their cars are eligible for the Japanese government subsidy.

"We’re saying, ‘Bring your numbers and we’re going to take a look at them’," the embassy official said.

The huge imbalance in US auto trade with Japan is a longtime irritant that has received more attention recently as the US industry struggles to get back on its feet after severe sales downturn that helped force bankruptcies at GM and Chrysler last year.

The US government owns 60 percent of GM and nearly 10 percent of Chrysler after providing billions in bailout and bankruptcy financing for both.

The United States imported $21.2 billion worth of passenger cars from Japan during the first 11 months of 2009, but exported just $257 million to Japan in the same period. – Reuters

Breaking News para sa Outsourcing Industry.

Ito ans strategiya ngayon ng ibang bansa.
Kailangang Tagalugin ko Ito para Pinoy lang ang makaintindi.

Alam nyo ba ang ginagawa ng ibang bansa gaya ng singapore para i-promote ang bansa nila. Next week, magpapadala ang gobyerno nila ng mga representatives sa mga napiling kumpanya sa Estados Unidos para magbigay tulong kuno kung papaano matutulungan ang Estados Unidos na i-tap ang Asian Market. Syempre sila ang bida don, para sa kanila dumaan ang bawat kumpanya na nakabase sa US bago pa bigyan ng pansin ang ibang bansa na Asyano. Nalaman ko ito kasi isa sa napili ang Kumpanya na pinag-ta-trabahuhan ko. Ganon sila mag-promote. Wise ano. Kaya sa kanila napupunta lahat ng investment, ang pag-promote nila ay ginagamit nila ang buong Asya as a whole pero pagkatapos makukuha lang nila ang lahat ng investment galing US.

Next week, I will tell you kung ano ang plano nila.

Mangyari kaya sa Pinas to?....:cheers:


Los Angeles Grocery Store Accepts Gold & Silver as Payment
7IfyXyu7xNI&feature

Subsidized Chinese steel products hurting local industry
MANILA, March 15 (PNA) -- China is subsidizing export of pre-painted and galvanized steel sheets and still enjoys zero duty on export of these products to the Philippines under the ASEAN-China Free Trade Act (ACFTA), dealing Philippine steel roof producers a double whammy from which the industry may not recover, the Filipino Galvanizers Institute (FGI) said.

In a statement, FGI president Salvio Perez said that in violation of World Trade Organization (WTO) rules, China subsidizes exports of pre-painted and galvanized roofing sheets with 13 percent tax rebate while enjoying zero duty on exports of the same products to the Philippines under the ACFTA.

The result is a double-edged negative impact on the competitiveness of local galvanizing industry that is confronted with high import duty on raw materials while competing with low-priced Chinese roofs that pays no import duty at all.

”There is no way local manufacturers can compete in this utterly unfair and lopsided business environment. Despite urgent appeals, the government has not acted to aid the local industry,” Perez said.

The International Iron and Steel Institute (IISI) reported that China's 2009 crude steel production totalled 567.8 million tons, representing 47 percent of the world steel production of 1,218.7 billion tons. China's production volume and the distorted tariff rates make the Philippines a lucrative dumping ground for Chinese roofing materials.

The FGI asked the government to remove import duties of hot rolled coils (HRC) and cold rolled coils (CRC) but the appeal has pended without action at the Cabinet-level Tariff Reform Matters Committee of the National Economic and Development Authority (NEDA).

CRC is a raw material for the production of galvanized steel sheets while HRC is used to produce CRC.

Two years ago, FGI also requested the committee to remove HRC and CRC from the Philippine Sensitive List (or products with high tariff protection) and transfer it to Normal Track. The Tariff and Related Matters committee has not acted on this request either, Perez said.

FGI's appeal seeks to correct the distortion in the tariff environment that allows zero duty for finished products such as pre-painted and galvanized steel roofings while maintaining a very high duty on raw materials such as HRC and CRC.

”There is no way local industries can compete in this tariff environment. Further compounding the situation is the 13 percent tax rebate given by China for steel exports,” he said.

]There are 10 galvanizing companies in the Philippines with direct employees of 5,000 and indirect workers totaling 10,000 whose livelihood is under severe threat.

These are Puyat Steel Corporation, union Galvateel Corporation, Galvaphil Inc. Sonic Steel Industries inc., Tower Steel Corporation, Philippine Steel Coating Corporation, Steel Corporation of the Philippines, Chuayuco Steel manufacturing Corporation, Group Steel, and AC Steel Industries. (PNA)

http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=264381

Exporters urged to adopt Japanese design philosophy
MANILA, March 15 (PNA) –- Japanese design expert, Junya Kitagawara, urged local exporters to create their designs around the Japanese design philosophy and lifestyle if they are to tap more Japanese buyers.

According to Kitagawara, the design process can either come instantly when inspiration strikes or it can also be a slow, tedious process of revisions and constant reworking until a final output emerges.

The bottom line of the entire process, however, is to have these creations bought by the manufacturer’s target buyers.

Kitagawara said that Japanese design revolves around the colors of four seasons: flower embellishments and accessories for spring, cool colors for summer, and warm colors for autumn and winter.

He also reiterated the value of space in Japan suggesting that products that can be “stacked, piled, or folded up” can have strong marketability. Same goes for merchandise that are made of recycled or sustainable materials.

Kitagawara was in Manila recently sent by the ASEAN-Japan Centre to brief the exhibitors of Manila F.A.M.E. International, a bi-annual tradeshow for home and fashion lifestyle products led by the Center for International Trade Expositions and Missions (CITEM).

On its 51st edition, opening on 22-25 April 2010 at the World Trade Center Metro Manila, the show focuses on Japan as partner country where it hopes to provide a viable link between the Philippines and its second-largest trade market.

Philippine trade promotion activities in Japan generated $ 38 million in 2009 affirming the concrete gains from the ratification of the Japan-Philippines Economic Agreement (JPEPA).

On the other hand, Japanese buyers who visited Manila F.A.M.E. International in its April and October 2009 editions contributed $ 1.6 and $ 1.9 million sales, respectively.

Kitagawara, speaking at the Manila F.A.M.E. seminar, said the manufacturers’ aim should be to design products that connect with the consumer or target market.

By studying the design philosophy early on, the design process becomes less about guesswork and is based on something the market needs.

The market’s age bracket is one important factor to consider when designing and making products, as shared by the Japanese designer.

Those in their 60s and above, he says, go for the traditional while 20 to 30 year-olds want simple and modern designs. They are all for relaxation and comfort.

While those in their 40s or 50s is a mix of the young and the old, the traditional and the modern, he said.(PNA)

http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=264405

BAR CODE per country

00-13: USA & Canada
20-29: In-Store Functions
30-37: France
40-44: Germany
45: Japan (also 49)
46: Russian Federation
471: Taiwan
474: Estonia
475: Latvia
477: Lithuania
479: Sri Lanka
480: Philippines
482: Ukraine
484: Moldova
485: Armenia
486: Georgia
487: Kazakhstan
489: Hong Kong
49: Japan (JAN-13)
50: United Kingdom
520: Greece
528: Lebanon
529: Cyprus
531: Macedonia
535: Malta
539: Ireland
54: Belgium & Luxembourg
560: Portugal
569: Iceland
57: Denmark
590: Poland
594: Romania
599: Hungary
600 & 601: South Africa
609: Mauritius
611: Morocco
613: Algeria
619: Tunisia
622: Egypt
625: Jordan
626: Iran
64: Finland
690-692: China
70: Norway
729: Israel
73: Sweden
740: Guatemala
741: El Salvador
742: Honduras
743: Nicaragua
744: Costa Rica
746: Dominican Republic
750: Mexico
759: Venezuela
76: Switzerland
770: Colombia
773: Uruguay
775: Peru
777: Bolivia
779: Argentina
780: Chile
784: Paraguay
785: Peru
786: Ecuador
789: Brazil
80 - 83: Italy
84: Spain
850: Cuba
858: Slovakia
859: Czech Republic
860: Yugoslavia
869: Turkey
87: Netherlands
880: South Korea
885: Thailand
888: Singapore
890: India
893: Vietnam
899: Indonesia
90 & 91: Austria
93: Australia
94: New Zealand
955: Malaysia
977: International Standard Serial Number for Periodicals (ISSN)
978: International Standard Book Numbering (ISBN)
979: International Standard Music Number (ISMN)
980: Refund receipts
981 & 982: Common Currency Coupons
99: Coupons

I notice a lot of products I see in Supermarket have the above bar code (in bold letters) aside from Philippine made products of course.

Global players are slowly coming back...

Investment pledges double to P29.95b

Manila Standard
march 22, 2010

The Board of Investments and the Philippine Economic Zone Authority registered combined investment commitments of P29.95 billion in the first two months of the year, up 107 percent from P14.45 billion year-on-year.

Trade Undersecretary and investments board managing head Elmer Hernandez told reporters over the weekend that the BoI approved commitments of P9.92 billion in January and February, up 233 percent from P2.97 billion on year. Peza registered P20.04 billion worth of investment pledges, up 75 percent from P11.47 billion on year.

Hernandez said combined BoI and Peza pledges from foreign investments surged 671 percent to P14.58 billion from P1.89 billion on year. Local investors committed P15.38 billion in the two-month period, up 22 percent from P12.56 billion.

The two agencies registered 99 new projects from 96 last year, with employment prospects rising 29 percent to 20,837 from 16,156.

The manufacturing sector received investments of P14.70 billion from just P1.29 billion on year.

Investment pledges in real estate, including mass housing and industrial estate fell 15 percent to P9.05 billion from P10.62 billion on year.

Power projects jumped to P5.31 billion from P140 million last year.

Japanese companies led the bulk of registered investments in the first two months with P7.12 billion, followed by Singapore at P4.83 billion and the United States at P1.18 billion.

The biggest investments were led by the manufacture of flip-chip LAN grid array, green film auto voltaic panel, and power generation and wind projects.

The biggest power generation project is located in Nabas, Aklan worth P2.55 billion while the largest wind project is in Sual, Pangasinan worth P2.54 billion. Both projects were registered by Petro Energy Resources Corp. Julito G. Rada

Top

Onion growers eye revival of exports to Japan

by Othel V. Campos
Manila Standard
March 22, 2010

Local onion farmers plan to revive exports to Japan, members of the National Onion Growers Cooperative Marketing Association said over the weekend.

The group said it would revitalize and improve operations of nurseries to increase annual output and resume exports initially to Japan and Singapore and possibly to the US again.

“We have studied and continued monitoring both the domestic and regional dynamics in onion production. We are seriously considering to bring our onions to markets abroad where we have previous trade ties,” said cooperative chairman and chief executive Dulce Gozon.

The Philippines produces an annual average of 100,000 metric tons of onions valued at P5 billion.

The group plans to double production shortly to do away with imports of as much as 10,000 MT a month.

Some of the active members of the cooperative visited Japan, Taiwan and the US to learn techniques on onion production in order to become globally competitive.

The co-op has 206 members in the town of Bongabon, Nueva Ecija, where most of the area is planted with onions. Members of the cooperative have also learned to inter-crop aside producing red creole and yellow granex.

Onion, a seasonal crop, is inter-cropped with rice and corn. Cooperative members have also diversified into pepper, cucumber, shallots and indigenous vegetables.

Philippine onion growers had shipped as much as 2,000 tons of onions annually to Japan over the last 25 years. Globalization, however, stopped Philippine exports to Japan as China offered lower prices.

The government has provided the group financial grant to help in the establishment of new nurseries. It also helped the cooperative in marketing and branding. The Bureau of Agricultural Research supported the cooperative through the Onion Technology Utilization and Dissemination project aimed at establishing techno-demonstration areas in selected sites.

Mangyari kaya sa Pinas to?....:cheers:


Los Angeles Grocery Store Accepts Gold & Silver as Payment
7IfyXyu7xNI&feature

Possible bec. we're looking at what might be deflation leading to inflation, advice from Jim Rogers, Marc Faber, and others. etc.

^^^^
malabo.

Big Japan market seen for Davao mango
DAVAO CITY, March 24 (PNA) -- Japan is seen as a huge market for fresh mangoes grown and harvested from various mango plantations in the Davao region.

This was the initial impression of the Davao mango industry team after their recent two-week study mission in Japan in early March this year.

Mango industry cluster team chairman Antonio Teh said the Japan study mission was conducted by his team to find out from Japanese buyers themselves their stringent quality requirements for importing fresh mangoes into their country.

“We want to know what we can do as mango growers to improve the way we cultivate and harvest our fruit here in Davao that will enhance its quality to meet their strict requirements,” Teh said.

To study consumer behavior in a retail fruit market, the Davao mango cluster team visited the Kinokuni-ya Fruits Shop in Shinjuku‘s Takashimaya department store and Shell Garden Fruits Store to see for themselves how buyers select the fruits they buy from the fruit market.

“It was a good eye-opener for all of us who are used to the domestic market in our country--this will change and improve the way we think in growing and marketing the fruit,” Teh said after attending lectures on Japan import, consumption and requirements of fresh fruits conducted by Japanese experts in Tokyo.

Japanese managers of Diamond Star Company Ltd. also gave them some valuable tips on cultivation, post-harvest and quality management of fresh mango to be imported to Japan from the Davao region.

A morning trip to the Ohta Central Wholesale market also gave the Davao industry cluster team a good idea on proper ways to handle and pack fresh mangoes at this Tokyo fruit market.

Teh said another eye-opener for the cluster team was their visit to the Oh-i Wharf at the Tokyo Port Area where briefings were held on plant quarantine operations for all imported fruits, specially mango, that enter the Japanese market.

Japanese officials from the Tokyo Plant Quarantine Association and Japan Fresh Produce Import and Safety Association conducted the briefings on quarantine operations at the port area.

A short trip to the warmer south of Japan in the city of Miyasaki gave the cluster team the rare opportunity of observing and studying the cultivation, post-harvest and quality management of Japanese-grown Miyasaki mango at the Miyasaki Agricultural Research Institute.

“It really helped us a lot in learning first-hand the various practices by Japanese fruit farmers in growing high quality mango,” Teh said.

On their way back home after the Japan study mission, the mango industry cluster team proceeded to Manila for a domestic market selling mission.

The Japan study mission was funded by Japan International Cooperation Agency (JICA) as part of the Davao Industry Cluster Capacity Enhancement Project (DICCEP), a joint project of JICA and the Department of Trade and Industry (DTI). (PNA) http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=266146

RP wood industry team sees Japan big export prospect
DAVAO CITY, March 24 (PNA) -- Big demand in Japan for high quality wood from the Philippines is expected to boost the growth and production of fast-growing trees like falcate and malapapaya in the Davao region.

Alfredo Zarasate, wood industry cluster team chairman, said the benchmarking trip to Japan by the team recently opened to them new, big opportunities for the export of lumber wood from the region’s fast-growing trees to Japan.

“It was a good, significant trip for us in the wood industry cluster--we’re now aware of the bright outlook and market demand for commercial fast-growing trees,” Zarasate said.

Zarasate, forest management chief of the Department of Environment and Natural Resources (DENR), said the current world market trends in the use of wood for various products were revealed to the visiting wood cluster team by Japanese wood experts in a series of lectures and briefings conducted in a number of industrial firms, universities and industry associations in Japan.

Various commercial uses of wood today--as pre-cut housing materials, as substitute for plastics, as household items, as do-it-yourself wood crafts, as wood panels from wood wastes, etc.--were all explained to the Davao wood industry team in detail by Japanese university professors, wood researchers, paper manufacturers, wood industry experts, wood engineers, etc, in the cities of Tokyo, Nagoya, Kyoto, and Osaka, according to Zarasate.

“It was a very intensive schedule for all of us in the benchmarking trip, but it was all worth it-- it changed the way we think of our wood industry’s future, considering Japan’s market demand for wood,” Zarasate said.

The wood industry cluster chairman said the companies they visited in Japan include Yoshimei Company Ltd, Hokushin Co. Ltd., Koshii Co Ltd, Fuyo Precut Co. Ltd. and Masuchu Ltd. in Osaka City, Aiwa Company Ltd. and My Wood 2 Company Ltd. in Nagoya, as well as the giant furniture store outlets IKEA and Nitori in Tokyo.

Trends and challenges of wood plantations overseas .were also discussed to the cluster team extensively by experts and researchers of Japan industry groups like the Japan International Forestry Promotion and Cooperation Center (JIFPRO), Japan Overseas Plantation Center for Pulpwood (JOPP) and Japan Paper Association (JPA), according to Zarasate.

A number of fast-growing tree plantation pilot projects had been launched recently by the wood industry cluster team in the Davao region in a determined effort to revive the country’s dying wood industry.

The benchmarking trip of the wood cluster team to Japan was funded by Japan International Cooperation Agency (JICA) under the Davao Industry Cluster Capacity Enhancement Project (DICCEP), a joint project of JICA and the Department of Trade and Industry (DTI). (PNA) http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=266169

^^^^Thsi would be great. But I hope instead of exporting wood, we should export finished wood products instead like furniture, handicrafts and toys.

From TABASCO | Noticias y Proyectos (http://www.skyscrapercity.com/showthread.php?p=51286081&highlight=filipinas#post51286081)( MXScrapers - Rascacielos de México (http://www.skyscrapercity.com/forumdisplay.php?f=261))

Conocen tabasqueños el potencial para exportar a Filipinas


2010-02-03•Zona Urbana


Líderes empresariales y titular de la Sedeco participaron en la mesa de trabajo con el embajador de Filipinas. La iniciativa privada indicó que existen “muchas oportunidades” para comenzar las exportaciones de productos tabasqueños a Filipinas debido a las similitudes de Tabasco con esa nación.

Ayer, líderes empresariales encabezados por José Estrada Garrido, presidente del Consejo Coordinador Empresarial de Tabasco (CCET), así como el titular de la Secretaría de Desarrollo Económico (Sedeco), Mario de la Cruz Sarabia, participaron en una mesa de trabajo con el embajador de Filipinas en México, Francisco III Ortigas Miranda y el embajador de México en Filipinas, Tomás Javier Calvillo Unna.

En entrevista posterior, Estrada Garrido aseguró que los empresarios tabasqueños “salimos de la reunión con muchas oportunidades que tenemos que aterrizar entre los sectores”.

“Me parece que es una buena oportunidad, me parece que es una buena gestión para que podamos ir ampliando los horizontes de participación, de comercialización, de importación; fue una reunión muy positiva”, declaró.

Adelantó que, principalmente, los sectores donde se pueden abrir oportunidades de negocio y exportación son el platanero, cacaotero, ganadería, --en el segmento de cárnico--, coprero --agua de coco--, quesero, entre otros,

“Hay mucha similitud y muchas oportunidades, en fin… tenemos que ir aterrizando los proyectos”, sostuvo.

-- ¿Algunos acuerdos en lo específico? –se le preguntó.

-- Acuerdos generales, y tenemos que seguir reuniéndonos para aterrizar cosas específicas y podamos concretar con el sector empresarial de Filipinas –respondió.

De hecho, adelantó que se analiza la posibilidad de que una misión de empresarios tabasqueños vaya a Filipinas para ir concretando posibles negociaciones.

En tanto, por medio de un comunicado de prensa, la Sedeco reveló que en la mesa de trabajo, el embajador filipino detalló por medio de la Asociación de Naciones del Sureste Asiático (Asean, por sus siglas en inglés, y que está integrado por 10 países de esa región) se tiene como proyecto la “comercialización, la política y la fusión de un sistema de comunicaciones”.

Se agrega que el diplomático detalló que “Filipinas es un país recientemente industrializado con una base agrícola, de industria ligera, y del sector de servicios, con uno de los más sorprendentes procesos empresariales de subcontratación (Business Process Outsourcing) de las industrias de Asia, incluyendo compañías de Fortune 500”.

En tanto, se abunda, el embajador de México en Filipinas especificó que esa nación constituye un mercado económico de más de 5 millones de consumidores, que busca un sistema de mayor integración en derechos humanos, fortalecimiento en su política y en el sistema de comunicaciones.

Villahermosa/Luis E. Méndez

Fuente: Milenio Tabasco.

Google translation :D


Tabasco known potential to export to the Philippines

2010-02-03 • Urban Zone

Business leaders and head of the Sedeco participated in the work table with the ambassador of the Philippines. Private initiative indicated that there are "many opportunities" to start Tabasco exports to the Philippines because of the similarities of Tabasco with that nation.

Yesterday, business leaders led by Joseph Estrada Garrido, president of the Coordinating Council of Tabasco (CCET) and the head of the Ministry of Economic Development (Sedeco), Mario de la Cruz Sarabia, participated in a working with Ambassador Philippines in Mexico, Francisco Ortigas III Miranda and Ambassador of Mexico in Philippines, Javier Tomás Calvillo Unna.

In subsequent interview, Estrada said that employers Garrido Tabasco "left the meeting with many opportunities we have to land between sectors."

"I think it's a good chance, I think it's good for us to go expand the horizons of participation, marketing, import, was a very positive meeting," he said.

He said that, primarily, the areas where you can open and export business opportunities are the banana, cocoa, livestock, - in the meat segment -, coprero - coconut water -, cheese, among others,

"There are many similarities and many opportunities, finally landing ... we have to go projects," he said.

- Do some agreements on the specifics? He was asked.

- General arrangements, and we must continue to meet to land specific things and we realize with the business sector in the Philippines "he said.

In fact, said that explores the possibility that a business mission to the Philippines to go Tabasco go specifying possible negotiations.

Meanwhile, through a press release, the Sedeco revealed that in the desk, the Philippine ambassador elaborated by the Association of Southeast Asian Nations (ASEAN, for its acronym in English, which is composed of 10 countries of that region) project is "marketing, politics and the merging of a communications system.

He added that the diplomat explained that "the Philippines is a newly industrialized country with an agricultural base, light industrial and service sector, with one of the most amazing outsourcing business processes (Business Process Outsourcing) industries in Asia, including Fortune 500 companies.

Meanwhile, it abounds, the ambassador of Mexico in Philippines specified that this nation is an economic market of more than 5 million consumers seeking a more integrated system of human rights, strengthening its policy and communications system.

Villahermosa / Luis E. Mendez

Fuente: Milenio Tabasco.

Exports growth target adjustment likely with robust economic rebound

By BERNIE CAHILES-MAGKILAT
March 28, 2010, 12:01pm
Manila Bulletin

An upward adjustment in the country’s exports growth target is most likely following robust growth on the country’s exports to Japan and the strong rebound in the country’s top dollar earner – electronics sector, which 20 percent growth target this year was seen as very conservative.

Trade and Industry Secretary Jesli A. Lapus told reporters that he spoke with Japanese Ambassador to the Philippines Makoto Katsura wherein they compared the country’s export performance before and after the implementation of the Japan Philippines Economic Partnership Agreement (JPEPA).

Lapus did not provide details, but said the matrix showed that the Philippines posted tremendous growth in exports to Japan following the implementation of the JPEPA in which most of the products have been accorded zero tariff rate from the average 15 to 20 percent rate.

On the average Japan used to account for 16.86 percent of the country's total exports, growing at 10.4 percent over the past five years.

“This year the projection is very optimistic,” he said.

He noted that officials from the Semiconductor and Electronics Industries in the Philippines, who are also members of the Export Development Council, said the 20 percent exports growth projection for the industry this year is very conservative.

“That’s very conservative because they said that whatever capacity they lost last year as a result of the global financial crisis will not only be recovered this year, but are going to be exceeded,” Lapus said.

Lapus noted that the Philippines will not only benefit from the JPEPA in boosting its exports, but Japanese companies that are based in the country are also exporting to other countries like China.

The strengthening of the peso is not also likely to dampen exports, Lapus said, stressing that exports have continued to post robust growth despite the peso’s strength.

“This is because of the global economic rebound,” he added.

Already, monetary authorities are pushing for the upward revision of the country’s export growth target for this year of between 7 percent and nine percent on back of a strong global economic recovery.

Philippine exports grew by 42.5 percent in January this year from a contraction of 40.6 percent in 2009, indicating a growing pick up in demand as the world continues to recover from the economic crisis.

The National Statistics Office (NSO) reported that the country’s merchandise exports jumped by 42.5 percent to $3.58 billion in January from $2.51 billion in the same month last year.

Socioeconomic Planning Secretary Augusto Santos said the growth registered in January was the highest year-on-year growth rate posted since April 1995.

The increase could be attributed to the 51.2 percent jump in the shipment of Philippine-made electronic products. Electronics account for about 56.8 percent of the country’s total exports.

Japan trade deal hikes RP exports

by Julito G. RadaManila Standard
March 29, 2010

PHILIPPINE exports to Japan have increased following the implementation of the Japan-Philippines Economic Partnership Agreement, Trade Secretary Jesli Lapus told reporters over the weekend.

“I had a talk with the Japanese ambassador to the Philippines today [March 26] and we had a comparative analysis on the export side before and after JPEPA. We found out that exports to Japan increased because of the agreement’s implementation,” he said.

“This year, we are optimistic about our total export targets. Many say the previous target of the Exports Development Council of 20 percent in electronics exports was very, very conservative. Private sector representatives in the council believe it should be more than that,” he said.

He said exports would continue to grow amid the peso’s appreciation.

“Our exports continue to increase even the peso appreciates and that is a good news. Even Japanese companies operating here who export their products to China are doing good,” he said.

Recent data from the Japan Information and Culture Center showed that Philippine exports to Japan rose beginning in 2008, when JPEPA was signed. Tokyo accounted for 15.7 percent, or $7.68 billion, of the Philippines’ total exports of $49 billion in 2008.

The Center said bilateral trade between Japan and the Philippines increased by 218 percent in 2009.

Japan’s seafood imports, especially cuttlefish and squid, surged 1,685 percent, while purchase of women’s skirts made of cotton rose 72 percent. Shipments of coconut products increased 36 percent, women’s coats made of cotton and containing fur skin climbed 35 percent while mackerel rose 35 percent. Exports of shrimps and prawns to Japan advanced 29 percent, outer soles of footwear of rubber or plastics rose 25 percent while bananas and mangoes surged 24 percent.

Imports and the manufacturing outlook

By Cielito Habito
Philippine Daily Inquirer
First Posted 04:20:00 03/29/2010

Filed Under: International (Foreign)Trade, Economy and Business and Finance

Philippine imports grew 30.3 percent last January—the strongest growth seen in seven years, according to the National Statistics Office (NSO). This should be welcome news, as the bulk of our imports are actually production inputs, composed of capital goods, raw materials, intermediate inputs and mineral fuels, all together making up 87 percent of our import bill.


This means that growth in imports could be taken to be a signal of growing domestic production, especially in manufacturing. Imports have resumed growing positively since November following 13 months of decline, signaling that domestic production is back on the uptrend, recovering from the slump brought on by the global financial crisis and economic downturn.

Out of the normal

It must be noted, though, that there were some prominent items in January’s import bill that are out of the normal. Looking at the breakdown of imports by commodity, the fastest-growing import product turned out to be rice, which grew by a whopping 153,599 percent. In other words, part of the overall import boost came from the need to fill a large domestic gap in rice, necessitating an unusual and large one-time importation of the staple.

Crude petroleum imports came in second, growing by 1,756 percent (even as refined petroleum product imports showed more normal growth of 1.7 percent). It is not clear what led to the unusual bulge in crude oil importation in January, but this may simply reflect the way that crude oil importations to feed local refineries are not evenly distributed through the year, but come sporadically in lumpy volumes (note that the reported growth rates reflect year-on-year growth, i.e., growth over the same month a year ago).

Not as spectacular but a dramatic jump nonetheless was the growth in imports of aircraft, ships and boats, which rose 127 percent from the year-ago figure. Again, these are lumpy import items that come sporadically. A domestic air carrier probably bought new aircraft in January, leading to this dramatic jump.

Consumer goods

Consumer goods—the part of our imports that worries domestic manufacturers—make up only 13 percent of our total imports, with the bigger part (8 percent) in the form of food, especially rice. Vehicles, appliances and other nonfood manufactures account for the remaining 5 percent. It is in this relatively smaller part of our import bill that the specter of China becoming the “factory of the world” is seen as a threat to local industries.

The magnitude of the challenge is probably significantly understated by the official import figures. After all, our data on imports from China show a wide discrepancy with China’s data on their exports to us, by a factor of more than three. That is, China’s trade data indicate that they are exporting to us more than three times what we record to be importing from them. The difference, of course, can be attributed to smuggling, which is the real enemy of our local producers. They have to face unfair competition from cheap goods from China, which are already much cheaper to begin with due to very low Chinese wages, and on top of that still manage to avoid paying import duties.

Factory of the world

Is our manufacturing sector inevitably headed for decline and eventual demise because of China’s emergence as de facto “factory of the world”? It did seem so for a while, as our manufacturing output had been on a continuous slide over the past two years.

But I see no reason for us to give up on manufacturing. The latest manufacturing data from the NSO in fact show a substantial rebound, with volume of production having gone up by 39 percent over the past year as of January.

And like imports, manufacturing output has been posting positive growth since November. Furthermore, the recent record import growth signals further positive manufacturing growth in the months ahead.

I am particularly confident that food manufacturing, our most dominant manufacturing subsector, will continue to be a mainstay, given the need to feed a continuously growing population. And as average incomes grow, food in processed form makes up a greater portion of food demand. Add to this the wide export opportunities for processed fruits and vegetables, indicated by rapid growth in imports recorded for these products by the developed countries in recent years.

Talking about the export markets, we also remain quite competitive in manufactures of high-end apparel, furniture and fixtures, where design is a critical selling point. Filipino designers are often said to be better attuned to western tastes than other Asian counterparts, thus giving us a unique advantage. And electronics, our single biggest export product, will continue to make up the lion’s share for time to come.

I am thus hopeful that the current uptrend in imports has a significance that goes well beyond trade itself.

Comments welcome at chabito@ateneo.edu

Geely has expressed its desire to put up an assembly plant here in the Philippines...and I never taught this Chinese company is huge..


China's Geely shares up on Volvo deal


Agence France-Presse
First Posted 19:07:00 03/29/2010

Filed Under: Company Information, Economy and Business and Finance, Mergers - Acquisitions - Takeovers, Automotive Equipment

BEIJING—Shares in Geely Automobile Holdings surged nearly five percent Monday after its Chinese parent company sealed a 1.8-billion-dollar deal to buy Volvo Cars from US auto giant Ford.

The Hong Kong-listed unit of Zhejiang Geely Holding Group rose as much as 4.9 percent to 4.30 Hong Kong dollars ($0.55) before closing at 4.16, up 1.5 percent in a stronger market.

The broader market finished 0.88 percent higher at 21,237.43.

"It is a comprehensive acquisition," said Jerry Huang, a Shanghai-based analyst with automotive research firm CSM Worldwide.

"Volvo will get funds which it needs badly at the moment and a market that has enormous potential. Geely gets a platform to learn and gain experience in the industry."

The deal signed Sunday ended more than a decade of Volvo ownership by Ford Motor Co., which saw the upmarket Swedish carmaker become a loss-making thorn in the side of the US giant, which is burdened with its own woes.

Geely chairman Li Shufu said he saw huge untapped potential for Volvo in international markets and especially in China, which has not only the biggest but also one of the fastest-growing car markets in the world.

"I see Volvo as a tiger. (The) tiger belongs to a forest, it can't be found in a zoo ... We need to liberate this tiger," he told a press conference after the deal was signed at Volvo Cars headquarters in Gothenburg, southern Sweden.

"The tiger has a heart and it lies in Sweden, (and) in Belgium but its power should be projected all over the world.

"I see China as one of the markets where Volvo can show it has the opportunity to liberate itself," he said.

Geely said it had not only secured financing for the 1.8 billion dollars it was paying, but was also eager to keep Volvo in operation.

It also said the deal, which Ford initially agreed to in December, included agreements on intellectual property rights as well as supply and research and development arrangements between Volvo Cars, Geely and Ford.

Gov’t to spend P162 million to buy thousands of cattle

Businessworld Online
March 30, 2010

THE GOVERNMENT has ear-marked about P162 million to buy more than a thousand imported cattle to improve the genes of local stock.

In a newspaper advertisement yesterday, the Agriculture department said it is inviting suppliers for the delivery of 1,200 heads of purebred American Brahman cattle and 25 bulls.

The government has set the opening bid at P100,000.

American Brahman is the first beef cattle breed developed in the United States which has been one of the top choices in crossbreeding programs due to its "exceptional hardiness and physical stamina, its ability to…live twice as long as normally expected," according to the Web site of the American Brahman Breeders Association.

National Dairy Authority (NDA) Administrator Orkhan H. Usman said two weeks ago that his office had asked the Department of Budget and Management to release some P450 million for the importation of dairy cattle.

This is because prices of foreign cattle go up every year, Mr. Usman had said. Last year for instance, P450 million could still buy about 4,000 heads of dairy cattle. At today’s price of P125,000 per head however, the country can only buy 3,600 of the animals with the same budget, he explained.

The Philippines can supply only 1% of its dairy requirement, and growth in dairy production has slowed since 2006. NDA’s goal is achieve liquid milk sufficiency in the eight years. -- KJRL

Posted on 11:46 PM, March 29, 2010
BusinessWorld Online

BY JESSICA ANNE D. HERMOSA, Reporter


US tariff perk sought for refined sugar

THE TRADE DEPARTMENT will be asking Washington to allow the duty-free entry of refined sugar into the United States, it said in a statement yesterday.

It will also seek the same trade privilege for seven other Philippine products even if these exceeded their export quotas last year.

The petitions come as the Office of the US Trade Representative (USTR) currently conducts its annual review of goods eligible for its Generalized System of Preferences (GSP) program.

The US agency had tagged refined cane and beet sugar from the Philippines as a product up for "re-designation", meaning it could be considered for GSP benefits this year.

The Philippines currently enjoys tariff preferences only for its raw cane sugar exports.

Refined sugar from the Philippines did not receive GSP duty-free treatment last year, USTR data show. No sales of the commodity were made to the US in 2009.

This year however, the Trade department is taking advantage of the USTR announcement, declaring in the statement that it would be "pushing for ... trade benefits via re-designation".

If granted, Philippine sugar millers will likely take on US orders for refined sugar on top of current demand for the raw variant of the , a Sugar Regulatory Administration (SRA) official yesterday said.

The US only ordered raw sugar from the Philippines in the past possibly to protect operations of American refineries, SRA Administrator Aida F. Ignacio said in a telephone interview.

"But if they want us now to export refined sugar, that wouldn’t be a problem for us," Ms. Ignacio said.

Aside from sugar, other goods included in the Trade department’s petition to the US are: electric car batteries, exposure meters, twine, processed citrus fruits, coffee products, rattan mats, and palm leaf crafts.

These seven products had enjoyed duty-free treatment last year unlike refined sugar, but could stand to lose that privilege after cornering more than 50% of US imports in 2009, a criteria dubbed as the "competitive need limit" (CNL).

But the CNL can be waived for one year under GSP rules because sales of these products did not exceed $19.5 million.

"[Our petition] will highlight the imminent loss in Philippine exporters’ competitiveness and the likely adverse impact on labor and investments from economic displacements in affected sectors [if GSP treatment for the seven products is rescinded]," the Trade department said.

Otherwise, slapping tariffs on the seven products could hurt their price competitiveness and thus threaten export sales which last year hit $5.78 million, it said.

First quarter coco oil exports show recovery
SHIPMENTS OF coconut oil in the first three months have shown signs of recovery from the slump last year.

Preliminary data from the United Coconut Associations of the Philippines (UCAP) show that exports of the commodity nearly trebled to 127,142 metric tons (MT) in March from 44,620 MT in the same period last year.

These exports reached 329,582 MT in the first quarter, growing more than threefold from the 105,394 MT recorded in the same period in 2009.

Yvonne V. Agustin, executive director of the UCAP, said in a telephone interview on Wednesday that the country has more copra available for export this year, partly in response to signs of recovering overseas demand but also as the industry normalizes from a disruption in its production cycle in 2008.

"We came from a very low statistical base last year, which was weighed down by the economic slowdown and the little volume of copra that we were able to crush as a result of the premature harvesting of the nut during the first half of 2008 [as growers rushed to take advantage of high world prices that year] which disrupted the production cycle of the coconut," Ms. Agustin said.

Ms. Agustin said it is still too early to say if the current dry spell has an effect on the country's coconut industry since the impact on the sector will be felt next year.

She admitted that the 127,142 MT exported in March was "a bit high" -- compared to the monthly average of 80,000 MT-100,000 MT -- which she attributed to recovery of demand abroad.

"The US and the European markets account for more than 80% of the export, although the Chinese market is coming out strong and we still have Japan and Korea outside our traditional markets," Ms. Agustin said.

The Philippines, the world's biggest exporter of coconut oil, ships out 80% of its production of this commodity.

However, the country accounts for less than 5% of the global fats and oils market given a drop in domestic output last year and rivalry from palm kernel oil.

Last year, the country sold 808,007 MT of the commodity, down by 4.7% from 847,626 MT in 2008 and below a forecast of 835,000 MT due to dampened demand from industrialized countries.

Coconut oil exports account for up to 80% of copra shipments. Other coconut exports are desiccated coconut, coco shell charcoal and coco chemicals.

Production of coconut itself, which accounts for 5.44% of total farm output, rose by 2.2% last year to 15.656 million MT, valued at P23.798 billion, as farms "continued recovery from the devastating effects of previous typhoons and the government's intervention through salt-fertilization," data from the Bureau of Agricultural Statistics show.http://www.bworldonline.com/main/content.php?id=8339

RP exporters urged: Seize vast market opportunities in China
BEIJING, April 4 (PNA) -– With the full implementation of the ASEAN-China Free Trade Area (ACFTA) this year, Filipino exporters are advised to take advantage of new opportunities offered by the huge Chinese market to reverse the decline in the bilateral trade between the Philippines and China.

Philippine Ambassador to China Francisco Benedicto noted that adequate information campaign is crucial to equip stakeholders with knowledge on the ACFTA and enhance the Philippines’ capacity to compete in this regional arrangement.

“The Philippine government and industry should support key growth sectors of exports to China and seek to enlarge their share in the overall trade volume. Balance and diversity is key to sustainable growth of bilateral trade,” he said.

Citing Philippine embassy figures based on Chinese customs statistics, Benedicto said that bilateral trade between the Philippines and China declined in 2008 and 2009 due to the global economic crisis.

Benedicto said the dominance of electronics and other Chapter 85 products, which include electrical machinery and equipment and parts, rendered the trade structure vulnerable to external shocks. Electronic items comprise over 55 percent of Philippine exports to China.

He said while trade in mineral products, chemical and agricultural products seem to have weathered the effects of the crisis, this only made up a marginal portion of the total.

“This highlights the sensitivity of electrical, mechanical, machine and electronic exports to changing external conditions, hence the need to diversify the trade structure and strengthen other sectors of the relationship,” he added.

Likewise, Benedicto cited the need for appropriate Philippine policy response to the ACFTA that seeks competitiveness of infrastructure and logistics, particularly ports and shipping.

“The Philippines, by virtue of its being archipelago, will have to optimize current shipping links and connections to the China and its geographical proximity to Hong Kong and Macau, Taiwan and southern mainland Chinese provinces, to keep itself in the hub of this emerging ASEAN-China regime,” he suggested.

He said such policy should likewise promote inclusiveness within the free trade area to seek and enable grassroots, local governments and small and medium enterprises’ meaningful participation in the regime.

Moreover, Benedicto raised the need to reorient the Philippine exporters’ appreciation of the Chinese market and to improve their presence here.

“China is a big and diverse market, with a burgeoning middle-class, an urban population of 560 million accommodating new lifestyles – and along with these, ideas, products and services,” he said.

Benedicto said the Philippines should also position itself as a competitive destination to Chinese investments which often seek to produce in host countries goods for eventual export to China.

These investments could bring in much-needed capital and create jobs for Filipinos, he noted.

Benedicto added the Philippines must look at certain structural factors in its export industry which are important in effectively penetrating target markets.

He cited for example the ability of Philippine agricultural sector to keep up with the demand of the Chinese market, the compliance by local industries with sanitary and phytosanitary requirements of the Chinese government and products’ conformance to quality standards agreed upon by Filipino exporters and Chinese buyers.

For her part, Philippine embassy Minister and Consul General Maria Teresa T. Almojuela, in an interview, said Filipino products like foods, cococoir and textiles can be popular in the Chinese market.

Almojuela said agro-industry products like fruits and processed foods and furniture could also gain good market in the trillion-dollar economy.

Shipments of these products cushioned the decline in Philippine electronics and semiconductor exports to China in the past few years amid global recession.

“The problem sometimes is the orientation of our exporters that if it is China, don’t sell there because your products will be copied. It is not like that anymore. China has niche market and goods are so diverse thus there is space for every product here,” she said.

“We have to reorient the (export) industry (players) that what they export in New York, they could find market in China. Chinese will buy at the same price and you don’t have to go so far,” she added.

Almojuela also advised exporters to brave the Chinese market because it is not a traditional market but offers lot of opportunities.

“One province here has 100 million people and another has 90 million. These are already populations of one country so just be patient. We should consider that right now, China is the biggest and fastest growing market for luxury items. And here in Beijing, there are 138,000 millionaires,” she said.

Under the ACFTA, about 93 percent of traded goods between China and the ASEAN members are exempted from tariff. The consumers on both sides will have wide-ranging choices of more than 7,000 zero-tariff items in the market.

The Philippines is the fifth largest trading partner of China among ASEAN members as of July 2009, following Malaysia, Singapore, Thailand and Indonesia, respectively. (PNA)http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=267808

RP's exports in February up by 42.3%
MANILA, April 13 (PNA) -- Philippine exports rose for the fourth consecutive month in February due to strong demand for electronic products because of the global economic rebound.

The National Statistics Office said exports rose 42.3 percent to $ 3.567 billion in February from its year-ago level of $ 2.506 billion.

However, on a monthly basis, it slightly declined by 0.4 percent from $ 3.579 billion in January 2010.

For the first two months, exports went up by 42.4 percent to $ 7.146 billion from $ 5.017 billion posted during the same two-month period in 2009.

The government expects exports to grow between 7 percent and 9 percent this year. Last year, exports dropped 21.9 percent.

Electronics, which accounted for 58.1 percent of the total export revenue in February, rose by 53.4 percent to $ 2.072 billion from $ 1.351 billion in February, last year.

Month-on-month, electronic products went up by 1.9 percent from $ 2.034 billion in January 2010.

Electronic products was the country's top export with a total earnings of $ 2.072 billion.

Sales of articles of apparel and clothing were valued at $ 126.58 million from $ 145.92 million in February 2009.

Exports of ignition wiring set and other wiring sets used in vehicles, aircraft and ships amounted to $ 91.85 million in February from $ 30.05 million last year.

Woodcrafts and furniture exports revenue amounted to $ 79.43 million, while metal components at $ 60.72 million.

Rounding up the list of the top ten exports for the month of February were coconut oil with export earnings of $ 54.61 million; other products manufactured from materials imported on consignment basis, $ 46.06 million; cathodes and sections of cathodes, $ 40.85 million; bananas (fresh), $ 30.18 million; and petroleum products, $ 27.53 million.

Japan, including Okinawa, remained the country's top destination of exports for February with revenue amounting to $ 627.04 million.

The United States, including Alaska and Hawaii, followed with export earnings of $ 603.83 million.

Singapore's export revenues amounted to $ 321.62 million and People's Republic of China with $ 296.28 million.

Other top ten markets for February were Germany, $ 291.20 million; Hong Kong, $ 259.62 million; Netherlands, $ 220.29 million; Republic of Korea, $ 169.61 million; Thailand, $ 133.76 million; and Taiwan, $ 105.98 million.

Total export receipts from the country's top ten markets for the month of February amounted to $ 3.029 billion or 84.9 percent of the total. (PNA)http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=269573

DTI-Davao continues to rally exports promotions to achieve growth
DAVAO CITY, April 14 (PNA) - The Department of Trade and Industry (DTI) in Davao Region is intensifying its export promotion activities in a bid to continuously achieve export growth.

DTI Regional Director Marizon S. Loreto said for 2010, the office is implementing a number of programs and projects that will stimulate the local export sector.

Loreto said data from the Bureau of Customs (BoC) revealed that as of February this year, the region already recorded an export value of US$ 151,790,000.

The fresh banana topped the said export chart recording a value of US$ 99,283,491. This was followed by natural rubber with US$ 8,729,126.78; fresh/canned pineapple with US$ 7,842,864; banana chip with US$ 7,835,758; and activated carbon with US$ 6,385,160.

Loreto also said the other commodities exported for the first two months of the year were gold with silver, desiccated coconut, coconut oil, tile, coconut shell charcoal, coconut fiber, fresh/dried papaya, fresh/frozen mango, copra (cake/meal/pellet), plyboard/plywood and lumber.

Last January, she said the regional office launched two priority programs--the Saba Banana Integrated Development Program and Virtual Poultry Farming Program.

Under the Saba Banana Integrated Development Program, a sustainable livelihood shall be provided to the indigenous peoples, sugar workers and banana farmers. This will also expand and sustain the supply of microwavable bananas produced and processed by Sagrex Foods, Inc. for the export market.

However, it is likewise envisioned that such products shall be available in the local market eventually.

