DTI sees better chance for garment bill

MANILA, Philippines – The Department of Trade and Industry (DTI) believes it has a better chance of passing its proposed “Save our Industries Act” bill, which has been refiled in the US Congress recently, as the new bill presents a more comprehensive strategy to justify its passage.

“At this point, our chance is 50-50, but I believe we will improve our chances as more sponsors of the bill come in,” Trade and Industry undersecretary Cristino L. Panlilio told reporters.

The proposed legislative measure was refiled recently by Senator John Ensign of Nevada.

“We are still seeking for additional sponsors to help push this bill,” Panlilio said.

While the “Save Act” bill is a stand-alone legislative measure, Panlilio said it could still be incorporated or as a rider in other proposed trade bills.

In the last US Congress, the Save Act bill was principally authored by Senators Jim McDermott, Daniel Innoue, Kit Bond and Harry Reid. It also gained support from 15 representatives.

This time the DTI has adopted a comprehensive approach including the bill’s champion, the extent of activities to be undertaken and a mapping operation of the local industry.

Earlier, Panlilio said that DTI has spent P60 million in the last two years, including that of the DTI leaders of the past administration and the new government in pushing for the passage of the bill.

Panlilio said the bulk of this money went to Washington consultants who helped in the crafting of the bill, but which failed to pass in the last US Congress.

The P60 million formed part of total of P250 million that have been spent on various initiatives for the garment sector out of the P650 million industry fund, which represents the revenues generated from the fees in administering the garments export quota by the defunct Garments and Textile Export Board.

The lobby to push for the bill in the US Congress started in 2009 that resulted in the filing of the bill in June of that same year.

The DTI had mounted several initiatives to lobby for the passage of the bill including tapping the Filipino-American communities in the U.S. and a viral marketing campaign that also involved Rep. Manny Pacquiao, who is again endorsing the bill.

“Last year this administration conducted two missions to the U.S. for this bill, but the bulk of the expenses involved the consultancy fees for the experts that the government had to hire,” Panlilio said.

Under the Save Act bill, the Philippines will produce garments using American textile, yarns and fabrics. The finished product would then be exported to the U.S. duty-free. This bill is seen as a win-win solution to revive the ailing textile industry in the U.S. and revive the garments manufacturing of the Philippines.

The passage of the Save Act is expected to revive the country’s garment industry that used to export over $3 billion and employ over 600,000 people because exports of garments to the U.S. using American yarns and fabrics would be allowed duty-free access in the U.S. market. (BCM)