The Philippine Metalworkers Alliance (PMA) is urging President Arroyo to take steps to preserve vehicle assembly industry in the face of wider liberalization.
In a letter dated July 24, 2009, the PMA cited the need to sustain the current investment of P100 billion in the industry, which has a yearly employee withholding tax contribution of P350 million.
The group said the implementation of the Japan-Philippines Economic Partnership Agreement (JPEPA) as well as the full liberalization starting 2010 in Asean may imperil local assembly from completely knocked-down parts.
The group specifically sought for a deferment of the tariff elimination under JPEPA for completely built-up motor vehicles.
PMA also reiterated its Oct. 18, 2007 position at the Senate which conducted the hearings in relation to the JPEPA opposing Article 27 of JPEPA which will allow importation of second-hand vehicles, now prohibited by under Executive Order 156.
The group said if the importation of second-hand vehicles will be legalized for Japan, the CKD assembly will be badly affected and most likely close down.
The PMA said this would leave 77,000 workers unemployed with a chain reaction to more than 500,000 Filipino workers in related industries and their family members.
Some of the other steps it was recommending are the introduction and implementation of programs with incentives to boost the competitiveness of CKD vehicles.
PMA also said the labor sector should make a strong representation to government in adopting and implementing such programs.
“In the event that we don’t have any concrete evidence that our employers is in line with our objective to retain and expand the CKD operation contrary to Article 27 of JPEPA, we would like to solicit your honorable office to facilitate a meeting with the DTI (Department of Trade and Industry) for a mutual clarification of our concerns,” the PMA said.
The group said the zero tariff on imported vehicles beginning 2010 will put the industry at stake.
“CKD production and local parts production translate into concrete economic contributions in terms of investments, employment, government revenues, technology transfer and the development of related industries,” PMA said.
Source: Irma Isip