Meanwhile, Loreto said the Virtual Poultry Farming Program is aimed at helping OFWs become Overseas Filipino Investors (OFIs) who shall monitor the farms virtually and access all the financial and technical records through the internet.

“As of now, Sagrex Foods is sending all of its microwavable saba bananas to the export market because of the very high demand. Thus, the sales that these will generate will be accounted for in our export figures. But with the increased volume of raw materials, the company might already serve the local market. The chickens, on the hand, shall be sold to San Miguel Foods, Inc.,” she explained.

Loreto said the Export Pathways Program (EPP) of the region is also being strengthened in order to maximize its benefits especially in developing more competent exporters.

She further said through the EPP, micro, small and medium enterprises (MSMEs) are being honed and given the right assistance in order to cope with the international requirements. The products of the priority industry clusters of the region (banana, mango, coconut, seaweed, wood, mining, tourism, and information and communications technology) are being promoted through the EPP.

“These are just some of the major initiatives we are doing to augur export development. Year on year, DTI-11 is assisting approximately 1,000 MSMEs through trade development and promotion, financing, investment promotion and industry development, financing, human resource development and technology promotion," she said. (PNA)http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=269672

RP exports surge 42.3% in February
(philstar.com) Updated April 13, 2010 03:00 PM

MANILA, Philippines (Xinhua) – Philippine export revenue in February grew 42.3 percent compared with the same period last year.

The National Statistics Office reported today that February export revenue rose to $3.57 billion, on increased shipment of electronic products.

Electronic products, which account for nearly 60 percent of total revenue, or $2.072 billion in February, 53.4 percent higher from a year ago.

Major export markets include Japan, the US, China, Singapore and Germany. Analysts said global recovery boosted demand, encouraging recovery in Philippine export sector.

In January, export revenue growth hit 42.5 percent.

Spanish dairy firm eyes 6M Euro investment in RP
MADRID, April 16 (PNA) -- President Gloria Macapagal Arroyo met Thursday with Grupo Leche Pascual President Tomas Pascual Gomez Cuetera to discuss the planned six million euro investment of one of the biggest dairy companies in Spain.

In the meeting held at the Ritz Hotel here, Pascual presented to President Arroyo his plan to invest in the Philippines.

Pascual's company plans to build a plant that will manufacture long life yogurts(non-refrigerated) and soy products.

Trade Secretary Jesli Lapus said executives of San Miguel Corp. (SMC), Magnolia and Purefoods, who earlier met with Pascual, were impressed with the project.

Lapus said Grupo Leche Pascual is determined to achieve with a local partner the double goal of meeting domestic and regional market demand.

''This is a good investment...part of their marketing educational campaign is to do yogurt feeding in Philippine schools,'' Lapus said.

Considering the nutritive value of yogurt, the feeding program will greatly improve the Filipinos’ eating habits.

Lapus also said that Leche Pascual chose the Philippines for its first Asian venture due to its strategic location.

''The Philippines can be a hub for export,'' he said. (PNA) http://www.pna.gov.ph/index.php?idn=1&sid=&nid=1&rid=270249

Isuzu Crosswind export hits snag

BY IRMA ISIP
Malaya Business Insights
April 21, 2010

Cost issues are derailing plans of Isuzu Philippines Corp. to resume exports of its Asian utility vehicle Crosswind and to launch the Microbus.

IPC outgoing president Keiji Takeda said on Monday the Crosswind still has to penetrate the Central American market as the company seeks ways to narrow the gap between price and cost.

"The gap is too big for them to get orders," Takeda said.

The gap is about $1,000 to $1,500 per unit.

The company is negotiating with distributors in Guatemala and Costa Rica for completely built-up Crosswind after exports were halted last year.

In 2006 to 2008, IPC exported 60 units of Crosswind to these countries, Takeda said.

Takeda said exports to Central America may be expanded to include the Microbus, assuming a successful local launch.

The company has not received orders from clients as it has yet to perfect the final form of the Microbus.

The commercial launch of the Microbus has been set for the end of the year at the cost of P1.3 million per unit.

But according to Takeda, the cost of producing the Microbus is more than P1.3 million due to the repairs and touch-ups required after production.

The company is also eyeing more localization by sourcing parts from local manufacturers.

"We have to reduce (repairs) to minimize the cost. We can also localize more imported parts and components to reduce the parts costs, especially if we want to mass produce it," Takeda said.

He said most of the components that went into the production of two prototype units were imported. The body is sourced from a local maker, Centro Manufacturing Corp., while the chassis is produced by IPC.

"We are not satisfied with the prototype units," Takeda said, adding that they need to be reduced in length and in height.

The Microbus is a 16-seater all-purpose vehicle that is bigger than a regular van but smaller than a coaster.

It will be geared for mass transport such as for shuttle service. It can also be used as delivery vehicles.

The Microbus seats can be rearranged and can be custom-built depending on the requirements of the customers.

Using the NHR engine and power train from Japan, the Microbus is imported completely knocked-down from Indonesia and built locally by Centro.

IPC eyes to sell 40 to 50 units a month of the Microbus.

Utilizing the NHR chassis, this Microbus is designed to carry more passengers or larger cargoes than standard vans. The seats can be rearranged depending on the customer’s requirement.

It has a dual-aircon for that much needed comfort for all passengers and it can be installed with additional accessories based on current market demand.

The overall length is 5,025 mm, overall height is 2,250 mm and overall width is 1,700 mm.

Takeda said IPC will launch this year its new NKR series trucks after a little delay. The series is compliant with Euro 2 standards and follows the similar feat of the NHR, NPR and NQR series.

The resumption of NKR manufacture lifts the company’s production to more than 100 a month from 70.

Exporters lose millions
in Europe air problem

BY JAY CHUA
Malaya Business Insights
April 21, 2010

Foreign air carriers at the Ninoy Aquino International Airport (Naia), reported millions of pesos have been lost when exports such as electronics and garments were unable to reach their destinations due to the closure of European airports.

The NAIA has four major bonded warehouses, such as the Miascor, Philippine Airport Ground Support Solutions (Pagss), Philippine Skylander Inc. (PSI); and Cargo House.

Pagss reported that they handled the cargo of KLM, Etihad, Gulf Air, Singapore Airlines, China Airlines, Emirates and Delta Airlines.

PAGSS manager Allan D. Curabo said they cannot quantify how much the airlines have lost in revenues.

More often, shippers withdraw their cargo at the NAIA and bring it to their own warehouses waiting for the ban to be lifted.

KLM, however, said they have a backlog of 60 tons of cargo over four days, and was able to carry on board only 12 tons of cargo yesterday, instead of the usual 24 tons.

"Our B777 had to load some 120 tons of fuel as a precautionary measure, not knowing what would happen once they reach Amsterdam, so payload is sacrificed for the sake of safety," said Maria Lourdes Reyes, assistant station manager of KLM.

Curabo estimated that airlines not flying directly to Europe probably carried about a ton of cargo each.

He said that shippers who found out that they would not be able to send their export abroad opted to withdraw their shipment and bring it to their own warehouses to save on storage fee.

The EU, on the other hand, said that they are losing about $200 million a day on revenues due to the cancellation of flights.

Jaime Bautista, president and CEO of the Philippine Airlines, said the government has asked them to bring home stranded Filipino workers in Spain.

The request came from the Civil Aviation Authority of the Philippines, Bautista said.

"It was just an informal request from CAAP. Knowing there is a ban, they said they hope the EU would allow the flights, considering that these are only for OFWs," he said.

Bautista was referring to the ban by the EU on RP airlines due to the security downgrade on CAAP.

As this is the peak season, Bautista said mounting the chartered flights depends on the availability of planes.

The Eyjafjallajokull volcano in southeast Iceland began erupting on April 14 for the second time in a month from below the Eyjafjallajokull glacier, hurling a plume of ash six to 11 km into the atmosphere and causing the biggest travel chaos in years in Europe.

Volcanic ash contains minute particles of glass and sand that can act like sandpaper on engines and airframes. So far, tens of thousands of flights have been grounded due to the volcanic ash cloud, causing billions of euros in loss.

Lilibeth Entico was one of those elated to leave after a three weeks vacation in his native Bicol.

Her joy was shortlived, however.

"We were told that we can take the flight but there is no assurance of a connecting flight to Madrid," she said.

Entico said she works in a restaurant in Spain, two hours away by plane from Amsterdam.

"I’m afraid that I might run out of money if i have to stay in Amsterdam for long," she said in the vernacular, adding that the cost of food and lodging in Europe is pretty expensive.

Despite strong peso, exports
seen growing 10% this year

BY DWIGHT SARGA
Malay Business Insights
April 22, 2010

Despite the rising peso, exports this year could grow 10 percent or more because of renewed global demand.

Director Dennis Arroyo of the National Economic and Development Authority’s National Planning and Policy Staff said growth higher than the government’s 7 to 9 percent target would be driven by electronics exports.

Arroyo cited projections of the Semiconductor and Electronics Industries in the Philippines Inc. (SEAPI) that electronic exports could grow by 15 to 20 percent.

This was due to sustained demand in China, India, Japan and South America and strong performance of smart phones, mobile applications, automotive electronic products, high definition television, electronic notebooks and mini-notebooks.

"SEAPI talks of unbelievably strong orders," he said.

Electronics are the country’s largest export product, accounting for 58.1 percent of shipments in February. The sector shipped $2.07 billion in February, up 53.4 percent from the level during the same month last year.

UP Economics Professor Benjamin Diokno, a former budget secretary, said a double-digit growth is possible but said he would stick to the government’s 7 to 9 percent projection.

"The strong numbers in January and February are largely base effects," Diokno said.

There were earlier apprehensions that the peso’s appreciation would hurt exports but the figures appear not to bear these out.

Arroyo said the peso is rising because of strong overseas Filipino remittances and rising tourism and business process sector revenues.

He added that the weakening of the dollar is a global phenomenon arising from the low interest rates policy of the US Federal Reserve.

Arroyo recommended that macro-economic targets, including those for exports and gross domestic product, be revised after the release of first quarter’s GDP results in late May.

Exports rose by 42.3 percent to $3.57 billion in February, up for the fourth straight month, from $2.51 billion in 2009 due to continued demand caused by the global economic recovery. It grew by 42.5 percent in January.

Earlier, the Executive Technical Board of the Development and Budget Coordinating Committee recommended that exports target be raised to 8 percent to 10 percent.

The government, the Asian Development Bank and the World Bank see exports contributing significantly to overall growth.

Arroyo also said NEDA sees GDP growth hitting 3.6 percent target this year, but the agencies continues to be conservative because of uncertainties on the global front, exemplified by the Greek debt crisis.

Exports from economic zones up by 49%

by Julito G. Rada
Manila Standard
April 24, 2010

EXPORTS generated by the special economic zones jumped 48.78 percent to $9.46 billion in the first quarter as demand for Philippine-made products improved.

In a report to Trade Secretary Jesli Lapus, Philippine Economic Zone Authority Director General Lilia de Lima said most of the gains came from electronics and manufacturing companies that were on their way to recovery after the global economic crisis.

Elmer San Pascual, Peza head of public relations and promotions at the agency, told the Manila Standard that the initial growth target for the electronics sector of 8 percent to 9 percent might be revised to 20 percent because of the industry’s strong recovery.

The recovery, started in the last quarter of 2009, was sustained throughout the first quarter, he said.

Workers who were laid off at the height of the economic crunch had been rehired to meet increasing orders from customers overseas.

Public economic zones in Cavite, Bataan, Baguio and Mactan posted $1.939 billion in exports, a 54.78-percent increase from the $1.25 billion reached a year ago.

The private economic zones, mostly located in the Calabarzon area, showed a 51.99-percent increase to $6.54 billion from $4.31 billion.

IT parks and buildings, mostly located in Metro Manila, added $979.14 million, a 22.156-percent increase over the $801.58 million recorded last year.

The total employment for the first quarter rose by 16.55 percent to 653,951 from 561,065.

Of that number, public economic zones posted a modest 2.78-percent increase to 123,631 employees.

Private economic zones hired 309,945, a 19.74-percent from the previous year, while IT parks and buildings hired 220,375, a 21.125-percent increase from the same period last year.

^^ Dapat kasi magtayo na tayo ng sariling mga kumpanya para naman dumami ang mga exports natin. Kung ang mga big retailers natin magdiversify, gumawa ng bagong kumpanya to manufacture goods, make them here and sell them, dadami pa ang trabaho at we can foster R&D.

^^ Dapat kasi magtayo na tayo ng sariling mga kumpanya para naman dumami ang mga exports natin. Kung ang mga big retailers natin magdiversify, gumawa ng bagong kumpanya to manufacture goods, make them here and sell them, dadami pa ang trabaho at we can foster R&D.

Agree here.

SM, Robinsons and even Puregold and Waltermart are harnessing Pinoy SMEs to produce their respective "home brands" like Bonus and best choice.

I do hope as these huge retailers are outsourcing their home brands, they also provide Pinoy SMEs with newer technology aside from ready market.

One good example is the LiLiw, Laguna -made shoes and footwear that are marketed as SM shoes and footwear.

These big retailers should minimized buying merchandise abroad because the practice does not bring income and employment to their main customers, Pinoys.

Customs sees lift from China deal


Monday, 26 April 2010 00:00
Manila Times


THE Bureau of Customs is eyeing a lift in its revenue collection as well as a reduction in smuggling after it signed a bilateral agreement with the People’s Republic of China’s General Customs Administration.

On the sidelines of the signing ceremony, Customs Commissioner Napoleon Morales said the agreement on information exchange regarding importers and exporters would enable the bureau to detect promptly whether a shipment or trader is violating the Tariffs and Customs Code.

“We had proposed this to China four years ago since the Philippine government used to have a limited access in terms of information gathering regarding shipments from China. Thus, it was difficult to collar the culprits and prosecute them,” Morales said.

The Customs chief said China is one of the Philippines’ largest source of imported goods, as local traders prefer the mainland’s cheap products. The agreement also covers Hong Kong’s Customs Administration.

Imports from China account for 8.6 percent of the Philippines’ total merchandise goods purchases from abroad. Morales said the taxable goods from China and Hong Kong amount to at least P18 billion a year, “making China the [Philippines’] preferred trading partner.”

According to the National Statistics Office, China is the Philippines’ fourth export market with an 8.3 percent share of the total exports for the first two months of the year—an increase of nearly 13 percent year-on-year.

With the agreement, the Philippine Customs expects to improve its tax collection efficiency by between 5 and 10 percent from the first year of implementation, generating an incremental P900,000 to P1.8 billion in duties.

Under the agreement, the two countries’ customs administrations—upon request from any of the parties —may get all the necessary information about the traders, products, and methods in accurately assessing the tariffs and duties to be imposed on traded goods.

The Philippines already has a similar agreement with South Korea, Israel and Iran.

“Right now, we still have to do it via phone calls and emails [each time we suspect shipments and for verification purposes]. But within the year, we would come up with a database or electronic archive which would contain all the necessary information regarding the traders, goods and methods of assessing the right value of such goods,” Morales said.
Katrina Mennen A. Valdez

Trade dept. sees surge in exports by 2nd half


Thursday, 06 May 2010 00:00
BY BEN ARNOLD O. DE VERA Reporter
Manila Times

The Department of Trade and Industry (DTI) is projecting a double-digit increase in exports this year, with “robust” growth expected in the second half.

“The first semester will see growth returning but the second half of 2010 will likely be robust,” Trade Secretary Jesli Lapus said in a statement on Wednesday.

He said the growth would be brought about by “the continued recovery of the Philippines’ major markets and the improvement in demand for electronic products.”

Latest government data showed that total exports in the first two months of the year rose 43.4 percent to $7.15 billion.

In February alone, exports went up 42.3 percent to $3.57 billion, mostly because of a strong demand for semiconductors and electronics—which compose more than half of the country’s merchandize exports.

“Philippine shipments of electronics and semiconductors are expected to grow between 10 percent and 15 percent for the year, [to be] driven by strong demand notably from China,” Lapus said.

The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) had projected a “conservative” growth of up to 20 percent this year, but the industry group said that this target could be raised further.

The government and other exporters’ groups have also been mulling on raising export growth projections.

The public-private Export Development Council had projected a 16-percent increase, while the Philippine Exporters Confederation Inc. had not ruled out recovering from the 25-percent slump last year.

Exporters get additional P100-M assistance
MANILA, May 13 (PNA) -- Malacanang has directed the Department of Budget and Management to check for possible funding source for an additional P100 million for exporters, Trade and Industry Secretary Jesli A. Lapus said.

Lapus said he asked Malacanang for the amount because the Export Development Fund has been realigned for the calamity fund during typhoon Ondoy.

Lapus, however, told Cebu Export leaders that the government cannot intervene in the continued strengthening of the foreign exchange rate.

During a meeting with Cebu export leaders, Lapus together with the officials of the National Economic and Development Authority and the Bangko Sentral ng Pilipinas took turns in explaining the government policy on the foreign exchange rate.

Cebu export leaders have raised their concern on the foreign exchange saying the unrestrained strengthening of the peso has eroded their competitiveness in the global market.

Philippine Exporters Confederation president Venus Genson said that Cebu exporters, mostly using indigenous materials, have lost seven percent of what should have been their export revenues to strong peso.

Cebu exporters, which claimed to directly employ 50,000 and 150,000 indirect workers, have batted for a stable peso rate of not less than P45 to the greenback.

“They want a weak peso so I called NEDA and BSP to explain to them that the government’s monetary policy towards market driven rate,” Lapus said.

BSP managing director Wilhelmina Manalac stressed that, “BSP is not going to intervene in the foreign exchange rate because it is market determined. We only come in to smoothen the volatilities of the market.”

Manalac, however, said that the BSP has undertaken some initiatives under its Export Competitiveness Training to make exports competitive and to protect exporters from foreign exchange losses.

She said that the BSP export initiatives would enable exporters to look at other sources of competitiveness like productivity, innovation and technology.

Lapus also pointed out that a strong local currency would shield the country from the impact of high oil prices.

On the other hand, Lapus added that the export sector is booming.

Lapus said further said that Cebu exporters are going to get a total of P54 million from the ESF. A total of 6 Cebu projects with combined cost of P24 million have been cleared for funding under the ESF.

Cebu exporters also proposed funding for 7 projects at a cost of P122 million.

He said that of the P200 million ESF, which are supposed to fund 24 exporters’ projects that have been cleared for funding, only P51 million have been released due to procedural difficulties in liquidating the expenses.

This time, Lapus would like to release the fund directly to suppliers or export site organizers. Most of the exporters’ projects are for financing in their participation to local and international trade fairs. (PNA)http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=275602

Govt expedites release of export fund


Saturday, 15 May 2010 00:00
Manila Times
BY BEN ARNOLD O. DE VERA Reporter

A public-private sector body overseeing the exports sector said it cut short the procedure in releasing money for projects that qualified under the Export Support Fund (ESF).

Trade Secretary Jesli Lapus, who also chairs the Export Development Council, said qualified projects would immediately be granted half of the project cost.

Previously, projects that were approved by EDC could only reimburse the amount they already spent, entailing the submission of receipts and documentation prior to reimbursement.

Lapus also said that the Department of Trade and Industry (DTI) has asked the Department of Budget and Management (DBM) for another P100 million that would be allocated to exporters’ promotion activities.

Lapus told reporters after a meeting with Cebu-based exporters on Wednesday that this P100 million could be allocated to projects seeking financial assistance under the ESF.

Lapus said this was done following a request of exporters from the Visayas, who had submitted a position paper asking that DTI to distribute the remaining amount of the ESF.

The government had allocated P1 billion for the ESF to assist exporters amid the global economic slowdown.

But only 24 projects worth a combined P200 million was approved for financing by the ESF. Of the total amount approved, only P51.148 million had been released as of May 6, Lapus said.

The government later realigned the remaining balance of the ESF to projects that would mitigate the effects of recent calamities and disasters.

Lapus said DBM would have to check if the government could still release additional money for exporters.

Also, the Visayan exporters had asked the Bangko Sentral ng Pilipinas (BSP) to “rationalize their market intervention policy and set tighter intervention levels to avoid wide swings in the exchange rates.”

However, Lapus said the government could not do anything about the exchange rate. “The BSP’s policy is not to intervene. The forex is market-driven,” he said.

China Jobs Gain Signals Honda Offer ‘Tip’ of Iceberg
By Bloomberg News - June 2, 2010

June 2 (Bloomberg) -- China’s manufacturing job growth accelerated to the fastest pace in at least five years in the past three months, signaling more employers may be forced to follow Honda Motor Co. in offering higher wages.

The Federation of Logistics and Purchasing said yesterday in Beijing its average factory employment index for the past three months reached 52.7 even as its measure for manufacturing growth slid. The release came a day after Tokyo-based Honda offered a 24 percent pay increase to workers at a factory in the aftermath of a strike that shut down its Chinese production.

Faster job growth and higher wages will help Premier Wen Jiabao’s government rebalance the world’s third-largest economy away from export dependence. The shift may also stoke inflation, making it more important that officials contain prices in part by ending China’s currency peg to the dollar, said Peng Wensheng, head of China research at Barclays Capital.

“Honda’s just the tip of the iceberg, and it reflects the urgency of adjusting China’s growth model,” said Huang Yiping, an economics professor at Peking University and a former Citigroup Inc. chief Asia economist. “After three decades of rapid growth partly driven by cheap labor, China must adjust” to higher wages, he said.

Manufacturing Peak

Earnings are poised to rise even amid signs that the acceleration of growth in China’s industries may have peaked, economists said. Yesterday’s report showed the country’s manufacturing purchasing manager index dropped more than forecast, to 53.9 in May from 55.7 in April; readings higher than 50 indicate expansion.

The decline contributed to a sell-off in stocks that saw the MSCI Asia Pacific Index snap a four-day winning streak. It retreated again today by 0.6 percent as of 10 a.m. in Tokyo.

China’s regional officials are contributing to wage gains. After halting minimum wage increases last year amid the global recession, seven Chinese provinces raised their levels in the first quarter, according to the Labor Ministry. Companies from Dell Inc. to Hon Hai Group have also increased pay in their Chinese businesses this year.

Foxconn Technology Group, also known as Hon Hai Group, the assembler of Apple Inc.’s iPhones, said today it will raise workers’ salaries by at least 30 percent in China. At least 10 people have died this year at its manufacturing complex in Shenzhen and police are treating the deaths as suicides.

Honda Strike

Honda, Japan’s second-largest carmaker, said it plans to resume full operations today at its parts plant where workers went on strike. The company hasn’t decided when to reopen its four car-assembly plants in the country, said Akemi Ando, a Honda spokeswoman.

“The Honda strikes could lead to an increase in these types of incidents,” Auret van Heerden, president and chief executive officer of the Washington-based labor-monitoring group Fair Labor Association, said by phone yesterday. “This sort of labor action generally has a copycat nature.”

About a quarter of workers in nine Chinese provinces surveyed by the central bank said they expected at least a 10 percent pay increase this year, the state-run Xinhua news agency reported in March.

Tao Dong, a Hong Kong-based economist at Credit Suisse Group AG, said “I expect double digit wage growth a year for the migrant workers over the next few years.” China has about 145 million migrant workers across the nation, about 11 percent of the total population, according to government data.

‘End of an Era’

“The events have dramatized the beginning of the end of an era of China as world factory,” Tao said.
Faster wage increases and yuan appreciation should both be in policy makers’ toolkit to help reallocate resources away from exports toward domestic demand, said Peng at Barclays, who is based in Hong Kong. “Wage increases may push up domestic inflation so letting the yuan strengthen at the same time may help cool inflation.”

China’s consumer prices rose 2.8 percent in April from a year before, approaching the 3 percent target that the government has set for this year’s average.

Any change in the yuan’s 6.83 peg to the dollar, kept since July 2008 to aid exporters, may hurt manufacturers with thin profit margins, such as Zhejiang Mingfeng Car Accessories Co., an exporter of car covers and seats cushions whose margin last year stood as low as 2.5 percent.

‘Great Distress’

“Pressure on wages has been greater this year especially as we expanded our business after the New Year holiday,” said Bai Ming, deputy general manager of Zhejiang Mingfeng, adding that his company has raised wages by almost 20 percent. “Even a 3 percent yuan revaluation may cause great distress for our business,” he said.

China’s trade balance has already shrunk with foreign demand gains outstripped by domestic spending. The country’s gross domestic product climbed 11.9 percent in the first quarter from a year before, the most in almost three years.

China faces a “pressing” task in the “post-crisis era” to adjust its growth model and move away from growth reliance on investment and exports, which may be restrained by a slow world recovery, Vice Premier Li Keqiang wrote in the Chinese Communist Party magazine published yesterday.

May coco-oil exports increase by 122%
SHIPMENTS of coconut oil (CNO) for the month of May reached 123,570 metric tons (MT), 122.4 percent higher than the 55,555 MT shipped out in May 2009, according to industry estimates.

Based on the initial estimate of the United Coconut Associations of the Philippines, coconut-oil exports for January to May reached 601,605 MT or 211.67 percent higher than the 193,029 MT shipped out in the same period last year.

Ucap executive director Yvonne Agustin pointed to the growth in demand from major markets such as the United States and Europe for coconut oil as the single biggest reason behind the phenomenal increase of CNO exports in January to May.

CIIF Oil Mills Group vice president for exports Henry Lao projected that coconut-oil exports for the second semester could drop due to the effect of the El Niño weather phenomenon on coconut trees.

Lao, however, did not provide any estimate or projection.

The government is positive that coconut production will hit the 3-million-metric-ton mark this year owing to its ongoing efforts to increase output. The coconut industry is keen on hiking production so it could supply the demand for the mandated 1 percent to 2 percent biodiesel blending. The additional demand is placed at 100,000 to 200,000 MT.

Coconut oil has various applications in food preparation, medicine and cosmetic products, as well as herbicides and as feedstock for biodiesel, engine lubricant and transformer oil.
In Photo: IN this file photo, a farmer from Ayala Coco Farm in Sta. Cruz, Davao del Sur, takes a snap rest before continuing her work for the day.http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=25924:may-coco-oil-exports-increase-by-122&catid=53:agri-commodities

Dying’ skills buck the odds]

BY IRMA ISIP
Malaya Business Insights
June 2, 2010

A Swiss company continues the tradition of what could be a vanishing skill – high quality embroidery.

Tara Designs Philippines Inc. has been manufacturing and exporting embroidered table linen, bedroom and bathroom linen, kitchen and toilet accessories, garments curtains, and specialty fashion fabrics from Baguio City since the 1980s after moving its factory from Manila where it was originally founded by a Canadian lady in the 1970s.

Hit by the global financial crisis twice – in the 90s and last year – and by a devastating earthquake in 1992, Tara Designs has managed to come out stronger each time.

Supplying exclusively to clients mainly in Switzerland, Germany and Italy, Tara Designs uses the old way of machine embroidery that involves a special technique in producing exquisite and intricate products well-loved by its European clients.

These products, which competitors like China and Indonesia cannot replicate, have enabled Tara Designs to pierce the high-end scale of the market.

But the company is alarmed over the possibility of becoming extinct due to the scarcity of highly skilled embroiderers.

Today, there are no more schools offering training on this skill. Even the Technical Education and Skills Development Authority no longer finds its teaching a priority.

Sidelined by the depletion of embroiderers and hit by the crisis last year, Tara Designs turned these adversities into an opportunity.

To address the issue of scarcity of embroiderers, it started to take in young workers who want to learn the craft.

Hired initially as straight sewers, these interns get hands-on training for three years before they become operators.

The business depends largely on embroiderers who make up about 70 percent of Tara Designs’ employees, some of whom have been with the company for 25 years.

The company today has 196 employees, just half of the 400 it used to have. About 80 percent of them are women, hired particularly for their nimble hands.

Being skilled in manual embroidery of the olden days does not necessarily make one qualified to do the highly specialized embroidery operation at Tara Designs.

A combination of such a skill and a specialized technique with the use of improvised sewing/embroidery attachments is what it takes to produce Tara Designs’ much sought-after products.

Tara Designs has a department which develops and executes the design specified by a client.

Tara Designs has been trying to penetrate other markets like Asia, the Middle East and America, but Europe remains its top buyer.

"The market in Europe is a lot different but it also has changed over time. It prefers simple, elegant and chic designs, sometimes just the classic chain embroideries and less and less heavy embroideries," said Meme Candari, a consultant of the company.

Tara Designs works on all sorts of fabric which it sources from Switzerland, Italy and Japan: polyester, cotton, linen, cotton/polyester, wool, cashmere, silk, leather. You name it, they’ll stitch it.

The company has experienced a better first quarter as the market begins to recover from last year’s 35 to 40 percent decline in sales.:):):):cheers::cheers::banana:

P.1-B loss to technical smuggling bared


Written by Jennifer A. Ng / Reporter
Wednesday, 02 June 2010 09:02
Business Mirror

LOCAL businesses, led by the Federation of Philippine Industries (FPI), disclosed on Tuesday that the government has lost at least P100 million in potential revenues from 2007 to 2009 due to the rampant technical smuggling of palm oil and palm olein.

FPI president Jesus Arranza alleged that some unscrupulous importers are in cahoots with some officials and employees of the Bureau of Customs (BOC) to undervalue their shipments.

“We have records showing that some companies that have imported palm oil from the years 2007 to 2009 undervalued their shipments,” Arranza told reporters in a press briefing in Makati City on Tuesday.

One importer, he noted, declared the price of imported palm oil in container and packs at $0.10 per kilo. This is “dirt cheap,” said Arranza, compared with the $1.10 per kilo price declared by state-run CIIF-Oil Mills Group.

Figures released by CIIF show that the average price of palm oil was pegged at $1,200 per metric ton (MT) in 2009. This translates to around $1.20 per kilogram of palm oil.

Records released by CIIF, however, indicate that one importer paid for the imported palm oil at $70 per MT.

Arranza noted that the government lost around P23.01 million in value-added tax (VAT) last year due to the undervaluation of the imported palm oil. The importer, Matahari Trading Inc., allegedly did not pay around $494,940 in VAT in 2009.

Matahari Trading Inc. president Giovanni Ong, however, denied that his company is in collusion with BOC officials and that they resort to undervaluation of their shipments.

“Just because the international market price is pegged at a certain level doesn’t mean we have to follow that. We do not undervalue our products. Our price is based on the acquisition cost,” said Ong, partly in Filipino, in a telephone interview.

Matahari, he said, has been in the palm-oil business for 10 years and is the exclusive distributor of Bimoli cooking oil in the Philippines. Bimoli is a popular brand of cooking coil in Indonesia.

FPI said it would submit the documents they obtained to the Post-Entry Audit Group of the BOC.

Arranza said Port of Manila district collector Rogel Gatchalian would also be given copies of the documents.

FPI also suspects the possibility of the outright smuggling of palm oil last year. In 2007 palm-oil imports reached 119,000 MT. This climbed to 139,000 MT in 2008.

Last year importation simply dropped to 76,000 MT. “This may be a result of outright smuggling,” said Arranza.

Geely has expressed its desire to put up an assembly plant here in the Philippines...and I never taught this Chinese company is huge..


China's Geely shares up on Volvo deal


Agence France-Presse
First Posted 19:07:00 03/29/2010

Filed Under: Company Information, Economy and Business and Finance, Mergers - Acquisitions - Takeovers, Automotive Equipment

BEIJING—Shares in Geely Automobile Holdings surged nearly five percent Monday after its Chinese parent company sealed a 1.8-billion-dollar deal to buy Volvo Cars from US auto giant Ford.

The Hong Kong-listed unit of Zhejiang Geely Holding Group rose as much as 4.9 percent to 4.30 Hong Kong dollars ($0.55) before closing at 4.16, up 1.5 percent in a stronger market.

The broader market finished 0.88 percent higher at 21,237.43.

"It is a comprehensive acquisition," said Jerry Huang, a Shanghai-based analyst with automotive research firm CSM Worldwide.

"Volvo will get funds which it needs badly at the moment and a market that has enormous potential. Geely gets a platform to learn and gain experience in the industry."

The deal signed Sunday ended more than a decade of Volvo ownership by Ford Motor Co., which saw the upmarket Swedish carmaker become a loss-making thorn in the side of the US giant, which is burdened with its own woes.

Geely chairman Li Shufu said he saw huge untapped potential for Volvo in international markets and especially in China, which has not only the biggest but also one of the fastest-growing car markets in the world.

"I see Volvo as a tiger. (The) tiger belongs to a forest, it can't be found in a zoo ... We need to liberate this tiger," he told a press conference after the deal was signed at Volvo Cars headquarters in Gothenburg, southern Sweden.

"The tiger has a heart and it lies in Sweden, (and) in Belgium but its power should be projected all over the world.

"I see China as one of the markets where Volvo can show it has the opportunity to liberate itself," he said.

Geely said it had not only secured financing for the 1.8 billion dollars it was paying, but was also eager to keep Volvo in operation.

It also said the deal, which Ford initially agreed to in December, included agreements on intellectual property rights as well as supply and research and development arrangements between Volvo Cars, Geely and Ford.

Pwede namang bilhin ng Pilipinas ang Volvo, turn their technology to our own.

^^^^China nga hindi nabili ng technology. Rampant ang pag-pirate ng mga Chinese companies ng mga techonogy from rival companies.


Ex. Yung Chery QQ kamukhang kamukha nuong Chevrolet model. Gayang gaya.

Yung Geely na kotse ginaya yung kotse ng Daihatsu.

Tayo nagawa na ng FMC Anfra at even our jeepney.Konting improvement lang sa design at engineering aspect may panlaban na tayo.

Actually ang jeepney natin iconic puede namang magproduce ng aerodynatic and modern jeep at gawing parang British black taxi.

EU woes to weigh on global growth,
says Stiglitz

Malaya Business Insights
June 3, 2010

ATHENS - Global economic growth will be "markedly lower" by the end of the year as European governments push through painful austerity measures, strangling the region’s recovery, Nobel Prize winning economist Joseph Stiglitz said.

Stiglitz, winner of the 2001 Nobel Prize for Economics, said on Tuesday it was not yet clear whether the world was headed for a double-dip recession, but that one thing was certain: Europe is going to face a roller coaster ride for the "foreseeable future".

"I think the only thing one can be confident about at this juncture is that there is likely to be volatility," he told Reuters in an interview in Stockholm.

"And volatility is bad for growth. This is not a zero sum game, this is a negative sum game."

World stocks fell on Tuesday and the euro skidded to a four-year low against the dollar on expectations that slowing growth in the euro zone and China would hamper the global economic recovery.

"The problem is that we’re in, you might say, a vicious cycle," Stiglitz said on the sidelines of a development conference. "Austerity is going to lower growth. A weak euro and a weak Europe is going to be bad for the United States."

European Union member states including Greece, Spain, Portugal, Ireland and Italy have announced austerity measures to placate nervous financial markets worried by Europe’s debt problems.

Spain’s parliament passed by just one vote last week government plans to shave 15 billion euros ($18.2 billion) off the fiscal deficit with measures including salary cuts for public workers and pension freezes.

Europe’s single currency has come under pressure on concerns that sovereign debt problems and slowing growth will usher in a new round of writedowns for the banking sector.

Exactly how painful the impact on growth will be is uncertain, Stiglitz said.

"It would depend to some extent on how successful the countries are in bringing austerity, how fast they bring those policies in. Because we have had such bad accounting of the banks, we don’t know how bad a shape they are in."

The fact that not just fiscally weak southern European countries, but also nations such as France and Germany at the euro zone’s core are under pressure to cut debt and deficits amassed during the financial crisis, is adding to concerns.

Stiglitz, a professor at Columbia University in New York and formerly a chief economist at the World Bank, said Europe needed to restructure expenditures and taxes in ways that would bring down government deficits while also enhancing growth.

He would not say whether the euro was currently undervalued or whether it could fall further against the dollar but said exchange rates and markets would remain extremely volatile until steady global growth resumed.

Apart from a potential spillover of Europe’s fiscal debt woes to the United States, Stiglitz said the world’s biggest economy had a host of its own problems to deal with: the banks, poor accounting standards, bad credit supply and higher mortgage defaults. - Reuters

^^^^China nga hindi nabili ng technology. Rampant ang pag-pirate ng mga Chinese companies ng mga techonogy from rival companies.


Ex. Yung Chery QQ kamukhang kamukha nuong Chevrolet model. Gayang gaya.

Yung Geely na kotse ginaya yung kotse ng Daihatsu.

Tayo nagawa na ng FMC Anfra at even our jeepney.Konting improvement lang sa design at engineering aspect may panlaban na tayo.

Actually ang jeepney natin iconic puede namang magproduce ng aerodynatic and modern jeep at gawing parang British black taxi.

Pwede din, gawing ganito:

http://binrock.net/photos/p/526

http://estb.msn.com/i/F7/82474DBBCAD33D4D7A25B793AD6CA.jpg

Ingenious din ang design ng jeepney natin eh. for example, instead of individualized seats, we use only elongated ones. Menos gastos na sa space, menos gastos pa sa seating.

Investments to sustain rapid growth of electronics exports, says SEIPI

By Philexport News and Features
(The Philippine Star)
Updated June 07, 2010 12:00 AM

MANILA, Philippines - The impressive rebound of the electronics industry can be driven into sustained high growth if the Philippines embarks on an aggressive investment promotions campaign aimed at luring in the big multinationals, officials of a major electronics association said.

Semiconductor and Electronics Industry in the Philippines, Inc. (SEIPI) president Ernie Santiago and chairman Arthur Young stressed their view in a press conference on the sidelines of this year’s trade exhibit at the SMX convention halls in Pasay.

“The multinationals are now reviewing their global strategies and they are determined to make a presence in Asia,” Santiago said.

“They realize that China is not the only player. The reality is, the China plus plus scenario is at work and the Philippines must be made part of the investment destinations,” he explained.

He explained that the country must take full advantage of the smooth transition of government recently pulled off while Thailand is still struggling to form a new government.

“You must get out and get the investments,” added Young. “It all redounds to investments. If you order new machinery for added capacity today, it will be six months before it gets delivered, and two years to reap the higher growth. Texas Instruments (TI) decided to expand in Clark in 2007. It is reaping the dividends this year.”

The electronics industry leaders further pointed out that the spectacular growth of their industry in the 1990s that peaked at $2.16 billion in 1995 fueled double-digit annual growth in export. This sector propelled electronics to be the country’s leading export and since then captured at least 60 percent of total export revenues.

Investments slowed down in the past decade but jumped again to $1.4 billion in 2007 on the back of the decision of TI to put up its new manufacturing facilities at the Clark Freeport.

At the rate the industry has been recovering, its leaders expect exports this year to edge the performance in 2008 at $29 billion yearly sales. Their previous projection is a growth of about 29 percent this year which actual figures in the first four months have been revising upwards.

“A 45 percent growth will overtake exports of $31 billion in 2007 which may not yet be attained,”Santiago said. Robust growth is still expected next year but may not be as spectacular as this year due to under capacity of the local plants.

Group calls for FTA moratorium

BY IRMA ISIP
Malaya Business Insights
June 7, 2010

Civil society is asking the incoming administration for a moratorium on all pending trade agreements pending thorough consultation and study.

Leading the campaign is the Trade Advocates Group (TAG), a network of non-governmental organizations and basic sectors working towards pro-people national trade agenda.

Former senator Sen. Wigberto Tañada, lead convenor of Fair Trade Alliance, warned against rushing headlong into trade agreements unprepared.

The country is currently undertaking talks on economic cooperation with the United States, the European Union and India.

FairTrade is a member of TAG.

"The Philippines must follow its own development paradigm with national interest at the core. We should stop the race to the bottom that neo-liberals have instituted for more than twenty years now. Government should realize now that it is not a case of one size fits all."

Addressing presumptive president Noynoy Aquino, Tañada said, "your government is in a position to reverse the ill-effects of unbridled liberalization, help our ailing industries and agriculture, save jobs and make the lives of Filipinos better."

Tanada said the average agriculture tariff in the Philippines is less than a third of Thailand’s applied tariffs, the reason the latter’s exports are growing three times faster than the Philippines’.

He said local tariffs are second lowest at about 20 percent after Singapore. He said China and India have adopted a tariff schedule of 40, 60 and 80 percent.

"We must take the step to recalibrate to the

level undertaken by Thailand, Indonesia, etc. We have been opening up too fast. Meanwhile, the industrial sector remains stagnant and the agriculture sector remains backward and unmodernized. The incoming administration should be decisive in enforcing the corrective measures," Tanada said.

Tanada likewise proposed the crafting of an agro-industrial master plan which will promote the development of viable industrial and agricultural sectors based on continuous capacity building and industrial complementation.

"We must ensure these agreements bring about reciprocal benefits to our people and that they help develop our industry and agriculture, thus creating the very much needed jobs for our people," he said.

TAG is particularly calling on the incoming administration for a halt in the implementation of the Asean Trade in Goods Agreement (ATIGA), saying this is disadvantageous to local industries, particularly agriculture.

TAG said the country’s trade deficit with Asean has been growing, rather than declining.

ATIGA is a regional trade agreement which covers trade-related rules and regulations, including tariff liberalization, non-tariff barrier liberalization, rules of origin, trade facilitation, customs procedures, standards and conformance, and sanitary and phytosanitary measures. It came into force at the start of the year.

ATIGA aims to achieve free flow of goods in Asean as one of the principal means in establishing a single market and production base for the deeper economic integration of the region towards the realization of the Asean economic community by 2015.

Export earnings up 38.9% in 1st 4 months

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 21:20:00 06/10/2010


EXPORT EARNINGS continued their double-digit rise in April at 27.4 percent year-on-year, reaching $3.573 billion, the National Statistics Office said Thursday.

But the rate of increase in April was slower than the 43.8 percent yearly growth observed in March, when earnings reached $4.181 billion.

Also, the April export performance was a turnaround from the 35.2-percent decline observed in the same month of 2009.

“This was the fourth consecutive month that exports registered positive year-on-year growth as global trade continued to recover,” said Augusto B. Santos, Acting Socioeconomic Planning Secretary.

From January to April, receipts hit $14.903 billion, growing by 38.9 percent from $10.73 billion the same period last year.

In April, the value of electronics products shipped out grew by 29.7 percent to $2.183 billion from the same month previous year.

Although electronic products accounted for 61.1 percent of total outbound cargoes that month, the country’s top dollar earner posted a decrease of 9.7 percent from $2.416 billion the previous month.

Still, growth in electronics shipments was driven by a 29.5-percent improvement in semiconductor components and devices.

NSO data further showed that receipts from the country’s second top export, coconut oil, went up by 372 percent year-on-year to $107.25 million.

Articles of apparel and clothing accessories, grew by 6.2 percent to $106.63 million.

Fourth on the list were woodcraft and furniture, which increased by 37.4 percent to $70.44 million.

Fifth were automotive wiring sets, which rose by 49.2 percent to $61.67 million.

Also, metals components went up by 64.1 percent to $51.88 million; products made from imported inputs, down by 4.4 percent to $47.62 million; cathodes made of refined copper, down by 31.2 percent to $42.95 million; petroleum products, down by 43.4 percent to $29.83 million; and tuna, down by 5.2 percent to $28.04 million.

Manufactured goods represented 86.7 percent of receipts and went up in aggregate value by 29.7 percent to $3.097 billion in April.

Agriculture products posted a total income of $208.12 million—an increase of 34.3 percent.

Receipts from mineral products reached $134.09 million, rising by 16.1 percent.

In April, all three of the biggest markets for Philippine goods had increased orders for shipments.

Japan regained the top spot with 17.3 percent of total outbound traffic. The value of shipments increased by 42.2 percent to $616.97 million.

Exports to the United States followed with 16.1 percent of total—up by 28.3 percent to $573.62 million.

Shipments to China made up 9.9 percent of total, rising 15 percent to $352.83 million.

2-B RP-Russia trade in the works: Angara
Manila Business Insights
June 11, 2010

NEGOTIATIONS are underway to boost the bilateral trade between Russia and the Philippines from $200 million to $2 billion, Sen. Edgardo J. Angara disclosed yesterday.

Angara, Senate economic and finance committee chairman, said he will be in Russia next week to promote trade and investments there as guest of the Philippine embassy in its Independence Day celebration.

"There is a huge room for growth in trade between the two countries because Russia needs our main exports, such as tropical fruits, coconuts and carageenan (seaweed), while we can benefit greatly from accessing their oil, timber and metals," he said.

Angara said trade possibilities between the two countries are largely untapped as Russia is only the 29th largest trading partner in 2006 with less than one percent of Philippine exports.

"The Philippines and Russia are natural trade partners because of their proximity to each other," he said. "East Siberia and the Russian Far East are located in northern Asia, above our neighbors China, Japan and Korea."

Angara disclosed that Russia is currently looking at expanding trade with the Philippines and other Southeast Asian countries "to increase economic activity in its eastern states and to stake a claim in east Asia’s regional integration."

"We should enhance foreign relations with Russia, particularly in the areas of trade, tourism, science, and technology," he said.

He said that the Philippine government has granted visa-free entry to Russian tourists for 21 days and the Philippine Chamber of Commerce and Industry has signed an economic cooperation agreement with the Russian government.

Angara noted that his home province is "trade-compatible" with Russia as Aurora grows Philippine main exports to that country -- bananas and coconuts.

