Government to expand coverage of proposed US duty-free list

MANILA, Philippines - The government is looking to expand the coverage of a proposal seeking duty-free entry to the US for goods produced in areas hit by Super Typhoon Yolanda to include parts of Mindanao.

Philippine Ambassador to the US Jose Cuisia Jr. told reporters that while the Philippine Recovery Investment Development Export (PRIDE) Bill was initially intended to cover only areas devastated by Yolanda, the government now wants to include parts of Mindanao to help spur economic activity in the area as well.

“Initially, it was only going to be focused on areas affected by typhoon Haiyan but we decided to include Mindanao because our point is, it will also help speed up the development of Mindanao,” he said. 

Through the PRIDE, the government would want goods produced or those with some of the processing done in the typhoon-hit areas and in Mindanao to be allowed to enter the US at zero duty for five years.

The proposal still needs fine-tuning to specify what areas will be covered in Mindanao as some parts of the island group such as Davao and Cagayan de Oro are already considered more developed.

The government will also have to get major sponsors for the bill so the proposal can be filed and pushed in the US Congress.

Cuisia said he will be talking with some members of the US Congress this week for the proposal.

The government is still looking for sponsors for the bill as the US House and Senate had just convened for its first legislative session of the 114th Congress last month following mid-term elections held in November. 

While there has been interest from some members of the US Congress on the bill, Cuisia said pushing the proposal would be a challenge as the US government is currently focused on the Trans-Pacific Partnership (TPP), an agreement that will enhance trade and investment among 12 Pacific countries to promote innovation, economic growth and job creation. 

“They (US) are no longer entertaining bilateral trade preference. They would prefer that it be part of a bigger trade pact like the TPP…so we recognize it is going to be a big challenge for us but we have to do it to be able to assist (typhoon-hit areas),” Cuisia said. 

Yolanda, which hit provinces in central Philippines in November 2013, is considered to be one of the strongest typhoons.

Since the trade preference is time-bound, that should be enough time for the Philippines to prepare its industries to ensure it will be qualified to enter the TPP later on, Cuisia said.