RP businessmen reject plan to reduce import tariffs<\/p>\n
MANILA (AFP): The Philippines' top business leaders yesterday
\nrejected a government plan to reduce import tariffs to a uniform
\nrate of five percent in six years, saying it could wreak havoc on
\nlocal industries.<\/p>\n
The businessmen told Trade Secretary Rizalino Navarro during a
\nmeeting that although they were supportive of a free-market
\neconomy, such a proposal \"should be discussed more thoroughly and
\nopenly with various sectors.\"<\/p>\n
Manila is proposing to reduce tariff on all imports within
\nsix-and-a-half years, or by 2001, to a single rate of five
\npercent as part of a plan to establish a \"borderless economy.\"<\/p>\n
But the businessmen, led by industrialist Raul Concepcion and
\nRicardo Romulo, head of the Makati Business Club, said a recent
\nsurvey showed 48 out of 50 industry organizations and 257 out of
\n319 manufacturing firms were opposed to the proposal.<\/p>\n
\"Such a move would have great implications on Philippine
\nindustry and the labor sector,\" the businessmen said in a
\nposition paper.<\/p>\n
They warned that this could further expand the trade deficit
\nand drain much-needed foreign exchange. It could also force local
\nmanufacturers to fold or encourage firms to invest abroad and
\nexport back to the Philippines.<\/p>\n
\"Another alternative would be for industry to slowly phase out
\nof manufacturing and go into importing finished goods at low
\ntariff rates rather than importing raw materials at the same
\ntariff rate, only to compete with other importers of finished
\ngoods,\" they said.<\/p>\n
These consequences could result to a loss of about one million
\njobs, they added.<\/p>\n
They suggested that Manila first iron out problems of
\nadjustment under the General Agreement on Tariffs and Trade and
\nthe Association of Southeast Asian Nations (ASEAN) Free Trade
\nArea before taking other steps.<\/p>\n
ASEAN groups Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore and Thailand.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rp-businessmen-reject-plan-to-reduce-import-tariffs-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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