He said that development plan for Aurora calls for promoting agribusiness, including the cultivation of seaweeds, and for developing forest plantations, which can tap Russia as a market.

^^ Spasibo. May rocket din na Angara ang Russia.

RP food exports to sustain high sales in Taipei food show
MANILA, June 21 (PNA) -- The Manila Economic and Cultural Office (MECO) sees robust sales of Filipino-made food products in the 20th Taipei International Food Show slated from June 23 to 27 at the Nangang Exhibition Hall in Taipei.

Meco said on Saturday that participating Filipino food manufacturers and exporters would bag more orders and sales this year with the promotion of premium, export-quality goods to Taiwanese and international buyers during the prestigious trade show.

Antonio I. Basilio, MECO resident representative and managing director, said Filipino food manufacturers and exporters should surpass last year's sales as they showcase more food products and heighten their marketing campaign and business-matching activities with Taiwanese companies.

Basilio said MECO hopes Filipino food producers would become more globally competitive through tie-ups with Taiwanese firms providing advanced production and packaging technologies along with capital infusions.

"Our local food manufacturers and suppliers have good prospects for this year because they have diverse products to offer at FOOD TAIPEI, which is one of Asia's most important food shows," said Basilio.

Basilio said Philippine participation in last year's food fair resulted in total export sales of US$ 10.10 million up from US$ 8 million in 2008.

MECO and the Department of Trade and Industry (DTI) have played an integral role in promoting Philippine fresh and processed food exports to Taiwan.

The Philippine Department of Agriculture joined MECO and DTI in focusing efforts to develop Taiwan as one of the Philippines' major export markets, sources of investments and technology partners for the enhancement of the global competitiveness of the country's food exports.

"This partnership is grounded on many factors: Taiwan's heavy dependence on imports of primary agricultural and aquatic products for its processing and re-export requirements; its domestic market's increasing appetite for imported fruits, vegetables and processed food items; its scientific advances in agriculture and aquaculture; its expertise in food packaging, processing and equipment manufacturing; and the Taiwanese Government's "Go South Policy" which will facilitate the firm positioning of the Philippines as Taiwan's gateway to the huge ASEAN market," said Basilio.

Basilio said that MECO and DTI had been encouraging the Philippine food sector to participate more actively in Taiwan trade and investment promotion activities as Taiwan provides a good platform for introducing and promoting fresh and processed food exports to the region and serves as a good partner in developing more globally competitive exports.

"It is a good source of competitively-priced food packaging, labeling and processing equipment," he said.

"The best way to upgrade global competitiveness is by working to deepen our food industry's inventory via greater diversity, finding wider and healthier applications of raw materials and increasing overall supply and volume by efficient production methods-- all through the access of Taiwan's advanced technologies," said Basilio.

Dita Angara-Mathay, Meco trade and investments director, said that the partnership of MECO and DTI in Philippine food export promotion had been substantial and successful as shown in the growing sales during the Taipei International Food Show over the past years.

Through MECO and the DTI, the Philippines mounted its first country pavilion in the Taipei International Food Show in 2002. Sales generated at the fair that year amounted to $ 0.86 million.

In 2004, Philippine exporters at the fair reported a 155 percent increase in booked sales of $ 2.2 million. Then in 2005, export receipts registered at the food fair amounted to $ 1.8 million while in 2006 the total export sales hit US$ 2.57 million.

In 2007, a 141 percent increment to this figure was registered with US$ 6.2 million in total sales, and the following year total sales rose to US$ 8 million or by 29 percent, said Angara-Mathay.

Angara-Mathay said MECO's seven year initiative in Philippine food export development resulted in a 1,074 percent increase of sales, from US$ 0.86 million in 2002 to US$ 10.10 million in 2009.

"We are upbeat that sales will be sustained this year because of the heightened marketing efforts of our local manufacturers and the quality food products they offer," he said.

Furthermore, Angara-Mathay said the combined efforts of MECO, DTI and DA in food export promotion in Taiwan have resulted in 35 Filipino delegates attending the show, a record number.

Angara-Mathay also said the participation in the trade fair would expose the growing Philippine delegations from this sector to new market and technological trends.

"In fact, this year the delegation will get briefings from the Council of Agriculture on food safety and import regulations, conduct ocular tours of the largest food retail outlets and have a one-day business matching session with 55 prospective investors and importers in Shangrila Hotel. All of these auxiliary programs were organized by MECO and DTI," Basilio said.

Basilio said this year's Philippine participants include RFM Corp., one of the biggest diversified food and beverage companies in the Philippines, which will showcase its sauce mixes, flour and rice based products, noodles with sauce mixes, pasta and spaghetti sauce, ready to drink juices, instant drink mixes, milk products, Aloe Vera drink, energy drink, Halal canned and frozen meat and Halal ice cream.

Other participating manufacturers include Philippine Fruits International Corp. (fruit purees, fruit concentrates and dried fruits); Tita Rosa Food Products, Inc. (sardines and gourmet dried fish in corn oil, sauteed shrimp paste in corn oil); RGIES Delicacies (butterscotch with cashew nuts/mango ships); Cordillera Products Trading and Holding Company (Cordillera Arabica, Kape Musang, strawberry jam);

See's International Food Manufacturing Corp. (banana chips, dried fruit cocktail, coconut chips, desiccated coconut, dried papaya, dried mango and dried pineapple); Mt. Kitanglad Agricultural Development Corp. or MKADC (fresh pineapples); Castillejos Agri-Farms Inc. or CAFI (tropical fruit jams, jellies, marmalades. chutney preserves in syrup and pure calamansi juice); and

Agrinurture Inc. or ANI (coconut juice, coconut milk, coco vinegar, rice noodles, mango nectar, mango puree and dried mango); and Primex Coco Products (desiccated coconut products -fine, medium, fancy shred, flakes, chips, coconut milk powder and banana chips).

FAB Sea Resources Corp., MS Seafood Supplier, JN Mercado Seafood Suply and JBI Foodstuff Supplier will market their fresh/chilled yellowfin tuna loins.

Meanwhile, fresh cavendish bananas will be marketed by the Federation of ARB/Banana-based Cooperatives of Davao or FEDCO while malunggay capsules, malunggay instant tea/powder, malunggay flakes and pancit canton and bihon will be showcased by MLGS Herb Products.

According to the trade show organizer Taiwan External Trade Development Council (TAITRA), the Taipei International Food Show had been the most popular platform for industry players to launch their products into the hottest Taiwan and overseas markets as it projected more business opportunities for participants this year.

Last year, Food Taipei welcomed over 4,000 overseas visitors and over 37,000 local visitors according to TAITRA. http://www.positivenewsmedia.net/am2/publish/Business_19/RP_food_exports_to_sustain_high_sales_in_Taipei_food_show.shtml

RP ships 30% more goods to Japan as of May ’10

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 19:46:00 07/04/2010

Filed Under: business, Economy and Business and Finance, Trade (general), Investments

THE PHILIPPINES’ exports to Japan jumped 29.9 percent in the first five months of the year, to more than $3 billion from $2.3 billion in the same period last year.

According to the Japan External Trade Organization, the country accounted for 1.1 percent of total Japanese imports during the period.

In May alone, the value of goods shipped from the Philippines to Japan reached $706.6 million, up 43.6 percent from the previous year’s $474.3 million.

The country’s imports from Japan, on the other hand, surged 66.8 percent as of end-May to almost $4.4 billion, from only $2.6 billion in the same period last year.

Japanese exports to the country in May alone spiked 56.1 percent, from $572.3 million in the same month in 2009 to $893.3 million.

The Philippines received 1.5 percent of total Japanese exports as of end-May.

In the January-May period, Japan enjoyed a surplus of more than $1.3 billion in its trade with the Philippines, a huge jump from the $324.9-million surplus registered in the same period last year.

Trade between the two countries slumped almost of all last year, registering declines month after month, before picking up toward the end of the year and continuing its recovery this year.

The government is banking on the Japan-Philippines Economic Partnership Agreement (Jpepa) to further boost trade between the two countries, particularly Philippine exports to Japan.

Under the Jpepa, around 95 percent of Philippine exports to Japan will have zero duties.

Tariffs on most industrial exports will likewise be reduced to nil after 10 years of the effectivity of the agreement.

^^^^

kakatuwa naman yan. export tayo ng saging, mangga sa japan tapos import tayo ng kotse, truck mula sa kanila. :lol:

Customs notes ‘disturbing’ collection shortfall at MICP, Limay amid import surge

Saturday, 10 July 2010 00:00
BY KATRINA MENNEN A. VALDEZ REPORTER
Manila Times

The Bureau of Customs (BOC) said it would look into the ports that failed to meet their collection targets amid a recovering imports sector and the country’s better-than-expected economic expansion. “I am quite disturbed. How come the two largest ports in the country failed to meet their respective tax collection targets considering that the imports sector is shooting up?” Customs Commissioner Angelito Alvarez said in a phone interview.

The previous administration reported collecting a surplus of P7.4 billion for the first six months.

But Manila International Container Port (MICP)—one of the country’s biggest—and the oil port of Limay failed to hit their respective targets for the period by P432 million and P1.1 billion, respectively.

The ports of Cagayan de Oro, Zamboanga and Clark Field also failed to meet their first-half targets.

Cagayan de Oro missed its goal of P1.82 billion by P272 million, while Zamboanga barely reached half of its P19 million goal as it collected only P7.9 million for the first semester. Clark collected P4 million less than its P395-million target for the period.

“Those ports that are not performing will be closely monitored and be given the assistance to shape up.
However, in the event that—despite all these have already been in place—[those] ports would still fail to meet their respective targets, then the collectors for the subject ports would have to be removed,” Alvarez said.

The monitoring will be conducted by a team comprised of ranking officers of BOC, who would watch over each port and their tax collections every day.

Alvarez said he would meet with the team next week.

The Customs chief said that each underperforming port would be placed under probation for a month.

“In the course of one month, after missing or likely missing their monthly targets, we would likewise investigate whether there are irregularities among the collectors and agents,” he said.

“[But] I have to give them the benefit of the doubt. Maybe, they [collectors] are just misguided. That’s why they are given one month to improve,” he said.

The ports that are performing well, on the other hand, would be recognized and given rewards, he added.

BOC’s full-year collection target has been revised to P280 billion, of which P160 billion would have to be raised in the final six months of 2010.

fr ralfy
Re: GDP "growth," from what I know, 70 pct of it is based on consumer spending, which means there's actually no growth. It's best to check balance of trade to see how we're doing. In relation to that,

"The crash of the leading indicators"

http://www.dailykos.com/story/2010/7/10/883286/-The-crash-of-the-leading-indicators

^^^^China nga hindi nabili ng technology. Rampant ang pag-pirate ng mga Chinese companies ng mga techonogy from rival companies.


Ex. Yung Chery QQ kamukhang kamukha nuong Chevrolet model. Gayang gaya.

Yung Geely na kotse ginaya yung kotse ng Daihatsu.

Tayo nagawa na ng FMC Anfra at even our jeepney.Konting improvement lang sa design at engineering aspect may panlaban na tayo.

Actually ang jeepney natin iconic puede namang magproduce ng aerodynatic and modern jeep at gawing parang British black taxi.

I totally agree with you bro...jeepney no doubt is an icon for Pinoys. If the government would spend time and money in developing our product (JEEPNEY) that is, Philippines could be in a better position in terms of transportation manufacturing. Philippines has thousands of bankable and extremely well educated graduates every year. The government should come up a workable strategy to utilize those skilled and talented human resources the country has. Same talents given the opportunity to shine..they could take the country in upper gear of economic competetiveness with the rest of the Asian nations.

The problem is....some politicians would rather take care the families' treasurer chest rather looking after the people.

That's probalby why some real estate investors (apartment block) in North American cities are prominent politicians and their cronies.:bash:

Pwede din, gawing ganito:

http://binrock.net/photos/p/526

http://estb.msn.com/i/F7/82474DBBCAD33D4D7A25B793AD6CA.jpg

Ingenious din ang design ng jeepney natin eh. for example, instead of individualized seats, we use only elongated ones. Menos gastos na sa space, menos gastos pa sa seating.

Oh absolutely:cheers:

^^^^^^very nice!:)

Calling the Moderators: Do we need this separate thread for import/export?

Philippine Exports Rose for an Eighth Month in June on Electronics Demand
By Karl Lester M. Yap and Cecilia Yap - Aug 10, 2010 9:27 AM GMT+0800

Philippine exports gained for an eighth month in June as demand for electronics rose, helping President Benigno Aquino’s efforts to boost economic growth.

Shipments abroad increased 33.4 percent from a year earlier to $4.55 billion after climbing 37.3 percent in May, the National Statistics Office said in Manila today. That compares with the median forecast for a 25 percent gain in a Bloomberg News survey of 11 economists.

Asia is leading the world’s recovery from last year’s slump as exports of Philippine-made Texas Instruments Inc. semiconductors and South Korea-produced Hyundai Motor Co. cars rebound. Aquino, who took office in June, plans to expand the $160 billion economy by 7 percent to 8 percent every year from 2011 to cut poverty.

“There is a noticeable trend of Asian exports veering away from Europe and the U.S. and focusing more on intra-regional trade,” Arthur Michael de Castro, an analyst at Bank of the Philippine Islands in Manila, said before the report. “There is still room for some growth as demand should still be strong.”

Exports account for about a third of the Philippine economy. South Korea’s exports rose 29.6 percent in July from a year earlier, and Malaysia’s overseas sales rose 17.2 percent in June.

To contact the reporters on this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net.
http://www.bloomberg.com/news/2010-08-10/philippine-exports-rose-for-an-eighth-month-in-june-on-electronics-demand.html

BoI plans additional incentives to car assemblers


by Julito G. Rada
Manila Standard
August 11, 2010

The Board of Investments plans to give additional incentives to local car assemblers to increase production and eventually encourage them to export, a Trade Department official said Tuesday.

“What we are studying right now is how to improve the export volume, what is needed to support that and what incentives we can give to local car assemblers. Right now, it is all for domestic consumption, except Ford,” Trade Undersecretary and BoI managing head Cristino Panlilio said.

Ford Philippines has been exporting to member-countries of the Association of Southeast Asian Nations since 2002. The company ships out the Focus and Escape models, along with Mazda 3. The exports account for roughly half of Ford’s local production.

Panlilio said the current tax holidays and the preferential duty of 1 percent enjoyed by local manufacturers and 20-percent to 30-percent tariffs imposed on importers appeared to be fit.

But he said granting additional perks to local car assemblers would prompted to increase production and make them competitive with neighboring countries in the region.

“There may possibly be another subsection in the IRR [implementing rules and guidelines] of EO 877-A that may contain the additional incentives. That is why it would be hard for us to meet the Aug. 30 deadline for the IRR to be completed,” he said. He added the enhanced version of the executive order might entail congressional approval.

Former Trade undersecretary Elmer Hernandez said local car assemblers should not rely too much on the domestic market and should be encouraged to export.

“That is why [the rules] for an export program should be drafted so that these local car assemblers will be motivated to look out of the country,” Hernandez has said.

He said reducing the perks on those that limit their production to the domestic market should also be considered.

I hope it's not too late:D baka pag gising nga mga nasa kongreso ay lumipat na sa Thailand lahat ng assembly/manufacturing ng Ford.

China's position in global economy...world's second biggest.

China overtakes Japan in 2Q as No. 2 economy
(philstar.com) Updated August 16, 2010 03:40 PM Comments (0) View comments

TOKYO (AP) – Japan lost its place as the world's No. 2 economy to China in the second quarter as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of just 0.4 percent, the government said Monday, far below the annualized 4.4 percent expansion in the first quarter and adding to evidence the global recovery is facing strong headwinds.

The figures underscore China's emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its global influence is expanding.

China has been a major force behind the world's emergence from deep recession, delivering much-needed juice to the US, Japan and Europe. Tokyo's latest numbers, however, suggest that Chinese demand alone may not be enough for Japan or other economic giants.

"Japan is the canary in the goldmine because it depends very much on demand in Asia and China, and this demand is cooling quite a bit," said Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo. "This is a warning sign for all major economies that just focusing on overseas demand won't be sufficient."

China has surpassed Japan in quarterly GDP figures before, but this time it's unlikely to relinquish the lead.

China's economy will almost certainly be bigger than Japan's at the end of 2010 because of the huge difference in each country's growth rates. China is growing at about 10 percent a year, while Japan's economy is forecast to grow between 2 to 3 percent this year. The gap between the size of the two economies at the end of last year was already narrow.

Japan's nominal GDP, which isn't adjusted for price and seasonal variations, was worth $1.286 trillion in the April-to-June quarter compared with $1.335 trillion for China. The figures are converted into dollars based on an average exchange rate for the quarter.

Japan has held the No. 2 spot after the US since 1968, when it overtook West Germany. From the ashes of World War II, the country rose to become a global manufacturing and financial powerhouse. But its so-called "economic miracle" turned into a massive real estate bubble in the 1980s before imploding in 1991.

What followed was a decade of stagnant growth and economic malaise from which the country never really recovered. Prime Minister Naoto Kan now faces a long list of daunting problems: a rapidly aging and shrinking population, persistently weak domestic demand, deflation, a strong yen and slowing growth in key export markets.

In contrast, China's growth has been spectacular, its voracious appetite fueling demand for resources, machinery and products from the developing world as well as rich economies like Japan and Australia. China is Japan's top trading partner.

China's rise has produced glaring contradictions. The wealth gap between an elite who profited most from three decades of reform and its poor majority is so extreme that China has dozens of billionaires while average income for the rest of its 1.3 billion people is among the world's lowest.

Japan's people still are among the world's richest, with a per capita income of $37,800 last year, compared with China's $3,600. So are Americans at $42,240, their economy still by far the biggest.

"We should be concerned about per capita GDP," said Kyohei Morita, chief economist at Barclays Capital in Tokyo. China overtaking Japan "is just symbolic," he said. "It's nothing more than that."

But the symbolism may be exactly the "wake-up call" Japanese leaders need, said Schulz of the Fujitsu Research Institute. "Japan is always strangely inward looking," he said. "And nobody is doing anything about it."

Japan's people appear resigned to the power shift. A national poll conducted earlier this year by the Asahi, one of Japan's biggest newspapers, showed a roughly equal split between those that believed Japan's fall to No. 3 posed a major problem and those who did not. More than half of the 2,347 respondents said Japan does not need to be a global superpower.

The country's annualized growth in the second quarter was also sharply below expectations of 2.3 percent in a Kyodo news agency survey of analysts. On a quarterly basis, Japan's GDP — or the total value of the nation's goods and services — grew 0.1 percent from the January-March period, the Cabinet Office said.

Consumer spending, which accounts for about 60 percent of GDP, was flat from the previous quarter, the figures showed. Capital spending by companies rose 0.5 percent, while public investment fell 3.4 percent.

The outlook for the third quarter is uncertain. Private consumption appears to be solid so far, helped in part by unusually hot weather, said Masamichi Adachi, senior economist at JP Morgan Securities Japan. But the slowing global economy is weakening exports and production.

A stronger yen, which hit a 15-year high against the dollar last week, also poses a major risk for the country's export-driven economy. Yen appreciation reduces the value of repatriated profits for companies like Toyota Motor Corp. and Sony Corp. and makes their products more expensive abroad.

The currency worries led Finance Minister Yoshihiko Noda to say last week that he is closely monitoring foreign exchange rates. Bank of Japan Gov. Masaaki Shirakawa released a similar statement to try to calm markets.
http://www.philstar.com/Article.aspx?articleId=603303&publicationSubCategoryId=200

^^uh hayan na,,,the sleeping dragon awakening--king of the east...

us dollar must be fallen to replace amero ...be ready for the rising of the last empire iron and clay empire (EU&ME) headed by the gog-magog

You going on the Revelation aspect?

time will tell again...

The sleeping dragon has finally risen!!!


China overtakes Japan as world's No. 2 economy


(The Philippine Star)
Updated August 17, 2010 12:00 AM
Comments (0) View comments

TOKYO (AP) – Japan lost its place as the world’s No. 2 economy to China in the second quarter as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of just 0.4 percent, the government said Monday, far below the annualized 4.4 percent expansion in the first quarter and adding to evidence the global recovery is facing strong headwinds.

The figures underscore China’s emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its global influence is expanding.

China has been a major force behind the world’s emergence from deep recession, delivering much-needed juice to the US, Japan and Europe. Tokyo’s latest numbers, however, suggest that Chinese demand alone may not be enough for Japan or other economic giants.

“Japan is the canary in the goldmine because it depends very much on demand in Asia and China, and this demand is cooling quite a bit,” said Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo. “This is a warning sign for all major economies that just focusing on overseas demand won’t be sufficient.”

China has surpassed Japan in quarterly GDP figures before, but this time it’s unlikely to relinquish the lead.

China’s economy will almost certainly be bigger than Japan’s at the end of 2010 because of the huge difference in each country’s growth rates. China is growing at about 10 percent a year, while Japan’s economy is forecast to grow between two to three percent this year. The gap between the size of the two economies at the end of last year was already narrow.

Japan’s nominal GDP, which isn’t adjusted for price and seasonal variations, was worth $1.286 trillion in the April-to-June quarter compared with $1.335 trillion for China. The figures are converted into dollars based on an average exchange rate for the quarter.

Japan has held the No. 2 spot after the US since 1968, when it overtook West Germany. From the ashes of World War II, the country rose to become a global manufacturing and financial powerhouse. But its so-called “economic miracle” turned into a massive real estate bubble in the 1980s before imploding in 1991.

What followed was a decade of stagnant growth and economic malaise from which the country never really recovered. Prime Minister Naoto Kan now faces a long list of daunting problems: a rapidly aging and shrinking population, persistently weak domestic demand, deflation, a strong yen and slowing growth in key export markets.

In contrast, China’s growth has been spectacular, its voracious appetite fueling demand for resources, machinery and products from the developing world as well as rich economies like Japan and Australia. China is Japan’s top trading partner.

China’s rise has produced glaring contradictions. The wealth gap between an elite who profited most from three decades of reform and its poor majority is so extreme that China has dozens of billionaires while average income for the rest of its 1.3 billion people is among the world’s lowest.

Japan’s people still are among the world’s richest, with a per capita income of $37,800 last year, compared with China’s $3,600. So are Americans at $42,240, their economy still by far the biggest.

“We should be concerned about per capita GDP,” said Kyohei Morita, chief economist at Barclays Capital in Tokyo. China overtaking Japan “is just symbolic,” he said. “It’s nothing more than that.”

But the symbolism may be exactly the “wake-up call” Japanese leaders need, said Schulz of the Fujitsu Research Institute. “Japan is always strangely inward looking,” he said. “And nobody is doing anything about it.”

Japan’s people appear resigned to the power shift. A national poll conducted earlier this year by the Asahi, one of Japan’s biggest newspapers, showed a roughly equal split between those that believed Japan’s fall to No. 3 posed a major problem and those who did not. More than half of the 2,347 respondents said Japan does not need to be a global superpower.

The country’s annualized growth in the second quarter was also sharply below expectations of 2.3 percent in a Kyodo news agency survey of analysts. On a quarterly basis, Japan’s GDP – or the total value of the nation’s goods and services - grew 0.1 percent from the January-March period, the Cabinet Office said.

Consumer spending, which accounts for about 60 percent of GDP, was flat from the previous quarter, the figures showed. Capital spending by companies rose 0.5 percent, while public investment fell 3.4 percent.

The outlook for the third quarter is uncertain. Private consumption appears to be solid so far, helped in part by unusually hot weather, said Masamichi Adachi, senior economist at JP Morgan Securities Japan. But the slowing global economy is weakening exports and production.

^^ What will Japan's 130 million do with 1 billion? Obviously it will succumb...

^^ What will Japan's 130 million do with 1 billion? Obviously it will succumb...

Absolutely...but what scares me most is China's military might, rather than its economic strenght.:ohno:

Absolutely...but what scares me most is China's military might, rather than its economic strenght.:ohno:

it will reach to 200-million man armies together w/ india...

^^ What will Japan's 130 million do with 1 billion? Obviously it will succumb...

mas matatalino namn ang utak ng 130m. :lol:

Nanaginip lang ng gising ang China kung iniisip nila na napakayaman na ng mga Tsino dahil lang nalagpasan nila ang Japan. Mas magiging matimbang parin ang perang tinitanggap nga bawat indibidwal and China's per capita income is just around 5000 Dollars lang. Compare it with Japan which is already a high income country.

Much more if they think they can surpass America's $45,000 individual income. Not even within 50 years. The national economy though, is fueled by 1.8 Billion consumers whom we can't say has the capability to spend.

The quality of their products would reflect their status as an advanced economy. So far, China's products are of low quality as they are more inclined with QUANTITY rather than QUALITY as reflected by many news of poisoning and health issues experienced by users from China and even the U.S.

correction,... China has 2 billion people po hehe =)

Absolutely...but what scares me most is China's military might, rather than its economic strength.:ohno:

I think both are equally scary.
They have a lot more man power, and already a lot of labor is going to China instead of RP.

^^ Let's see what they will do. Kaya nga if the US really decides to step-up to China, kakalabanin neto in many aspects e.g., population, military might, paramihan ng industriya.

correction,... China has 2 billion people po hehe =)

It's just the same story if only a handful of this 2 Billion people are capable of spending money.

Consul calls for higher-value Philippine exports to Russia
CEBU CITY – Honorary Consul of Russia to the Visayas Armi Lopez Garcia has called on local companies to export higher-value products to Russia, saying Russians like Philippine fashion accessories “especially those with pearls and other souvenir items made of our own native materials.”

“When we had our exhibits there, Russians showed much appreciation of our fashion accessories,” said Garcia during the media launching of the second Philippine-Russian Business Forum and Exhibition last Thursday.

He expressed confidence that the economic ties between the Philippines and Russia will further develop, noting that Russia is the country’s largest trading partner in Eastern Europe.

Russia is the country’s 23rd trading partner with a total trade value of $389.736 million.

The country’s export to Russia increased by 15.21 percent reaching $39.086 million last year from $33.93 million recorded a year ago.

However, the balance of trade is heavily in favor of Russia as the country’s total imports increased by 90.09 percent from $131.67 million to $250.3 million.

This trade imbalance needs to be addressed, according to the Filipino organizers of the forum which is a joint undertaking of the Philippine-Russian Business Assembly, Embassy of the Russian Federation and the Philippine Exhibits and Themeparks Corporation.

“This situation poses a challenge for us to encourage the export of higher-value Philippine products to Russia to balance the trade between the two countries,” Garcia said.

Garcia said electronics, information and communications technology services, construction materials, food and beverages, automotive parts, sports footwear and travel bags, gold and silver jewelry, and twine and cordage products are some of the export products that can be promoted in Russia.

“Russia is considered a largely untapped market for the Philippines,” she said.

Moreover, Garcia stressed the high potential of Cebuano export products such as fashion accessories, furniture and gift, toys and accessories, which are slowly gaining popularity among Russians through the recent trade fairs and exhibits there.

The second Philippine-Russian Business Forum and Exhibition is slated from Oct. 21 to 24 at the Cebu International Conventional Center.http://www.mb.com.ph/articles/272195/consul-calls-highervalue-philippine-exports-russia

Coconut oil exports seen hitting $1B
MANILA, Philippines—The country’s exports of coconut products will likely hit a record high this year as global demand and prices of coconut oil and products soar, according to the Philippine Coconut Administration (PCA).

As of June this year, the volume of coconut exports jumped 128 percent to 1.23 million metric tons from 539,887 metric tons recorded in the same period in 2009, PCA administrator Oscar Garin said in a recent interview.

The rise in export volume translated to $728 million in export receipts, more than double the $348.9 million recorded in the first half of last year, Garin said.

PCA deputy administrator Antonio Liqueta said the agency expects coconut exports to keep growing at a fast clip until the end of the year.

“Last year was a recession year. The exports that were withheld are now coming out,” Liqueta explained, “There is an increased demand for coconut oil and other products and it is pulling up the prices.”

According to PCA data, copra exports in the first six months of year hit 91.20 metric tons, while copra meal exports reached 416,455.72 metric tons. In the first semester of 2009, copra meal exports were just at 151,657.46 metric tons.

The volume of coconut oil exports is also approaching a record high, Liqueta said.

Coconut oil exports hit 712,612.36 metric tons in the first half, a 158 percent rise from the 275,158.79 metric tons recorded in the same period last year.

The value of coconut oil exports in the first semester reached $560 million, a 183-percent surge from the $197.7 million recorded in the same period last year.

Liqueta said the PCA expects coconut oil export receipts to hit over a billion dollars by the end of 2010.

Activated carbon and coco chemicals exports, meanwhile, rose 50.39 percent and 54 percent, respectively.

While exports of major coconut products grew significantly in the first half, the PCA said exports of desiccated coconut and coco shell charcoal declined by 10 percent and 2 percent, respectively.http://business.inquirer.net/money/topstories/view/20100815-287009/Coconut-oil-exports-seen-hitting-1B

correction,... China has 2 billion people po hehe =)

Dude, 1.3 billion.

Dude, 1.3 billion.

I agree. The CIA Factbook says China has 1,330,141,295 (July 2010 est.) while India is second at 1,173,108,018 (July 2010 est.).
@simple dude: What is your source?

BOI warns of delay in rules of new car devt program


Monday, 23 August 2010 00:00
By Ben Arnold O. De Vera Reporter
Manila Times

THE implementing guidelines of the new automotive program would be ready only next month, or well past the end-August deadline, as the Board of Investments (BOI) is awaiting inputs from a group of vehicle importers. Cristino Panlilio, BOI managing head, told reporters after meeting with the Alliance of Vehicle Importers and Distributors (AVID) on Friday that the group has been given two weeks to submit its position paper containing their recommendations for the implementing rules and regulations (IRR) of the Comprehensive Motor Vehicle Development Program (CMVDP) or Executive Order (EO) 877-A.

members may invest in auto assembly in the future.

AVID groups British United Automobiles Inc., CATS Motors Inc., Focus Ventures Inc., Hyundai Asia Resources Inc., PGA Cars Inc., The Covenant Car Company Inc., and United Asia Automotive Group Inc.

AVID earlier asked the government to repeal EO 877-A, alleging that they were not consulted about the new motor vehicle program, which they claimed would be discriminatory against certain imports.

The BOI had said that the CMVDP only covers automotive assemblers, so importers’ concerns on duties and taxes should be lodged before the Department of Finance.

As the BOI waits for AVID’s recommendations, Panlilio said the incentives-giving agency would be unable to finish the IRR on August 31.

He said public consultations on the IRR would be held early September.

“The implementing guidelines should be ready by September 30, assuming that we don’t have to go to Congress,” Panlilio said.

The BOI had said it would grant more generous incentives—especially to players that will export—which may require legislative approval.

Existing vehicle manufacturers in the country reiterated the need to approve the guidelines as soon as possible.

Benjamin Sevilla, Philippine Automotive Competitiveness Council Inc. (Pacci) president, said “time remains the essence” in finalizing the IRR.

Pacci groups assemblers Toyota Motor Philippines Corp., Mitsubishi Motors Philippines Corp., Honda Cars Philippines Inc., Isuzu Philippines Corp., Ford Group Philippines, and the Motor Vehicle Parts Manufacturers Association of the Philippines Inc.

“It is vital for the government to send a strong signal to auto makers that it remains committed to EO 877-A,” Sevilla said.

Sevilla said the CMVDP should be implemented in the soonest possible time so that the domestic auto industry could immediately tap benefits from automotive technology transfer, as well as jack up employment, investments, exports and local sourcing of vehicle parts.

Enrico Talag, head for government and industry affairs of Isuzu Philippines’ corporate business division, said their Japanese principals are now making “a lot of decisions,” and awaiting “what kind of support the government will offer” under the CMVDP.

“If the government can give us more incentives, we can convince our principal to keep operations here,” Talag told The Manila Times.

“We hope EO 877-A will be a catalyst to revitalize auto manufacturing in the Philippines,” he said.

Isuzu Philippines currently churns out in its Biñan, Laguna plant the Asian utility vehicle (AUV) Crosswind, D-Max pickups, F-series heavy trucks and N-Series light trucks.

Masahiko Ueki, Mitsubishi Philippines president, also last week told the Times that the company is waiting for the guidelines of EO 877-A.

“We expect the incentives [that would be provided under the IRR] to promote local manufacturing,” Ueki said, adding that they hope the guidelines will “protect [the industry] from illegal importation of used cars.”

Ueki said Mitsubishi Japan is choosing between the Philippines and Indonesia for its second export hub in Southeast Asia.

^^^^

kakatuwa naman yan. export tayo ng saging, mangga sa japan tapos import tayo ng kotse, truck mula sa kanila. :lol:

malakas kumain ng saging ang mga dilaw na unggoy:D at ang mga brown na unggoy mahilig sumakay sa kotse:D:lol:

^^ Sana Piliin nila ang Pilipinas. I guess we have to boycott Ford if its the case.

Ukay-ukay’ shipment worth P12M confiscated

by Joel E. Zurbano
Manila Standard
August 25, 2010

CUSTOMS agents seized a shipment of used clothing, commonly known as “ukay-ukay,” worth P12 million at the Manila International Container Port in North Harbor, Manila.

Chief Supt. Jose Yuchongco, officer-in-charge of the Customs Enforcement and Security Service, said the contraband, shipped in four container vans, arrived from Hong Kong and India last month.

The shipment was declared as personal accessories.

“The shipment was seized since commercial importation of textile articles commonly known as used clothings and rags is banned,” Yuchongco said.

The cargo was consigned to Acab Enterprises and Vanguard Logistics Services.

Customs Commissioner Angelito Alvarez ordered Yuchongco to probe who are behind the shipment including Customs personnel who might have conspired with them.

The bureau will turn over the shipment to the Department of Social Welfare and Development.

Meanwhile, the Port of Manila posted a surplus collection in July despite the low volume of imports.

The port collected P4.87 billion for July or a surplus of P55 million as against its target of P4.81 billion for the period.

The bureau’s Financial Service reported that Manila registered the highest collection surplus of P5.86 billion, or 22 percent above its target, for the first seven months of the year.

Ukay-ukay’ shipment worth P12M confiscated



Ukay-ukay is like a deadly virus to our economy. It will eventually paralyze
and kill our thriving garment manufacturing and retail industry.

Charities, government agencies or non-governental organizations who receive
these donations should distribute it as it is and should never be sold to
anyone even if proceeds will be used for non-profit or charitable causes.

You should not buy anything from the UKAY UKAY no matter how cheap it is or how much you like it.

:horse:

Ukay-ukay is like a deadly virus to our economy. It will eventually paralyze
and kill our thriving garment manufacturing and retail industry.

Charities, government agencies or non-governental organizations who receive
these donations should distribute it as it is and should never be sold to
anyone even if proceeds will be used for non-profit or charitable causes.

You should not buy anything from the UKAY UKAY no matter how cheap it is or how much you like it.

:horse:

Is it all illegal?

^^mis-declaring it is illegal. it is tantamount to smuggling and tax evasion.

I hope our lawmakers will pass a bill making the sale of these donated goods ILLEGAL!




:horse:
------------------------------
let us support Philippine brands and manufactured products/services!

Wow. PhP10-50 for clothing.

Ukay Ukay in Baguio City


Long before SM City Baguio was erected on Luneta Hill (where grand old Pines Hotel used to stand), office workers in Camp John Hay invited me one day to go to "SM!"

Knowing then that there was no such mall in the City of Pines, I went along and, to my surprise, they took me to a street behind the old Bayanihan Hotel where second hand clothes were for sale.
For that was what SM stood for in Baguio City in the early 1990s -- Segunda
Mano, a Spanish phrase meaning "second hand"), instead of the initials of a popular string of malls in the Philippines: SM, which was originally named Shoe Mart.

But not all the items for sale at our SM was used clothing: there were leather briefcases, and my companion was able to buy a 'Brand New With Tag' imported blouse from Hong Kong.

Then the locals started calling it the Wagwagan, which meant 'to shake' because they would shake the dust off used goods and then, finally, Ukay-ukay -- 'to dig,' because folks would dig into a pile of clothes for that hidden gem of a find!.

The ukay-ukay has grown from just clothing to bags, shoes and even curtains, blankets, comforters, office equipment, toys and sporting goods. Some shops now even sell brand new imitation goods of imported designer brands in the areas with ukay-ukay -- and just last year, there were several stores selling second hand Christmas trees and other decorations from the US!

Going to the Ukay-Ukay is considered 'slumming' for rich tourists looking for discarded Louis Vuitton bags from Hong Kong, Fendi jackets, Gucci scarves plus a host of othe designer brands, and a way of life for the frugal local residents.
Where & When to 'Ukay'
The cheapest and most exciting is really the one at Hilltop, behind the Baguio City Market. At 6:00 o'clock in the morning, at 12:00 noon, and finally at 6:00 o'clock in the late afternoon, hawkers will spread out the used clothing and bags by the road. These sell at about Php10.00 - Php50.00 each. A lot of office workers are able to assemble their wardrobes this way.

'Bayanihan' is a pretty old hotel building to the northwest of Burnham Park that has found a new lease on life as the site of the cheapest ukay-ukay stalls. Navigating the maze of stores on different levels isn't easy, but the prices here are much lower than those found on Session Road. Stalls here close at around 6:00 or 7:00 p.m.

"Skyworld' used to be one of Baguio's 'pre-earthquake' shopping centers with a prime location at the corner of Session Road and Calderon Street. The shops here sell the best items -- and the sellers know their value -- so if you are looking for premium designer brands, this is the place to go, because they are still cheaper than the 'vintage' offerings on Ebay. Like in Bayanihan, stalls close by sunset.

Harrison Road and the side streets between it and Session Road have a many small shopping areas selling ukay-ukay, and what's interesting about these shops is that they sell not only apparel but toys, sporting goods, office stuff and novelty items as well.
Why is the Ukay-ukay more popular in Baguio City than elsewhere?

To keep prices low, stores like these do not provide aircondition-ing but Baguio City's cool air makes shopping al fresco more pleasant than in other ukay-ukay stalls in the Philippines.

Also, the selections are way better since there's a larger market here.

The wawagans cater not only to seasonal Baguio visitors but to the frugal residents, and hordes of students (half the city's population, actually) year-round, as well.


'Bargain Basement' Baguio
What used to be the city's little secret is now out in the open. Years ago, the used goods stores used to be tucked away in back alleys away from a tourist's eyes.

As it got popular with Baguio visitors, suddenly the city was littered with shops selling these items right on Session Road, Baguio's prime shopping area!

In fact, what used to be an empty lot (where Skyworld building stood before the devastating 1990 earthquake brought it down) came alive with a low-cost 3-storey structure that now houses a hundred or so 'ukay-ukay' stalls.

The former Session Theater has a popular restaurant in front and wagwagan at the back.

The 'Ukay' is something short of a phenomenon that has allowed the owners of abandoned, old or low-visibility commercial spaces to actually be able to earn rental income from the Ukay-ukay.


Because one of the fun things about the Ukay-ukay is finding a bargain in the most unlikely of places, sometimes in the hidden, lower levels of old buildings.

http://www.gobaguio.com/ukay-ukay-in-baguio.html

Export council eyes 10 percent growth in Cebu thru 3-yr plan
August 29, 2010, 1:59am

CEBU CITY (PNA) — The Export Development Council (EDC) has consulted Cebuano exporters on the drafting of the three-year Philippines Export Development Plan (PEDP) aimed at achieving a 10 percent export growth year-on-year.

The EDC, in coordination with the Bureau of Export Trade Promotions (BETP), is now preparing the PEDP 2011-2013, which will chart the strategies to increase the export revenue of the country, employment generation, and other economic activities as embodied in the Export Development Act. Both agencies are under the Department of Trade and Industry (DTI).

BETP Director and EDC Executive Director Senen Pelada said the regional consultation last Wednesday was meant to gather feedback from exporters on the development of the three-year trade strategy roadmap for the export industry.

He said the planning will empower exporters as they can outline their opportunities, strategies and concerns.

The consultation on PEDP with the various exporters was held at the Cebu Grand Hotel Cebu was the council’s last stop of the regional consultation. The three-year trade strategy will be presented to Malacañang in October.

DTI special consultant Serafin Julaino said the export roadmap will also be one of the bases for the continued release of an export support fund from the government that will help finance efforts to promote Philippine products.

“But we will still contextualize this within the government’s fiscal policies,” he said, adding that the government is not just considering the revenues exporters will be generating but also the promotion of employment in the country.

Juliano said consultations with Cebu exporters will also help them revalidate forecasts of their respective industries.

“This will also allow us to determine whether the targets set are attainable,” Juliano said.

EDC targets more than 10 percent export growth year-on-year for the next three years, following the upbeat performance of the country’s merchandise exports. Exports in the first half of the year posted an increase of 137.7 percent to 3.71 billion dollars. This year’s export growth drivers are electronics and service sectors and some agricultural products, according to the National statistics Office (NSO).

Export council eyes 10 percent growth in Cebu thru 3-yr plan
August 29, 2010, 1:59am

CEBU CITY (PNA) — The Export Development Council (EDC) has consulted Cebuano exporters on the drafting of the three-year Philippines Export Development Plan (PEDP) aimed at achieving a 10 percent export growth year-on-year.

The EDC, in coordination with the Bureau of Export Trade Promotions (BETP), is now preparing the PEDP 2011-2013, which will chart the strategies to increase the export revenue of the country, employment generation, and other economic activities as embodied in the Export Development Act. Both agencies are under the Department of Trade and Industry (DTI).

BETP Director and EDC Executive Director Senen Pelada said the regional consultation last Wednesday was meant to gather feedback from exporters on the development of the three-year trade strategy roadmap for the export industry.

He said the planning will empower exporters as they can outline their opportunities, strategies and concerns.

The consultation on PEDP with the various exporters was held at the Cebu Grand Hotel Cebu was the council’s last stop of the regional consultation. The three-year trade strategy will be presented to Malacañang in October.

DTI special consultant Serafin Julaino said the export roadmap will also be one of the bases for the continued release of an export support fund from the government that will help finance efforts to promote Philippine products.

“But we will still contextualize this within the government’s fiscal policies,” he said, adding that the government is not just considering the revenues exporters will be generating but also the promotion of employment in the country.

Juliano said consultations with Cebu exporters will also help them revalidate forecasts of their respective industries.

“This will also allow us to determine whether the targets set are attainable,” Juliano said.

EDC targets more than 10 percent export growth year-on-year for the next three years, following the upbeat performance of the country’s merchandise exports. Exports in the first half of the year posted an increase of 137.7 percent to 3.71 billion dollars. This year’s export growth drivers are electronics and service sectors and some agricultural products, according to the National statistics Office (NSO).

Wow. PhP10-50 for clothing.

Ukay Ukay in Baguio City


Long before SM City Baguio was erected on Luneta Hill (where grand old Pines Hotel used to stand), office workers in Camp John Hay invited me one day to go to "SM!"

Knowing then that there was no such mall in the City of Pines, I went along and, to my surprise, they took me to a street behind the old Bayanihan Hotel where second hand clothes were for sale.
For that was what SM stood for in Baguio City in the early 1990s -- Segunda
Mano, a Spanish phrase meaning "second hand"), instead of the initials of a popular string of malls in the Philippines: SM, which was originally named Shoe Mart.

But not all the items for sale at our SM was used clothing: there were leather briefcases, and my companion was able to buy a 'Brand New With Tag' imported blouse from Hong Kong.

Then the locals started calling it the Wagwagan, which meant 'to shake' because they would shake the dust off used goods and then, finally, Ukay-ukay -- 'to dig,' because folks would dig into a pile of clothes for that hidden gem of a find!.

The ukay-ukay has grown from just clothing to bags, shoes and even curtains, blankets, comforters, office equipment, toys and sporting goods. Some shops now even sell brand new imitation goods of imported designer brands in the areas with ukay-ukay -- and just last year, there were several stores selling second hand Christmas trees and other decorations from the US!

Going to the Ukay-Ukay is considered 'slumming' for rich tourists looking for discarded Louis Vuitton bags from Hong Kong, Fendi jackets, Gucci scarves plus a host of othe designer brands, and a way of life for the frugal local residents.
Where & When to 'Ukay'
The cheapest and most exciting is really the one at Hilltop, behind the Baguio City Market. At 6:00 o'clock in the morning, at 12:00 noon, and finally at 6:00 o'clock in the late afternoon, hawkers will spread out the used clothing and bags by the road. These sell at about Php10.00 - Php50.00 each. A lot of office workers are able to assemble their wardrobes this way.

'Bayanihan' is a pretty old hotel building to the northwest of Burnham Park that has found a new lease on life as the site of the cheapest ukay-ukay stalls. Navigating the maze of stores on different levels isn't easy, but the prices here are much lower than those found on Session Road. Stalls here close at around 6:00 or 7:00 p.m.

"Skyworld' used to be one of Baguio's 'pre-earthquake' shopping centers with a prime location at the corner of Session Road and Calderon Street. The shops here sell the best items -- and the sellers know their value -- so if you are looking for premium designer brands, this is the place to go, because they are still cheaper than the 'vintage' offerings on Ebay. Like in Bayanihan, stalls close by sunset.

