Govt gets support on US garments bill

The Philippines has convinced five lawmakers from the US Congress to sponsor a bill aimed at giving duty-free or reduced tariffs on local garment exports made of US fabric.

Trade Secretary Peter Favila told reporters that President Gloria Macapagal-Arroyo pushed for the bill, known as the Save Our Industries Act under the 809 Program, during her recent visit to the US.

“The President sought the support of the US Congress on the 809 Program and the response was very positive,” said Favila.

George Siy, chairman emeritus of the Confederation of Garment Exporters of the Philippines, said the local industry was looking at $3 billion in additional apparel exports and 600,000 jobs if the bill was passed.

Under the 809 Program, certain Philippine apparel made of US fabric will enter the US duty-free. If made from US yarns, certain Philippine apparel will enter the US at reduced tariff. A side component provides duty-free entry to certain Philippine garment products regardless of the source of fabric.

Lawrence delos Santos, Congep president, said the passage of the bill would be “a very nice carrot” for investors to come in and put up garments manufacturing factories in the Philippines.

“Investments are also projected to grow $480 million for the first two years [of the bill?s implementation], with approximately 60 new firms to be established. Furthermore, the 809 Program also translates into 210,000 new jobs created in the four years of implementation,” said Delos Santos.

US Rep. Jim McDermott introduced the Save our Industries Act in the US Congress last month.

Trade Assistant Secretary Fe Agoncillo said the US Congress’ committee on ways and means was reviewing proposed legislation.

She said the US Congress wanted to have the Obama administration’s Healthcare Bill passed first before taking up other preferred bills, including the 809 Program.

“We are now talking to some senators. The President had manifested that 809 is an important piece of legislation for the Philippines,” said Agoncillo.

Crucial to the passage of the bill is the support of the US textile sector. Philippine apparel makers and US textile mills have discussed the issue over the last two years.

The American Apparel and Footwear Association after consultations with the local group has finally supported the 809 Program.

Philippine exports to the US amounted to $8.3 billion in 2008 and US exports hit $8.7 billion. –Elaine Ramos Alanguilan, Manila Standard Today