Philippines to pass delayed EO on tariff cuts?

14-Sep-05

Petrochemical industry players in the Philippines have taken the initiative of asking the President to finally sign the long overdue Executive Order to lower tariffs on 11 intermediate products to 5% from 10%. The two-year petrochemical tariff protection was scheduled for removal in January, but the Gokongwei-led Association of Petrochemical Manufacturers of the Philippines (APMP) pushed for its extension. A step in this direction has been taken as the industry has recently felt the threat of not seeing the EO passed at all under the order of Trade and Industry Secretary to review the draft EO by the Cabinet-level Tariff and Related Matters Committee. As far as the PPIA is concerned, it is no longer necessary to hold another review because the previous economic team approved it twice. The Congressional break between September 10 and October 4 seems to be the right time for the signing. Infact, many players are of the opinion that, if this time frame is missed, then they will miss the bus as the government seems to favour JG Summit, which is putting up the P26.2 billion naphtha cracker plant. A prudent step in this direction will be adoption of the recommendation of the Tariff Commission on the issue of resins, as failure to pass the EO will be a setback for the industry. Last year resin consumption of the industry decreased from 723,063 metric tons to 566,661.