Harrison Road and the side streets between it and Session Road have a many small shopping areas selling ukay-ukay, and what's interesting about these shops is that they sell not only apparel but toys, sporting goods, office stuff and novelty items as well.
Why is the Ukay-ukay more popular in Baguio City than elsewhere?

To keep prices low, stores like these do not provide aircondition-ing but Baguio City's cool air makes shopping al fresco more pleasant than in other ukay-ukay stalls in the Philippines.

Also, the selections are way better since there's a larger market here.

The wawagans cater not only to seasonal Baguio visitors but to the frugal residents, and hordes of students (half the city's population, actually) year-round, as well.


'Bargain Basement' Baguio
What used to be the city's little secret is now out in the open. Years ago, the used goods stores used to be tucked away in back alleys away from a tourist's eyes.

As it got popular with Baguio visitors, suddenly the city was littered with shops selling these items right on Session Road, Baguio's prime shopping area!

In fact, what used to be an empty lot (where Skyworld building stood before the devastating 1990 earthquake brought it down) came alive with a low-cost 3-storey structure that now houses a hundred or so 'ukay-ukay' stalls.

The former Session Theater has a popular restaurant in front and wagwagan at the back.

The 'Ukay' is something short of a phenomenon that has allowed the owners of abandoned, old or low-visibility commercial spaces to actually be able to earn rental income from the Ukay-ukay.


Because one of the fun things about the Ukay-ukay is finding a bargain in the most unlikely of places, sometimes in the hidden, lower levels of old buildings.

http://www.gobaguio.com/ukay-ukay-in-baguio.html

May this industry go away permanently.

Partly to blame for our very sick textile and garment industry.

Emerging markets present export opportunities

(The Philippine Star)
Updated August 29, 2010 12:00 AM Comments (0) View comments

MANILA, Philippines
- While export prospects in many developed countries tend to sway from bleak to bleaker, those in emerging country markets are shining brighter than ever.

This is particularly true in four of the world’s largest emerging markets – Brazil, Russia, India and China - as well as the ASEAN markets, especially Indonesia and Vietnam.

Based on the preliminary research of Philexport News and Features using International Trade Center data, world imports expanded by 17 percent while imports of Brazil, Russia, India and China grew by 73 percent, 63 percent, 17 percent and 52 percent, respectively during period 2005-2009.

Meanwhile, ASEAN countries such as Vietnam (91 percent) and Indonesia (68 percent) also registered stupendous growth rates during the said period.

Much of the expansion in imports of these emerging market economies can be traced to products of export interest to the Philippines such as furniture, pearls, edible fruits, apparels and fish and crustaceans.

Articles of apparel and knitted fabric enjoy gargantuan demand in these markets. Brazil’s, Indonesia’s and Russia’s imports of articles of apparel more than tripled while those of Vietnam increased eleven-fold.

Demand of these emerging markets for knitted fabric was even higher. Imports of knitted fabric by Brazil and Indonesia registered an eight-fold and a ten-fold expansion, respectively.

In 2009, Brazil’s and Indonesia’s imports of crocheted fabric were valued at $338 million and $628 million, respectively.

Imported edible fruits are also in great demand in these markets. Vietnam’s imports of said product nearly tripled while it is expanding substantially in China, Brazil, Russia and Indonesia.

Russia and Indonesia are increasingly becoming important markets for pearls and precious stones with their imports of the same more than quadrupled. Demand prospects for imported pearls in China and Brazil appear to be also sanguine, with their imports growing by over 50 percent.

Adding to the array of products that are hugely demanded in emerging markets are furniture, fish and crustaceans. Furniture imports of China, Brazil, Russia and Indonesia rose by over 100 percent, while those of Vietnam more than tripled.

Meanwhile, Indonesia’s imports of fish and crustaceans quadrupled while those of Vietnam and Brazil grew by over 100 percent. — Philexport News and Features

DTI eyes foreign consultants to help local fashion designers

By Ma. Elisa P. Osorio
(The Philippine Star)
Updated August 29, 2010 12:00 AM Comments (0) View comments

MANILA, Philippines - The Department of Trade and Industry (DTI) is looking at helping local fashion designers compete in the international fashion scene by bringing in foreign consultants.

This, as independent British fashion consultant Maureen Tomaney facilitated the recently-concluded Fashion Definition Workshop. Tomaney is a research fellow in ethical issues and fair trade at Central Saint Martins in London, where she is involved in the creative side of the fashion industry as well as the advancement of sustainability in fashion and textiles.

“Fashion is not only about aesthetics, but most certainly also embracing the content. The designer’s role [becomes] more complex, being part of the effort of greening the fashion world,” said Tomaney, discussing an emerging sensibility for environmentally-sustainable fashion pieces before an audience of trailblazing fashion talents.

“Slow fashion will develop from being a diffuse buzzword to signifying quality in production and product; [for example], in working to turn artisan crafts into fashion – and into profit for the locals – and to producing long lasting clothing,” she added.

The workshop was organized in partnership with the British Council of the Philippines and the Garments and Textile Industry Development Office (GTIDO), and was part of a three-month Merchandise Design Consultancy Program (MDCP) geared towards the further improvement of existing fashion exports to meet current global market demands, particularly pieces crafted from indigenous fibers and materials.

Developing a Philippine brand that is globally competitive was key as Tomaney discussed local, regional and international fashion markets; forecasting trends in color, product and fabric; translating local skills into a sustainable market; and export facilitation and international value chain.

The fashion prototypes developed will be featured at the upcoming FASHIONation zone of the CITEM-led 52nd Manila F.A.M.E. International on Oct. 18-21. To be staged at three venues, namely: the World Trade Center, the Philippine Trade Training Center (PTTC) and the Philippine International Convention Center (PICC), Manila F.A.M.E. is the country’s premier trade event for design-driven pieces.

In 2005, total export earnings from local fiber manufacturers reached $90.51 million, signifying rising demand for indigenous Philippine fibers like abaca (Manila hemp), piña (pineapple), and banana for their various uses and applications.

wp

Dude, 1.3 billion.

Yep, and India has already over 1 billion, and the US has 300 million.

.

Quantity vs quality ...

90% of Isuzu vehicles
sold are Philippine-made

Malaya Business insights
August 31, 2010

Isuzu Philippines Corp. said it is committed to sustain a high level of assembly operations in the Philippines even as tariffs continue to fall.

IPC President Ryoji Yamazaki said 90 percent of the vehicles that the company sells in the country are locally assembled "made by Filipinos for Filipinos."

Yamazaki said IPC also sources parts and components that are locally available, thereby contributing to the Philippine economy.

"We intend to continue this in our effort to help uplift the domestic manufacturing industry," Yamazaki said.

Isuzu in the Philippines has been producing and selling locally assembled vehicles, such as the Crosswind AUV, the D-MAX pickup and our light- and medium-duty trucks.

One of the vehicles that is proudly Philippine made from Isuzu which is yet to hit the streets is the Microbus, is a 16-seater all-purpose vehicle that is bigger than a regular van but smaller than a coaster.

It will be geared for mass transport such as the shuttle services now plying the roads. It can also be used as delivery vehicles.

The Microbus seats can be rearranged and can be custom-built depending on the requirements of the customers.

Using the NHR engine and power train from Japan, the Microbus is imported completely knocked-down from Indonesia and built locally by Centro,

IPC eyes to sell 40 to 50 units a month of the Microbus.

Utilizing the NHR chassis, this Microbus is designed to carry more passengers or larger cargoes compared to the standard vans. The seats can be rearranged depending on the customer’s requirement. It has a dual-aircon for that much needed comfort for all passengers and it can be installed with any additional accessories based on current market demand.

The overall length is 5,025 mm; overall height is 2,250 mm; and, its overall width is 1,700 mm.

The commercial launch of the Microbus is yet to be set with a cost of P1.3 million per unit.

Most of the components that went into the production of two prototype units were imported. The body is sourced from a local maker, Centro Manufacturing Corp. while the chassis is produced by IPC.

^^ I hope ituloy-tuloy na nila yan. Hindi lang heavy duty ones kundi pati na rin bus.

(Not to be offensive or anything but since some buses were the cause of road mishaps nowadays, perhaps making buses that will be conditioned to our roads will be good not only for us but also to other countries.)

^^ I hope ituloy-tuloy na nila yan. Hindi lang heavy duty ones kundi pati na rin bus.

(Not to be offensive or anything but since some buses were the cause of road mishaps nowadays, perhaps making buses that will be conditioned to our roads will be good not only for us but also to other countries.)

Other bus companies resort to buying old imported buses (mostly Japanese and Korean junks smuggled into Subic, Cebu, Manila or Cagayan).

We have respectable local brand new bus assemblers in Centro, Almazora and StaRosa motors to name a few.

They should buy from these companies instead of again importing and smuggling imported ukay ukay buses that are very dangerous.

RP to pursue FTAs with 6 countries

By Ma. Elisa P. Osorio
(The Philippine Star)
Updated September 02, 2010 12:00 AM Comments (1) View comments

MANILA, Philippines - The government is looking at entering into free trade agreements (FTA) with six countries led by the United States to boost foreign trade.

In a press conference, Trade Undersecretary Adrian S. Cristobal Jr. said that they are now mulling the possibility of discussing FTAs with the US, Taiwan, Vietnam, Europe, India and China.

Although the country has an FTA with the ASEAN and China, Cristobal said it is still beneficial the Philippines if there is a separate agreement with Taiwan.

“Within the year we would like to open a formal discussions with Taiwan,” he said.

Former Trade Secretary Jesli A. Lapus has already said that a bilateral agreement with Taiwan is not necessary because the Philippines and Taiwan already have the Joint Economic Conference. Lapus said that with this in place, a free trade agreement (FTA) with Taiwan is no longer needed because the JEC will already ensure good trade and investment relations.

However, Ambassador Donald Lee, Representative of the Taiwan Economic Cooperation Office (TECO), already warned the Philippines that the signing of the Economic Cooperative Framework between China and Taiwan in July would result in the transfer of some Taiwanese factories in China because it is cheaper to produce in China.

Lee cleared that the FTA with the Philippines has nothing to do with the one China policy. He stressed the urgency of forming an FTA with Taiwan because he said firms would choose to locate in China because of the big domestic market. China has a population of 1.2 billion while the Philippines only has 92 million. The access to raw materials is also easier in China rather than the Philippines.

5 BOC men face raps over smuggled rice

By Evelyn Macairan
(The Philippine Star)
Updated September 03, 2010 12:00 AM Comments (18) View comments

MANILA, Philippines - The Bureau of Customs (BOC) has filed smuggling charges against five of the agency’s employees who were implicated in the smuggling of rice into the country that deprived the government of P183 million in revenue.

Customs Commissioner Angelito Alvarez also relieved yesterday and placed on preventive suspension five bureau employees suspected of conniving with an importer and a Customs broker in the smuggling of 312,400 sacks of rice into the country.

Alvarez reportedly imposed sanctions against principal Customs examiners Vicitacion Difontorum and Theresa Agabao, Customs examiner Margarita Santiago, and acting document processors Taha Cali and Glen Ollero.

The suspects reportedly aided Lamberto Espiritu, owner of Point Given Marketing located at Unit 1719 Cityland Condominium, 720 Pablo Ocampo Jr. Avenue (former Vito Cruz), Malate, Manila City; and Customs broker Allan Jay de Vera Gahon of 2565 Interior 1, Jose Abad Santos St. in Tondo, Manila in the smuggling of 312,400 sacks of rice that were loaded inside 781 container vans.

Each container van reportedly contained 400 sacks of rice.

The BOC’s Run After the Smugglers (RATS) group also filed at the Department of Justice (DOJ) charges for violation of the provisions of the Tariffs and Customs Code of the Philippines (TCCP) and the Revised Penal Code (RPC) against the five bureau personnel, Espiritu and Gahon.

Alvarez said the filing of the charges against the Customs employees is intended to send a strong warning to employees that the criminal liability of officials accused of conniving with smugglers is equivalent to the criminal liability of brokers and consignees.

Customs Deputy Commissioner Gregorio Chaves, concurrent executive director of the BOC’s RATS program, added that “despite all glaring violations of the TCCP and the absence of the required permit from the appropriate government agencies such as the National Food Authority (NFA), the responsible personnel of the Port of Manila allowed the release of the subject 781 containers in favor of Point Given Marketing, making them criminally liable, particularly the customs examiner and appraisers.”

The Revenue Integrity Protection Service (RIPS) of the Department of Finance (DOF) will conduct lifestyle checks on the five bureau employees.

The white rice shipments were allegedly misdeclared as mung beans, which under Customs laws were exempted from the payment duties and taxes, while rice importations should have been slapped with 50 percent duties and 12 percent value added tax (VAT).

With the reported deception, the government was deprived of collecting P183 million in duties and taxes.

The shipment that came from Vietnam arrived at the Port of Manila from January to May of this year.

Meanwhile, Finance Secretary Cesar Purisima encouraged the public to cooperate with the efforts of the government to curb smuggling and tax evasion in the country.

He said that the DOF website www.perangbayan.com is a feedback mechanism where the public can report the performance of civil servants. The website has so far received more than 1,000 tips. The information is given to the concerned agency.

The BOC, by November, intends to implement a new segregation scheme for imported cargo.

The shipments would either be classified as super green, green or red. This is part of the agency’s efforts to counter smuggling activities in the country.

Cargo that go through the super green lanes are shipments “that would be considered like domestic shipment because they have no corresponding tariffs such as semiconductors and beans,” said Alvarez.

Shipments that would fall under the green lane are those with reputable importers, maybe those that belong to the top 200 companies. The red lane items would be those that require scrutiny such as general merchandise.

He estimated that it would only take 24 hours for the imported products to be released under the super green lane; one to two days under the green lane and two days to one week under the red lane.

The innovation on the segregation of cargoes is patterned after the practice in Indonesia.

China to boost imports to help world recovery

(The Philippine Star)
Updated September 07, 2010 12:00 AM Comments (0) View comments

BEIJING — A Chinese official defended the country’s trade record Monday as a top economic adviser to President Barack Obama visited Beijing amid renewed pressure by American lawmakers over Chinese currency controls.

China’s deputy trade envoy, Chong Quan, rejected complaints that Beijing intentionally boosts its trade surplus by promoting exports while holding down imports. Speaking at a trade forum, Chong repeated promises to boost imports of resources and high-tech equipment and to ease costs for importers but announced no new initiatives.

“This criticism is unfounded,” Chong said. “China, in its own actions, makes its due contribution to the world’s economic development.”

Chong spoke as US National Economic Council Director Larry Summers was in Beijing to meet China’s top trade official, Vice Premier Wang Qishan. No agenda was announced, but their talks were likely to include US complaints that a weak yuan gives Chinese exporters an unfair price advantage.

China’s trade surplus widened in July to an 18-month high of $28.7 billion as imports weakened. That helped to fuel complaints by some American lawmakers who want Beijing to allow the yuan to rise or face possible trade sanctions.

American lawmakers set aside criticism of China’s trade policy while the two governments worked together to end the global crisis. But pressure has resumed as the crisis fades and American leaders face pressure to create jobs.

In June, Beijing ended an 18-month-old link between the yuan and the dollar and said it would allow a more flexible exchange rate, but the Chinese currency has risen by only 0.6 percent since then. The US Commerce Department in August declined to launch an investigation of the currency complaints despite requests by some lawmakers.

American legislators have scheduled two congressional hearings this month on China’s currency and possible retaliatory measures.

Free ports to adopt e-cargo transfer system

Written by Henry Empeño / Correspondent
Thursday, 09 September 2010 12:10

SUBIC BAY FREE PORT—The three adjoining free ports of Subic, Clark and Bataan will start utilizing high technology this month to ensure the fast, safe and secure transfer of cargo to their registered business locators as well as to thwart smuggling and diversion of imported goods.

According to the Subic-Clark Alliance for Development (SCAD), officials from the three free ports of Central Luzon recently met with SCAD and Bureau of Customs (BOC) officials “to tie loose ends” before the Sept. 16 implementation of the Enhanced Automated Cargo Transfer System (e-Acts), which is touted to improve the country’s import shipments system.

The free ports summit was attended by officials of the SCAD and the BOC, and representatives of the Subic Bay Metropolitan Authority (SBMA), Clark Development Corp. (CDC) and the Authority of the Freeport Area of Bataan (Afab).

“All concerned agencies vowed to exert greater efforts in responding to the call of President Benigno S. Aquino for a better business environment and a more favorable investment climate in the Philippines that will lead to a better way of life for Filipinos,” the SCAD said in a statement.

The e-Acts was designed to provide for a more efficient movement of imports from the Ninoy Aquino International Airport, the Port of Manila and the Manila International Container Port Terminal to the various export producers located in Subic, Clark and Bataan free ports.

The new system reportedly stands out compared to previous systems because it utilizes modern technology to provide a faster, more economical and simpler process of documenting and processing of clearances, as well as the transfer and admission of foreign merchandise from ports of discharge.

And because e-Acts substitutes electronic or Internet protocols for face-to-face transactions, it is expected to help stamp out corruption in import transactions and to cut overhead costs among free-port locators by allowing the immediate delivery and use of transit goods.

With its built-in antismuggling or antidiversion feature, e-Acts will serve as a showcase of the BOC’s “intention and commitment to put a stop to the abuse of the importation privilege of some unscrupulous free-port zone export producers,” said Customs Commissioner Angelito Alvarez.

Speaking for the free ports, Afab chairman and administrator Deogracias Custodio said the implementation of the e-Acts “will be a reflection of the constant efforts of the Philippine free ports to improve the level of services that they offer to their locators in order to become the free ports of choice in the world.”

SCAD chairman Nestor Mangio expressed optimism that the new system would create a better business environment in Clark and Subic that would, in turn, result in more investments and more jobs for local residents.

“Needed revenues to fuel the local economy will increase. Entrepreneurship potentials for local suppliers will be developed. Even local tourism will be favorably affected,” Mangio added.

The implementation of the e-Acts will be the latest in a series of cooperation programs between the BOC and the free ports in Central Luzon to curb smuggling and plug revenue leaks from goods imported into the free ports and later sold outside the special economic zones.

On July 15 the SBMA and the BOC began using the electronic Gatepass Management System (GMS) for shipments brought into the Subic Bay Free Port to ensure that only “legal goods” would exit the gates here.

Like the e-Acts system, the GMS was designed to make it even harder for smugglers to use the port of Subic, as well as to reduce the time and cost of doing business in this free port.

source (http://www.businessmirror.com.ph/home/regions/1097-free-ports-to-adopt-e-cargo-transfer-system)

The Negrenses’ Spirit
By MELITO SALAZAR JR.
September 12, 2010, 4:54pm

MANILA, Philippines – A former First Lady at the height of collapse of the sugar industry and with pictures of a starving child similar to one from Biafra, asked, “Mayabang pa ba sila sa Negros?” (Are they still boastful in Negros?) Others like her who envied the brash confidence of the Negrenses, their easygoing ways, their love for the good life, and their penchant to show off the best of their culture and society feigned sympathy but in reality gloated over their misfortunes. Some even believed that the Negrenses would never rise. They were all proven wrong.

The Negros Trade Fair now on its 25th year is not just a showcase of the best of Negrenses’ products – home, fashion, gifts, and food; it is a testament to the Negrenses’ spirit of perseverance over adversity, of innovation in times of change, and of helping others even when one is also in need.

When I go to the fair, this year held in Rockwell on Sept. 15-19, I do not go just to meet old friends from Negros and Manila, to eat the delicious lumpia or authentic KBL (kadios, baboy, and langka) or get fresh supplies of utility bags, picture frames, and canned pickles but to imbibe that Negrense “can do” spirit and reinvigorate my pride in being a Negrense.

I remember the years when Amy (now in New York with our new granddaughter Tamlin) and I religiously would visit the Negros Trade Fair, whether in Shangrila-La Mall, SM Megamall in Mandaluyong, Greenbelt, Gateway Mall, and now in Rockwell since 2006. We still have a Star of Hope, dozens of which we gave out to friends and relatives abroad; the ceramic belen with the distinctly bright colors; the laminated picture frames, hundreds of which we gifted business associates and fellow Rotarians, and memories of the delicious, delectable mango tarts, guapple pie, lumpia, piayas, pinasugbu, and Manapla *****.

This year I bought from Casa Carmela — Papa Daniel’s Pitaw, Kadios & Batwan salad dressing, Pinoy Pate Bacolod Chorizo, Queso de Bola Piayitos and colorful banadas; from Tflavors — Tambo and Gulay Pinoy atchara and my favorite, pickled batuan; from Elise’s — 4 rolls of garlic bread; from El Ideal — the iconic lumpia; and garlic flavored cashew nuts from the Vallehermoso Helping Hands Foundation, Inc., dedicated to transforming Vallehermoso into a “progressive municipality with fully developed potentials in the hands of the educated, cultured, nationalistic, and capable professionals, artists, artisans, and a technically skilled populace."

There was still more to buy — the array of Organic Personal Care products of Millette Jalandoni, whose daughter Francine told me they started with organic fertilizer, then-high value vegetables, and now bath and massage oils and FreshStar natural mouthwash. Nature’s Haven had Yacon wine among other wines, teas, syrups, and liniments. Khrystian Reyes’ Reycon’s elegant piña barong and gown materials which they also supply to Exclusively His; Salvacion Ledesma’s PAPEL Handicrafts with beautiful bags made of paper from telephone directories and magazines by farm workers in Silay; mascobado from Alter Trade and Roxas Holdings, Inc. (Central Azucarera de La Carlota and Hawaiian Philippine Company); fantastic handicrafts and furniture of Tumandok Crafts industries with in-house designer Carlos Lanuza; Silay Export Inc.’s resin plates, lamps, panels with leaves, coco coir- imbedded designs; and Jojo Vito, a 20th Bulawan Awardee, with top of the world home furnishing. The surprise was the Bogsbrew line of beers made by the Bacolod-based Bob’s Fruit Farms of Felix Hagad.

Let’s raise a bottle of Bogsbrew to the 25th Negros Trade Fair and the inspiring Negrenses’ spirit!

Business Bits. My grandmother once told me that there are things left better unsaid. I offer her advice to our present crop of government officials.

source (http://www.mb.com.ph/articles/276767/the-negrenses-spirit)

I think most asian countries benefit from outsourcing. In the U.S. for example most jobs are getting outsourced to countries like the Philippines and India. Outsourcing spells job loss in the U.S. http://www.newsbeats.net/showthread.php?5109-So-when-will-outsourcing-end the Philippines should grow from this.

More x-rays eyed in Manila ports

Written by VG Cabuag / Reporter
Wednesday, 15 September 2010 12:36

THE Bureau of Customs (BOC) plans to add more x-rays to scan more containers of goods at the two major ports in Manila to deter smuggling.

Customs Commissioner Angelito Alvarez said on Wednesday he has communicated his plan to increase the number of x-rays in the ports to the operators of Manila South Harbor and Manila International Container Terminal (MICT), which handles more than half of the country’s volume of imports.

According to the plan, the BOC will increase the number of x-ray at the Port of Manila or the Manila South Harbor from three to five and also at the MICT from the current two to five.

This means that a third of all the nonintrusive container x-rays of the BOC will be placed at the country’s capital, instead of placing them in other ports where they are not utilized as a result of low volume of goods that need checking, Alvarez said.

“They were receptive to the idea,” Alvarez said, referring to the heads of Asian Terminals Inc., operator of Manila South Harbor, and International Container Terminal Services Inc, which manages MICT.

Alvarez said the availability of space for the x-rays is the primary concern of the port operators. “But they promised to do something about it,” he said.

X-ray machines where not fully utilized at the Batangas port, Alvarez said, because the port still has to work double time to entice locators to use the facility and for the ships to call at the port.

Alvarez said he would look for other ports that need the x-rays more, so the machines will not be put to waste.

According to the risk-management assessment of the BOC, which implements the tagging systems of all the shipments, all those tagged as super-green lane will not undergo documentary or physical examination, while those classified under the yellow lane will have to undergo random sampling. Those assessed under red lane will all have to undergo physical and documentary examination.

As a trade-facilitation rule, the government should not hamper the release of cargo from the port.

At the moment, the BOC scans 80 percent of the international containers that pass through the ports, way above the best international practice of transshipment ports such as Hong Kong and Singapore at 8 percent to 10 percent random scanning rate.

Alvarez said the Philippine rate was even higher compared with Indonesia’s 40 percent.

The BOC charges $5 for every 20-footer container and $10 for the 40-footer containers.

Since 2007, port users have been asking for the reduction of the scanning rate, because the longer the cargo stays at the port, the higher the cost of the shippers.

http://www.businessmirror.com.ph/home/top-news/1337-more-x-rays-eyed-in-manila-ports

I think most asian countries benefit from outsourcing. In the U.S. for example most jobs are getting outsourced to countries like the Philippines and India. Outsourcing spells job loss in the U.S. http://www.newsbeats.net/showthread.php?5109-So-when-will-outsourcing-end the Philippines should grow from this.

US is still losing jobs and there's no end in sight.....

as of this month;
US unemployment = 9.7%
US underemployment = 18.4%

Philippines unemployment = 6.9%
Philippines underemployment = 17.9%

looks like we are better off than US with these figures. hope our new administration can sustain the momentum.

Export Growth Target Revised to Exceed $50.4 B, Marking Full Recovery in 2010

By EDU LOPEZ
September 26, 2010, 1:34pm
Manila Times

MANILA, Philippines – The Philippine Exporters Confederation (Philexport) has revised its export target growth this year to exceed $50.4 billion, marking a full recovery of the sector in only one year.

The new fighting target was disclosed by Philexport president Sergio Ortiz-Luis, Jr. during a recent meeting with the Export Development Council (EDC).

The new target was announced a week after the National Statistics Office (NSO) made public the hefty growth of exports in the month of July that even outperformed the growth in the previous month.

It was the seventh straight month of high double-digit recovery for the country's export industry. Coming out of 15-month battering since the trade tsunami spawned by recession in the most developed economies hit our shores in the last quarter of 2008.

EDC had earlier forecasted a 20 percent over-all growth in Philippine exports which result would have equalled the $49 billion in export sales in 2008. The earlier projection foresaw a two-year full recovery of the export sector.

Rapid growth in sales for the first seven months of this year prompted players in the industry to review their projections and set higher targets of this year.

The expected new investments and high growth of the mining industry, precious and industrial metal exports is expected to help push exports to the new target.

Dollar revenues from the export of mineral and metallic products produced by the mines grew by 24 percent in the first half of this year and estimated by the Chamber of Mines to have contributed P156 billion to the national economy.

Boat captain, 3 others nabbed for smuggling P5 million crude oil

By Non Alquitran (The Philippine Star) Updated September 28, 2010 12:00 AM Comments (0) View comments

MANILA, Philippines - A boat captain and three others were reportedly caught smuggling at least 21,000 liters of crude oil with an estimated value of P5 million at a port in Manila over the weekend.

National Capital Region Police Office (NCRPO) chief Director Leocadio Santiago said the suspects have been smuggling crude oil into the country for several years but were “untouched” because of the protection of an influential person in the past administration.

Their activities deprived the government of millions of pesos in duties and taxes, he said.

“My men have been receiving monetary offers in exchange for the release of the smuggled crude oil but we politely turned them down,” Santiago said. “Instead, we filed charges against the suspects to warn others involved in the illegal smuggling that we mean business.”

He identified those arrested as boat captain Rene Isaga, 62; boat quartermaster Ardo Mallorca, 56; driver Michael Gutierrez, 36; and Joseph Santos, 43, a truck helper.

Superintendent Remus Medina, head of the NCRPO’s regional police intelligence and operations unit (RPIOU), and his men proceeded to Pier 4 of the North Harbor in Delpan, Tondo and caught the suspects while siphoning the crude oil from a barge into a waiting gasoline truck (UDC-549).

The suspects could not present papers to cover the transport and unloading of the crude oil, said Medina.

The RPIOU chief said Gutierrez was about to deliver the said crude oil to a place somewhere in Luzon where the cargo would be refined as diesel fuel.

The four men were charged with illegal trading of petroleum products and violating the oil deregulation law before the Manila prosecutor’s office. They are being held in the RPIOU detention center at Camp Bagong Diwa in Taguig City.

New niches for export diversification cited

THE PHILIPPINES should diversify its export portfolio by developing its potential in inorganic chemicals, copper, copra oil and food, as global demand for the country’s niche products -- electronics, garments and furniture -- is weakening, the International Trade Centre (ITC) said in a study.

The Geneva-based agency identified such priority products after tracking which Philippine exports have enjoyed growing demand and market share since 2004.

ITC is a joint agency of the World Trade Organization and the United Nations formed to help developing economies improve their exports. Its services are focused on capacity building in business and trade policy, export strategy, trade support institutions, trade intelligence and exporter competitiveness, its Web site said.

Focus

"Information technology products, apparel and wood carpentry are the main sectors in which the Philippines is more established, [but] where, in the last years, demand has been weak...and producers have lost export share," the ITC said in an undated study released in a seminar it co-organized late last month.

Philippine electronics, which account for nearly two-thirds of the country’s export sales, have cornered a declining share of the world market, data from the ITC Web site show. Specifically, the Philippines’ share in global electronic sales declined to 1.06% in 2008 from 1.5% in 2004.

"China is the Philippines’ main competitor for this product," the ITC report stated.

Locally made non-crochet garments and furniture have likewise seen their market share contract since 2004, the data showed.

Philippine garment exports bagged just 0.62% of global sales in 2008, nearly halved from its 1.03% share in 2004.

The market share of furniture shipments had likewise been halved to just 0.15% in 2008.

Promise

To cope, the country should grow other exports which have enjoyed rising demand and competitiveness, the ITC said.

Inorganic chemicals, for instance, enjoyed a market share of 0.25% in 2008 from just 0.04% four years ago, according to ITC data.

And there is room to grow as this commodity accounted for less than 1% of the Philippines 2008 export sales, ITC data show further.

"Chemicals are one of the export sectors in which the Philippines has recently gained competitiveness by increasing its world market share by 30% annually," it said, citing in particular those used in electronics and automotive parts manufacturing.

"[And] developing production of chemicals to serve as input for the two major Philippine export sectors makes economic sense," the ITC added.

The agency prescribed export promotion in the form of online business matching.

Sought for comment, a chemical industry group confirmed that the Philippines is currently expanding its market share.

"While, previously, the target markets were very narrow like Japan, Netherlands, USA, today our exporters reach a wider range of countries in Europe, Asia, including Latin America," Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK) President Robert F. Batungbacal said via e-mail.

"I think our exports will continue to grow and penetrate more markets. We’re in the most dynamic trade region in the world, which is the China-ASEAN trade area," Mr. Batungbacal said.

Government role

Still, the government will have to intervene by improving quality of infrastructure, particularly power and water utilities, he said.

Investment promotions to bring in technology and encourage local research are also needed, he added.

Bureau of Export Trade Promotions Director Senen M. Perlada similarly said in a phone interview that government support will have to focus more on lowering operating costs, as marketing efforts are best done between businesses.

The ITC went on to cite copper, copra oil and food preparations from meat and vegetables as the other products with growing demand.

Currently, however, these promising products represent less than a tenth of the Philippines’ export portfolio.

Copper accounted for just 3% of 2008 export sales, while the others -- fruit and meat preparations (1.4%) and vegetable oils (2.14%) -- were likewise minorities, ITC data show.

"[But] the Philippines currently holds slightly more than 1% of world exports of copper products and has increased market share by more than 10% annually since 2004," the ITC said, noting further that opportunities for this product were especially promising, given its high export value.

Copra oil and food preparations have likewise benefited from good demand and relatively high market share, the ITC said.

With competition from India growing in the copra market, manufacturers should reorient production towards refined variants and also diversify their markets instead of just concentrating on the United States, ITC said.
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http://www.bworldonline.com/main/content.php?id=18921

Empowering banana entrepreneurs

Ireneo D. Dalayon
Chief Executive Officer
Federation of ARB/Banana-Based
Cooperatives of Davao (FEDCO)

The Philippine Cavendish banana is considered one of the nation’s top income-generating crops. Not only is it a strong source of foreign revenue, it is also a primary source of employment for thousands of small farmers in the provinces. These, precisely, were the reasons why Ireneo D. Dalayon, CEO of the Federation of ARB/Banana-Based Cooperatives of Davao (FEDCO), decided to focus on the banana industry for his business and advocacy.

Mr. Dalayon first saw the potentials -- and the problems -- in the industry when he worked for a fruit company. His job was to look for small farmers to grow fresh bananas. His interaction with the farmers provided him with an understanding of the inner workings of the industry, gaining deeper insight and knowledge on banana production and growership agreements.

His personal assessment was that there were some inequities and flaws in the system. Many small farmers claimed they remained poor because big export corporations purchased their produce at a fixed price, depriving them of the maximum profit they could earn.

Mr. Dalayon recounts that he has met so many small banana farmers who owe millions to banks. They are unable to earn enough to pay off their loans due to the low buying prices of traders. This was what motivated him to do something to help uplift the lives of these small farmers.

To further enhance his knowledge of the industry, Mr. Dalayon became a banana grower himself. His objective was to initiate gradual yet sweeping changes in how growership agreements were conducted.

"Experiencing for myself the challenges banana farmers faced inspired me to negotiate for better prices, so that small farmers can get better returns on their labor," he says.

To achieve this goal, Mr. Dalayon spearheaded the establishment of FEDCO in 1999. Since its inception, FEDCO has served as the umbrella organization for banana growers’ cooperatives. It is composed of farmers who are agrarian reform beneficiaries operating in Davao City and the provinces of Davao del Norte, Davao del Sur and Compostela Valley. From a starting membership of seven banana cooperatives, FEDCO has grown to nearly 20 member cooperatives with around 3,600 farmers owning 5,000 hectares of land.

Traditionally, banana growers under contracts with multinational banana corporations have limited freedom to manage their own farms. The corporations can dictate the entire production process, from planting to harvesting and packaging. In some cases, the cost of production is even deducted from the growers’ small earnings.

Through FEDCO, Mr. Dalayon helped organize these cooperatives to give banana growers better control of their operations and more freedom to negotiate the selling price of their produce, based on market demand and the quality of their crops.

FEDCO also plays an important role as the marketing arm for its member cooperatives, promoting the benefits of direct linkage with international buyers. Early on, FEDCO worked on negotiating contracts directly with foreign buyers in Japan. By going directly to the buyers, Mr. Dalayon was able to raise banana buying prices to 10 times their previous rate. Under his leadership, FEDCO consequently went on to conduct trade missions and make direct contracts with global fruit buyers in China, Korea and the Middle East.

Given the opportunity to market directly to international buyers, banana growers were able to eliminate costs from third-party marketing channels and middlemen.

Freed from restrictive growership agreements that delineated their production practices, growers had more flexibility to optimize operations. Greater profits also meant that they could afford to invest more in innovations that reduced their cost of production.

"Happily, our efforts are paying off. Big fruit importers now deal directly with small banana growers, offering them much higher prices for their produce," says Mr. Dalayon.

To keep up with the high global standards demanded by foreign buyers, FEDCO collaborates with different local government agencies to continuously provide banana growers with training, seminars and market exposure. More importantly, FEDCO sees to it that its best farming practices are followed by growers in all the member cooperatives -- from planting and fertilizing to harvesting and packaging.

Over the years, FEDCO has nurtured a more inclusive and proactive business environment for its members. Beyond just improving the production process, FEDCO also keeps its members well informed about sound business practices and strategies to help them grow.

Mr. Dalayon avers, "Transparency in doing the business is very important for you to gain the trust and respect of people with whom you do business. Without mutual trust and respect, you won’t last."

Today, FEDCO continues to build relationships and export directly to the international market. In late 2009, the Japanese government sponsored a FEDCO trade mission to their country to help promote the understanding of the banana market and to assist FEDCO connect with more Japanese fruit buyers.

Mr. Dalayon is also optimistic about increasing FEDCO’s global market share once other small banana growers see the benefits of joining the cooperative.

FEDCO is also developing new products from banana by-products such as fiber, chips and animal feeds. Mr. Dalayon is optimistic that this will maximize productivity and limit waste. FEDCO has begun planning for the manufacture of its own organic fertilizers and other farm inputs, catering to the international demand for fruit products produced using organic-based pesticides and fertilizers. Anticipating potential demand, FEDCO also has plans to expand into palm oil production and collaborate with potential local and international buyers.

In the long run, FEDCO’s initiatives have helped growers better enjoy the fruits of their hard work.

Growers have also become more motivated to ensure quality in the fruit they produce. Being a member of the Davao Cluster Capacity Enhancement Project (DICCEP), FEDCO aims to empower more banana growers in the region and further improve and sustain the operations of all its member cooperatives.

Mr. Dalayon hopes to inspire all small banana farmers in Mindanao to take charge of their future, and to work together to strengthen and improve the industry.

He says, "We measure our success by how much we’ve helped banana growers improve their lives. By helping banana growers upgrade their practices and businesses, FEDCO can truly become an instrument of change in the industry."

The Entrepreneur Of The Year Philippines 2010 is sponsored by SAP Philippines. Official airline is KLM Royal Dutch Airlines, operating on behalf of the Air-France KLM Group in the Philippines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. The winners of the Entrepreneur Of The Year Philippines 2010 will be announced on Oct.12 at an awards banquet at the Makati Shangri-La Hotel. The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2010 in Monte Carlo, Monaco in June 2011. The Entrepreneur Of The Year is produced globally by Ernst & Young.



http://www.bworldonline.com/main/content.php?id=18922

Strong peso can harm export growth, says export leader

By Philexport News and Features
(The Philippine Star)
Updated October 11, 2010 12:00 AM Comments (1) View comments

MANILA, Philippines - The head of the umbrella organization of exporters cautioned exporters not to be lulled by the sector’s rapid recovery which could easily turn to rapid decline.

Addressing members of the Philippine Exporters Confederation Inc. (Philexport) during a national membership meeting in Manila recently, Sergio R. Ortiz-Luis Jr., president, lauded individual exporters for the high double-digit recovery in export sales for the first seven months of the year.

If sustained until the year ends, the rate of recovery could bring exports to equal sales in 2007, the peak year in exports before the global recession.

The big challenge today, he said, is to transform rapid recovery to sustained growth.

“A major stumbling block in sustaining export growth is an exchange rate policy that has always been biased in favor of a strong peso,” Ortiz-Luis said.

The peso-dollar rate hovered a few centavos above 44 this week from 48 to the dollar when export recovery began in January.

He urged the Aquino administration to take a second, harder look at the exchange rate policies of China and Vietnam that gave them the vitality to sustain their bid to become newly industrializing economies.

“Both countries have deliberately made their currencies weak to keep their exports cheap in the global marketplace,” Ortiz-Luis pointed out.

“After the irresponsible investment bankers in the US and Europe almost ground to a halt the global economy, old assumptions like equating a strong peso with a strong economy is no longer gospel truth,” said the export leader.

“What we have seen for decades is that, a strong peso equals a stagnant economy,” he added.

He further called on policy makers to weigh the losers and winners under a strong peso policy regime.

Among the winners, he said, are the traders of imported goods and their principals, the smugglers, and the government that has to pay its ballooning dollar loans.

The rest of the country, he pointed out, turned out losers. These include the lowly rice and onion farmers and domestic industries that have to compete with smuggled goods and cheaper imports, the call centers, families of overseas Filipino workers and exporters.

“It is ironic that the biggest losers in this unequal equation are the very people bringing in the dollars, the OFWs and the exporters,” he observed.

Rethink export tack, PCCI urges

Malaya Business Insights
October 12, 2010

The country’s strategy for export development and growth should hinged on industries where the Philippines has a natural and human-resource advantage, Philippine Chamber of Commerce and Industry president Francis Chua said.

Chua said these include IT-related industries, BPO/contact centers, tourism, fashion garments, jewelry, medical services, healthcare and wellness and retirement, electronics, automotive, agribusiness/ food processing/mariculture and ship-building.

The group is rallying government and its member exporters to re-examine the export strategy and expand value chain activities to increase and sustain the country’s export margin.

PCCI said its own export development plan is congruent with the overall premise of economic growth that can be mainstreamed by enhancing the competitive advantage of the export products and services.

This requires the identification of critical operational and policy impediments to the expansion of the domestic production base in the global value chain, interfaced with the opportunities offered by the regional trade regime under Asean and bilateral trade agreements, Donald Dee, PCCI vice chairman said.

PCCI also said export diversification would be an important policy shift that should be considered to re-orient the export plan towards higher-value added activities where sectoral mapping can be undertaken.

This will identify potential export winners and match the same with the needed infrastructure and logistical support, technical skills and education of human capital supporting the stages of production processes.

PCCI said the Philippine Export Development Plan (PEDP) must be complemented with an industrial policy.

PCCI’s policy recommendations for export and industry development will form part of the broader set of resolutions that will be presented during the 36th Philippine Business Conference and Expo (PBC&E). President Aquino is expected to receive and give his reaction to these resolutions.

The PBC&E is the biggest annual gathering of businessmen in the Philippines to dialogue with government and other stakeholders on key policy issues that affect the country’s state of business and economy. This year’s PBC&E will be held fromOctober 13 to 15 at the historic Manila Hotel and is expected to draw around 2,000 participants from PCCI’s network of local chambers, industry associations and foreign business councils.

AgriNurture acquires 2 Chinese food firms

By Zinnia B. Dela Peña
(The Philippine Star)
Updated October 12, 2010

MANILA, Philippines - AgriNurture Inc., a leading supplier of fresh and processed agricultural food products, has signed an agreement to acquire 51 percent each of Sunshine Supplies International Co. Ltd. and Xiamen Wantaixing Trading Corp. for a combined $2.5 million.

In a disclosure to the Philippine Stock Exchange, AgriNurture said payment will be made in two tranches.

Sunshine Supplies is in the business of trading fruits and vegetables
in Hong Kong, Macau and Europe while Wantaixing is into trading of commodities, principally plastic feeds, grains and cavendish banana, in the Greater China Region.

For the first three quarters of the year, the combined sales of the two Chinese companies amounted to almost $10 million.

AgriNurture said these acquisitions ensure a continued and strengthened growth in international business not only as one of the country’s top exporters of Philippine mangoes but also as a new player in the banana industry particularly in Greater China.

Trading in shares of AgriNurture was suspended yesterday to allow the investing public equal access to the company’s announcement. Trading will resume today (Oct. 12).

AgriNurture is planning to raise between P1 billion and P1.5 billion through a follow-on offering to fund its expansion program which includes acquisition of facilities for farming, cold storage and wet market operations.

In July, the company announced it was planning to raise around P500 million through a stock rights issue to finance acquisitions. Shareholders can buy one share for every one share held as of a record date yet to be determined by the company for P2.50 each share.

Subscribing shareholders shall also be entitled to free warrants at a ratio of one warrant for every two shares acquired from the rights issue. The warrants are of European call option, exercisable after three years at a strike price of P10 per share.

AgriNurture currently exports banana, papaya, pineapple and mango to parts of Southeast Asia, Canada, Europe, South Korea and the Middle East. The bulk of its produce is shipped to China.

AgriNurture is mandated to undertake an initial public offering a year after its listing by way of introduction on May 25, 2009. – With Marianne Go

Trade groups seek export diversification
MANILA, Philippines—The Philippine Exporters Confederation Inc. and the Philippine Chamber of Commerce and Industry are pushing for the diversification of exports, with focus on higher-value products.

In a statement issued Monday, Philexport president Sergio Ortiz-Luis Jr. said the country should consider a policy shift when it came to exports, as the reorientation to higher value-added activities would help identify resources needed to support such export undertakings.

“Export diversification would be an important policy shift that should be considered to re-orient the country’s export plan toward higher value-added activities where sectoral mapping can be undertaken,” he said.

“This will identify the country’s potential export winners and match the same with the needed infrastructure and logistical support, technical skills and education of human capital supporting the stages of production processes.”

For his part, PCCI president Francis Chua said the country should focus on sectors where it had natural and human resource advantages, including information technology and related industries, business process outsourcing, tourism, fashion garments, jewelry, medical services, healthcare and wellness, retirement, electronics, automotive, agribusiness, food processing, mariculture and shipbuilding.

In crafting the Philippine Export Development Plan, he said a complementary industrial policy should also be formulated.

Formulated every three years, the PEDP serves as a roadmap of the export industry, outlining relevant strategies and policies. The PEDP forms part of the country’s overall international trade strategy and the Medium-Term Philippine Development Plan.

“The thrusts of our export development plan ... can be mainstreamed by enhancing the competitive advantage of the country’s export products and services,” PCCI vice chairman Donald Dee said.http://business.inquirer.net/money/breakingnews/view/20101011-297194/Trade-groups-seek-export-diversification

Exports rise to a five-month high

PHILIPPINE MERCHANDISE exports rose by 36.6% in August, a five-month high, amid brisk trade mainly with neighbors in the Asia and the Pacific region.

The sector’s double-digit growth was its best performance since March this year. Goods shipped in August were valued at $4.7 billion, up from last year’s $3.5 billion, the National Statistics Office reported on Tuesday.

Month on month, exports grew by 5.3% from July’s $4.5 billion.

Aggregate merchandise exports from January to August rose by 37.3% to nearly $33.0 billion from the $24.0 billion registered during the same period in 2009.

