Govt to lobby harder for special treatment of PHL apparel

The Philippine government will do whatever it takes for the United States’ Congress to pass the bill granting special treatment to domestic garments. Presidential spokesperson Edwin Lacierda said Philippine officials are trying to secure more supporters from the US Senate and House of Representatives for the approval of the Save Our Industries (SAVE Act). “It’s a very important bill for us. It will benefit our industry here. One of the benefits [is] we would be able to export to the US duty-free. It’s something that we are — especially our trade secretaries — considering as an important bill for us," he told reporters. He said the Philippine officials have already swayed some US senators and congressmen, whom he did not name, but they still need to get some more. “We encourage the Filipinos, the Fil-Ams abroad, to band together and write letters to their congressmen and senators, hopefully to encourage them to support the Save Our Industries bill," Lacierda added. Garments industry revival Lacierda believed the passage of the bill will revive the garment industry in the Philippines. “It is still one of the industries that we’re still hoping [to gain synergy]. We previously had a very healthy industry," he said. Reports have it that Luen Thai — a garments company based in America, Asia, and Europe — put on hold its $5-million commitment to produce 150,000 pairs of Ralph Lauren jeans a week and generate 2,000 jobs in the Philippines until the passage of the bill. Through a memorandum of understanding, Luen Thai committed three projects in the Philippines during the visit of President Benigno Aquino III to the US last year. The company has made good on two commitments: the expansion of Luen Thai’s Clark facility in Pampanga and its new Coach bag production investment. Leaner version Trade Undersecretary Cristino Panlilio had said a leaner version of the SAVE Act will be refiled in the 112th US Congress. To be deleted in the new version is the component seeking reduced tariff on Philippine garments made of US yarn, in response to the opposition of some American trade groups who tagged it as “unfair competition." The number of categories to enjoy duty-free entry to the US regardless of the fabric’s source will also be trimmed down. “We would lean towards more lines using US fabric than third-party fabric," Panlilio said. Seventeen lines that would use US fabric were proposed to enter the US duty-free. Another change would provide for allowing Philippine exporters to source from non-American supplier if the US fabric runs short. — JE, GMA News