Trade Secretary Manuel Roxas II said yesterday he has gotten the go signal from President Macapagal-Arroyo.
The Philippines is a signatory of the ASEAN Free Trade Agreement (AFTA) which will open up the region to the free flow of goods and services starting 2003.
Roxas will ask his ASEAN counterparts for the continued imposition of a 15 percent tariff on polymers up to the year 2010. Under the AFTA, the tariff on polymers will be brought down to five percent by 2002.
In exchange for the deferment on tariff, Roxas has asked industry players to firm up their development plan for the construction of a naphtha cracker plant.
To date, plans for the naphtha cracker plant remain fluid as consortium members look for foreign investors.
Members of the consortium are the Philippine National Oil Co., Petrochemical Corp. of Asia-Pacific, Bataan Polyethylene Corp., Philippine Resins Industries Inc., Mabuhay Vinyl Corp., JG Summit Petrochemical Corp., and Sumitomo Corp. of Japan.
The planned naptha cracker plant will be located in Bataan and will have an annual capacity of 350,000 to 500,000 metric tons. The plant hopes to be completed before AFTA is implemented in 2003.
Roxas said government considers the local petrochemical industry a strategic industry. The local industry which is primarily engaged in the production of plastic and packaging materials, will generate 250,000 new jobs with the establishments of the naptha cracker plant.