Electronics remained the country’s top export with earnings amounting to almost $3.0 billion, up by 45.3% year on year.

Growth in the sector was mainly fueled by exports of semiconductors, which accounted for 50.9% of total electronics exports.

Apparel and clothing accessories, which only comprised 3.8% of total exports, followed as the second top earner with earnings valued at $180.9 million.

Singapore was the top destination of Philippine products for the third consecutive month with revenues from this market amounting to $962.3 million in July, up by 278.4% from a year ago.

East Asia was the top export destination by economic bloc accounting for 41.7% of total shipments. -- A.S.O. Alegado

http://www.bworldonline.com/main/content.php?id=19330

Exports surge 36.6% to $4.745 billion in August

By Rica D. Delfinado
(The Philippine Star)
Updated October 13, 2010

MANILA, Philippines - The country’s export earnings climbed by a strong 36.6 percent to $4.745 billion in August from $3.473 billion in the same period last year as demand from the country’s major trading partners continued to pick up, the National Statistics Office (NSO) reported yesterday.

The government statistics office said the sector’s double-digit growth was its best performance since the 37.3 percent expansion recorded in May this year.

Month-on-month, exports rose 5.4 percent from the $4.504 billion posted in July.

Merchandise exports for the first eight months surged by 37.3 percent to $32.970 billion from $24.011 billion during the same period in 2009.

Electronic products remained the country’s top export with total receipts of $2.989 billion, accounting for 63 percent of total export revenue.

Growth in the sector was mainly fueled by exports of semiconductors, which accounted for 50.9 percent of total electronics exports. Apparel and clothing accessories, which only comprised 3.8 percent of total exports, followed as the second top earner with earnings valued at $180.9 million.

Singapore was the Philippines’ top market, with a share of 20.3 percent or $962.28 million of total exports.

The US came in second, with $641.74 million, followed by Japan ($603.68 million), China ($589.39 million), and Hong Kong ($404.27 million).

The government expects exports to climb 15 percent this year, and imports are forecast to increase 20 percent.

The electronics industry group, meanwhile, expects its exports to climb by 25 percent to 30 percent this year.

The local economy is projected to grow faster than the official government target of five percent to six percent in 2010, partly driven by a rebound in demand for the country’s electronic and semiconductor exports.

Shipments hit record high
BRISK TRADE, mainly with the country’s neighbors, drove Philippine merchandise exports to hit a record high in terms of value in August and to rise at the fastest pace in five months, fueling optimism that the official export growth target for the year will be met.

The sector’s year-on-year growth of 36.6% that month was its best performance since March.

Goods shipped in August were valued at $4.7 billion, a record high in absolute terms, according to the National Statistics Office (NSO).

Month on month, exports grew 5.3% from July’s $4.5 billion.

Aggregate merchandise exports rose by 37.3% to $32.97 billion in the eight months to August from the $24.01 billion recorded in the same period last year.

The government is aiming for a full-year export growth of 15% to $43.1 billion in 2010.

Electronic products, which accounted for 63% of the total, rose 45.3%, year on year, to $2.989 billion in August.

While that annual growth rate was slower than the 49.4% recorded in July, electronic exports rebounded to a 4.5% month-on-month growth in August from a 1.5% contraction the previous month.

Apparel and clothing accessories, which made up 3.8% of total receipts, was the second top earner with earnings rising 31.5% to $180.9 million.

Economists and industry officials agreed that demand within the region has been driving growth, taking up the slack in orders from still-stuttering developed markets.

"The 36.6% growth is way above expectations... [Export revenues] are the highest ever. This is attributed to a very strong performance in... East Asia and the ASEAN markets," University of Asia and the Pacific (UA&P) economist Victor A. Abola said.

Singapore was the Philippines’ top export market for the third month in a row, accounting for 20.3% of the total in August at $962.28 million, up 278.4% from the same month last year.

It was followed by the US, with a 13.5% share at $641.74 million, up 2.2%; Japan with 12.7% at $603.68 million, up 9.1%; China with 12.4% at 589.39 million, up 147.1%; and Hong Kong with 8.5% at $404.27 million, up 38.9%.

The remaining markets in the top 10 were South Korea with $196.09 million; Taiwan, $182.24 million; the Netherlands, $160.71 million; Thailand, $156.99 million; and Germany, $153.58 million.

By economic bloc, Northeast Asia was the top market, accounting for 41.7% at $1.978 billion of total shipments, up 44% from last year. Southeast Asia followed with revenues from this market amounting to $1.3 billion, up 130.8% from a year ago and accounting for 27.6% of the total. Exports to the European Union accounted for 11.3% with $536.21 million -- a 25.7% decline from last year.

In a press statement, National Economic and Development Authority Deputy Director-General Augusto B. Santos said the country’s export growth in August was in line with regional trend. "Other than the Philippines and Vietnam (48.4%), Asian peers such as Hong Kong (36.0%), People’s Republic of China (34.4%), Indonesia (30.0%), and South Korea (27.7%) also posted strong gains in exports," the statement read.

"Asia drives the growth, as growth in the west is slower," Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Ernesto B. Santiago explained.

Cid L. Terosa, also an economist at the UA&P, said: "The US will be more insignificant... it will have a smaller share in our exports basket. I think the trend in the future will gear towards stronger exports in Asia."

Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr., who proposed at an Export Development Council meeting last month that the industry’s growth target be raised to 20%-25% from 20%, said the double-digit full-year goal "is just a walk in the park."

SEIPI, on the other hand, is maintaining its 25%-30% growth target for the year. "We are happy [with the results]... the 25%-30% projection is very doable," Mr. Santiago said.

The government said it is also keeping its growth target for exports at 15%, while awaiting economic data for the third quarter.

In a separate interview, Mr. Santos said the interagency Development Budget Coordination Committee "is waiting for data on the third quarter economic performance before we sit down to review all macroeconomic targets." The third quarter gross domestic product data is due out on Nov. 25.http://www.bworldonline.com/main/content.php?id=19394

DTI asks car firms for 'credible strategy' to boost production

By Ma. Elisa P. Osorio
(The Philippine Star)
Updated October 14, 2010


MANILA, Philippines - The Department of Trade and Industry (DTI) called on the local automotive sector to present a “credible strategy” to boast vehicle production.

Trade Secretary Gregory L. Domingo stressed that the government has been very supportive of the auto industry for the longest time. “Something should have happened already,” he said in Filipino. He said that the best gauged of how successful the industry is is the exports. “If they can’t export, I can’t call the industry competitive.”

Sales of automobiles have been going up but it is mostly imported vehicles. He reminded the local auto industry to come up with a credible plan and then see what will happen. Domingo said the focus should no longer be the domestic market.

Although no plan has been presented yet to the government, Domingo said that the government is still willing to work with the industry to reverse the declining trend in local automotive manufacturing. He said the government is willing to work on the power cost and the overall business environment.

Earlier, it was revealed that the Vietnam auto industry is poised to overtake the Philippine car industry sooner rather than later. Toyota Motor Asia Pacific Senior Vice President Vince Socco said that the Vietnamese car industry is very robust.

In terms of sales, 2009 figures show that the Philippines lead auto sales by a very small margin. However, what is alarming is that Vietnam is already out producing the Philippines. This implies that most of the vehicles sold in the Philippines are imported.

“Vietnam outproduces the Philippines by 40 percent as of 2009,” Socco said.

“The Philippines has a lot of catching up to do,” Socco said. “The CMVDP (Comprehensive Motor Vehicle Development Plan) is pointing to the right direction by indentifying what the industry should focus on.”

Ecozone pledges up

Thursday, 14 October 2010 00:00

Investment commitments for the Philippines’ economic processing zones in the first three quarters grew by almost a third year-on-year.
In a report, Trade Secretary Gregory Domingo said investment pledges for ecozones at end-September hit P80.62-billion, or 32 percent higher than the P61.05 billion last year.
This year’s pledges involves 364 projects, 323 of which are either new or expansion of existing ecozone enterprises from the manufacturing and information technology sectors.

Forty-one projects were by ecozone developers.

These commitments would generate annual export sales worth about $5.642 billion, and would create 63,519 jobs.

Combined with the pledges registered at the Board of Investments, the nine-month commitments reached P273.09 billion, up 157 percent from P106.23-billion last year.


http://www.manilatimes.net/index.php/business-columns/28740-ecozone-pledges-up

Government hopes export to remain upbeat for rest of year
(philstar.com) Updated October 13, 2010 11:04 PM Comments (1) View comments

MANILA, Philippines (Xinhua) - The government said today it hopes that the country's export sector would continue its improved performance for the rest of the year, despite the relatively slow growth of the United States and Europe.

Secretary Ricky Carandang of the Presidential Communications Development and Strategic Planning Office (PCDSPO) made the statement in response to the announcement of the National Economic and Development Authority (Neda) that the export sector grew by 36.6 percent in August, compared to the previous year.

"Good exports is always a sign of a healthy economy, so we're happy to hear that. We hope this continues despite the relatively slow growth in the US and Europe," Carandang said.

He said that part of the improved performance of the export sector is the weak US dollar.

"I don't think we can take too much credit for it. Other exporting countries in the region are experiencing the same thing. It's not so much a strong peso than a weak dollar. A weak dollar has the same impact on all exporters," Carandang said.

Feed wheat imports

The government may regulate the entry of imported feed wheat to protect the local corn industry, Agriculture Secretary Proseso Alcala said Wednesday.

“If there is a need to regulate the importation of feed wheat, we will do it. Whether [corn] output is good or not so good, we have to prioritize our own farmers,” he said.

Initial reports from the field said the corn sector had shown signs of recovery after a dismal performance in the first six months of the year. Corn production declined 24.95 percent to 2.41 million MT in the first half from 3.21 million MT year-on-year.

Alcala said feed wheat importation might decline in 2011 because of a projected higher local corn production.

Corn output in the first nine months of 2010 may drop 17 percent to 4.64 million MT from 5.5 million MT. Othel V. Campos


http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/october/14/business6.isx&d=2010/october/14

Government open to review of country's labor laws
By Ma. Elisa P. Osorio (The Philippine Star) Updated October 15, 2010 12:00 AM Comments (1) View comments

MANILA, Philippines - The government is open to relaxing its labor laws because its strictness has been cited by investors as one of the reasons why the Philippines is uncompetitive.

During his address at the second day of the Philippine Business Conference at the Manila Hotel yesterday, Trade Secretary Gregory L. Domingo said that “maybe we can relax some of our labor laws. The stricter the labor laws the less competitive,” he added.

Domingo explained that the strict labor laws are only helping those that are already employed. However, because of its rigidness, it can cause the contraction of the labor force. “The employed have better benefits but there is less employment.”

“Laborers need some protection; the question is to what degree so that we don’t become uncompetitive,” Domingo said.

Domingo said the government is doing its best to make the Philippines a viable business destination. In fact, for the Public Private Partnership (PPP) that is being espoused by the government, Domingo said that they are trying to mitigate the risks. “It is unfair for the private sector to take that risk.”

Another concern of the investors is the ownership law. Unfortunately, this is a constitutional matter. “There are a lot of restrictive clauses in the constitution. This is a sore point for the trading partners,” Domingo stressed.

The secretary said that he has already told investors that the problems with Philippine laws may be workable but with the constitution he said “who knows. It could be next year. It could be never.”

Meanwhile, Domingo said that the Philippines does not have much choice when it comes to participating in trade agreements. He said that if the Philippines closes its doors to free trade agreements (FTAs), we will be left behind. “Not doing so will be a disaster.”

Domingo said that the normal knee jerk reaction would be for industries to ask protection from the government but he warned that this will lead to the demise of the demise of the protected industries.

He stressed that protection may work in the short term but the government would not want it to remain unless we want our economy to be smaller and smaller.

Government open to review of country's labor laws
By Ma. Elisa P. Osorio (The Philippine Star) Updated October 15, 2010 12:00 AM Comments (1) View comments

MANILA, Philippines - The government is open to relaxing its labor laws because its strictness has been cited by investors as one of the reasons why the Philippines is uncompetitive.

During his address at the second day of the Philippine Business Conference at the Manila Hotel yesterday, Trade Secretary Gregory L. Domingo said that “maybe we can relax some of our labor laws. The stricter the labor laws the less competitive,” he added.

Domingo explained that the strict labor laws are only helping those that are already employed. However, because of its rigidness, it can cause the contraction of the labor force. “The employed have better benefits but there is less employment.”

“Laborers need some protection; the question is to what degree so that we don’t become uncompetitive,” Domingo said.

Domingo said the government is doing its best to make the Philippines a viable business destination. In fact, for the Public Private Partnership (PPP) that is being espoused by the government, Domingo said that they are trying to mitigate the risks. “It is unfair for the private sector to take that risk.”

Another concern of the investors is the ownership law. Unfortunately, this is a constitutional matter. “There are a lot of restrictive clauses in the constitution. This is a sore point for the trading partners,” Domingo stressed.

The secretary said that he has already told investors that the problems with Philippine laws may be workable but with the constitution he said “who knows. It could be next year. It could be never.”

Meanwhile, Domingo said that the Philippines does not have much choice when it comes to participating in trade agreements. He said that if the Philippines closes its doors to free trade agreements (FTAs), we will be left behind. “Not doing so will be a disaster.”

Domingo said that the normal knee jerk reaction would be for industries to ask protection from the government but he warned that this will lead to the demise of the demise of the protected industries.

He stressed that protection may work in the short term but the government would not want it to remain unless we want our economy to be smaller and smaller.

From my observation, working on assignment in the country in industry the prob is the proper and fair implementation of labour laws not the actual cost of labour or the strictness. Mr. Domingo should have a committee to evalute these laws, their implementation first before actually changing them.

Many companies are inneficient because they don't know how to account for all the costs (labour is only a component), don't analyze their p/l, let alone interpret their data. Labour is the most visible and cheap target. Quite often many businesses conveniently "forget" to account for all their revenues (for a very good, sly reason.) so data is skewed to show labour cost as very high. Actually, it is very low already in the country based on international benchmarks. Many of the smes I worked with, always say labour is cheap that's why they don't to automate. A European colleague said, there is a strong middle class, but the wages are low.

This article shows only the argument from the big business side. Where I think local Filipino businesses are losing out to their world competitors is lack of r&d, quality standards, innovation, and long term objectives. As for int'l businesses who will relocate in the country, there is only one motivation - profit. If they can't make a profit, they will not relocate regardless of laws, politics, religion, incentives etc.

Obama: End tax breaks to stop overseas hiring :ohno:

CNBC
Published: Saturday, 16 Oct 2010 | 9:20 AM ET

WASHINGTON - President Barack Obama urged Congress to end tax breaks that reward some U.S. companies with overseas subsidiaries and encourage those businesses to create jobs in other countries.

Yet it's an idea that has raised concerns even among some lawmakers in the president's own party.

At issue is a bill, now stalled in the Senate, that would do away with some tax credits and deferrals for U.S. companies for operations abroad.

"There is no reason why our tax code should actively reward them for creating jobs overseas," Obama said in his weekly radio and Internet address Saturday. "Instead, we should be using our tax dollars to reward companies that create jobs and businesses within our borders."

Though Obama singled out Republican opposition, the bill also failed to get support from some Democrats, including the chairman of the Senate Finance Committee, Sen. Max Baucus. He has expressed concern that the change would put the U.S. at a competitive disadvantage.

The ending of the tax provisions has run into opposition from business groups, including the National Association of Manufacturers.

Obama said that while companies that conduct business internationally do make an important contribution to the U.S. economy, it doesn't make sense to grant them tax breaks when companies at home are struggling to rebound from the economic crisis.

Obama has said he wants revenue collected from ending the tax provisions to go to other business tax breaks, by making permanent research and development tax credits and allowing businesses next year to write off all new equipment costs.

In the Republican address, Rep. Mike Pence urged House Speaker Nancy Pelosi to call Congress back into session to take an immediate vote on whether to extend Bush-era tax cuts.

"The prosperity of the American people is more important than the political fortunes of any politician or any political party," Pence said.

Pelosi and Senate Majority Leader Harry Reid have said the tax issue will be taken up after the Nov. 2 election.

The tax cuts have been a point of contention between the president and Republicans in the lead-up to the Nov. 2 elections. The Republicans want to extend the tax cuts for all Americans, including the top income earners, while Obama wants to extend the tax cuts only for the middle class — those families earning less than $250,000 a year.

Very good move coming from the Aquino government


Feed wheat imports

The government may regulate the entry of imported feed wheat to protect the local corn industry, Agriculture Secretary Proseso Alcala said Wednesday.

“If there is a need to regulate the importation of feed wheat, we will do it. Whether [corn] output is good or not so good, we have to prioritize our own farmers,” he said.

Initial reports from the field said the corn sector had shown signs of recovery after a dismal performance in the first six months of the year. Corn production declined 24.95 percent to 2.41 million MT in the first half from 3.21 million MT year-on-year.

Alcala said feed wheat importation might decline in 2011 because of a projected higher local corn production.

Corn output in the first nine months of 2010 may drop 17 percent to 4.64 million MT from 5.5 million MT. Othel V. Campos


http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/october/14/business6.isx&d=2010/october/14

Medium-term export plan to push high-value items

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Monday, 18 October 2010 00:00
BY BEN ARNOLD O. DE VERA REPORTER
Manila Times

IN line with the new administration’s policy, the medium-term export plan will push the development of higher-value products and services, a Department of Trade and Industry (DTI) official said. Undersecretary Adrian Cristobal Jr. told a forum last week that the Philippine Export Development Plan (PEDP) 2011-2013 would focus on the value-added of the country’s export industries.

“For example, in mining, rather than just extraction and exporting mineral products abroad, we can [develop it] together with the jewelry sector,” the DTI official said.

Alongside the drafting of the PEDP 2011-2013, the Board of Investments (BOI) would revive developing industry studies for key sectors, he said.

“For years, this unit of BOI was not active . . . BOI was focusing more on promotions,” he said.

Trade Secretary Gregory Domingo earlier told The Manila Times that the BOI would revive the development of long-term plans for the best-performing industries.

Among the criteria in choosing the sectors would be their revenues, exports and employment generation potentials, he said.

When Domingo was DTI undersecretary as well as BOI managing head during the previous administration, the department implemented a “brand management system,” wherein the performance of more than 10 sectors were monitored and their needs addressed.

The DTI has identified six priority sectors—tourism, information technology-business process outsourcing, semiconductor and electronics, mining, housing, and agriculture—that would enjoy government support.

Domingo last week told a separate forum that shipbuilding would also be included.

“There are two big shipbuilders in the Philippines—Hanjin in Subic and Tsuneishi Heavy Industries Cebu of Japan. I was just informed, with these two companies, we are already the fourth largest shipbuilding country in the world,” the DTI chief said, adding that these shipbuilders have vast opportunities to expand their capacities.

Korean-led Hanjin Heavy Industries Corp.-Philippines had announced that it would increase its workforce to 22,000 from the current 16,600, as after sealing deals for the construction of 20 additional vessels worth about $1.2 billion.

Exporters push
for support fund

The Philippine Exporters Confederation Inc. Cebu has asked the government to institutionalize the export support fund to protect exporters from the strong peso.

Philexport Cebu executive director Fred Escalona, who earlier noted that the export industry needed new measures to cope with the volatility of the local currency, said the government should support exporters by institutionalizing the ESF.

Escalona said Central Visayas needs P300 million to P400 million to fund the export sector’s trade fair promotions and product development in 2011.

The Hong Kong and Shanghai Banking Corp. earlier reported that the peso will rise to P41 to the dollar by the end of the year because of the strong inflow of remittances from overseas workers and foreign direct investments in the country.

While some industries will be badly affected with the strong peso, HSBC senior vice president and head of personal financial services Ron Logan told reporters the strong local currency shows investors’ confidence in the country.

”The strong local currency just shows that money is being invested in the Philippines. It is not just about the currency but the bigger picture that investors are confident in pouring in investments in the country, which would mean more jobs for the people,” Logan noted.

Local business leaders, however, say there are both advantages and disadvantages to a strong peso.

Rey Calooy, president of Filipino-Cebuano Business Club Inc., said a strong peso is a sign of a good economy.

He explained that if HSBC’s projection is correct, it means there are more inflows than outflows.

He also believes it is an indication of trust and confidence in the present administration.

However, he admitted some sectors, such as exporters with locally sourced materials and families of overseas Filipino workers, may not be happy with the trend.

But for exporters who are importing their raw materials, Calooy said it would be a balance for them even if he value of the goods they export is lowered because they save on the cost of raw materials.

He cited as example firms located at the Mactan Export Processing Zone.

For families of OFWs, he said, the best way they can get more out of the peso is to invest in a business in the country.

For local retailers, a strong peso helps them in their business.

Philippine Retailers Association Cebu president Melanie Ng cautioned retailers.

She said importers should remain “prudent” in placing orders and managing their inventories and use the projection to their advantage.*PNA

Vietnam told: Don’t send substandard cement
Monday, 25 October 2010 11:10 Max V. de Leon / Reporter


THE Cement Manufacturers Association of the Philippines (Cemap) asked its counterpart in Vietnam to take action against the Vietnamese suppliers of at least three shipments of substandard cement exported to the Philippines this year.

Ernesto Ordoñez, Cemap president, said the Vietnam Cement Association can at least use moral suasion to dissuade Vietnamese manufacturers from doing business again with Filipino firms that are importing substandard cement.

“We asked the president of the Vietnamese association to alert and notify the Vietnamese manufacturers so it will not happen again and my Vietnamese counterpart agreed to do this,” Ordoñez said.

Ordoñez appealed personally to the Vietnamese association during the Asian Cement Forum last week in China.

He said Cemap also took the same action when shipments of substandard cement from China were seized, and the Chinese association also acted positively.

Ordoñez said two of the three shipments from Vietnam arrived in the first quarter of the year, and another one came in during the current administration.

Two of the shipments, however, have disappeared from the warehouses where they were held and Cemap believed that they have been sold in the market already.

“It could be banning them. It is up to the Vietnam Cement Association what they will do,” Ordoñez said, although he pointed out the first action would still be moral suasion.

Also at the Asian Cement Forum, Ordoñez said the different associations in the region renewed their commitment not to engage in dumping even if demand in their respective markets would fall.

In the meeting, it was noted also that the Philippines still has the fifth most expensive cement in the region at $98 per ton after India, Japan, Brunei and Indonesia.


http://www.businessmirror.com.ph/home/nation/2900-vietnam-told-dont-send-substandard-cement

^^ I wonder how pinoy cement fares with competition.

(Now we know why some of our houses can be expensive.)

Isn't there a cartel in the local cement industry?

Cebu importers push for faster accreditation

CEBU CITY -- Concerned that the centralized accreditation system of the Bureau of Customs has been causing undue delays for importers, the Cebu Chamber of Commerce and Industry (CCCI) will seek accreditation by the agency’s regional office.

Cebu Port district collector Ronnie Silvestre told members of the chamber in a recent meeting that he has endorsed the proposal to Customs Commissioner Angelito A. Alvarez.

Accreditation of importers is currently handled by the bureau’s Interim Customs Accreditation and Registration (ICARE) in Manila. Applicants need to submit at least 17 documentary requirements.

"It took 10 months for me to be accredited. I believe that it is best we draft a letter to let them (Customs bureau) know (the problem) because it is very impractical to give one person the accreditation of the whole republic," businessman Pete Sepulveda said during the first of a series of forums, dubbed CCCI Sectoral Participation for Economic Advocacy.

At least 200 importers in Cebu apply for accreditation each year, Mr. Silvestre noted. But Cebu’s Customs personnel only receive applications from the Visayas. "They can...only...recommend because the final approval isby ICARE in Manila." -- A. Antogop, Jr.


http://www.bworldonline.com/main/content.php?id=20408

DTI urges exporters to lower input costs
November 6, 2010, 6:33pm

MANILA, Philippines – The Department of Trade and Industry (DTI) is urging local exporters to lower their input cost and tap other markets aside from the United States amid the strong local currency.

Trade and Industry Secretary Gregory L. Domingo explained Saturday that the Aquino government is still on a tight budget and it cannot defend the peso from further appreciating against the dollar.

“It’s hard to control the level of the peso, what we want to control is volatility of our currency,” Domingo told reporters.

“But there’s always a way to lower your cost and look for other markets to remain profitable” he added.

Domingo cited local exporters can tap the markets of Associations of the Organization of Southeast Asian Nations (ASEAN), Japan, Australia, and New Zealand.

“They can sell their products to countries with whom the Philippines has Free Trade Agreements (FTAs),” Domingo said.

The Philippines has currently FTAs with ASEAN Free Trade Agreement (AFTA), Australia-New Zealand (AANZFTA), China (ACFTA), Japan (AJFTA/JPEPA) and Korea (AKFTA).

He also urged exporters to ship to high value-added products.

Domingo also said the strong peso also a sign that foreign investors have a strong confidence on the new administration.

Meanwhile, Domingo warned that if peso continues to appreciate, the country’s exports may not sustain its 25 percent growth.

“The growth will be sustained this year, but for the exceeding I cannot say,” he said. (CSL)


http://www.mb.com.ph/articles/286210/dti-urges-exporters-lower-input-costs

Engineering & globalization
By ACD. REYNALDO B. VEA, National Academy of Science and Technology Philippines
November 6, 2010, 9:13pm

MANILA, Philippines – THE world of engineering education and practice is truly going global.

International standards in engineering education are now slowly but surely being forged. In Europe, the EUR-ACE stamp is placed on engineering academic programs that meet standards set by the European Network for Accreditation of Engineering Education (ENAEE). Outside of Europe, there is the Washington Accord, an agreement among accreditation bodies of various countries that their accreditation systems of engineering academic programs are substantially equivalent.

In Europe, an organization called FEANI, representing 3.5 million engineers in 31 countries, grants the EUR-ING title to qualified engineers so that they can more easily practice across national boundaries. APEC economies and ASEAN countries are also granting the APEC Engineer and ASEAN Engineer titles, respectively, for the same reason. There have arisen, in effect, registers of engineers that are international in scope.

At the moment, Filipino engineers can be admitted to the APEC and ASEAN registries. It is, however, expected that the educational eligibility requirement in the case of the APEC Registry will be changed so that graduation from a program that has been accredited under the terms of the Washington Accord will be required.

This would be the same requirement of an even bigger register called the International Professional Engineers (IntPE) Register.

The problem is that we are now not a member of the Washington Accord. If we do not get to be a member soon enough, this eligibility requirement will prospectively pose a barrier to the entry of Filipino engineers into these registries.

There are structural/conceptual features in our current accreditation system that prevent an easy entry into the Washington Accord. Whereas all Accord members have accreditation systems that are basically run by professional societies of engineers, our professional engineering societies up to this point have not engaged in accreditation work. Whereas all members have accreditation systems that are independent of schools, our existing accreditation bodies have schools as members and send out accreditation teams composed solely of academics wearing the hats of their respective schools. Whereas all members subscribe to what is called an outcomes-based approach, we do too much bean-counting of inputs to academic programs.

Faced with this situation, a number of Philippine organizations have come together to mount a bid for membership in the Washington Accord. The Philippine Technological Council (PTC), the umbrella organization of all professional engineering societies, and the accreditation bodies – PACUCOA and PAASCU – have moved to establish a Washington Accord-compliant system. The Engineering Sciences and Technology Division of the National Academy of Science and Technology (ESTD-NAST) has lent impetus and support by conducting a number of forums on this issue with funding from the UNESCO National Commission. The Joint Congressional Commission on Science, Technology, and Engineering (COMSTE) adopted membership in the Washington Accord as one of its major recommendations and made provisions for it in the 2010 GAA with a Congressional Initiative authorizing a budget item for CHED. The CHED is currently actively considering possible funding sources. The PRC and DoST have also lent a hand.

The members of the Washington Accord are: US, Canada, UK, Ireland, South Africa, Australia, New Zealand, Hong Kong, Japan, Korea, Taiwan, Singapore, and Malaysia. Germany, India, Russia, and Sri Lanka have provisional status. Thailand reportedly also wants to apply for membership. The geographic reach is clearly expanding. On top of this, EUR-ACE and Washington Accord are in talks to harmonize standards.

When this happens, one system will blanket much of the globe.

Clearly, Philippine membership in the Washington Accord is important to individual Filipino engineers. It opens up a lot of opportunities for global professional practice. It is also important for the competitiveness of Philippine-based companies. These companies can more easily get engineers educated in indisputably international-standard curricula because they can be locally sourced. The fact alone that these firms will be known to have these well-educated engineers in their shop floors and offices should already enhance their competitive posture. Fear of further brain drain should not deter us from further improving our system of engineering education. It would be more costly in the long run to rein ourselves in. We just have to keep on producing more and better engineers for the world and for our own country.

The US signatory in the Washington Accord is ABET, which stands for the Accreditation Board for Engineering and Technology. It is a federation of some 25 professional and technical societies in the fields of engineering, computing, applied science, and technology.

In 2008, it started to accredit non-US programs. One Philippine school, the Mapua Institute of Technology, applied for the accreditation of three of its programs, namely, Electrical Engineering, Electronics Engineering, and Computer Engineering. In late July 2010, accreditation was granted, making these three programs the first ABET-accredited programs in the Philippines and in the whole of Southeast Asia. Mapua has since applied for the accreditation of its other engineering programs as well as of its Computer Science and IT programs. Mapua graduates of its ABET-accredited programs can thus claim that they satisfy the educational eligibility requirement – i.e., graduating from a program that is accredited under the terms of Washington Accord – once they apply for membership in international registers of engineers. Mapua’s experience is an argument that Philippine schools are up to scratch and that, consequently, Philippine membership in the Washington Accord can be made to work.


http://www.mb.com.ph/articles/286250/engineering-globalization

Exporters: Stop speculators from influencing peso rise
Sunday, 07 November 2010 10:41 Max V. de Leon / Reporter

PHILIPPINE exporters are not buying the government’s argument that it cannot do anything to stop the peso appreciation, stressing that the Aquino administration only needs to be bold enough to come up with policies that will stop speculators from influencing the continued rise of the local currency’s value.

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation (Philexport), said countries such as Thailand, Vietnam and Japan, for instance, have succeeded in managing their currency appreciation.

“Vietnam depreciated by 5 percent, Thailand put a cap on portfolio investments and Japan is printing more money. There are a thousand ways to do it and the government only needs to be bold enough to make these big policy decisions,” Ortiz-Luis told the BusinessMirror.

He said the government should stop making people believe that the peso appreciation is market-driven and that a stronger currency will bring more benefits than negative effects to the economy.

He noted that counting the exporters, families of overseas Filipino workers (OFWs) and the uncompetitive domestic industries, roughly 70 percent of the economy are being hit by the continued appreciation of the peso.

“Just consider the $18-billion OFW remittances. If the peso appreciates by P1 versus the dollar, you are already taking away P18 billion from the economy, and that is crucial for a consumption-driven economy like the Philippines,” Ortiz-Luis said.

Ortiz-Luis earlier heard Trade Secretary Gregory Domingo say in a press conference at the Philippine Trade Training Center on Roxas Boulevard on Friday that the major reasons for the peso appreciation are the strong inflow of investments, OFW remittances and recovering exports.

But Ortiz-Luis said speculators still influence the exchange rate, especially when banks make predictions that the local currency’s value will rise.

Also, he said it is not right to say that the portfolio investments are signs of investor confidence since they can easily take those away from the financial market.

“Hard investments are the real statement of support not portfolio.”

He said since the government has already repeatedly announced that it does not have the financial capability to support the export sector, policies are the only options that the exporters have to survive.

Already, Ortiz-Luis said they are reviewing their export-growth assumptions for the next three years of 25 percent annual increments since these projections were made when the exchange rate was still at P46 to a dollar.

He said the annual growth could be cut to 10 percent at an exchange rate of P43 versus the dollar.

For instance, he said at the P43 level, several business-process outsourcing companies have indicated that they will be moving their expansion plans to countries like Indonesia.

Ortiz-Luis said the government should stop worrying about the inflationary effects of currency appreciation since even an inflation rate of 8 percent will still be very manageable for a developing economy like the Philippines.


http://www.businessmirror.com.ph/home/economy/3404-exporters-stop-speculators-from-influencing-peso-rise

RP confident vs EU, US claims in WTO
Sunday, 07 November 2010 10:41 Max V. de Leon

THE Philippine government is confident it will be able to parry the allegations of the European Union (EU) and United States (US) that the country’s excise-tax regime violates the multilateral trading rules during the first oral hearings set by the World Trade Organization (WTO) on November 17 and 18 in Geneva.

“Together with the legal team and the distilled spirits industry, the Office of the Solicitor General has put together substantial factual data, evidence and innovative legal arguments,” Solicitor General Jose Anselmo Cadiz said.

Cadiz, being the country’s statutory counsel, will be beefing up the Philippine trade negotiating team in Geneva, headed by Ambassador Manuel Teehankee, the Philippine permanent trade representative to Geneva. Trade Undersecretary Adrian Cristobal Jr., also a lawyer and former director general of the Intellectual Property Office of the Philippines, will also be joining the Philippine panel.

To highlight the importance of the WTO case to the different Philippine sectors—from the raw-material suppliers in the farm sector to the domestic liquor manufacturers—the government also hired White & Case Llp. and Sycip Salazar Hernandez & Gatmaitan, with Justice Florentino Feliciano as the head of the Sycip law team and ACWL as collaborating counsel.

The Distilled Spirits Association of the Philippines (DSAP), a nonstock Philippine corporation that was created by Philippine sugar planters and millers and Philippine manufacturers of distilled spirits—including Ginebra San Miguel Inc., Tanduay Distillery Inc., Emperador Distillers Inc. and Destileria Limtuaco & Co. Inc.—have also provided technical assistance to the Philippine government.

In July 29, 2009, and January 14, 2010, the European Communities (EC) DS 396 and the US DS 403, respectively, filed their requests for consultation with the Philippines pursuant to Article 4 of the WTO Dispute Settlement Understanding (DSU) with respect to Philippine taxation of imported spirits.

The EC and US alleged that Section 141 of the Philippine National Internal Revenue Code (Tax Code), as well as certain Philippine revenue regulations, discriminates against imported spirits by taxing them at a substantially higher rate than domestic spirits.

However, under Section 141 of the Tax Code, spirits are not classified into imported and domestic, but rather classify spirits based on raw materials used, which has been in the Philippine tax laws since 1914, long before the GATT.

Under paragraph (a) of Section 141 of the Tax Code, distilled spirits produced from the following raw materials are subject to an excise tax of P13.59/proof liter: sap of nipa, coconut, cassava, camote, or buri palm or the juice, syrup or sugar of the cane, provided, that such materials are produced commercially in the country where they are processed into distilled spirits.

Under paragraph (b) of the same section, distilled spirits that are produced from raw materials other than those enumerated in paragraph (a) are subject to an excise tax according to a three-tiered system based on net retail price (NRP):

1. NRP less than P250/proof liter taxed at P146.97

2. NRP P250-P675 taxed at P293.93/proof liter

3. NRP over P675 taxed at P587.87/proof liter.

On December 10, 2009, the EC requested the WTO DSB to establish a panel to examine the complaints.

The DSB established a panel on January 19,2010, while the US made the same request to establish a panel on March 16, 2010.

A single panel has been established on April 20, 2010 to examine the complaint of both the EC and the US.

WTO members Australia, China, India, Mexico Thailand, Taipei and Columbia reserved their third-party rights.

The panel is composed of a chairman two members which and was formed on July 5, 2010. Both the EC and the US filed their respective first written submissions. The Philippines filed its first written submission in Geneva on October 14 after careful preparation by the legal and technical support team of the Philippine Government.

The panel will hold its first substantive meeting with representatives of the Philippines, the EC and the US in Geneva on November 17 and 18. A Philippine delegation is being formed for this purpose.

“We are busy preparing for oral hearings this mid-November. The issues that have been raised are whether imported spirits and domestic spirits are ‘like products,’ and whether the imported spirits are taxed in excess of the domestic spirits; whether imported and domestic spirits are directly competitive and substitutable products, not similarly taxed; and whether the dissimilar taxation is applied so as to afford protection to domestic production,” Cadiz said.

Cristobal said while the oral arguments will focus mainly on the different parties’ interpretations of WTO provisions, the Philippine panel will also try to underscore the possible ill effects to the different domestic sectors in the event the country loses the case and is forced to revise its excise-tax laws.

Max V. de Leon


http://www.businessmirror.com.ph/home/economy/3403-rp-confident-vs-eu-us-claims-in-wto

A globalized world-with US, EU's economy faltering and Asian nations' economy still zooming....

Philippines should stop mimicking the US and instead mimic the nationalistic economies of China, Japan, South Korea and our ASEAN neighbors (except Singapore).

^^^^^^

This is what I am suspect.

Speculators (Americans?) are making the PH peso and other Asian currencies to appreciate to make (directly and indirectly) the US dollar weak and bring down US trade deficits usually caused by the trade imbalances being suffered by the US against (especially)Asian exporting colossus led by China, japan and South Korea.

Why don't just the BSP simply brint more money? Doing so will not just help us devalue the Peso but also help flood our people with more bills and coins. It's the simplest way to control the Peso's too fast appreciation.

Pigeonpea can be another top RP export
Monday, 08 November 2010 11:37 Jennifer A. Ng / Reporter


HYDERABAD, India--Given the right policy environment and support, pigeonpea (kadyos) has the potential to be another top farm export of the Philippines, the International Crops Research Institute for the Semi-Arid Tropics (Icrisat) said.

Dr. William Dar, director general of Icrisat, noted that one potential market for Philippine pigeonpea is India where it is used for making “dal,” a thick soup that is eaten daily.

“Properly developed, pigeonpea can become another export winner for the Philippines.

Aside from meeting domestic demand, poor Filipino farmers can sell their produce and have it exported to countries like India,” Dar told visiting journalists and members of the Philippine Agricultural Journalists Inc. (PAJ) in an interview.

Dr. Myer G. Mula, a Filipino scientist in Icrisat, noted that there is a big demand for pigeonpea in the Philippines as there are about 300,000 Indian nationals living in the country.

A study recently published by Icrisat titled “Pigeonpea: A Resilient Crop for the Philippine Drylands” showed that in 2007 and 2008, India annually imported around 1.5 million metric tons (MMT) to 2.8 MMT of pigeonpea from Myanmar and Africa.

The study noted that a change in US demographics also created a demand for pigeonpea.

“The large Indian and Afro-Caribbean communities in North America offer new potential markets. The potential of canned or frozen-green peas is also high,” Icrisat scientists pointed out.

Icrisat scientists said the Philippines can consider following in the footsteps of Myanmar which exported 445,520 metric tons (MT) of pigeonpea mostly to India in 2008. The street value of the volume exported by Myanmar was pegged at almost $234 million.

In the Philippines, pigeonpea is grown primarily as fresh vegetable by small-farm holders for home consumption. It is grown on a limited scale in the Ilocos Region, Cagayan Valley, Batangas, the Cordillera Autonomous Region, Bicol and the Visayas.

The study noted that most parts of the Philippines are suitable for pigeonpea cultivation.

Dar said that pigeonpea is beneficial to kaingin areas (or areas where burning of trees or farmland are practiced) as it is a soil-and-water conservation crop.

Icrisat scientists pointed out that pigeonpea plants can adapt to a wide range of soil types, from gravel-like soil to heavy clays, provided there is no standing water on the soil surface. It can also tolerate moderate salinity and alkalinity, but not excessive acidity.

At places where the postrainy season is warm, pigeonpea can be successfully grown after harvesting the paddy rice crop.

Research on pigeonpea in the Philippines started in 1975 with the objective of adapting improved pigeonpea germplasm from Icrisat.

Research activities were discontinued in 1997, but were revived in 2005 after scientists from the National Agricultural Research System and Icrisat recognized its importance and potential.

Despite three decades of adaptation trials on pigeonpea, it has not yet been commercialized in the Philippines. Icrisat scientists said the Philippine government can consider the mass-seed production of promising pigeonpea cultivars and supporting seed growers and institutions by providing seed-storage facilities and postharvest equipment.



http://www.businessmirror.com.ph/home/companies/3442-pigeonpea-can-be-another-top-rp-export

DoE weighs baseline on ethanol importation
By MYRNA M. VELASCO
November 8, 2010, 9:16pm

MANILA, Philippines – The Department of Energy (DoE) gets ahead with consultation processes to establish the baseline for the level of importation that warrants it to comply with the mandate on ethanol blend to gasoline for the February 2011 timeframe.

Department of Energy (DoE) Director Mario Marasigan noted that number-crunching has yet to be made depending on the outcome of discussions being carried out with industry stakeholders.

“The public consultation is still ongoing for next year’s mandate so we don’t have a definitive target yet (on the volume of importation),” he stressed.

As some local producers still can’t keep pace with cost dilemmas on their operations, the country’s nascent policy on biofuels, primarily for ethanol, will have to depend momentarily on imports.

Domestic suppliers, such as the operator of the San Carlos Bioenergy ethanol plant, have been batting for tariff protection so they can compete with the cheaper product imports from Brazil. Originally, the tariff protection being sought was at 20 percent, but they now want to have it raised to 30 percent.

The local ethanol producers noted that without a viable tariff protection, it is not farfetched that the policy established on giving boost to indigenous source of energy and value-creating prospects for local farmers, will soon see its demise.

The tariff shield of 20 percent reached approval processes up to the Cabinet level, but the Arroyo administration has not approved the Executive Order which could have concretized the policy.

Based on the initial numbers rolled by the DoE, the oil industry would need at least 400 million liters of ethanol next year – if referenced on the E10 (10 percent blend to gasoline) mandate starting February.

The level of imports will be drawn by deducting the actual volume of supply that can be committed by local suppliers. While they have indicative production of up to 318 million liters by 2011, it was gathered that the real numbers may just reach 118 million liters. But if circumstances will turn out more favorable, they may strive to put up to 200 million liters in the market.

Apart from supply, the country’s ethanol policy is also being knocked down by other concerns, such as the lack of enthusiasm of motorists to shift on usage from pure conventional fuel; logistics concern to have the mandate nationwide and the non-existence yet of housekeeping guidelines that will aid both industry players and end-users on the policy’s implementation.

In fact, even in the area of information campaign, the government is still fledgling, hence, the patronage is not as immense as expected until this time.


http://www.mb.com.ph/articles/286584/doe-weighs-baseline-ethanol-importation

Chickpea holds huge export potential for RP
Tuesday, 09 November 2010 12:19 Jennifer A. Ng / Reporter


HYDERABAD, India—Chickpea (garbanzos) offers income opportunities for Filipino farmers given the demand for it in the Philippines and its huge export potential.
Scientists from the International Crops Research Institute for the Semi-Arid Tropics (Icrisat) noted that the dryland crop is imported in huge quantities by South Asian countries such as India, Pakistan and Bangladesh.

“Chickpea is one of the [dryland] crops for the future,” Dr. William Dar, Icrisat director general, told visiting journalists and members of the Philippine Agricultural Journalists in an interview here.

Icrisat said Filipino farmers can start supplying the local demand. Figures from the institute show that from 1996 to 2005, the Philippines imported an average of 700,000 kilograms of chickpea valued at around $400,000 (roughly P20 million).

Aside from local demand, farmers can tap potential export markets such as India, where the estimated shortfall in chickea production is 500,000 metric tons (MT) per year.

Currently, India buys chickpea from Australia, Mexico and Turkey at an average import price of 40 US cents per kilo or $400 per MT.

Icrisat is assisting the Philippine government to identify suitable chickpea variants that can be grown in the Philippines.

The institute signed a memorandum of agreement (MOA) among Benguet State University, the Department of Agriculture’s regional office in the Cordillera Administrative Region, the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development and Icrisat in November 2007.

The MOA launched joint efforts on identifying suitable chickpea cultivars and the development of production technologies for the Philippines.

Icrisat supplied six cultivars for exploratory trials. The target regions for exploratory trials are the highlands of the Cordillera because of cooler temperatures.

Chickpea is a cool-season, self-pollinated legume which originated in southeastern Turkey. Icrisat noted that crop-improvement efforts have helped the chickpea adapt to warmer conditions in the subtropics.

It is the second-largest grown food legume in the world. South and Southeast Asia account for about 80 percent of the production and consumption of chickpea in the world.

Icrisat scientists noted that chickpea has one of the highest nutritional compositions of any edible legume. It contains 22-percent protein and is high in phosphorus, calcium, iron and zinc.


http://www.businessmirror.com.ph/component/content/article/53-agri-commodities/3500-chickpea-holds-huge-export-potential-for-rp

Why don't just the BSP simply brint more money? Doing so will not just help us devalue the Peso but also help flood our people with more bills and coins. It's the simplest way to control the Peso's too fast appreciation.

If BSP will do this, PHP will become a mickey mouse money again.

^^
We're seeing it already as the Dollar becomes they're own DISNEY MONEY.

We've had those Mickey Mouse Bills before when we're under the Japanese as a puppet-state.

Another option could be to first pay our debts using our stockpiles of green money so we'll end up losing a large volume of them and the Peso will devalue. And then diversify onto holding in other currencies. Balance our currency holding basket.

^^
We're seeing it already as the Dollar becomes they're own DISNEY MONEY.

