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PNoy signs PHL Competition Act, Cabotage Law amendments


(Updated 4:08 p.m.) President Benigno Aquino III on Tuesday signed into law two of his priority economic bills.
 
Aquino approved the Philippine Competition Act (Republic Act 10667), as well as amendments to the 50-year-old Cabotage Law (Republic Act 10668), during a ceremony in Malacañang attended by members of Congress.
 
In his speech during the event, the President said these new laws are important to ensure free trade in the Philippines and fuel economic growth.
 
“Sa pamamagitan ng dalawang panukalang batas na pinagtibay natin sa araw na ito, tinatanggal natin ang mga baluktot na kalakarang dulot ng kawalan ng kumpetisyon, na walang nadadalang pakinabang sa ating mamamayan,” Aquino said.
 
The Philippine Competition Act will particularly benefit both consumers and traders, he added.
 
“Dito, makakamit natin ang punto kung saan ang mamimili, mas totoo ‘yung presyong binabayaran, ‘yung nagbebenta naman, nahihikayat na pahusayin pa ang kanilang serbisyo. Sa dulo, lahat nakikinabang, lahat panalo,” Aquino said.
 
The Philippine Competition Act seeks to promote free trade by penalizing price fixing during auctions and biddings, as well as anti-competitive mergers and acquisitions.
 
The new law also bans trade barriers for the sake of driving competition, and prohibits selling goods and services at below cost to undermine the competition.
 
R.A. 10667 also requires parties to mergers and acquisitions valued beyond P1 billion to notify the Philippine Competition Commission, an independent quasi-judicial body which will be established under the new law.
 
Senator Bam Aquino, author of the newly approved economic bills, meanwhile said that R.A. 10667 will further the level the playing field in the business sector.
 
“Businesses, whether big or small, will now be on equal footing as the law penalizes anti-competitive agreements and abuses of dominant players,” the senator said in a separate statement.
 
Cabotage Law
 
The amendments to the Cabotage Law lowers the shipping costs for both export and import shipments by allowing foreign-flagged vessels to carry imported cargo directly to the final Philippine port of destination.
 
“Sa dating kalakaran, dahil sa kawalan ng kompetisyon, kung magpapadala ka ng cargo container mula Cagayan de Oro patungong Hong Kong, aabutin ka ng $1,264. Sa halagang pong iyon, $1,120 mula Cagayan de Oro hanggang Maynila, at $144 naman mula Maynila hanggang Hong Kong,” Aquino explained in his speech.
 
“Dahil sa pag-amyenda ng Cabotage Law, puwede nang dumiretso ang shippers mula Cagayan de Oro hanggang Hong Kong. Ang babayaran na lang nila: $500. $764 po ang natipid nila kada container,” he further said. 
 
Foreign vessels with the same Philippine port of destination will also be allowed to co-load cargo from the same port of entry.
 
The amended law also allows foreign vessels carrying exports through another Philippine port, and to co-load foreign cargo with the same final port of destination abroad.
 
Empty container vans from abroad can now be transshipped between two domestic ports. – Andreo Calonzo/VS, GMA News
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