We've had those Mickey Mouse Bills before when we're under the Japanese as a puppet-state.

Another option could be to first pay our debts using our stockpiles of green money so we'll end up losing a large volume of them and the Peso will devalue. And then diversify onto holding in other currencies. Balance our currency holding basket.

If I may chime-in, I think it's better to keep gold than greenbacks! What do you think?

^ It's a good idea. Keep something with the REAL value and not the BILLS. And the Philippines has a vast deposits of untapped gold.

The Negros Showroom
By Cecile Jusi-Baltasar
November 21, 2010, 3:06pm

There is much to like in Bacolod City, the booming capital of Negros Occidental. At the top of the list are the delicious food and a vibrant art scene (director Peque Gallaga, painter Charlie Co, and actor Joel Torre are true-blue Negrenses). Coming a close second is Negrense craftsmanship. This skill to create something beautiful out of indigenous products is showcased in the Negros Showroom, efficiently and artfully run by the 24-year-old Association of Negros Producers (ANP).

The Showroom, which is, according to the Bureau of Domestic Trade Promotions, the top trade house in the Philippines, sits in an unassuming two-storey building right across the Capitol Building and an artificial lagoon on busy Lacson Street. Entering the Showroom, one is welcomed by a shiny burst of color from laughing masks of Bacolod’s famous annual Masskara festival. Everywhere else one looks, there are exquisitely made handicrafts, such as ceramic wind chimes, jewelry, photo frames, souvenir T-shirts, embroidered children’s clothes. Also, shelves and shelves of signature Negrense sweets for pasalubong. Upstairs are the furnishings, the Showroom’s bestsellers both in the Philippines and abroad.

All these products are made by the laid-back and artistic Negrense.

Backyard Businesses

The ANP currently has 92 active members, made up of small and medium enterprises (SMEs), corporations, and foundations. All these members have their products consigned to and displayed in ANP’s Negros Showroom. The products are divided into four categories: furniture and furnishings, food, fashion, and gifts and houseware.

“We have an advocacy to help Negrense entrepreneurs,” says Kathleen Trebol, operations manager of the ANP. “Our profits go back to our SME members to assist them in any way we can.” Membership into the ANP has many benefits: quick and low-interest financial loans, assistance in DTI and DOST registrations, exposure in local and Tinternational markets, help in product development and quality control.

This is why an ANP membership is highly sought by Negros producers. To become a member, the entrepreneur has to be, of course, Negrense. Also, the manufacture of products (from materials that have to be sourced in Negros) has to be done in Negros. ANP tries marketing applicants’ products for three months, after which a product evaluation takes place, which makes or breaks the application process.

Successful applicants aren’t always big-shot entrepreneurs. Small businesses, whose production takes place in the owner’s kitchen or garage, are always welcome to apply for ANP membership. In fact, says Trebol, “we help our members grow from being just backyard businesses to becoming confident and experienced entrepreneurs and even exporters.”

To accomplish this, ANP members are consistently exposed to trade fairs, both local and international. Also, ANP facilitates hook-ups between its members and international buyers (or even just buyers from Manila). Presently, the Negros Showroom, which doesn’t have any branches, supplies products to high-end Manila-based stores such as Kultura Filipino, Balikbayan Handicrafts, Tesoro’s and Rustan’s. The Showroom’s jewelry selection has found a home in Firma, in Greenbelt, and has secured an invitation to display from the Ayala Museum.

Overseas, Trebol says the ANP’s top customers are the Middle East (which orders the most furnishings), the United Kingdom, the United States, Canada and Australia.

Although currently the export market is down due to the world economic crises, the local market is up, with furniture as the bestsellers.

Rising from Poverty

The ANP’s history is actually about how a group of women raised the rest of Negros up from hunger. Negros, a monocrop industry, suffered a huge drop in economy in the 1980s when world sugar prices plummeted. In reaction, the government grabbed control of sugar trading, crippling sugar workers all across Negros. Eighty-four percent of Negros then lived below the poverty line, 60 percent of its children became malnourished, over 150,000 workers were displaced.

In an effort to get up from this huge stumble, 15 Negrense women began sharing their craftsmanship and entrepreneurial know-how with the wives of the unemployed farm workers. The House of Negros Foundation was thus born: a non-stock, non-profit, non-political organization made up of entrepreneurs, professionals and housewives with the sole objective of creating jobs. Later on, the organization took on the name Association of Negros Producers.

In time, this organization would mold little-town budding craftsmen into global entrepreneurs. And rightly so.

The Negros Showroom is at Lourdes C Building, 9th Lacson St., Bacolod City, Negros Occidental. Tel. nos: (034) 434-1000 and (034) 433-8833. E-mail: info@anp-philippines.com.


http://www.mb.com.ph/node/288758/the-negro

Isn't there a cartel in the local cement industry?

I can't help but notice this one-liner! Maybe or maybe not.
I happened to take a glimpse on this market and I think there's more than what meets our eyes! The raw materials are basically inside the plant's perimeter and the process looks rather simple: haul, grind, heat and re-grind plus additives! And the cement price is still prohibitive! We can always ask why? I could be wrong though, not my line of work!

'Buy Pinoy' exporters’ fair slated
By MIKE U. CRISMUNDO and PIA
November 23, 2010, 8:33pm

CAGAYAN DE ORO CITY, Philippines – More Filipinos, especially those in the countryside, are encouraged to be entrepreneurs to create additional jobs and thus help reduce poverty in the country.

Marlane Villa-Real, president of Buy Pinoy Movement Foundation Inc. (BPMFI), said the organizers of the 20th Buy Exporters’ Fair slated from Nov. 25 to 28, 2010 at the Megatrade Hall 2 of SM Megamall has invited local government officials, and employees to participate in the event so they could appreciate first-hand what local entrepreneurship can do to their respective localities.

Villa-Real said that for the past eight years, the fair, held twice a year, had been providing beacons of hope to the poor countrymen by showing them tangible proof of products of Filipino originality, artistry, craftsmanship and industry that had been in ever growing demand in the world market.

She particularly cited the Bicol entrepreneurs who have been most active and dynamic participants from the time the Buy Pinoy fair started.

“We believe that given widest support, production such as these could be the Filipinos’ ticket out of poverty without going abroad to leave their families,” she said in a letter to Department of the Interior and Local Government (DILG) Secretary Jesse Robredo.

To develop more entrepreneurs in the country, teachers, children and the youth are likewise asked to participate in the event.

The BPMFI believes that by creating public awareness through actual exposure with export products that are in demand worldwide, the Filipinos through entrepreneurship can have a brighter future if everyone works together.

Leonor D. Abella, vice president for promotions of the Philippine Exporters Confederation, Inc. (PhilExport) and trustee of the BPMFI, said that apart from job generation, skills upgrading, training and continuing practice provided by the small and medium enterprises are also important in a sustainable anti-poverty program.


http://www.mb.com.ph/articles/289173/buy-pinoy-exporters-fair-slated

Cebu dried fruit exporter expands markets
November 24, 2010, 8:57pm

MANILA, Philippines – Cebu-based Profood International Corp., the country’s biggest exporter of dried fruits and juices, is expanding its presence in 40 countries to include Eastern Europe and China.

Company president Justin S. Uy told reporters at the sidelines of the awarding ceremony of the Agora Award for Outstanding Achievement in Entrepreneurship-Large Scale where Profood is one of the awardees.

“We are present in the mainstream markets in 40 countries and the U.S.and Canada are our top markets. We will be expanding to Eastern Europe and China, especially now that tariff rate for our products had been reduced to zero already,” Uy said.

Uy said the company is exporting an average of $50 million a year and is expecting to post a 20 percent growth this year following the recovery of the U.S. market its biggest market.

The company operates 12 manufacturing in four locations in the country employing as many as 6,000 people depending on fruit season. They are producing 50 tons a day of dried mangoes, its number one exports out of 11 types of tropical fruits it is currently processing. At least 95 percent of its production is geared for exports.

According to Uy, at least 65 percent of its gross income benefits farmers and workers in the countryside.

“It is difficult to have our own fruit plantation because of the Agrarian Reform Program, so we have to put up 30 buying stations throughout the country for its own requirements,” he said.

Uy said that the company is also supplying to industrial firms locally such as Nestle, Coca Cola, PepsiCo, Del Monte and Asahi. Their products are being carried by the world’s major retailers such as Costco and Carrefour, among others.

Uy further said the company has been expanding with an annual investments of P200 million.

He said the Philippines is the preferred choice for dried fruits because of its quality albeit at a higher price than its competitors from Vietnam and Thailand. (BCM)


http://www.mb.com.ph/articles/289342/cebu-dried-fruit-exporter-expands-markets

Jan.-Oct. Peza exports rise 26% to $33.63B
Wednesday, 01 December 2010 19:58 Jennifer A. Ng / Reporter


TOTAL exports from locators in the Philippine Economic Zone Authority (Peza) from January to October this year went up by almost 26 percent to $33.63 billion, from $26.71 billion for the same period last year.

Private ecozones had the biggest increase in shipments at 29 percent to $23.59 billion.

Exports from public ecozones went up by almost 25 percent to $6.4 billion, as against $5.1 billion for the same period last year.

Information technology (IT) parks and buildings registered exports of $3.62 billion, up 9.6 percent from $3.3 billion for January-October 2009 period.

Meanwhile, jobs generated from Peza investments reached 725,747 or 20.3-percent higher than the 603,159 listed last year.

Private ecozones accounted for the bulk of the jobs at 333,262 or 18.8-percent higher than the January-to- October 2009 figure.

IT parks and buildings opened 269,114 jobs or 33.7 percent higher than what they produced last year.

Public ecozones accounted for 123,371 jobs during the period. This was 1.5-percent higher than the jobs available for the same period last year.


http://www.businessmirror.com.ph/home/economy/4418-jan-oct-peza-exports-rise-26-to-3363b

EDC revises target; exports to double by 2016
By BERNIE CAHILES-MAGKILAT
December 5, 2010, 3:43pm

MANILA, Philippines – The Export Development Council (EDC) has revised its goal to double exports by 2016, three years longer than the original 2013 target as some sectors failed to meet export expectations amid the strong appreciation of the peso against the US dollar.

Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation (PhilExport) and EDC co-chair and private sector representative, told reporters during a chance interview that EDC has already completed the revised Philippine Export Development Plan.

“We have just completed the PEDP for presentation to Malacañang and for President Aquino’s approval,” Ortiz-Luis said.

He said that EDC has decided to revise its target based on the performance of the peso against the dollar and the slowdown in the country’s exports. He said the small and medium enterprises are still suffering, especially those indigenous product exporters.

“When the dollar was performing well against other currencies, we thought we could possibly double our 2010 exports by 2013 but that is no longer possible now as the dollar has been depreciating against other currencies, thus, we revised to double our exports by 2016 instead,” he said.

The 2010 export is expected to hit the 2007 level of $54 billion, which is 10 to 12 percent higher than 2009 performance.

Early this year, the export sector was projecting as much as 20 percent growth in exports this year because of the strong electronics market but the momentum was stalled by a still weak exports market coupled by the weakening of the US greenback.

“We may end up 2010 with 10 percent growth or 12 percent, including the services sector,” he said.

Ortiz-Luis, however, said that the PEDP are open to review depending on the developments in the international market.

Growth drivers being considered under the PEDP are the sunshine industries such as mining, agriculture and tourism.

“We hope the issues hounding the mining sector would be resolved so this sector can contribute to our exports in the next two years,” he said.

The tourism sector is also expected to post robust growth in the medium term because it has been lagging behind other countries in the region, he added.

The BPO sector, however, is seen to continue its robust growth ahead.

Ortiz-Luis also said that the stability of the peso is key to attaining the PEDP targets saying it does not help that some speculators are making pronouncements that the local currency would end up at P39 to the dollar.

“Somebody must be paying them,” he said.

It could be recalled that the peso soared to as high as P43 versus the dollar and some analysts were projecting it to settle at P41 this year.


http://www.mb.com.ph/articles/291084/edc-revises-target-exports-double-2016

Fruit exporter cites JPEPA for higher sales
By Ma. Elisa P. Osorio (The Philippine Star) Updated December 07, 2010 12:00 AM Comments (0) View comments

MANILA, Philippines - A local fruit exporter to Japan said the Japan Philippine Economic Partnership Agreement (JPEPA) has helped boost the company’s sales by 41 percent last year.

In a statement, Primefruits International, a producer of banana chips and nata de coco, reported that their company’s sales grew by 41 percent in 2009 after the JPEPA was implemented.

Primefruits said that the JPEPA helped them compete better against Ecuador and other Central American countries who do not enjoy the same preferential benefits.

According to Trade Secretary Gregory L. Domingo, Free Trade Agreements (FTAs) offer strategic benefits to our exporters. “Encouraging more companies to utilize our existing FTAs will further boost the country’s competitiveness, generate jobs, and strengthen our good standing in the global market,” Domingo said.

The Department of Trade and Industry (DTI) is improving the competitiveness of Filipino exporters by creating business opportunities in markets where the country has FTAs.

Domingo said that the Philippine FTA with Japan offers small companies, like Primefruits opportunities to strengthen their engagement with Japanese importers. Primefruits has 400 workers and has the capacity to produce 60 tons of banana chips per day and could maximize daily production of up to100 tons.

Japan is the world’s fourth largest market, with close to $551 billion total merchandise imports from the rest of the world in 2009. It has 126 million consumer base and $5.1 trillion gross domestic product (GDP) for the same period.

To further help local companies explore and benefit from FTA markets, the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine ExportersConfederation

(Philexport) together with the Department of Trade and Industry (DTI), the Bureau of Customs (BOC), and the Tariff Commission (TC) are conducting a nationwide series of business forums on

“Doing Business in Free Trade Areas” or DBFTA.

Topics in the DBFTA forums include business opportunities for importers and exporters arising from the tariff liberalization, application procedures for Certificate of Origin (CO) to avail of the preferential tariffs, and other relevant information when addressing Philippine FTA markets including ASEAN, China, Japan, Korea, Australia, and New Zealand.

The DBFTA is open to businesses in various stages of growth and operations that are planning to expand into other markets and increasing their exports and profits by utilizing the foreign trade agreements.

Philippines' exports increase 26 percent in October
December 10, 2010, 4:12pm

MANILA, Philippines (Xinhua) - Total merchandise exports went up by more than a quarter to 4.73 billion U.S. dollars in October over the same period last year as demand for more electronic products continues, Philippines' National Statistics Office (NSO) said Friday.

On a month-on-month basis however, October exports declined by 11 percent from the 5.32 billion U.S. dollars posted in September. This brings January to October figure to 43.04 billion U.S. dollars, up by 37.1 percent over last year.

NSO said electronic products continue to be the country's top export commodities, cornering 63 percent of the total export revenue in October, followed by garments and clothing accessories.

Singapore emerged to be the country's top export destination during the period, followed by Japan, the United States, China, China's Hong Kong, Thailand, Netherlands, Germany, China's Taiwan and South Korea. Total export receipts from these markets reached 4.02 billion U.S. dollars or 84.8 percent of the total.


http://www.mb.com.ph/articles/292069/philippines-exports-increase-26-percent-october

Is Philippines imposes more stricter importation laws???....

Is Philippines imposes more stricter importation laws???....

Bakit mo naitanong sir?:)

Fruit exporter cites JPEPA for higher sales
By Ma. Elisa P. Osorio (The Philippine Star) Updated December 07, 2010 12:00 AM Comments (0) View comments

MANILA, Philippines - A local fruit exporter to Japan said the Japan Philippine Economic Partnership Agreement (JPEPA) has helped boost the company’s sales by 41 percent last year.

In a statement, Primefruits International, a producer of banana chips and nata de coco, reported that their company’s sales grew by 41 percent in 2009 after the JPEPA was implemented.

Primefruits said that the JPEPA helped them compete better against Ecuador and other Central American countries who do not enjoy the same preferential benefits.

According to Trade Secretary Gregory L. Domingo, Free Trade Agreements (FTAs) offer strategic benefits to our exporters. “Encouraging more companies to utilize our existing FTAs will further boost the country’s competitiveness, generate jobs, and strengthen our good standing in the global market,” Domingo said.

The Department of Trade and Industry (DTI) is improving the competitiveness of Filipino exporters by creating business opportunities in markets where the country has FTAs.

Domingo said that the Philippine FTA with Japan offers small companies, like Primefruits opportunities to strengthen their engagement with Japanese importers. Primefruits has 400 workers and has the capacity to produce 60 tons of banana chips per day and could maximize daily production of up to100 tons.

Japan is the world’s fourth largest market, with close to $551 billion total merchandise imports from the rest of the world in 2009. It has 126 million consumer base and $5.1 trillion gross domestic product (GDP) for the same period.

To further help local companies explore and benefit from FTA markets, the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine ExportersConfederation

(Philexport) together with the Department of Trade and Industry (DTI), the Bureau of Customs (BOC), and the Tariff Commission (TC) are conducting a nationwide series of business forums on

“Doing Business in Free Trade Areas” or DBFTA.

Topics in the DBFTA forums include business opportunities for importers and exporters arising from the tariff liberalization, application procedures for Certificate of Origin (CO) to avail of the preferential tariffs, and other relevant information when addressing Philippine FTA markets including ASEAN, China, Japan, Korea, Australia, and New Zealand.

The DBFTA is open to businesses in various stages of growth and operations that are planning to expand into other markets and increasing their exports and profits by utilizing the foreign trade agreements.

F*ck JPEPA!:bash::bash:

These is my assignment in Values Education.... can anyone could answer this......
IS PHILIPPINES IMPOSES STRICTER IMPORTATION LAWS???....... tHANKS :)

^ No, obviously we import a lot of goods sometimes outweighing our exports so for sure, there are not much restrictions on those. But that's just a guess, I'm a High School Student myself. ^_^

^^ Thanks a lot for a little background check you have, wow an high school student like you actively participates in these discussion... :)

^ Yeah, my mates kinda think it's weird but I guess it's just what I do for fun. I enjoy it here. ^_^

Philippine exports surge, best in Asean
Sunday, 12 December 2010 21:34 Cai U. Ordinario / Reporter


WITH more than 30-percent export growth posted in the January to October period, the National Economic and Development Authority (Neda) considers it “very likely” the country will exceed its export targets this year.

In a statement, Neda Director General and Socioeconomic Planning Secretary Dr. Cayetano W. Paderanga Jr. said that with October export earnings growing by 26.4 percent to $4.74 billion, the January-October export earnings have posted a growth of 37.1 percent or $43 billion.

“With this, we are very likely to exceed our target of 15-percent exports growth this year, since only $1.4 billion is needed for the two remaining months to achieve the target,” Paderanga said.

The Neda seems confident that besides the fact that only less than $2 billion needs to be earned to meet the country’s export targets, the Philippines also bested other Asean countries in terms of export earnings growth in October.

Paderanga said the Philippines emerged as the country in Southeast Asia with the fastest export growth in October, beating heavyweights such as Vietnam and Singapore.

“With a growth of 26.4 percent, the Philippines posted the highest export growth in Southeast Asia in October 2010. Other top performers in the region were Vietnam [22.8 percent] and Singapore [19.6 percent],” Paderanga said.

The trend in exports, particularly in the main export, electronics, looks very promising for the Philippines, according to him. In fact, he said some industry sources believe that the future growth of exports hinges on the increase in demand for consumer electronics and mobile devices.

In October shipments of manufactured goods grew by 31.8 percent. Exports of manufactured goods stood at $4.2 billion, or 88.6 percent of the total export receipts in October 2010. Semiconductors, machinery and transport equipment were the top manufactured exports for the month.

Paderanga said semiconductors, which comprised half of the total exports, surged by 63.8 percent on account of improved foreign demand and higher prices over the previous year.

“The volume of shipments to main buyers like the Netherlands, Singapore, China and Hong Kong SAR posted substantial increases, while the implicit export price of semiconductors rose by 39.5 percent. The performance of the local electronics sector reflected the positive trend in the global semiconductor industry, which posted a 19.8-percent increase in October 2010,” he explained.

Singapore remained the top destination of Philippine merchandise exports with an 18.2-percent share in October, or about $860.6 million. This is a 298.1-percent increase compared to the previous year.

Singapore’s substantial orders came from semiconductors, which grew 393.4 percent from last year; petroleum products, which rose 345.4 percent; and electronic data-processing machines, higher by 71.5 percent on account of the 3-percent increase in industrial production.

Japan placed second, with a 16.1-percent share, followed by the United States (14.7 percent), China (11.8 percent), and Hong Kong, China (7.4 percent).

Shipments to China, including Hong Kong and Taipei, accounted for 22.4 percent of Philippine exports in October. On the other hand, exports to Asean countries accounted for 25.8 percent.


http://www.businessmirror.com.ph/home/top-news/4853-philippine-exports-surge-best-in-asean

Exported coconut products to earn P68.76B for PH this year
Thursday, 09 December 2010 19:12 Jennifer A. Ng / Reporter
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The country’s export of coconut products for 2010 is expected to go up by 78 percent to $1.57 billion (P68.76 billion at the current exchange rate) on the back of the recovery in demand for coconut oil (CNO) and other coconut products worldwide.

Initial estimates released by the Philippine Coconut Authority (PCA) showed that the CNO remained the country’s top farm export, with earnings estimated at $1.21 billion or 106.98 percent higher than the receipts posted in 2009.

“This is the first time in many years that demand, supply and price have increased dramatically. [The year 2010] should be a banner year for the coconut sector,” PCA Administrator Oscar Garin told reporters at the sidelines of the two-day Coconut Summit that opened in Quezon City yesterday.

Garin said this year marks the fifth time earnings from coconut exports hit the billion-dollar mark. The first time was in 1979, when shipments of coconut products hit $1.03 billion. CNO had always been the country’s top coconut-export products.

In terms of volume, the PCA noted that coconut exports went up by 55.49 percent to 2.355 million metric tons (MMT) in copra terms, compared to 1.51 MMT in 2009.

CNO shipments also increased by 64 percent to 1.355 MMT compared to 826,237 metric tons (MT) last year.

“There is an increase in demand for CNO in the local market [due to] the implementation of the mandated 2- percent blend of coco methyl ester with diesel,” said Garin.

For the whole of 2010, the average price of CNO was estimated at $897.79 per MT, 26.15 percent higher than the $711.68 per MT registered last year.

Other coconut products, except for coco shell charcoal, increased in terms of revenues. Revenues from copra meal went up by 57.8 percent to $75.61 million. Receipts from shipments of dessicated coconut went up by less than one percent to $146.29 million.

Earnings from activated carbon are expected to go up by 61 percent to $41.65 million while revenues from coco chemicals will increase by 34 percent to $17.02 million.

The expected coconut shipments for 2010 overshot the estimate made by the PCA in August, when officials placed coconut exports at 1.77 MMT.

The two-day Philippine Coconut Industry Summit aims to assess the current status and performance of the coconut industry and provide platform for all stakeholders in formulating well-planned and coordinated directions, among others.

Meanwhile, the PCA unveiled its “road map” for the coconut industry. Garin said the roadmap calls for increasing coconut production through planting, replanting, fertilization, development of seed farms, and pest management. The agency would require around P8.02 billion until 2016

Philippine exports surge, best in Asean
Sunday, 12 December 2010 21:34 Cai U. Ordinario / Reporter


WITH more than 30-percent export growth posted in the January to October period, the National Economic and Development Authority (Neda) considers it “very likely” the country will exceed its export targets this year.

In a statement, Neda Director General and Socioeconomic Planning Secretary Dr. Cayetano W. Paderanga Jr. said that with October export earnings growing by 26.4 percent to $4.74 billion, the January-October export earnings have posted a growth of 37.1 percent or $43 billion.

“With this, we are very likely to exceed our target of 15-percent exports growth this year, since only $1.4 billion is needed for the two remaining months to achieve the target,” Paderanga said.

The Neda seems confident that besides the fact that only less than $2 billion needs to be earned to meet the country’s export targets, the Philippines also bested other Asean countries in terms of export earnings growth in October.

Paderanga said the Philippines emerged as the country in Southeast Asia with the fastest export growth in October, beating heavyweights such as Vietnam and Singapore.

“With a growth of 26.4 percent, the Philippines posted the highest export growth in Southeast Asia in October 2010. Other top performers in the region were Vietnam [22.8 percent] and Singapore [19.6 percent],” Paderanga said.

The trend in exports, particularly in the main export, electronics, looks very promising for the Philippines, according to him. In fact, he said some industry sources believe that the future growth of exports hinges on the increase in demand for consumer electronics and mobile devices.

In October shipments of manufactured goods grew by 31.8 percent. Exports of manufactured goods stood at $4.2 billion, or 88.6 percent of the total export receipts in October 2010. Semiconductors, machinery and transport equipment were the top manufactured exports for the month.

Paderanga said semiconductors, which comprised half of the total exports, surged by 63.8 percent on account of improved foreign demand and higher prices over the previous year.

“The volume of shipments to main buyers like the Netherlands, Singapore, China and Hong Kong SAR posted substantial increases, while the implicit export price of semiconductors rose by 39.5 percent. The performance of the local electronics sector reflected the positive trend in the global semiconductor industry, which posted a 19.8-percent increase in October 2010,” he explained.

Singapore remained the top destination of Philippine merchandise exports with an 18.2-percent share in October, or about $860.6 million. This is a 298.1-percent increase compared to the previous year.

Singapore’s substantial orders came from semiconductors, which grew 393.4 percent from last year; petroleum products, which rose 345.4 percent; and electronic data-processing machines, higher by 71.5 percent on account of the 3-percent increase in industrial production.

Japan placed second, with a 16.1-percent share, followed by the United States (14.7 percent), China (11.8 percent), and Hong Kong, China (7.4 percent).

Shipments to China, including Hong Kong and Taipei, accounted for 22.4 percent of Philippine exports in October. On the other hand, exports to Asean countries accounted for 25.8 percent.


http://www.businessmirror.com.ph/home/top-news/4853-philippine-exports-surge-best-in-asean

:cheers::cheers::cheers:

Private groups urged to tap EU, Phl cooperation facility
By Iris C. Gonzales (The Philippine Star) Updated December 15, 2010 12:00 AM

MANILA, Philippines - The National Economic and Development Authority (NEDA) is urging private institutions to tap a facility under a cooperation program between the European Union and the Philippine government.

The program provides assistance on trade matters that affect poverty reduction, a NEDA official said.

The so-called Rapid Response Facility (RRF), with an initial amount of P42 million enables public and private institutions to adequately respond to new and emerging international trade issues.

Proponents may access technical advice from EU trade experts and other technical assistance (TA) inputs, such as trainings and workshops.

The RRF is a component of the second phase of the Trade Related Technical Assistance (TRTA 2), which is a co-operation program between the European Union and the Philippines.

It seeks to establish free, fair and safe trade to reduce poverty.

NEDA Director Brenda Mendoza, administrator of the assistance program said that when the second phase of the program was developed, the provision of a short-term Assistance for unforeseen needs within a reasonable period of time was deemed necessary.

“Now, proponents see the benefit of having a facility that has the flexibility to address certain issues that were not foreseen when the second phase of the program was being planned,” said Mendoza.

With this available funding, Mendoza urged academic and research institutions and civil society organizations to propose activities for RRF funding, as most of the proponents come from the government.

The RRF already completed the provision of TA to three proposals from government agencies.

These include the Department of Labor and Employment’s policy formulation for the labor market test; the Department of Agriculture’s training on traceability and cold chain for fish inspectors and stakeholders; and the Bureau of Custom’s support to change management.

Three RRF activities are already in the pipeline, while another three are ongoing. All of them were proposed by government agencies.

NEDA will review the proposals and endorse them to the EU for approval based on the guidelines of the program.

“The TRTA was first forged in 2005 to address trade-related issues including concerns on trade barriers, customs agreements and sanitary and phytosanitary (SPS) measures, or those related to food safety, animal and plant health,” the NEDA said.

TRTA 2 commenced in 2008 after the conclusion of the first phase in the same year. The second phase of the program has an estimated cost of 7.475 million euros, of which 6.5 million euros come from the European Commission while the rest is from the government, the NEDA also said.

In its statement, the NEDA said that aside from RFF, the other three components of the assistance program are trade policy and export development, standards harmonization and SPS conformity and trade facilitation.

Private groups urged to tap EU, Phl cooperation facility (http://www.philstar.com/Article.aspx?articleId=639208&publicationSubCategoryId=66)

20 Companies That Cratered in 2010 (http://finance.yahoo.com/news/20-Companies-That-Cratered-in-usnews-3358422380.html?x=0)

Rick Newman, On Thursday December 16, 2010, 3:29 pm EST

Call it the year of the stealth bankruptcy.

After two years of colossal corporate meltdowns--the liquidations of Lehman Brothers and Circuit City, the General Motors and Chrysler bankruptcies, the near failures of AIG and Citigroup--2010 seemed like a year of convalescence. The default rate on corporate debt, according to Moody's, plummeted from the peak levels of 2009 and headed back toward pre-recession levels. The biggest bankruptcy of the year was a company most Americans have never heard of--bond insurer Ambac--and investors saw it coming so far in advance that the markets barely reacted. And overall corporate profits reached stratospheric levels, signaling boom times for companies that endured the Great Recession and lived to tell the tale.

[See 20 industries where jobs are coming back.]

Yet even though it officially ended in 2009, the recession cast a long shadow over 2010, claiming many companies that took on too much debt in earlier years and simply couldn't generate enough cash flow to pay their bills in today's frugal economy. Many of those companies were able to stay in business as they worked through bankruptcy and restructured their debts, with customers barely noticing. That's a sign that lending is returning to normal and banks are willing to take more risks on companies with good prospects. A few brands, particularly in the auto industry, disappeared simply because their relevance faded. And some corporate flops occurred as newer, more aggressive companies displaced older, outdated ones--a constant in a capitalist economy. Here are the biggest corporate casualties of 2010:

A&P. This grocery chain, with about 400 East Coast outlets, struggled during the recession, and also took on lots of debt when it acquired competitor Pathmark in 2007. The financial strains became unbearable, forcing A&P to declare bankruptcy in December. The company plans to keep operating its stores, which include the Super Fresh, Waldbaum, and Food Emporium chains, while it restructures. It may also merge with another retailer, to broaden its scale and appeal.

Affiliated Media. Newspapers used to be nicely profitable--until the Internet became a ubiquitous source of free news, rupturing a decades-old business model. When this company, which publishes the San Jose Mercury News, Denver Post, and about 50 other newspapers, declared bankruptcy in January, it followed at least a dozen other newspaper publishers into Chapter 11. The good news is that Affiliated emerged from bankruptcy less than two months after filing, with a lot less debt, some new owners, and its papers intact.

[See how the middle class is shrinking.]

Ambac. The main subsidiary of this bond insurer sold protection on mortgage-backed securities, which became the "toxic assets" that helped trigger the financial panic of 2008. Ambac has been trying to restructure its business since 2007, when the housing bust began to intensify, by expanding its more conservative municipal-bond business. But it finally succumbed to bankruptcy in November 2010--the biggest filing of the year, according to BankruptcyData.com. The firm is also dickering with the IRS over $700 million in tax refunds from prior years that it may not deserve.

American Media. Here's a tabloid shocker--dirt doesn't sell the way it used to. That's because the type of tawdry gossip peddled by Star and National Enquirer, this company's franchise publications, is available faster and cheaper on the Web, at sites like TMZ and Gawker. Other American Media titles, like Shape, Men's Fitness, and Natural Health, are also struggling to hold onto advertising revenue as publishing migrates to the Web. By November 2010, American Media had a debt load seven times the value of the company, which drove it into bankruptcy. It hopes to emerge soon, with less debt and most of its businesses intact.

Blockbuster. This movie-rental chain failed to notice the future happening all around it. While Blockbuster was doubling down on retail stores and dunning its customers with loathsome late fees, Netflix wooed millions of movie fans by mailing them DVDs and offering streaming video over the Web, and Redbox set up convenient kiosks offering overnight movies for a buck. No wonder Blockbuster declared bankruptcy in September. It hopes to emerge from bankruptcy and fight back, but the company is now way behind.

[See why a double-dip recession hasn't happened.]

Hummer. Its audacious off-roaders captured the fin de siecle, faux-rugged ethos of the early 2000s. But Hummer sales tanked during the 2008 oil-price spike, and Hummers ended up on the wrong side of the "new frugality" that followed the Great Recession. The end came after parent firm General Motors declared bankruptcy in 2009, and thinned its divisions from eight to four as part of its restructuring. For a while it looked as if a Chinese company would buy Hummer from GM, but when that deal fell through, Hummer was put out to pasture.

Innkeepers USA. This commercial-property company--which owns about 70 hotels that operate under brands like Residence Inn, Hampton Inn, Summerfield Suites, Hilton, and Hyatt--followed a familiar path toward bankruptcy. A private-equity firm bought the company in 2007, near the peak of the real-estate bubble, taking on a lot of debt to finance the purchase. As property values fell and business dried up during the recession, the company came up short on the cash flow needed to pay down its loans. It's now working its way through a "prepackaged" bankruptcy that has left most of its properties operating normally.

Jennifer Convertibles. Furniture sales sank during the recession, and this sofabed seller closed about 50 stores to stanch the red ink. But that wasn't enough to prevent a bankruptcy filing in July. The company has been able to keep more than 300 stores open while it restructures, half of them under its Ashley Furniture brand. A Chinese firm that's one of Jennifer's biggest suppliers will end up owning a big chunk of the company.

[See 4 reasons jobs remain so scarce.]

Loehmann's. Retail sales began a tepid recovery in 2010, but it was too late for this chain that sells discount designer clothing. The November bankruptcy filing was the second for Loehmann's, which also declared Chapter 11 in 1999 and emerged a year later. A Dubai-based investing firm bought Loehmann's in 2006, taking on more debt than it could manage as sales tumbled during the recession. Loehmann's hopes to write off debt and be solvent once again in 2011, with most of its 46 stores operating as normal.

Mesa Air. Airline bankruptcies have become so routine that few fliers noticed when this small carrier--which operates regional "express" flights for United, US Airways, and Delta--filed Chapter 11 last January. Mesa described the filing as a "voluntary" action that would allow it to rapidly streamline while continuing normal operations, and so far the airline has slashed its fleet from about 180 aircraft to fewer than 80, while still serving 130 cities. US Airways could emerge as a part owner of the company.

Metro-Goldwyn-Mayer. This studio's archives include classics like The Wizard of Oz, Dr. Zhivago, and Rocky, but a dearth of recent hits--plus debt piled on when a group of private investors bought the studio in 2005--led to a much-anticipated bankruptcy filing in November. MGM should be back on its feet by early 2011, with a much lower debt load and new owners eager to move forward on big projects like two new Hobbit films and the 23rd James Bond flick.

Mercury. Parent company Ford Motor has turned itself around and become nicely profitable, but it's not bringing the middling Mercury brand along with it. The aging Mercury got sandwiched between the mainstream Ford lineup and the Lincoln luxury division, with Ford deciding two nameplates was enough. Since most Mercury models were glorified Fords anyway, few car buffs will miss it.

[See 15 cars fueling Detroit's revival.]

Movie Gallery. Haven't we seen this movie before? Movie Gallery, which ran Hollywood Video and was once the second-largest video-rental chain in America, first filed for Chapter 11 protection in 2008, then filed again in February 2010 when its restructuring plan failed to gain traction. The firm tried to keep some stores open, but eventually went to black and closed all of its 2,400 U.S. outlets, cashiering 19,000 workers.

Newsweek. The Washington Post, which had long owned Newsweek--and lost millions on it in recent years--sold the venerable title for one dollar to 91-year-old billionaire Sidney Harman in August. Since the magazine had millions in debt, the deal seemed like a sympathy purchase that would merely delay Newsweek's demise. Then Newsweek merged with The Daily Beast, the website run by publishing titan Tina Brown, creating a strange amalgam of two money-losing properties that might, um, lose less money together. Critics will spend 2011 either snickering over synergy that's never going to happen, or eating their words.

Oriental Trading Company. A little bankruptcy. No big deal. That's the message this crafts, novelties, and party-supply retailer conveyed after declaring bankruptcy in August, saying on its website that it plans to continue with "business as usual" and that writing off more than $400 million in debt "will enable us to pursue our growth strategy more effectively." The company, owned by private-equity firms, is shifting more of its business from catalogs to its website as it tries to shed costs and reach more consumers.

[See why "recession-proof" jobs are a myth.]

Penton Media. Trade publications like Air Transport World, Nation's Restaurant News, and Farm Press face the same challenge as consumer periodicals: staying profitable while ad revenue migrates from traditional media to the digital world. With a stable of such titles, business publisher Penton battled a steep decline in sales that led to bankruptcy in early 2010. But Penton emerged in less than a month, and is now revamping its websites and focusing on mobile apps and other digital initiatives.

Pontiac. It was once one of GM's marquis divisions, with must-have muscle cars like the GTO and the Trans Am. But GM could never revive Pontiac's faded glory, and when the automaker was forced to shrink following its 2009 bankruptcy, Pontiac got the boot. The last dealerships closed in October. Saturn, a newer GM division, closed as well.

Swoozie's. This Georgia-based gift and stationery chain expanded into the Northeast just as the recession was gathering steam, and never reached sales levels that would have made it profitable. The company declared bankruptcy in March. A private firm bought it out of bankruptcy and downsized its footprint. The company now runs seven stores, down from a peak of 43.

[See 10 companies back from the brink.]

Uno Restaurant Holdings. The debt was deeper than the pizza, and when the recession cut into cash flow, the parent firm of Pizzeria Uno had no choice but to file bankruptcy. It emerged in July, after shedding debt and closing about 25 stores. The company still operates 160 restaurants in 24 states, plus a few overseas locations.

Urban Brands. The parent firm of the Ashley Stewart brand, which caters to young and middle-aged plus-size women, began to struggle in 2007, and finally declared bankruptcy in September 2010. Shoppers may barely notice, however, since its 210 stores are operating normally while the company fixes its finances.

Source (http://finance.yahoo.com/news/20-Companies-That-Cratered-in-usnews-3358422380.html?x=0)

A globalized world-with US, EU's economy faltering and Asian nations' economy still zooming....

Philippines should stop mimicking the US and instead mimic the nationalistic economies of China, Japan, South Korea and our ASEAN neighbors (except Singapore).

^^I truly believed in you sir .... Japan for example, once destroy by the WW2... South Korea, once destroyed by Korean War... China of course because of communism and strong influence of Mao Zedong... Look at these countries now, so rich and powerful and even taking lead all over the world in terms of economic performance. They are selling there own products like Automobile, electronics and many more...... Singapore Companies are relatively owned by the foreign businessman.

^^I truly believed in you sir .... Japan for example, once destroy by the WW2... South Korea, once destroyed by Korean War... China of course because of communism and strong influence of Mao Zedong... Look at these countries now, so rich and powerful and even taking lead all over the world in terms of economic performance. They are selling there own products like Automobile, electronics and many more...... Singapore Companies are relatively owned by the foreign businessman.

My take on Japan and South Korea:

Japan, was under the administration of the US right after the war, specifically under Gen MacArthur's good administration skills.
South Korea, also was very much devastated after the truce. South Korea progressed because of:


Good governance, this includes strong focus in education and infrastructure.
Help from Japan and US
Focussing on technology for industrialization, like Japan
A few world-beater private companies

If you can see, the common denominator is the US. When Japan recovered with the help of Uncle Sam, it was normal for them to help South Korea since Japan wanted to make amends with South Korea. It just needs good intentions way back then!

RP-China trade seen ending year at $30B
TRADE between the Philippines and China significantly increased in the 10 months to October, as a free trade pact between the regional giant and members of the Association of Southeast Asian Nations (ASEAN) took effect at the start of the year, the Chinese envoy to the Philippines said in a briefing yesterday.

Bilateral trade between the Philippines and China hit $22.7 billion as of October, a 40.2% rise from the same period last year, said Liu Jianchao, Chinese ambassador to the Philippines. Of the amount, the Philippines exported $13.3 billion worth of products to China and imported about $9.4 billion, he said.

Mr. Liu attributed this increase to the ASEAN-China Free Trade Agreement, signed in November 2002 and which took effect last Jan. 1. "[The agreement] is a tremendous boost to the trade relations between China and ASEAN countries...The figure itself has shown the Philippines has enjoyed good [trading]."

Mr. Liu said he was optimistic that two-way trade will reach $30 billion by yearend.
He also encouraged the government to continue efforts to improve infrastructure and rules for business, "so that investors would know that they don’t have to go through large formalities to enter the Philippines."http://www.bworldonline.com/main/content.php?id=23361

I can't help but notice this one-liner! Maybe or maybe not.
I happened to take a glimpse on this market and I think there's more than what meets our eyes! The raw materials are basically inside the plant's perimeter and the process looks rather simple: haul, grind, heat and re-grind plus additives! And the cement price is still prohibitive! We can always ask why? I could be wrong though, not my line of work!

There's almost always a cartel for every major commodity (e.g., steel, cement, fertilizer).

You're right, the price for locally made cement is indeed prohibitive. That forced DTI to open the trade for cheaper imported cement to force the local guys to lower down their prices. I dunno what happened next. When I left my previous job, I didn't get updates anymore.

The case is worse for fertilizer. Price of urea has somewhat doubled when manufacturers decided to shift to export leaving the local consumers/farmers with little supply. Hence the hefty price. Globalization!

Export growth slowdown seen in 2011
EXPORT GROWTH is expected to slow down sharply in 2011 given the challenges confronting the country’s major export destinations led by the United States and Europe.

The Bangko Sentral ng Pilipinas, which earlier set an export growth forecast of 10 percent for 2011, said yesterday that it might have to revise the figure lower.

“We will have to review our forecast given what is happening in the global economy. There is a continued weakness in global economic activity and this could influence our exports,” BSP Deputy Governor Diwa Guinigundo said in a briefing.

The United States and some European economies are facing an anemic recovery from the latest global economic crisis, which peaked in 2009.

A high unemployment rate in the United States and meager growth in consumer spending there might decelerate growth of Philippine export earnings next year, he said. The BSP official added that many European countries were facing economic challenges such as widening fiscal deficits and burgeoning debts.

Guinigundo said a slowdown in export earnings next year was also likely due to base effects, noting the abnormally high export revenues this year.

Documents from the National Statistics Office showed that export revenues of the Philippines amounted to $43 billion in the first 10 months, growing sharply by 37 percent year-on-year.

The expansion was led by the electronics sector, demand for which recovered this year following a steep slowdown in 2009. Economists said that in times of crisis, consumers skip buying goods considered as non-essential like electronics, but these products were one of the most attractive for consumers in times of recovery.

This year’s recovery of the Philippine export sector, whose earnings declined more than 20 percent in 2009, came as the global economy rebounded from a recession last year.

Robust export earnings this year also helped accelerate overall growth of the Philippine economy, which grew 7.5 percent in the first three quarters of 2010, much faster than the 1.1 percent for the whole of 2009.

However, economists said the rebound of the global economy, led by industrialized countries, was slower than expected. This modest recovery of the United States and Europe, two of the Philippines’ biggest export markets, could dampen Philippine exports.http://business.inquirer.net/money/topstories/view/20101224-310812/Export-growth-slowdown-seen-in-2011

Shippers eye 50% surcharge hike
Sunday, 26 December 2010 20:25 VG Cabuag / Reporter
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DOMESTIC shipping operators are set to impose a 50-percent increase in their bunker surcharge early next year after the recent spikes in oil prices.

An official of the Philippine Liner Shipping Association (PLSA) said the measure, however, is still pending approval with the Maritime Industry Authority (Marina).

“We expect fuel to be one of our biggest concerns as we start the new year,” said a PLSA official, requesting anonymity. “Carriers are now forced to impose the surcharge as we can no longer shoulder the extra cost since we have been delaying its implementation even if we are allowed by policy to impose it,” he explained.

The official asserted that the hike in bunker surcharge is overdue as the threshold set by Marina has been breached several times.

Despite the huge impact of a 50-percent hike, he noted that it’s still reasonable because the amount would have been higher: “Based on our computation, our proposed increase now is lower than [what would have been the resulting rate had we imposed] the allowed percentage every time the threshold is breached.”

The last time the carriers increased the bunker surcharge was in 2009, when carriers were hit by lower cargo volume and higher prices of fuel.

Marina allows shipping lines to implement the rate recovery adjustments from 8 percent to 11 percent depending on the movement of fuel prices. The bunker surcharges differ depending on the destination of the cargo.

The Domestic Shipping Act of 2004 has deregulated the rate-setting mechanism of shipping lines. The government only requires publication of the new rate seven days before the said adjustment is implemented.

The average bunker surcharge for every 20-foot equivalent units (TEUs) is P3,000. With the new surcharge, an additional P1,500 will be added to the current surcharge, or about P4,500 per TEU for both northbound and southbound cargoes.

The PLSA member lines that are set to impose the surcharge include Negros Navigation Co., Lorenzo Shipping Corp., NMC Container Lines, Oceanic Container Lines, Solid Shipping Corp. and Philippine Span Asia Carrier Corp. and the Sulpicio Lines Inc.

Rising food costs will hit Asia hard in 2011, to spur inflation, Nomura says
Sunday, 26 December 2010 20:19 Bloomberg News
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INCREASED demand for food in Asia will help to boost prices next year, fueling faster consumer inflation, according to Yougesh Khatri at Nomura Holdings Inc., who flagged rising costs as a “key theme” for 2011.

Costlier food was likely to hit Asia hard as edible goods account for “a fairly large chunk” of the baskets that governments use to calculate the pace of price changes, said Khatri, a Singapore-based senior economist.

“That is likely to show up as particularly severely impacting CPI next year,” Khatri said in an interview on Bloomberg Television.

Khatri’s comments add to forecasts from Deutsche Bank AG and Rabobank Groep NV that farm-goods prices may rally in 2011.

Food inflation in India gained to a six-week high this month. China needs to be prepared for a long fight against inflation, the National Development and Reform Commission has said.

Inflationary pressures in Asia are coming both from inflows of capital to the region and rising food prices, Khatri said, without identifying specific foodstuffs. Inflation is “our key theme for next year,” he said.

The Food and Agriculture Organization’s Food Price Index of 55 commodities surged for a fifth month in November to the highest level in more than two years. Soybeans rallied to $13.6575 a bushel on Saturday, a 28-month high, on demand from China. Palm oil has surged 37 percent in 2010, while raw sugar in New York has gained to the highest level in 30 years.



‘Still cheap’

Farm-commodity prices including corn will extend rallies next year driven by increased demand and higher energy costs, according to a report from Rabobank this week. A lot of agricultural commodities including corn, soybeans and wheat are “still cheap” even after recent rallies and may extend gains, Deutsche Bank’s Michael Lewis said last month.

The consumer price index in China grew by 5.1 percent last month, the fastest pace in 28 months. Gains have been caused by factors including global commodity prices and excess liquidity, China Central Television said on December 21, citing Peng Sen, vice chairman of the National Development and Reform Commission.

India’s Cabinet Secretary K.M. Chandrasekhar said on Saturday the government will take measures to cool food-price inflation. An index measuring wholesale prices of farm products including rice and vegetables compiled by the commerce ministry rose 12.13 percent in the week to December 11 from a year earlier.

Electronics exports seen topping growth target

Investment total tagged as biggest since 2007

ELECTRONICS EXPORTS likely surpassed the 30% growth projected for last year, while investments in the sector breached the $1-billion level even amid a recovery from the global economic downturn, the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) said in a statement yesterday.

Moving forward, the group reiterated its projection of a more moderate 10% sales growth in 2011 for the country’s largest export earner.

"The industry initially projected a 30% growth for 2010, but statistics show that for the first 10 months, the industry was still growing by 46%, indicating a strong start and encouraging finish," SEIPI said.

January-September electronics export sales had surged 47.06% from year-ago levels to $23.503 billion, latest available official data show.

Full-year export sales are instead expected to have hit more than $30 billion once final tallies are in, or at least 36% higher than the 2009 total, SEIPI said.

Still bullish this year

The group noted that the high growth comes as the industry was recovering from a low base in 2009, which saw the sector’s sales plummet by 22% to $22.173 billion.

But the months towards the end of 2010 also enjoyed seasonal growth, with the Christmas holiday driving global demand for electronics products, SEIPI said.

"[And] the industry is still bullish for 2011...Its present guidance is a 10% growth for 2011," it added, pointing out that "no global electronics crash appears to be looming."

Performance this year should also be further bolstered by investments in the sector’s capacity in 2010, SEIPI said.

The industry recorded more than $1.3-billion worth of infusions last year, SEIPI said, citing preliminary estimates.

This is nearly thrice the $484.163-million investment figure recorded in 2009 and the first time the industry breached the billion dollar level since 2007.

"These investments are coming from expansions of existing companies with base of operations here and from new industry entrants," it said.

Earlier, the group said it was aiming for a doubling in electronics export sales by 2016. This will mean $44.346-billion in electronics export sales by 2016, double the $22.173-billion recorded in 2009.

The target dovetails with the Export Development Council’s earlier announced proposal to aim for a similar doubling of total merchandise export sales by 2016. -- J. A. D. Hermosa


http://www.bworldonline.com/main/content.php?id=23908

Exports in Clark surge 50% to $1.35 billion

CLARK FREEPORT -- Clark’s exports breached the $1 billion mark last year as it significantly rose by 50% to $1.35 billion with electronic products leading shipments abroad.

In its 2010 year-end report, the Clark Development Corp. (CDC) said yesterday that exports increased by $454 million, surpassing the $890-million exports value covering the same 12-month period it posted in 2009.

The export report submitted by CDC’s Enterprise Regulatory Department Manager Rod Deang showed that the increase in exports volume could be attributed to strong performance of Nanox Philippines, Inc., a Japanese manufacturing firm engaged in producing liquid crystal display (LCD) with $767,222,152 export value out of the total $916,332,584 electronic products made by other manufacturing firms, here.

Yokohama Tire Phils., Inc. made its significant contribution to Clark’s export as it placed second with $208,866,901 output while garments sector exported $140,604,105 to rank third over-all top Clark exporters by sector.

Other notable exporters last year are L&T International Group Philippines, Inc., L&K Industries Philippines, Inc. and SMK Electronics Corporation.

ERD data shows that Clark first posted the $1 billion mark in 2005 and 2006 with $1,029,240,498 and $1,160,389,396, respectively, but slowed down in 2007 with $884,454,922 exports followed by $949,950,709 in 2008 and $890,948,569 exports in 2009. Total export value of Clark since 1994 was pegged at $10.5 billion. In a statement, CDC president Benigno N. Ricafort said Clark’s total exports for the previous year comprises more than 30% of the projected regional exports for 2010 making it a major contributor to the Central Luzon economic figures.

He added that exports in Clark are projected to triple in the next 24 months as major semi-conductor companies reach their full operating capacity.

Mr. Ricafort said the centerpiece of the CDC’s major achievements this year revolved around the state-owned firm’s economic strategy, the 8-Point Agenda namely International Standard Business Center, Participative Management Concept, Parallel Development Program, Pro-Active Coordination with Clark International Airport Corporation, Clark-Subic Synergy, Tourism Development, Strengthening of After Sales Services, and Corporate Social Responsibility.

The agenda is a roadmap for Clark’s greater progress in achieving its 3-2-1 goal, which translates as $3 billion investments, $2 billion annual exports and 100,000-strong employment by 2014.

In his report dubbed "Expanding Development, Changing Lives," Mr. Ricafort also reported that Clark’s P6.364 billion in actual investments is an impressive 19% of the region’s investment figure of P33.84 billion for 2009.

Clark is expected to further have a huge share in Region 3’s investment as new projects in the electronic and semiconductor, manufacturing and tourism sector are completed by 2012-2013.

"The CDC has, yet, again, proven its resiliency and competitiveness amidst economic slowdown in 2008 by redefining its goals, building up more productive areas of collaboration with stakeholders, developing more efficient processes, and the enhancement of internal capability," Mr. Ricafort said in his report. -- Rey Garcia


http://www.bworldonline.com/main/content.php?id=23894

Bicol exports tumaas ng 925% noong 2010
LEGAZPI CITY, Enero 3 (PIA) — Umabot ng $696,401,447.44 ang halaga ng export ang naipagbili ng mga exporter na nakabase sa Bicol mula Enero hanggang Diyembre noong isang taon, 925 porsiyento na mas malaki kesa sa naitala noong 2009, ayon sa opisyal ng Bureau of Customs (BoC) district office sa Legazpi City.

Ayon kay Salvador Ruivivar, Customs District V officer-in-charge, ang crude coconut oil at copra pellets ang nakapag-ambag ng pinakamalaki sa ini-export ng Bicol na umabot sa $487,855,322.36 o 70 porsiyento sa kabuuang export sa 2010.

Ang malaking parte ng export ay naitala ng Legazpi Oil Company, isang Coconut Industry Investment Fund (CIIF) subsidiary sa Barangay Arimbay dito sa Legazpi City, at ng Globe Coco sa Barangay Lidong, Sto Domingo, Albay.

Dagdag pa ni Ruivivar na ngayong taon lamang nakapagtala ng pag-eexport and industriya ng niyog matapos maisaayos ang mga pasilidad sa pagpoproseso nito matapos salantain ng mga bagyong Milenyo at Reming noong.

Ang mining industry ay naitala ang 28 porsiyento sa kabuuang export kung saan ang gold ore ay umabot sa $113,961,528.99 na ini-export ng Fil Gold processing and refining company na nakabase sa Aroroy, Masbate. Samantalang ang Rapu-Rapu Mining Inc. ay nagtala ng $82,739,445.06 halaga ng Zinc at Copper concentrate.


Ang gold ay 86 porsiyento mas malaki sa $16,467,887.88 na export noong 2009 samantalang ang Zinc at Copper ay 45 porsiyento mas mataas sa 2009 o $36,832,770.87 mas malaki sa $45,906,674.19.

Kabilang din sa nakapagtala para tumaas ang export ng Bicol noong 2010 ay mga buhangin, buhok na ginagawang wig, at mga produktong abaca. (EDL, PIA V/mal)

http://www.pia.gov.ph/?m=7&r=r05&id=9794

Exporters to continue enjoying income tax holidays, says BOI
By Ma. Elisa P. Osorio (The Philippine Star) Updated January 17, 2011 12:00 AM Comments (0) View comments

MANILA, Philippines - Exporters are assured that they will still receive tax breaks such as the income tax holiday (ITH) despite government moves to rationalize the fiscal incentives, the Board of Investments (BOI) said.

“We need incentives in order to support the exporters,” BOI Executive Director Efren V. Leano said in an interview.

According to Leano, they will be meeting with Finance officials this week in order to come up with one position on the incentive scheme of the government. “There are already two bills filed before the House of Representatives. We want to come out with a unified position,” he said.

“Incentives are really necessary,” Leano stressed. He noted that in the P13 billion worth of incentives granted, trillions worth of investments have already come in. “We did the cost benefit analysis and across all industries we can say that the benefits of incentives outweigh the costs.”

In a separate interview, Trade Secretary Gregory L. Domingo said the government is looking at changing how they value the investments because it is an inefficient measure to check how much a particular project contributes to the country’s economy.

“We need to check the value added contribution to the economy and not simply record how much the investments are,” Domingo said.

Domingo noted that not all investments have equal weight in terms of the value added and contribution to the economy. For instance, investments like those in the business process outsourcing (BPO) or tourism have a higher multiplier effect in the economy because aside from the actual investments it also creates more jobs.

Domingo said he is looking at forming a committee who will be putting in weights on the investments based on its actual contribution to the economy. The factors to be considered will be employment and its actual impact to the economy among others, Domingo explained.

Aside from giving a clearer picture on the actual investments, Domingo said that this can also help in the rationalization of fiscal incentives. Domingo said that investments with higher multiplier effects will be given income tax holidays while those with low multiplier effects may be given less or no incentives.

“This is a good cost benefit analysis,” Domingo said. The valuation of the investments can be compared to the incentives given. If the investment does not trickle down to the people or if it has little effect to the economy then it does not deserve to have big incentives.

RP export growth motivates business sector
MANILA, Jan. 25 (PNA) -- The positive upturn in Philippine export figures has motivated exporters to further take advantage of the country’s current competitive position and seize new opportunities in the export business.

"The country's improving export performance proves our country's resilience and ability to bounce back regaining lost ground in exports. While the electronics sector, our number one export, continues to grow, we are determined to make the export industry sustainable by strengthening our other export industries and developing new export winners," said Trade and Industry Secretary Gregory L. Domingo.

Based on the statistics released recently by the National Statistics Office (NSO), Philippine merchandise exports grew by 11.2 percent to $ 4.13 billion in November higher than the $ 3.71 billion recorded for the same period the previous year further boosting the country’s economic recovery.

With this, Domingo said the Department of Trade and Industry (DTI) continues to work closely with the private sector, academe, research institutions and local government units so that businesses at the micro level are provided the much needed support to reach the export status.

“The positive figures also challenge us to move up the value chain so that the export growth will have significant impact across the economy,” said Donald G. Dee, vice chairman of the Philippine Chamber of Commerce and Industry (PCCI).

“Our export sales have picked up substantially following the improved conditions of key markets around the globe,” said Undersecretary for International Trade Adrian S. Cristobal, Jr.

“However, to sustain growth we need to align our international trade negotiations strategies with our Export Development Plan, diversify products through innovations, and penetrate new markets,” he said.

Aggregate merchandise exports for January to November 2010 increased by 34.5 percent to $ 47.22 billion compared to $ 35.11 billion from the previous year, signaling that the country’s merchandise exports is heading towards achieving the peak of Philippine exports around 2006-2008.

This growth momentum, added Dee, spurs business optimism as the country looks forward to full recovery of exports to its pre-crisis level.

Electronic products remain the country’s top exports amounting to $ 2.33 billion, higher by 8.5 percent from the previous year.

Semiconductors, one of the major groups of electronic products for exports, account for the biggest share of the total exports at 41.6 percent.

This follows the worldwide trend in the semiconductor industry where application of advanced technologies increase the proliferation of semiconductor content into a wider range of products such as media tablets, smart phones, eReaders and automobiles, based on the recent report from the Semiconductor Industry Association in the United States.

“We aim to be more strategic when it comes to exports so we can sustain this growth momentum, increase sales, and address more markets,” Dee added. “This also puts us in a better position to complement the transformational policies of the government in the long-term.”

Following the top exports for November were articles of apparel and clothing accessories at $ 138.2 million; woodcrafts and furniture at $ 134.22 million; ignition wiring sets used in vehicles, aircrafts, and ships at $ 94.54 million; and coconut oil at $ 79.6 million.

The government has targeted as much as $ 50-billion exports in 2010 and the strong numbers in November point to achieving such target.

“The export increase in markets like Asia also reinforces Secretary Domingo’s earlier emphasis on assessing our country’s market thrust and to continue searching for sectors or industries with high impact to the economy,” added Cristobal.

To date, the government is backing this up with an ongoing initiative to increase utilization of free trade agreements or FTAs by the country’s exporters.

Last year, the Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Exporters Confederation (PhilEXPORT) have embarked in an information campaign on FTA with the DTI, Bureau of Customs, and the Tariff Commission. This was already held in 11 cities nationwide and is meant to inform exporters of the market opportunities in Philippine FTA markets, namely Association of Southeast Asian nation (ASEAN), China, Japan, Korea, Australia, and New Zealand.http://positivenewsmedia.net/am2/publish/Main_News_1/RP_export_growth_motivates_business_sector.shtml

Imports to grow 18%, exports 12% in 2012
MANILA, Philippines – Import growth forecast for 2012 has been raised slightly to 18 percent from 17 percent and exports growth at 12 percent, a notch lower from the 13 percent growth projection announced earlier, the central bank and the inter-agency Development Budget Coordinating Committee (DBCC) said.

The DBCC in a meeting last week also decided to not revise the previously announced exports and imports growth forecasts of 10 percent and 18 percent for this year, which the DBCC approved in November. The original exports growth projection for 2011 was actually higher at 13 percent.

A report from the Bangko Sentral ng Pilipinas (BSP) attributed the conservative growth projection to the ‘waning’ base effects would likely result in lower growth this year compared to last year.

As of end November, export receipts grew by 34.5 percent supported by the recovery of the global demand for electronics products.

BSP said the emerging exports growth was 30 percent, higher than the projected 25 percent because of the strong actual growth outturn especially in the exports of electronics.

For this year, BSP said they expect a slower rate of exports growth as electronics inventories would only just begin to increase as demand rises in the global supply chain.

“In the medium term, exports are expected to pick up pace driven by sustained strong growth in developing countries, particularly emerging Asian economies,” said the BSP. The same report said that beginning in 2012 up to 2016, exports are expected to continue to increase due to demand in electronics and garments exports, particularly from China which is expected to have higher requirements of high-end apparel. (LCC)http://www.mb.com.ph/articles/302817/imports-grow-18-exports-12-2012

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I dunno where to put this but...

China rice laced with heavy metals —report

Agence France-Presse
First Posted 17:39:00 02/16/2011

Filed Under: Health, Food, Consumer Issues, Asia Australia - East Asia
BEIJING - Up to 10 percent of rice grown in China is contaminated with harmful heavy metals but little has been done to highlight the possible public health risks, a report said.

This week's edition of the New Century magazine cited studies showing that large amounts of Chinese rice have been tainted with heavy metals like cadmium due to years of pollution stemming from the nation's rapid economic growth.

"During China's fast-paced industrialisation, activities such as mining have sprung up everywhere, releasing into the environment chemical elements like cadmium, arsenic, mercury and other harmful heavy metals," the report said.

"These harmful heavy metals have spread through the air and water, polluting a rather large area of China's land... a complete chain of food contamination has existed for years."

The report cited academic studies since 2007 focusing on several rural villages in southern China near mines and industrial areas where health problems such as bone diseases have emerged, mostly among the elderly.

Pan Genxing, a scientist who carried out some of the key research cited in the report, said the percentage of tainted rice was even higher in some specific localities.

"In areas with acidic soil that are known to be badly polluted, we have found that up to 60 percent of the rice samples gathered there surpass cadmium standards," Pan, a scientist with Nanjing Agricultural University, told AFP.

However he added that while cadmium levels were sometimes five times higher than government standards, the problem represented a "potential health risk" rather than dangerous "acute toxicity".

Most at risk from high cadmium levels were subsistence farmers in polluted areas who mainly live on the rice they grow, Pan said.

Of the major grains, rice has the strongest ability to absorb cadmium, which often seeps into water used for irrigation near mines, especially those that extract lead, tin and copper, the report said.

The magazine report said, however, that no major investigations into the possible public health impact have been carried out.

Rice, which is widely grown in south China, is the nation's staple grain with about 200 million tonnes produced annually, the report said.

Food safety is a major problem in China, where scares regularly emerge including recent scandals involving contaminated red wine, bleached mushrooms, fake tofu and recycled cooking oil.

In 2008, at least six children died and around 300,000 fell sick after consuming powdered milk laced with the industrial chemical melamine, which was added to make products appear higher in protein.

Rapid industrialisation over the past 30 years helped China become the world's second-largest economy last year.

But the focus on growth, combined with lax environmental protection, has saddled the country with some of the world's worst water and air pollution.

Source: http://newsinfo.inquirer.net/breakingnews/world/view/20110216-320612/China-rice-laced-with-heavy-metals-report

^^ At least, alam natin na ang rice na inaangkat natin e, "fortified with iron" or "fortified with zinc."

China became the world's second largest economy at the expense of their environment. :ohno:

I don't think Philippines should emulate that either.

^^ Other economies became like that, then when they got rich, they restored their environs. I think that's what happened to Cheonggicheon.

^^ But why emulate them? Avoid the cost of restoration by implementing measures to mitigate the destructive side effects of industrialization - that is if you still have concern on the environment.

^^ These days, pati tayo nadadamay sa mga ginagawa ng ating mga kapitbahay.

Hi there!
A nice opportunity to study International Business and/or English in the United States, right between NYC and Philadelphia (in the Lehigh Valley, in Pennsylvania).
Short courses for executives on tourist visa are available.
www.lehighinstitute.com

Imports rose 27% in 2010
Philippine imports surged 26.9 percent in 2010 from a year earlier on strong demand from local manufacturers of electronic inputs, raw materials and other intermediate goods, government data show Friday.

The National Statistics Office said total imports hit $54.7 billion in 2010 from $43.09 billion in 2009, exceeding the government’s 20-percent growth projection.

Imports in December expanded 25.2 percent to $4.93 billion from $3.93 billion year-on-year. Import growth slowed month-on-month from a 35.3-percent expansion in November.

Total foreign trade for the whole of 2010 reached $106.13 billion, up 30 percent from $81.53 billion in 2009. Exports hit $51.43 billion in 2010, resulting in a trade deficit of $3.27 billion, down from the $4.66-billion gap in 2009.

The trade deficit in December hit $729 million, up from $615 million a year ago.

The government expects imports to grow 18 percent in 2011 and exports to expand 10 percent because of the slower-than-expected global economic recovery.

Electronic products accounted for a third of the total import bill in December with $1.71 billion, up 35.3 percent from $1.26 billion on year. They rose 5.1 percent month-on-month from $1.624 billion in November. Semiconductors had the biggest share of nearly 29 percent at $1.42 billion from just $902.97 million in December 2009.

Imports of mineral fuels, lubricants and related materials in December ranked second with a 19-percent share with a total bill of $941 million from $760.54 million on year.

Transport equipment was the country’s third top imports for the month with a 7.6-percent share at $373.6 million.

Industrial machinery and equipment contributed 4.8 percent to the total import bill at $236.45 million, while iron and steel, accounted for 2.4 percent at $116.83 million.

Imports of raw materials and intermediate goods amounted to $1.96 billion, which was nearly 40 percent of the total imports for the month.

Imports of capital goods, which comprised 28.6 percent of total imports, hit $1.41 billion, while purchase of consumer goods amounted to $545.46 million.http://www.manilastandardtoday.com/insideBusiness.htm?f=2011/february/26/business1.isx&d=2011/february/26

Philippine exports post 34% growth in 2010 to $51.43 billion
MANILA, Philippines - The country’s exports posted a 33.8 percent growth in 2010 to $51.43 billion from $38.43 billion during the same period in 2009.

Total imports posted a 26.9 percent annual increase last year to $54.702 billion from $43.092 billion in 2009.

The National Statistics Office (NSO) reported that the balance of trade in goods (BOT-G) for 2010 registered a deficit of $3.27 billion, lower than the $4.65 billion deficit in 2009.

Total external trade in goods in 2010 reached $106.13 billion, up by 30.2 percent from $81.52 billion registered during the same period in 2009.

Combined import and export merchandise trade for December 2010 was up by 25.8 percent to $9.13 billion from $7.25 billion in December 2009.

Total merchandise imports increased at 25.2 percent to $4.930 billion from $3.936 billion in December 2009. Total exports, on the other hand, rose by 26.5 percent to $4.201 billion from $3.321 billion in December 2009.

The balance of trade in goods (BOT-G) in December 2010 posted a deficit of $729.00 million compared to last year’s recorded deficit value of $615.00 million.

Accounting for 34.6 percent of the aggregate import bill, payments for electronic products in December 2010 amounted to $1.706 billion, up by 35.3 percent from $1.26 billion in 2009.

Among the major groups of electronic products, semiconductors having the biggest share of 28.8 percent, expanded by 57 percent to $1.41 billion from $902.97 million in December 2009.

Imports of mineral fuels in December 2010 ranked second with 19.1 percent share and posted a positive growth of 23.7 percent to $940.95 million from $760.54 million in December 2009.

Transport equipment the country’s third top imports for the month with 7.6 percent share to total imports at $373.61 million. The value accelerated by 77.7 percent from its previous year level of $210.20 million.

Industrial machinery and equipment contributing 4.8 percent to the total import bill, was the country’s fourth top import for the month with payments placed at $236.45 million, an increase of 18.5 percent from last year’s level of $199.51 million.

Fifth in rank and with 2.4 percent share of the total imports was iron and steel which expanded by 91.3 percent, the highest annual growth rate among the top ten imports to $116.83 million from $61.09 million in December 2009.

Chemicals ranked sixth, comprising 2.2 percent of the total imports, reached $106.08 million, higher by 27.2 percent from $83.37 million recorded in December 2009.

The other top imports for December 2010 were telecommunication equipment and electrical machinery worth $104.35 million, up by 41.8 percent; plastics amounting to $99.42 million increased by 46.5 percent; metal products valued at $67.06 million higher by 46.7 percent; and fertilizer with purchases placed at $64.28 million rose by 80 percent.http://www.mb.com.ph/articles/306546/philippine-exports-post-34-growth-2010-5143-billion

I dunno where to put this but...

China rice laced with heavy metals —report

Agence France-Presse
First Posted 17:39:00 02/16/2011

Filed Under: Health, Food, Consumer Issues, Asia Australia - East Asia
BEIJING - Up to 10 percent of rice grown in China is contaminated with harmful heavy metals but little has been done to highlight the possible public health risks, a report said.

This week's edition of the New Century magazine cited studies showing that large amounts of Chinese rice have been tainted with heavy metals like cadmium due to years of pollution stemming from the nation's rapid economic growth.

"During China's fast-paced industrialisation, activities such as mining have sprung up everywhere, releasing into the environment chemical elements like cadmium, arsenic, mercury and other harmful heavy metals," the report said.

"These harmful heavy metals have spread through the air and water, polluting a rather large area of China's land... a complete chain of food contamination has existed for years."

The report cited academic studies since 2007 focusing on several rural villages in southern China near mines and industrial areas where health problems such as bone diseases have emerged, mostly among the elderly.

Pan Genxing, a scientist who carried out some of the key research cited in the report, said the percentage of tainted rice was even higher in some specific localities.

"In areas with acidic soil that are known to be badly polluted, we have found that up to 60 percent of the rice samples gathered there surpass cadmium standards," Pan, a scientist with Nanjing Agricultural University, told AFP.

However he added that while cadmium levels were sometimes five times higher than government standards, the problem represented a "potential health risk" rather than dangerous "acute toxicity".

Most at risk from high cadmium levels were subsistence farmers in polluted areas who mainly live on the rice they grow, Pan said.

Of the major grains, rice has the strongest ability to absorb cadmium, which often seeps into water used for irrigation near mines, especially those that extract lead, tin and copper, the report said.

The magazine report said, however, that no major investigations into the possible public health impact have been carried out.

Rice, which is widely grown in south China, is the nation's staple grain with about 200 million tonnes produced annually, the report said.

Food safety is a major problem in China, where scares regularly emerge including recent scandals involving contaminated red wine, bleached mushrooms, fake tofu and recycled cooking oil.

In 2008, at least six children died and around 300,000 fell sick after consuming powdered milk laced with the industrial chemical melamine, which was added to make products appear higher in protein.

Rapid industrialisation over the past 30 years helped China become the world's second-largest economy last year.

But the focus on growth, combined with lax environmental protection, has saddled the country with some of the world's worst water and air pollution.

Source: http://newsinfo.inquirer.net/breakingnews/world/view/20110216-320612/China-rice-laced-with-heavy-metals-report

Now, our government should be reminded to aid our farmers and agriculture industry in general. For a rice-consuming country, it is such a shame we can't produce enough for our population. We even have to import those not-so-delicious and potentially contaminated fr riceom other countries

---
Additional reports on the issue

Ugh. Hong Kong's English daily South China Morning Post has a distinctly unsavory dispatch from the Chinese media this morning: Government scientists have released research that millions of acres of Chinese agricultural land and over 12 million tons of Chinese grain are contaminated by toxic metal pollution, according to this week's edition of the China Economic Weekly, a state-run magazine.
Last week, a separate article reported that 10% of Chinese rice contained excess cadmium, a heavy metal known to cause cancer.
Beijing quickly responded to last week's news by announcing it was re-focusing its efforts to reign in heavy metal pollution over the weekend, identifying 4500 operations across the nation, including chemical manufacturers, battery manufacturers and mines, to be put under stricter controls. Today's SCMP article says the farmland pollution is particularly bad in China's southwestern Yunnan, Guangdong and Guangxi provinces.
The polluting effects of China's rapid industrialization are hardly news. But the industrial clusters cropping up in the nation's farm belts present new problems. Food safety in China in the past few years has primarily been framed as a problem of corruption in the supply chain, as was the case in the melamine scandal, or the overuse of pesticides, insecticides and chemical fertilizers in agriculture. Crop contamination by heavy metals from nearby industry that soak into the soil did not start this year — in fact the rice samples used to determine the 10% contamination rate were taken back in 2007 — but the scope of the problem is just beginning to be fully comprehended.
The domestic health ramifications of this information will take even longer to determine. China's has a growing list of what have come to be known as “cancer villages” — towns next door to badly regulated factories where myriad forms of pollution have caused high cancer rates in residents. In January, to name one example, a battery factory was forced to close after more than 200 children living in its vicinity were diagnosed with high levels of lead in their blood in Anhui province, just west of Shanghai. (Read about how your jeans might be contributing to China's industrial health problems.)
So what happens when this kind of contamination is spread to millions of Chinese consumers, albeit at lower levels? (China exports relatively little rice; the U.S., for instance, only imported about $4 million in rice from China in 2010, compared to $13 million in soybeans.) Rice, China's staple food, turns out to be a particularly good conduit for the metal cadmium, particularly hybrid rice varieties that are planted in acidic soils, as is widely the case in southwest China. And cadmium is not the kind of thing you want to be ingesting in vast quantities. OSHA describes it as an “extremely toxic metal” with the following effects from acute and chronic exposure:
Acute — Indicates that metal fume fever may result from acute exposure with flu-like symptoms of weakness, fever, headache, chills, sweating and muscular pain. Acute pulmonary edema usually develops within 24 hours and reaches a maximum by three days. If death from asphyxia does not occur, symptoms may resolve within a week.
Chronic — Identifies the most serious consequence of chronic cadmium poisoning is cancer (lung and prostate). The first observed chronic effect is generally kidney damage, manifested by excretion of excessive (low molecular weight) protein in the urine. Cadmium also is believed to cause pulmonary emphysema and bone disease (osteomalcia and osteoporosis). The latter has been observed in Japan ("itai-itai" disease) where residents were exposed to cadmium in rice crops irrigated with cadmium-contaminated water. Cadmium may also cause anemia, teeth discoloration (Cd forms CdS) and loss of smell (anosmia).
The China Economic Weekly report estimates economic losses from contaminated rice could be as much as $3 billion a year. But that's making a big assumption — that the metal-laced rice gets pulled out of the supply chain and counted as a loss. It's highly unlikely that millions of tons of rice in China are going to go through the kind of highly standardized testing this would require. The long-term costs of dealing with large swaths of the Chinese population that slowly ingest cadmium with potential effects ranging from kidney damage to bone disease are, to put it lightly, harder to calculate.


Read more: http://ecocentric.blogs.time.com/2011/02/23/heavy-metal-millions-of-tons-of-chinese-rice-contaminated/#ixzz1GduZDHGW

http://ecocentric.blogs.time.com/2011/02/23/heavy-metal-millions-of-tons-of-chinese-rice-contaminated/


China - China's toxic rice problem
Monday, 07 March 2011 09:17
There are no translations available.

Source: The Epoch Times
03/03/2011 - For decades, high levels of cadmiumand other toxic heavy metals have polluted China’s waterways. Throughirrigation they have ended up in village rice paddies. Villagers complain of bone pains. Some have stopped eating their own crops, feeding it to livestock, or selling it if they can.

Chinese farmer Huang Yunsheng, 74, was not able to sell a single pound of his 2010 rice harvest. “The grain husks are all black. Nobody would take it. We didn’t dare to eat it ourselves, so we fed it all to our chickens and pigs,” Huang told the Southern Weekly in a Jan. 6report.

Huang’s misfortune started when a manganese mine opened up in the 1950’s near his village in Xiangtan County of Hunan Province, one of China’s largest rice-growing areas. The mine first covered the mountain village with dusty air, and then gradually polluted the water and soil.

Huang said the agricultural output of the village has been dropping for many years. His land now produces only half of what it used to. Land closer to the mine often produces nothing, he said.

A 2007 government report revealed that the mining operation has damaged the waterways in the area. But in 2009 the villagers found out they are in bigger trouble: their rice is polluted by cadmium, an extremely toxic heavy metal that, if ingested, may cause kidney damage, pulmonary emphysema, and bone disease—evencancer.

But the villagers chose to cover up the truth, as they have to make a living. They still sold their rice if they could, and then purchased rice for their own consumption from other regions at a higher price, the Southern Weekly’s report said. The government pays the farmers compensation, but it’s not even enough to buy new rice, Huang said.

Many villages in Hunan and other rice growing provinces also have serious heavy metal pollution of their rice crops. According to Chinese authorities, millions of acres of agricultural land have been polluted by heavy metals, and over 12 million tons of grains are contaminated. A recent report in Chinese official media further revealed that 10 percent of Chinese rice, about 20 million tons, contains excess cadmium.

People within the contaminated regions have become the first victims of heavy metal poisoning. Li Wenxiang, an 84-year-old farmer in Sidi Village, Xingping Township, Yangshuo County of Guangxi Province, told Century Weekly that a short walk leaves him in unbearable leg and foot pain. Dozens of other senior residents in the village suffer from the same affliction, Li said.

Researchers discovered that the village irrigation water has been severely polluted by cadmium since before the 1960’s by a state-run lead and zinc mine nine miles upstream from the village, a recent Century Weekly reportsaid.

Several researchers suspect that the villagers’ leg and foot soreness is an early symptom of the “itai-itai” disease, which causes softening of bones, the report said. The disease has been observed in Japanese exposed to cadmium-contaminated rice in the 1960’s. It was so named because patients repeatedly complained, “itai, itai,” the Japanese word for “painful,” when walking.

Animals suffer as well. Hens in the village used to lay soft-shelled eggs, and osteomalacia—abnormally soft bones—was found in newborn calves, the report said.

No official diagnosis has been conducted on Sidi villagers, and the villagers are not able to prove that their suffering is caused by heavy metal contamination. But the Sidi village rice contamination is well known in the region as multiple researchers have investigated the area. Young women are reluctant to marry into the village, and the state-run grain-purchasing center will not buy the village crops, residents told Chinese media.

Poor regulation and oversight of manufacturing operations is the main cause of the widespread pollution. Many heavy metal mines hardly take any measures to treat production waste.

An arsenic mine in Yunnan Province, for example, has been reported to have left hundreds of tons of arsenic slag uncovered on unused land, allowing rain to carry the highly toxic arsenic into the underground water. The arsenic content found in crops in nearby regions is over 100 times higher than recommended safety level, a Feb. 21 China Economic Weekly report said.

Untreated industrial waste water containing excessive heavy metals is also discharged into rivers and onto land, and then passed to rice crops through irrigation, the report said.

The pollution has been known to farmers, researchers, and authorities for decades, but not much has been done to stop it. Because of the higher cost of “clean” rice, many farmers are forced to eat their own contaminated rice.

Pan Genxing, professor at Nanjing Agricultural University, said that on the macro level China’s current system of contracting farmland to individual households makes it extremely difficult to combine resources and make concerted efforts to handle the problem.

Chinese authorities’ policy of censoring “bad news” has also contributed to the problem by keeping many farmers unaware, and unknowingly consuming and selling the contaminated rice.

Chinese media say the recent publicity of the pollution has come about because local officials are trying to get funding for pollution treatment from the centralgovernment.

Beijing has approved a plan to reign in heavy metal pollution, but details are scarce. The Minister of Environmental Protection, Zhou Shenxian, told the Central People's Radio that the authorities will focus on strict control and monitoring of chemical and manufacturing companies.

Critics say the authorities have done far too little.

Chinese scientist Wang Weiluo, now residing in Germany, demanded to know: “How will the Chinese government deal with the 10 percent contaminated rice already on the market?”

Alongside that is how to prevent more rice from being planted in polluted regions, the Century Weekly reported.

“As long as large amounts of heavy metal contaminated rice crops are allowed to be grown, they will end up on people’s dinner tables, and people will suffer from it,” the report said.

So far the majority of the polluted areas, including the Sidi village in Guangxi, have not been banned from farming.

The complicated purchasing channels and lack of infrastructure make it impossible for traders to determine if their grains are contaminated.

Dr. Chen Nengchang from Guangdong Institute of Eco-Environment and Soil Sciences told Southern Weekly that China simply does not have a grain testing system.

“Nobody would be able to tell if large amounts of cadmium contaminated rice are being served at people’s dinner tables,” Chen said.

http://www.flar.org/index.php/en/news/1265-china-chinas-toxic-rice-problem


I hope we are not importing rice from China. We should not be importing any food from China at all.

PH exports cooking oil



BY AMADO P. MACASAET
Malaya Business Insights
March 22, 2011


The well-heeled use imported olive oil for cooking. But that does not remotely suggest that housewives in six countries the Philippines exports coconut oil to are not well-heeled.

The countries that buy the Minola brand of cooking oil are far more developed than the Philippines.

These countries are China, Japan, South Korea, Pakistan, Canada and the United States. People in the last two countries are extremely conscious of the ingredients in the food they eat.

Minola is produced by San Pablo Oil Mills, one of the sequestered oil mills bought with money from the Coconut Industry Investment Fund.

Minola is able to make inroads into the cooking oil markets of these six countries because it has become the No. 1 cooking oil in the Philippines. In that position, as in the case of nearly all products, exportation will succeed for long only when there is a strong home market, according to Jesus L. Arranza, president of the CIIF Oil Mills Group.

Cooking oil derived from coconut oil actively competes with soya and palm kernel oil which account for 28 percent and 32 per cent of total world production of vegetable oil, respectively.

Crude coconut oil which is refined to make cooking oil has the smallest share of 2.54 percent before olive oil which shares only 2.29 percent.

Minola is appreciably making inroads in the foreign markets, according to Arranza. But he admits that coconut oil being No. 8 in the ranking of world vegetable oils, Minola cooking oil cannot hope to beat its competitors.

He said he is comfortable that Minola is No. 1 in the domestic market and is slowly being accepted among the more sophisticated consumers in the six countries it is exported to.

Because of the apparent shortfall in production primarily caused by the drought last year, the price of crude coconut oil from which cooking oil is derived has climbed from $1,130 per metric ton in 2010 to the current average of $2,278 per metric ton.

Arranza is happy with the price but he laments the slow rate of replanting of old coconut trees.

A businessman told Malaya Business Insight that in Indonesia, for example, a 5,000-hectare swamp was converted into a coconut plantation which now produces three million nuts a day.

Since the Philippines lags behind Indonesia in coconut production but remains the world’s largest exporter of coconut products, the slow replanting and the senile trees will soon leave the coconut industry in some kind of a bind.

Eduardo Cojuangco saw the plight of the coconut industry. Apart from trying to introduce hybrid variety, he saw the wisdom of producing industrial chemicals from coconut oil.

He told me that in the event that production came down or the price of coconut products went into a deep slump, the 22 different types of coconut chemicals that would have been produced by Cocochem, another project owned and funded by CIIF, would have covered whatever was lost to lower prices.

He explained that Cocochem, set up in Batangas, would require only 30 percent of the total annual nut production in the Philippines.

However, he said, chemicals from coconut oil would have value added of about 100 times compared to copra.

Unfortunately, Cocochem practically turned belly up from neglect after it was sequestered on suspicion that the CIIF funded it with ill-gotten money although the record shows that the money came from contributions of coconut exporters and millers in the name of the coconut farmers.

The coconut chemical project would have saved the Philippines from the peaks and valleys behavior of prices of coconut products in the world market.

As a small measure to blunt this recurring situation, San Pablo Oil came up with Minola cooking oil principally for the local market.

Extensive research improved the product such that foreign countries are now importing Minola.

Because of the collapse of Cocochem, the use of coconut oil has not gone further than being main raw material in the production of detergents.

The highest value added so far is in cooking oil. Unfortunately, crude coconut oil has a share of less than three percent of the global vegetable oil market.

Arranza says he is satisfied that while Philippine cooking oil cannot exactly compete with olive oil, it has found a market in foreign countries.

"Good beginning," he told Malaya Business Insight.

^^ We have to fortify this industry.

PH expects increased investments from Spain
Companies keen on PPP projects

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 20:10:00 03/30/2011
Filed Under: Food, Europe, International (Foreign)Trade

MANILA, Philippines—Public and private companies in Spain are eyeing a significant increase in investments in the Philippines.

Spanish businesses are considering making the Philippines their gateway to Southeast Asia.

In a briefing Wednesday, Spain’s Secretary of State for Foreign Trade Alfredo Bonet said the country was not satisfied with the low level of investments that Spanish companies had in the Philippines.

Moving forward, and especially with the government’s public-private partnership project portfolio in place, he said both the public and private sectors in Spain were willing to plunk more capital into the Philippine economy.

“The Philippines is the Asian country with which we’ve had the longest and most specific bilateral ties. We’re not satisfied with the small investments we have here. The Philippines can be an important platform for our doing business in Southeast Asia,” he said.

Spanish envoy to the Philippines Jorge Domecq added that the Philippines would continue to be the “priority country in Asia” for official development assistance from Spain.

In the next few months, he said Spanish government officials would be sitting down with their Philippine counterparts to discuss which projects Spanish firms could participate in, especially among those projects on the PPP list.

“We’ll define the main sectors to concentrate our efforts in developing over the next four years,” he related. “The aid amount will depend on the economic situation as well as on the projects that the Philippine government wants to prioritize.”

In a separate interview, Trade Undersecretary and Board of Investments managing head Cristino Panlilio said a number of Spanish companies had already expressed interest in either setting up shop here or expanding their current businesses in the country.

Among these were dairy product manufacturer Grupo Leche Pascual, oil exploration firm Union Fenosa, electric utility Endesa, and wind power company Gamesa.

He said Leche Pascual was inclined to invest at least $10 million to put up a yogurt manufacturing facility in the country. Talks are underway with San Miguel Corp. for a possible distributorship agreement.

The planned facility would initially serve the domestic market, he said, but could eventually expand to become the Spanish firm’s export hub for the region.

Union Fenosa, which already had a partnership with Burgundy Global Exploration Corp. for the development of Service Contract 62 in offshore Balabac Island in Palawan, also indicated plans to beef up its local investments, he said.

http://business.inquirer.net/money/topstories/view/20110330-328458/PH-expects-increased-investments-from-Spain

^^ bring it on!

Export firm breathes new life into old houses (http://business.inquirer.net/money/topstories/view/20110407-329931/Export-firm-breathes-new-life-into-old-houses)
By Carmela Reyes-Estrope
Central Luzon Desk
First Posted 20:40:00 04/07/2011

http://www.philippineslosangeles.org/uploads/images/ManilaNow2011_a.jpg

http://t2.gstatic.com/images?q=tbn:ANd9GcRBAPQxegPzaeT7NBStEB0qRgzV2y2ZQruVkGHngjnm-6uBNoFz

http://www.cfip.ph/wp-content/themes/cfip/flash/flash-gallery/images/14.jpg

Filed Under: Furnishings & Furniture, Economy and Business and Finance
CALUMPIT, BULACAN, Philippines—The world economic recession in 2008 could have crippled the export business of a couple here, who are engaged in shaping fine furniture using wood recycled from old and condemned houses.

But Uni-Art Home Décor and Furniture, a homegrown, family-owned enterprise, continues to make a killing, so to speak.

The latest bazaars and trade fairs now display Uni-Art’s sets of chairs and tables, stylized closets, wall clocks mounted on old Bataan frames, and even wooden picture frames, says Mercedita Azares, 49, Uni-Art’s proprietor who built the manufacturing warehouse next to her house in Barangay (village) Gatbuca here.

She says Uni-Art sold almost all of its products during the American Women’s Club bazaar held on March 22 at the World Trade Center in Pasay City and at the recent Baguio Flower Festival.

In April, she plans to push their products at the Aliwan Festival Bazaar at the CCP complex.

Azares says their success is measured by the fact that they will soon own a permanent booth at Market! Market! in Taguig City.

Their blessings more than make up for their woes that surfaced when the world recession in 2008 forced their French partner, who supplied their items abroad, to fold up his export enterprise, she says.

Uni-Art had been in business as a furniture exporter since 2002, but the 2008 recession cost them lost opportunities and unpaid obligations to old suppliers, says Azares’ husband, Allan.

Allan says that was the moment when they decided to redefine their product by exploiting wood left over from Bataan’s relics, thanks to an idea left behind by their former French partner.

“We thought of changing the tone of the color of the wood [we use to build furniture] to make it appealing to local buyers and we all sat down for a new product concept and new designs,” Allan says.

Foreign markets preferred furniture pieces with polished wood that have a lighter brown texture. The domestic market, however, preferred a sharper color, which old wood provides, Allan says.

Azares says former Calumpit Mayor Raul Mendoza helped the couple join a Christmas bazaar at the Bulacan provincial capitol compound in Malolos City in 2008 to display their new product line.

“That was our first new start. Many people liked how we experimented with old recycled wood. All of our calling cards went to good use. We started receiving bigger and bigger orders,” she says.

The old, pockmarked wood gave their new products the kind of character their previous commodities lacked. Azares says it was her brother who helped them source out old wood. Allan learned to incorporate metal in their wood products after a short stint repairing cars.

But one thing hasn’t changed. Uni-Art remains a family affair with the couple’s oldest son now in charge of conceiving new art designs.

My take on Japan and South Korea:

Japan, was under the administration of the US right after the war, specifically under Gen MacArthur's good administration skills.
South Korea, also was very much devastated after the truce. South Korea progressed because of:


Good governance, this includes strong focus in education and infrastructure.
Help from Japan and US
Focussing on technology for industrialization, like Japan
A few world-beater private companies


If you can see, the common denominator is the US. When Japan recovered with the help of Uncle Sam, it was normal for them to help South Korea since Japan wanted to make amends with South Korea. It just needs good intentions way back then!

Maybe a much deeper explanation why China, Japan and Korea became prosperous is watching this video. This is a better version of history than what they normally teach in our schools.

The Jesuit Influence in the Far East - Part 1
http://www.youtube.com/watch?v=ifk-3A0h8r8

The Jesuit Influence in the Far East - Part 2
http://www.youtube.com/watch?v=rfylkoa0r1U&feature=related

The Jesuit Influence in the Far East - Part 3
http://www.youtube.com/watch?v=fqSEzTksPro&feature=related

EU GSP benefits RP exports
MANILA, Philippines — Most Philippine exports to Europe, particularly farm and fish products could enter the European market at reduced import duties following the EU revised general system of preference (GSP) that took effect in January this year.

Under the new system, all members of the ASEAN 10 economic bloc, except Singapore and Brunei, are among about 175 of the poorer countries that were given the special tariff privileges, according to the Universal Access to Competitiveness and Trade (U-ACT), the research think tank of the Philippine Chamber of Commerce and Industry (PCCI).More:http://www.mb.com.ph/articles/321175/eu-gsp-benefits-rp-exports

Coconut oil exports fall
Philippine coconut oil exports fell more than half in May due to the high demand for copra in the local market, according to United Coconut Associations of the Philippines.

UCAP president Yvonne Agustin said preliminary statistics show that oil exports declined 59.6 percent, resulting in only 52,948 metric tons versus 130, 921 MT in the same period in 2010.

"The estimated value of the shipments was around $100 million, or roughly 4 percent lower than last year," said Agustin.http://www.malaya.com.ph/june06/busi7.html

Goldman Sachs Secretly Believes an Economic Collapse is Coming

Goldman Sachs is doing it again. Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse. On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients.

The general public was not intended to see this report. Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details. It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering.

In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse. If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.

There is a tremendous amount of fear in the global financial community right now. As I wrote about the other day, the financial world is about to hit the panic button. Things could start falling apart at any time. Most of these big banks will not admit how bad things are publicly, but privately there is a whole lot of freaking out going on.

According to the Wall Street Journal, Brazil believes that "as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China's growth may not be sustainable.”

Perhaps most startling of all is what the report has to say about the debt problems of the United States and Europe.

For example, this following excerpt from the report sounds like it could have come straight from The Economic Collapse Blog....

“Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world's base currency?”

Remember, this statement was not written by some guy on the Internet. A top Goldman Sachs analyst put it into a report for institutional investors.

The report also goes into great detail about the financial crisis in Europe. Brazil writes about how the euro is headed for trouble and about how dozens of financial institutions in Europe could potentially be in danger of collapse.

But in any environment Goldman Sachs thinks that it can make money. The following is how Business Insider summarized the advice that Brazil gave in the report regarding how to make money off of the impending collapse in Europe....

* Buy a six-month put option on the Euro versus the Swiss Franc, thus betting the Euro will drop against the Franc (the Franc being the currency that an official Goldman report recently referred to as the most overvalued in the world).

* Buy a five-year credit default swap on an index of European corporate debt-the iTraxx 9. This is a bet that some of these companies will default, and your insurance policy, the CDS, will pay off.

This is so typical of Goldman Sachs. They will say one thing publicly and then turn around and do the total opposite privately.

For example, prior to the financial crisis of 2008, Goldman Sachs was putting together mortgage-backed securities that they knew were garbage and marketing them to investors as AAA-rated investments. On top of that, Goldman then often privately bet against those exact same securities.

The CEO of Goldman Sachs has even acknowledged that the investment bank engaged in "improper" behavior during 2006 and 2007.

For much more on the history of all this, please see this article: "How Goldman Sachs Made Tens Of Billions Of Dollars From The Economic Collapse Of America In Four Easy Steps".

So will Goldman Sachs ever get into serious trouble for any of this?

No, of course not.

Yeah, they will get a slap on the wrist from time to time, but the reality is that the top levels of the federal government are absolutely littered with ex-employees of Goldman Sachs. Goldman is one of the "too big to fail" banks and they are going to continue to do pretty much whatever they feel like doing.

Sadly, the power of the "too big to fail" banks just continues to grow. At this point, the "big six" U.S. banks (Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo) now possess assets equivalent to approximately 60 percent of America's gross national product.

Goldman Sachs was the second biggest donor to Barack Obama's campaign in 2008, so don't expect Obama to do anything about any of this.

We have a financial system that is deeply, deeply corrupt and all of that corruption is a big reason why things are falling apart.

Sadly, the 54 page report mentioned above is right - we really are facing a global debt meltdown and we really are heading for an economic collapse.

You aren't going to hear the truth from the mainstream media or from our politicians because "keeping people calm" is much more of a priority to them than telling the truth is.

The debt crisis in the United States is unsustainable and the debt crisis in Europe is unsustainable. Right now we are in the calm before the storm, and nobody knows exactly when the storm is going to strike.

But let there be no doubt - it is coming.

The amazing prosperity that we have enjoyed for the last several decades has largely been a debt-fueled illusion. It was a great party while it lasted, but now it is coming to an end and the aftermath of the coming crash is going to be absolutely horrific.

Keep watch and get prepared. We don't know exactly when the collapse is going to happen, but it is definitely on the way and now even Goldman Sachs is admitting that.

Philippines sees more sugar exports to non-US markets
MANILA, Philippines - The government expects sugar output in crop year ending August 2012 of around 2.4 million tons, nearly flat from the previous year, and may sell the sweetener to other countries on top of its US quota for a second year in a row, a senior official said.

The Southeast Asian country closed the 2010/11 crop year on Aug. 31 with total raw sugar output of 2.39 million tons, the highest in three years and up 21% from 2009/10.

"We are now working together with sugar planters and millers to determine the ideal export allocation for 2011/12 crop year," Regina Bautista-Martin, chief of state agency Sugar Regulatory Administration, told Reuters in a phone interview on Friday. More: http://www.abs-cbnnews.com/business/09/02/11/philippines-sees-more-sugar-exports-non-us-markets

Europe's top dep't store chain sends buyers to Phl

(The Philippine Star) Updated September 26, 2011 12:00 AM

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=730953

MANILA, Philippines - Europe’s top department store chain is sending two of its export buyers to Manila to check out the best that the Philippines can offer.

This was announced by executive director Rosvi C. Gaetos of the Center for International Trade Expositions and Missions (CITEM) after a sales mission in Spain where she met with the top executives of El Corte Ingles, Europe’s leading international department store chain.

“El Corte Ingles will send buyers from its offices worldwide to the Manila FAME (Furnishings and Apparel Merchandise Exchange) International for the first time after a very long absence,” said Gaetos who had sent a personal invitation to their chief executive officer.

The acceptance of Gaetos’ personal invitation and El Corte’s decision to send two of its buyers to visit Manila FAME indicates renewed interest in Philippine lifestyle exports.

Slated at the SMX Convention Center on Oct. 16 to 19, Manila FAME is the country’s premiere international trade show on lifestyle exports that include design-intensive home and fashion products and accessories made of innovatively-crafted indigenous materials.

Manila FAME serves as the venue for CITEM’s international wholesale marketing and promotion of Philippine creative products.

“These export products stand to gain wide global consumer market exposure through El Corte Ingles, which is bigger than the Galeries Lafayette and Marks & Spencer in Europes,” Gaetos pointed out.

She said El Corte’s home décor manager Jose Campana decided to send two of the company’s buyers to Manila FAME to check out the marketability and reliability of supply of Philippine lifestylel exports.

At the same time, CITEM is tapping Regalo Fama for next year’s Manila FAME. Regalo Fama is the association of Spanish manufacturers, wholesalers and retailers of gifts and housewares.

Similarly, CITEM is pursuing prospects of collaboration with DI-MAD, an association of designers and artists in Madrid, which can help out in making Philippine exports highly marketable to the Spanish market.

Earlier, United Kingdom’s Marks and Spencer, Australia’s Freedom, and USA’s Hallmark Cards, Crate & Barrel, Roost, Kalalou, Leahy Global Resources, Natori Co. and Material ConneXion have confirmed their participation in Manila FAME this October.

Expected to join them in Manila FAME are delegates from another 101 foreign firms from Australia, India, South Korea, Japan, Taiwan, United States, Spain, Finland, Italy, Sweden, Singapore, Turkey and Vietnam.

Chinese firms eyeing agri, garments ventures in Phl

By Ma. Elisa P. Osorio (The Philippine Star) Updated September 26, 2011 12:00 AM

http://www.philstar.com/Article.aspx?articleId=730930&publicationSubCategoryId=66

MANILA, Philippines - The Department of Trade and Industry (DTI) said Chinese companies, specifically from Shanghai, are looking at the Philippines for trade and investment opportunities this year.

Several companies in China are sourcing agro-based products, including fresh Cavendish bananas from the Philippines, while other firms are locating in the country for their garments production.

“Our bilateral relations with China are greatly influenced by trade and investments between our two countries. We have seen remarkable increase in terms of Philippine exports to China and Chinese investments in the Philippines in the past months,” Trade and Industry Secretary Gregory L. Domingo said.

From January to July this year, China was the Philippines’ third largest trading partner, with cumulative growth of 31 percent, according to data from the National Statistics Office (NSO). Philippine exports to China likewise experienced double-digit growth of 38.7 percent for the July period, latest data showed.

Chinese firm Shanghai Haodong International Trade Co. Ltd. recently sourced 60 containers of fresh Cavendish bananas from the Philippines amounting to P23.22 million. The company requires six to 10 40-footer containers of fresh Cavendish bananas every week.

The Philippine Trade and Investment Center (PTIC), the commercial post of the DTI in Shanghai, and the Bureau of Export Trade Promotion (BETP), have assisted Shanghai Haodong recently to match them with local banana growers who can provide a steady supply of fresh bananas to China.

Another firm, China’s high-end garments producer Shanghai Zephyr, has chosen the Philippines as location of its production facility. The project’s initial cut-and-sew operations are expected to employ 150 workers.

The growth and rising income of the middle class in the southern and eastern regions of China, including Guangzhou and Shanghai, present various touchpoints for increased trade with China, the DTI has observed.

China has become the world’s fastest growing economy today. Along with China’s economic expansion, the growth of the Chinese middle class also presents opportunities to foreign companies who can capitalize on this rising wealth and consumer market.

According to the Euro Monitor, China’s middle-income earners will likely reach 700 million by 2020, a trend that will transform China’s consumer market.

During the recent visit of President Aquino in China, a total of $13 billion actual and possible investments were committed by Chinese businessmen to the Philippines.

Under the Philippine Export Development Plan 2011-2013, China has been identified as an important market for Philippine exports.

The recent signing of the ASEAN-China free trade agreement (CAFTA) effectively eliminated tariffs of close to 90 percent of goods flowing into China from ASEAN, opening doors for ASEAN member countries to access a market of close to two billion consumers.

Since the implementation of CAFTA, ASEAN-China total trade has been increasing at an annual average rate of 26 percent.

More Chinese firms eye PH agriculture products

More Chinese firms eye PH agriculture products

Chinese companies are looking at the Philippines as a source of agro-based imports and location for garments manufacturing, the Trade Department said in a statement over the weekend.

“Our bilateral relations with China are greatly influenced by trade and investments between our two countries. We have seen remarkable increase in terms of Philippine exports to China and Chinese investments in the Philippines in the past months,” Trade Secretary Gregory Domingo said.

Several companies in China are purchasing agro-based products, including fresh Cavendish bananas, from the Philippines, while other firms are locating in the country for their garments production.

Data from the National Statistics Office show that China is the Philippines’ third-largest trading partner with growth of 31 percent from January to July this year.

Philippine exports to China also experienced a double-digit growth at 38.7 percent for the month of July.

Shanghai Haodong International Trade Co. Ltd. recently bought 60 containers of fresh Cavendish bananas from the Philippines amounting to P23.22 million. The company requires six to 10 40-footer containers of fresh Cavendish bananas every week.

The Philippine Trade and Investment Center, the commercial post of the DTI in Shanghai and the Bureau of Export Trade Promotion have assisted Shanghai Haodong recently to match local banana growers who can provide a steady supply to China. Julito G. Rada

Chinese firms eyeing agri, garments ventures in Phl

By Ma. Elisa P. Osorio (The Philippine Star) Updated September 26, 2011 12:00 AM

http://www.philstar.com/Article.aspx?articleId=730930&publicationSubCategoryId=66

MANILA, Philippines - The Department of Trade and Industry (DTI) said Chinese companies, specifically from Shanghai, are looking at the Philippines for trade and investment opportunities this year.

Several companies in China are sourcing agro-based products, including fresh Cavendish bananas from the Philippines, while other firms are locating in the country for their garments production.

“Our bilateral relations with China are greatly influenced by trade and investments between our two countries. We have seen remarkable increase in terms of Philippine exports to China and Chinese investments in the Philippines in the past months,” Trade and Industry Secretary Gregory L. Domingo said.

From January to July this year, China was the Philippines’ third largest trading partner, with cumulative growth of 31 percent, according to data from the National Statistics Office (NSO). Philippine exports to China likewise experienced double-digit growth of 38.7 percent for the July period, latest data showed.

Chinese firm Shanghai Haodong International Trade Co. Ltd. recently sourced 60 containers of fresh Cavendish bananas from the Philippines amounting to P23.22 million. The company requires six to 10 40-footer containers of fresh Cavendish bananas every week.

The Philippine Trade and Investment Center (PTIC), the commercial post of the DTI in Shanghai, and the Bureau of Export Trade Promotion (BETP), have assisted Shanghai Haodong recently to match them with local banana growers who can provide a steady supply of fresh bananas to China.

Another firm, China’s high-end garments producer Shanghai Zephyr, has chosen the Philippines as location of its production facility. The project’s initial cut-and-sew operations are expected to employ 150 workers.

The growth and rising income of the middle class in the southern and eastern regions of China, including Guangzhou and Shanghai, present various touchpoints for increased trade with China, the DTI has observed.

China has become the world’s fastest growing economy today. Along with China’s economic expansion, the growth of the Chinese middle class also presents opportunities to foreign companies who can capitalize on this rising wealth and consumer market.

According to the Euro Monitor, China’s middle-income earners will likely reach 700 million by 2020, a trend that will transform China’s consumer market.

During the recent visit of President Aquino in China, a total of $13 billion actual and possible investments were committed by Chinese businessmen to the Philippines.

Under the Philippine Export Development Plan 2011-2013, China has been identified as an important market for Philippine exports.

The recent signing of the ASEAN-China free trade agreement (CAFTA) effectively eliminated tariffs of close to 90 percent of goods flowing into China from ASEAN, opening doors for ASEAN member countries to access a market of close to two billion consumers.

Since the implementation of CAFTA, ASEAN-China total trade has been increasing at an annual average rate of 26 percent.

hindi ba parang plagiarism yung name na "CAFTA"? :lol:

More Chinese firms eye PH agriculture products

More Chinese firms eye PH agriculture products

Chinese companies are looking at the Philippines as a source of agro-based imports and location for garments manufacturing, the Trade Department said in a statement over the weekend.

“Our bilateral relations with China are greatly influenced by trade and investments between our two countries. We have seen remarkable increase in terms of Philippine exports to China and Chinese investments in the Philippines in the past months,” Trade Secretary Gregory Domingo said.

Several companies in China are purchasing agro-based products, including fresh Cavendish bananas, from the Philippines, while other firms are locating in the country for their garments production.

Data from the National Statistics Office show that China is the Philippines’ third-largest trading partner with growth of 31 percent from January to July this year.

Philippine exports to China also experienced a double-digit growth at 38.7 percent for the month of July.

Shanghai Haodong International Trade Co. Ltd. recently bought 60 containers of fresh Cavendish bananas from the Philippines amounting to P23.22 million. The company requires six to 10 40-footer containers of fresh Cavendish bananas every week.

The Philippine Trade and Investment Center, the commercial post of the DTI in Shanghai and the Bureau of Export Trade Promotion have assisted Shanghai Haodong recently to match local banana growers who can provide a steady supply to China. Julito G. Rada

ang hindi ko maintindihan bakit gustong gusto ng foreigners ang cavendish. walang may gusto ng lakatan? :lol:

^^ Baka may balak silang ikopya yung mga saging at gumawa ng Fuji Banana. :D

ASEAN: Strength in numbers
Business Mirror
http://www.businessmirror.com.ph/home/perspective/16964-strength-in-numbers

THE Philippines could become the ninth-largest economy in the world—but only if it integrates with the rest of the 10 countries—Brunei, Burma, Cambodia, East Timor, Indonesia, Laos, Malaysia, Singapore, Thailand and Vietnam—that make up the Association of Southeast Asian Nations or Asean.

United, the Asean economy is valued at at least $1.8 trillion—a little smaller than Brazil but larger than Russia, according Dato Timothy Ong, founder and chairman of Asia Inc. Forum and the convener of the Asean 100 forum.

Ong believes it is high time for the Asean to be integrated as an economic unit to become a more potent and stronger force in the global economic arena.

“In a globalizing world and with the rise of India and China, can Asean afford to be fragmented,” he said at a recent interview in Makati City. “If Asean is one, it’s going to be a more significant market and, at the same time, will be a force to reckon with.”

Indeed, economic integration is one of the hottest buzzwords of the global economy today.

The Asean has become a prominent figure in promoting bilateral and regional trading arrangements since 1997, starting with the Asean Plus Three process linking the 10-member bloc with China, South Korea and Japan.

Haruhiko Kuroda, president of Asian Development Bank, pointed out the importance of Asean in the global trading arena.

“Asean has become a manufacturing network for a wide range of products—from pharmaceuticals, automobiles and electronics to information-technology goods—and also produces high-end intermediate goods for final assembly elsewhere. Asean members have been major participants in the rapid expansion of free-trade agreements [FTAs] across Asia and the Pacific,” Kuroda said in one of his speeches.

Given its experience as a collegial body addressing common issues and concerns, the Asean can become an important vehicle for working toward a consolidation of FTAs into regionwide agreements. As synergies develop, it stands to gain as a community—as a center for expanding regionalism.


Asean 100

To push the momentum in promoting economic integration, the Asia Forum Inc. is organizing its Asean 100 Leadership Forum on September 28 and 29 in Makati City. Ong, a Brunei businessman, said the Asean 100 is a highly interactive meeting of minds of the most promising Southeast Asian next-generation leaders from business, government and civil society.

The forum will begin with a dinner address and dialogue with President Aquino, followed on the next day by thought-provoking discussions around a central theme of “One Asean,” led by key figures from the region and other parts of the world, including Federico Lopez, chief executive of First Philippine Holdings Corp., and Jaime Augusto Zobel de Ayala, chairman and chief executive of Ayala Corp.

Ong said some homegrown businesses will find the forum a useful platform for relationship building and regional outreach. This is manifested by the attendance of CEOs of highly respected corporations to at least two of the prior forums. The list includes AirAsia, the region’s largest low-cost airline; the Para Group, a top Indonesian diversified group; Top Glove Corp., a Malaysian rubber-glove manufacturer that produces 22 percent of the world’s rubber gloves; First Philippine Holdings Corp., a leading energy player in the country; Ayala Corp., one of the Philippines’ largest and oldest business houses; Ascendas, a regional provider of office-space solutions headquartered in Singapore; the Wangkanai Group, a Thai sugar conglomerate; and the Adinin Group, a leading oil-and-gas engineering company in Brunei, to name only a few.

As far as the Philippines is concerned, Ong said the Philippines has a very good potential to become a player in the economic integration of Asean.

“The Philippines has a sufficient corporate sector which can be classified as world-class like SM, Ayala, Jollibee and ICTSI [International Container Terminal Services Inc.]. I am happy to tell you that Jollibee is No. 1 in Brunei,” he said.

Furthermore, Ong said the Philippines has excellent human capital as proven by the deployment of millions of Filipino professionals around the world.

“However, the sad thing is that many Filipinos are forced to work abroad because of lack of opportunities in the Philippine economy,” he said.


Europe’s experience

According to Dr. Myrna Austria, vice chancellor for academics and full-time professor in economics at De La University-Manila, FTAs or regional trade agreements spur economic growth through increased specialization, greater trade, and the inclusion in a global value chain.

In her paper “Asean’s Extra Regional Linkages: Implications for an East Asian Economic Community,” Austria pointed out that it would be an advantage for the Asean to enter into formal arrangements because this also strengthens regional peace and security—which she said was the driving force behind the European integration.

Being at the center of two world wars, the Europeans know of their devastating effects such that after World War II the Europeans pushed with greater effort the formation of the Pan-Europa movement.

Austria believes that the China-Asean FTA should open the way of settling the current dispute over the Spratlys.

“In this regard, the insistence by Asean on accession by prospective partners to its Treaty of Amity and Cooperation is an important cornerstone in improving peace and security in the region,” Austria said.

“A formal arrangement should help countries either lock in domestic reforms or accelerate implementation of proposed reforms. International agreements can act as commitment mechanisms, providing policy-makers with the needed leverage to overcome domestic resistance to reforms. An FTA can also provide a government with credibility, thereby boosting domestic and foreign investment in the country,” added Austria.

An East Asian FTA will also make member-countries more conscious of the development gap in the region and might be the key to help neighboring countries stabilize and prosper for “altruistic purposes and get away from the effects of spillovers of unrest and population.” Austria said reducing the development gap will enhance the Asean, making it a more effective link between countries of Northeast Asia.

More important, Austria said an FTA will give the bloc a stronger political bargaining power because they’re sending the message they have banded together to pursue common interests.

And it is important for the Asean to ally with China, she stressed.

“Having China on its side will definitely enhance the political stature of Asean and vice-versa. One area that can be revived through advocacy by a China-Asean front is the reform of the international financial architecture. Efforts toward such measures were sidelined by indifference of the US Treasury,” she said.


The Philippine challenge

The Chinese experience, however, also proves that one can achieve economic growth without FTAs.

“The simple fact is that countries in East Asia which experienced high rates of economic growth did so without the benefit of an FTA. China was not even a signatory of GATT or an original member of the WTO. In other words, an FTA is not crucial to economic growth,” said Austria.

As such, Dr. Josef Yap, president of the Philippine Institute for Development Studies, said the Philippines must first address its own development so it can be a formidable partner in any economic merger.

In his paper “Economic Integration and Regional Cooperation in East Asia: A Pragmatic View,” Yap said the Philippines has to shape up its economy.

“It should be emphasized that the impediments to faster economic growth are largely internal. For example, the study of the East Asian miracle points to four main factors: outward orientation, a modernized agriculture sector, bureaucratic efficiency and a relatively equitable distribution of income. Moreover, outward orientation by these countries was not achieved through joining an FTA,” Yap said.

“The Philippines is a clear example where unimpressive economic growth is largely due to internal factors. The disparity is largest when all 10 Asean member-countries are compared as a group. It can be observed that the disparity of the Asean+3 is lower than the Asean 10 and the coefficient of variation declines further when the lower income countries are not included,” he said.

Yap pointed out that developing economies, such as the Philippines, need to beef up their own capabilities—in terms of infrastructure technology and human-resource development—to maintain a competitive business environment and economic and social stability in order to capitalize on the benefits of liberalization.

Right now, he said, there’s much to be desired in the capabilities of the country. For instance, the poor quality of infrastructure of the country has been cited frequently by several business groups and think tanks as one of the main reasons investors shy away from the country.

On resource development, the Philippines has a lot of catching up to do as its educational system has experienced a drastic decline in standards, resulting in a large number of graduates who don’t have sufficient skills.

So while it is important to strengthen Asean, a special focus must be placed on narrowing the development gap among the member-countries—which will not be achieved by merely deepening regional economic integration.

“Direct interventions at the regional level are necessary and this will be difficult to accomplish without East Asian countries establishing political rapprochement,” Yap said.

On her part, Austria said developing a common framework is a challenge itself for the Asean given the different levels of development of the member- economies.

She said Asean must review its approach and position as the hub of bilateral trade deals in East Asia if it wants to play a major role in building the whole process toward the formation of the East Asian community.

“An ideal framework would be one that strengthens, rather than contradicts, the market forces known to drive economic integration of the region,” she said.

Economic zones created nearly 100,000 new jobs says PEZA chief :banana::cheers::banana::cheers::banana::cheers:

by ELR, GMA News 10/06/2011 | 01:12 AM

http://www.gmanews.tv/story/234438/business/economic-zones-created-nearly-100000-new-jobs-says-peza-chief

The country’s 248 economic zones attracted P113.6 billion in investments as of last August, will likely surpass the $29.783 billion 2011 export target, and created 99,549 new jobs, the Philippine Economic Zone Authority (PEZA) said on Wednesday.

PEZA Director General Lilia de Lima said, in an interview on state-run radio dzRB, that the August 2011 record of investments in economic zones is 60 percent higher than the P70.958 billion in 2010.

De Lima attributed the increase in investments to the PEZA’s campaign to promote the economic zones and the “positive perception of investors about the business climate in the country."

“Bilib na bilib sila sa atin. Tayo lang ang hindi bilib sa sarili natin. Yung mga investors na nagpupunta dito, bilib na bilib sa Pilipinas kaya and strategy natin, bring them here…even in Mindanao," de Lima said.

Exports earnings of the zones reached $27.649 billion, also as of last August, according to the PEZA chief. The target this year is $29.783 billion and there are four months’ worth exports yet to be posted.

“We believe that we could hurdle the 11 percent increase in export by the end of the year," PEZA Director General Lilia de Lima forecast.

Most of the economic zones are information technology parks and centers, 155 in all, while 15 are agro-industrial zones, two are medical tourism parks, 12 are tourism zones, and 64 are manufacturing hubs.

Direct and indirect employment

The tally of direct hires in the zones was pegged at 816,711 so far, but that figure is the cumulative or total for 15 years. Compared to the tally of 717,162 for 2010, the difference would be new 99,549 new jobs.

De Lima explained that these figures do not include those indirectly employed such as construction workers, vendors, suppliers, security guards, janitors, and caterers.

“In the electronic sector, they say…for every person that you hire, you indirectly hire seven or (an employment) multiplier of eight…So, if you multiply 816,000 by 5, easily over four million jobs—direct and indirect—have been created in these economic zones in a span of 15 years," de Lima said.

I'm not for economic integration due to the great disparity in development among ASEAN's member countries. The EU for example, first implemented some sort of prerequisite minimum economic standards before they accepted a member country into their bloc. AFAIK, things like Debt to GDP ratios, inflation and unemployment rate etc. were taken into consideration when assssing a country's elegibility to join the club so to speak. They were designed primarily to even out out the risks to potential investors seeking to take advantage of opportunities in the new member country. And yet inspite of it, Europe is now on the brink of collapse itself -- as some of their analysts put it, triggered primarily by the fiscal indiscipline among other things, of the economically less developed nations in the union such as Greece etc.

If ever an economic integration were really necessary to better compete with the BRIC nations then it would be more prudent and advisable to limit membership to the original ASEAN five -- which includes the Philippines for starters, and then gradually add the other countries subject to similar eligibility requirements done in the EU. But for such a plan to succeed, checks and balances should be adopted i.e. creating a monitoring committee that will review all member countries' critical economic and other indicators on a quarterly basis to preempt or mitigate risks before they turn into crisis proportions that would seriously undermine the viability of such an economic bloc. They can also add disciplinary and other such measures or even outright expulsion in worst case scenarios if agreed upon standards and policies are not being met. :cheers:

ASEAN: Strength in numbers
Business Mirror
http://www.businessmirror.com.ph/home/perspective/16964-strength-in-numbers

THE Philippines could become the ninth-largest economy in the world—but only if it integrates with the rest of the 10 countries—Brunei, Burma, Cambodia, East Timor, Indonesia, Laos, Malaysia, Singapore, Thailand and Vietnam—that make up the Association of Southeast Asian Nations or Asean.

United, the Asean economy is valued at at least $1.8 trillion—a little smaller than Brazil but larger than Russia, according Dato Timothy Ong, founder and chairman of Asia Inc. Forum and the convener of the Asean 100 forum.

Ong believes it is high time for the Asean to be integrated as an economic unit to become a more potent and stronger force in the global economic arena.

“In a globalizing world and with the rise of India and China, can Asean afford to be fragmented,” he said at a recent interview in Makati City. “If Asean is one, it’s going to be a more significant market and, at the same time, will be a force to reckon with.”

Indeed, economic integration is one of the hottest buzzwords of the global economy today.

The Asean has become a prominent figure in promoting bilateral and regional trading arrangements since 1997, starting with the Asean Plus Three process linking the 10-member bloc with China, South Korea and Japan.

Haruhiko Kuroda, president of Asian Development Bank, pointed out the importance of Asean in the global trading arena.

“Asean has become a manufacturing network for a wide range of products—from pharmaceuticals, automobiles and electronics to information-technology goods—and also produces high-end intermediate goods for final assembly elsewhere. Asean members have been major participants in the rapid expansion of free-trade agreements [FTAs] across Asia and the Pacific,” Kuroda said in one of his speeches.

Given its experience as a collegial body addressing common issues and concerns, the Asean can become an important vehicle for working toward a consolidation of FTAs into regionwide agreements. As synergies develop, it stands to gain as a community—as a center for expanding regionalism.


Asean 100

To push the momentum in promoting economic integration, the Asia Forum Inc. is organizing its Asean 100 Leadership Forum on September 28 and 29 in Makati City. Ong, a Brunei businessman, said the Asean 100 is a highly interactive meeting of minds of the most promising Southeast Asian next-generation leaders from business, government and civil society.

The forum will begin with a dinner address and dialogue with President Aquino, followed on the next day by thought-provoking discussions around a central theme of “One Asean,” led by key figures from the region and other parts of the world, including Federico Lopez, chief executive of First Philippine Holdings Corp., and Jaime Augusto Zobel de Ayala, chairman and chief executive of Ayala Corp.

Ong said some homegrown businesses will find the forum a useful platform for relationship building and regional outreach. This is manifested by the attendance of CEOs of highly respected corporations to at least two of the prior forums. The list includes AirAsia, the region’s largest low-cost airline; the Para Group, a top Indonesian diversified group; Top Glove Corp., a Malaysian rubber-glove manufacturer that produces 22 percent of the world’s rubber gloves; First Philippine Holdings Corp., a leading energy player in the country; Ayala Corp., one of the Philippines’ largest and oldest business houses; Ascendas, a regional provider of office-space solutions headquartered in Singapore; the Wangkanai Group, a Thai sugar conglomerate; and the Adinin Group, a leading oil-and-gas engineering company in Brunei, to name only a few.

As far as the Philippines is concerned, Ong said the Philippines has a very good potential to become a player in the economic integration of Asean.

“The Philippines has a sufficient corporate sector which can be classified as world-class like SM, Ayala, Jollibee and ICTSI [International Container Terminal Services Inc.]. I am happy to tell you that Jollibee is No. 1 in Brunei,” he said.

Furthermore, Ong said the Philippines has excellent human capital as proven by the deployment of millions of Filipino professionals around the world.

“However, the sad thing is that many Filipinos are forced to work abroad because of lack of opportunities in the Philippine economy,” he said.


Europe’s experience

According to Dr. Myrna Austria, vice chancellor for academics and full-time professor in economics at De La University-Manila, FTAs or regional trade agreements spur economic growth through increased specialization, greater trade, and the inclusion in a global value chain.

In her paper “Asean’s Extra Regional Linkages: Implications for an East Asian Economic Community,” Austria pointed out that it would be an advantage for the Asean to enter into formal arrangements because this also strengthens regional peace and security—which she said was the driving force behind the European integration.

Being at the center of two world wars, the Europeans know of their devastating effects such that after World War II the Europeans pushed with greater effort the formation of the Pan-Europa movement.

Austria believes that the China-Asean FTA should open the way of settling the current dispute over the Spratlys.

“In this regard, the insistence by Asean on accession by prospective partners to its Treaty of Amity and Cooperation is an important cornerstone in improving peace and security in the region,” Austria said.

“A formal arrangement should help countries either lock in domestic reforms or accelerate implementation of proposed reforms. International agreements can act as commitment mechanisms, providing policy-makers with the needed leverage to overcome domestic resistance to reforms. An FTA can also provide a government with credibility, thereby boosting domestic and foreign investment in the country,” added Austria.

An East Asian FTA will also make member-countries more conscious of the development gap in the region and might be the key to help neighboring countries stabilize and prosper for “altruistic purposes and get away from the effects of spillovers of unrest and population.” Austria said reducing the development gap will enhance the Asean, making it a more effective link between countries of Northeast Asia.

More important, Austria said an FTA will give the bloc a stronger political bargaining power because they’re sending the message they have banded together to pursue common interests.

And it is important for the Asean to ally with China, she stressed.

“Having China on its side will definitely enhance the political stature of Asean and vice-versa. One area that can be revived through advocacy by a China-Asean front is the reform of the international financial architecture. Efforts toward such measures were sidelined by indifference of the US Treasury,” she said.


The Philippine challenge

The Chinese experience, however, also proves that one can achieve economic growth without FTAs.

“The simple fact is that countries in East Asia which experienced high rates of economic growth did so without the benefit of an FTA. China was not even a signatory of GATT or an original member of the WTO. In other words, an FTA is not crucial to economic growth,” said Austria.

As such, Dr. Josef Yap, president of the Philippine Institute for Development Studies, said the Philippines must first address its own development so it can be a formidable partner in any economic merger.

In his paper “Economic Integration and Regional Cooperation in East Asia: A Pragmatic View,” Yap said the Philippines has to shape up its economy.

“It should be emphasized that the impediments to faster economic growth are largely internal. For example, the study of the East Asian miracle points to four main factors: outward orientation, a modernized agriculture sector, bureaucratic efficiency and a relatively equitable distribution of income. Moreover, outward orientation by these countries was not achieved through joining an FTA,” Yap said.

“The Philippines is a clear example where unimpressive economic growth is largely due to internal factors. The disparity is largest when all 10 Asean member-countries are compared as a group. It can be observed that the disparity of the Asean+3 is lower than the Asean 10 and the coefficient of variation declines further when the lower income countries are not included,” he said.

Yap pointed out that developing economies, such as the Philippines, need to beef up their own capabilities—in terms of infrastructure technology and human-resource development—to maintain a competitive business environment and economic and social stability in order to capitalize on the benefits of liberalization.

Right now, he said, there’s much to be desired in the capabilities of the country. For instance, the poor quality of infrastructure of the country has been cited frequently by several business groups and think tanks as one of the main reasons investors shy away from the country.

On resource development, the Philippines has a lot of catching up to do as its educational system has experienced a drastic decline in standards, resulting in a large number of graduates who don’t have sufficient skills.

So while it is important to strengthen Asean, a special focus must be placed on narrowing the development gap among the member-countries—which will not be achieved by merely deepening regional economic integration.

“Direct interventions at the regional level are necessary and this will be difficult to accomplish without East Asian countries establishing political rapprochement,” Yap said.

On her part, Austria said developing a common framework is a challenge itself for the Asean given the different levels of development of the member- economies.

She said Asean must review its approach and position as the hub of bilateral trade deals in East Asia if it wants to play a major role in building the whole process toward the formation of the East Asian community.

“An ideal framework would be one that strengthens, rather than contradicts, the market forces known to drive economic integration of the region,” she said.

Some good points. However, I'm not sure how much this will work seeing as how the Eurozone hasn't really been holding up well lately.
Philippines just needs to: Weed out corruption, Improve education, Improve law enforcement, subsidize research and development, and go through intense industrialization.

Philippine imports in August up 10.4% on year
MANILA (Xinhua) -- Philippine merchandise imports rose 10.4 percent on year to 4.93 billion U.S. dollars in August on increased fuel imports, the National Statistics Office said Tuesday.

The import bill for fuel products increased 55 percent on year to 985.21 million U.S. dollars.

The main drag in imports was electronics which posted a contraction of 15.2 percent. This accounted for 28.3 percent or 1. 39 billion U.S. dollars of total imports.
More: http://www.philstar.com/nation/article.aspx?publicationsubcategoryid=200&articleid=741155

Liberalization has killed Phl manufacturing sector, says Villar




By Ma. Elisa P. Osorio
(The Philippine Star)
Updated October 27, 2011
http://www.philstar.com/Article.aspx?articleId=741597&publicationSubCategoryId=66


MANILA, Philippines - The move of Philippine negotiators to open the domestic market rapidly has killed local manufacturers, a senior member of the Senate said.

“We (the Philippines ) were fascinated with liberalization and the WTO that we opened the country too fast, ahead of China and India ,” Sen. Manuel Villar said. “Now we want to level the playing field, but there are no more players. They (local manufacturers) are all dead,” he added.:ohno::ohno::ohno:
He noted that Philippine trade negotiators at the World Trade Organization (WTO) bungled in the job and betrayed the interest of local industries.

According to Villar, the interest of the Filipino manufacturers have been left out and waylaid in the rush towards globalization that there are now only a few of them standing. .




No wonder the available jobs here are in the services sector that offer not so permanent employment status (i.e. contractual) . We are now becoming a nation of call center agents and salesmen and massive trade deficits, unemployment and underemployment as a norm.

A country cannot progress without a vibrant manufacturing sector and Im sure our stupid trade negotiators sent to the WTO know this but they opted to be dumb.

Japan, South Korea, China, Malaysia and Thailand turned to manufacturing to fuel their spectacular growth and now even fast rising Vietnam is going into manufacturing to build its economy.:cheers:

Yet this country and its moronic experts think we can leaf frog to developed status by turning the country into a land of sales rep, GROs, BPO agents and nurses.:bash:

Gising Pilipinas!:bash::bash::bash:

It won't work in the Philippines with a individualistic mindset unlike them with a conformist one so the only way is really through competition.

What's needed is to really open up the country for competition and allow the industries (both foreign and locals) to grow by how the market behaves - not force it through our uber nationalistic policies that ends up becoming a big failure. Make the country competitive by attracting as many businesses as possible whether local or foreign so more opportunities will open up for everybody.

Also along that line, the government should put more money in education as well as R&D which is seriously lacking to make the country more competitive.

High power rates force exporters to relocate
Local firms consider moving to China, Vietnam
By: Abigail L. Ho
Philippine Daily Inquirer
8:53 pm | Wednesday, November 2nd, 2011

http://business.inquirer.net/28123/high-power-rates-force-exporters-to-relocate

Exporters currently holding fort in the Philippines are now looking at moving to China or Vietnam as high electricity rates in the country cause them to lose their competitive edge in the global market.

According to Nora Halili Lao, holiday and gifts sector trustee of Philippine Exporters Confederation Inc., the high cost of power in the country made exporters’ prices too expensive to compete with many of their counterparts, causing them to lose sales.

She said electricity accounted for 40-50 percent of exporters’ total operating expenses. Considering this, it was difficult for exporters from the Philippines to price their products at more competitive levels.

“Producers and manufacturers suffer. They said they are no longer competitive [here], so they go to [other] countries for an ocular inspection to determine if they can compete [from there],” she said in a statement posted on Philexport’s official website.

The countries most favored as alternative locations were Vietnam and China, which both have lower power rates than the Philippines, she said. Some furniture exporters have actually moved to Vietnam and some buying agents have already set up offices there.

Before transferring, however, she said manufacturers and exporters were still conducting ocular inspections and doing their homework in the other locations they were considering.

“They want to compare and know if it is true that electricity is the one killing them. [There are] buyers who do not want to come here because products have become more expensive due to high power cost,” she related.

The Philippine Chamber of Commerce and Industry, in a wish list submitted to President Aquino late last month, sought the crafting of key policies supporting the energy sector, particularly a five-year electric power industry roadmap.

The country’s long-term power sector roadmap would then be based on this medium-term plan, the business group said.

This roadmap should contain solutions to bring electricity rates to more competitive levels, build adequate generation capacity for Luzon, and resolve the Mindanao supply shortfall, PCCI said.

Export firm breathes new life into old houses (http://business.inquirer.net/money/topstories/view/20110407-329931/Export-firm-breathes-new-life-into-old-houses)
By Carmela Reyes-Estrope
Central Luzon Desk
First Posted 20:40:00 04/07/2011

http://www.philippineslosangeles.org/uploads/images/ManilaNow2011_a.jpg

http://t2.gstatic.com/images?q=tbn:ANd9GcRBAPQxegPzaeT7NBStEB0qRgzV2y2ZQruVkGHngjnm-6uBNoFz

http://www.cfip.ph/wp-content/themes/cfip/flash/flash-gallery/images/14.jpg

Filed Under: Furnishings & Furniture, Economy and Business and Finance
CALUMPIT, BULACAN, Philippines—The world economic recession in 2008 could have crippled the export business of a couple here, who are engaged in shaping fine furniture using wood recycled from old and condemned houses.

But Uni-Art Home Décor and Furniture, a homegrown, family-owned enterprise, continues to make a killing, so to speak.

The latest bazaars and trade fairs now display Uni-Art’s sets of chairs and tables, stylized closets, wall clocks mounted on old Bataan frames, and even wooden picture frames, says Mercedita Azares, 49, Uni-Art’s proprietor who built the manufacturing warehouse next to her house in Barangay (village) Gatbuca here.

She says Uni-Art sold almost all of its products during the American Women’s Club bazaar held on March 22 at the World Trade Center in Pasay City and at the recent Baguio Flower Festival.

In April, she plans to push their products at the Aliwan Festival Bazaar at the CCP complex.

Azares says their success is measured by the fact that they will soon own a permanent booth at Market! Market! in Taguig City.

Their blessings more than make up for their woes that surfaced when the world recession in 2008 forced their French partner, who supplied their items abroad, to fold up his export enterprise, she says.

Uni-Art had been in business as a furniture exporter since 2002, but the 2008 recession cost them lost opportunities and unpaid obligations to old suppliers, says Azares’ husband, Allan.

Allan says that was the moment when they decided to redefine their product by exploiting wood left over from Bataan’s relics, thanks to an idea left behind by their former French partner.

“We thought of changing the tone of the color of the wood [we use to build furniture] to make it appealing to local buyers and we all sat down for a new product concept and new designs,” Allan says.

Foreign markets preferred furniture pieces with polished wood that have a lighter brown texture. The domestic market, however, preferred a sharper color, which old wood provides, Allan says.

Azares says former Calumpit Mayor Raul Mendoza helped the couple join a Christmas bazaar at the Bulacan provincial capitol compound in Malolos City in 2008 to display their new product line.

“That was our first new start. Many people liked how we experimented with old recycled wood. All of our calling cards went to good use. We started receiving bigger and bigger orders,” she says.

The old, pockmarked wood gave their new products the kind of character their previous commodities lacked. Azares says it was her brother who helped them source out old wood. Allan learned to incorporate metal in their wood products after a short stint repairing cars.

But one thing hasn’t changed. Uni-Art remains a family affair with the couple’s oldest son now in charge of conceiving new art designs.

^^^^:banana:
This state-of-the-art furniture truly showcase how great and talented Filipino's are. These kind of products would not only represent their talent in being resourceful but rather serve as signatured brand of the Philippines.

Philippine export receipts down 21% in Dec.
Philippine export revenues posted a 20.7-percent drop in December, dragging the 2011 full-year figures down by 6.9 percent, the National Statistics Office said Friday.

"Export earnings in December 2011 continued to decline by 20.7 percent from $4.201 billion recorded in December of previous year to $3.332 billion,” the NSO noted in a report. Read more (http://www.gmanetwork.com/news/story/247531/economy/business/philippine-export-receipts-down-21-in-dec)

2012 PHL exports to grow 15%, says economic official
Counting on reports of a production surge in the electronic sector, Socioeconomic Planning Secretary Cayetano Paderanga said Tuesday that total imports this year would jump by 15 percent from last year.

Raw materials imported for the production of electronics and electricals summed up to $8.83 billion last year while the full import bill totaled $60.14 billion. Read more (http://www.gmanetwork.com/news/story/249756/economy/business/2012-phl-exports-to-grow-15-says-economic-official)

My take on Japan and South Korea:

Japan, was under the administration of the US right after the war, specifically under Gen MacArthur's good administration skills.
South Korea, also was very much devastated after the truce. South Korea progressed because of:


Good governance, this includes strong focus in education and infrastructure.
Help from Japan and US
Focussing on technology for industrialization, like Japan
A few world-beater private companies

If you can see, the common denominator is the US. When Japan recovered with the help of Uncle Sam, it was normal for them to help South Korea since Japan wanted to make amends with South Korea. It just needs good intentions way back then!

South Korea also experienced rapid supergrowth because of export-led growth, import substitution, subsidizing of key economic industries and protectionist policies of infant industries. Japan also rocketed after World War II within a generation which is quite amazing. Asian miracles ...

South Korea also experienced rapid supergrowth because of export-led growth, import substitution, subsidizing of key economic industries and protectionist policies of infant industries. Japan also rocketed after World War II within a generation which is quite amazing. Asian miracles ...

The Philippines used to be under the US but nowhere near Japan nor Korea. Maybe it has to do with BEFORE vs AFTER? :?

The Philippines used to be under the US but nowhere near Japan nor Korea. Maybe it has to do with BEFORE vs AFTER? :?

We did great during Tatay/Mommy's wing and post independence too (50s-60s).
Makes you wonder who were and what screwed it up:smug:

^^ Quezon's curse:

"I would rather have a Philippines run like hell by Filipinos than a Philippines run like heaven by the Americans" -- Manuel L. Quezon

Well ... he got what he wished for. It's been run like hell for quite some time now. But things seem to be getting better thank God.

i hate him:hahano:

^^ If you hate him, send hate letters to MLQIII, denounce the university, the province and the city.

^^ If you hate him, send hate letters to MLQIII, denounce the university, the province and the city.

help me, hate him too:nuts:

palitan na lang ng Cory Aquino University
Kris Province
Notnoy City:lol: