DTI's Lopez urges solons to find other ways to ease Charter restrictions

Trade Secretary Ramon Lopez on Tuesday urged lawmakers to also look into other measures that would lift the restrictions in the economic provisions in the 1987 Constitution, saying that the COVID-19 pandemic and the 2022 elections may hamper the ongoing Charter change (Cha-cha) deliberations.

In his remark during the meeting of the House Committee on Constitutional Amendments, Lopez said he finds merit in the moves to lift the restrictions in economic constitutional provisions.

"We reiterate the statement we gave in other fora that we pose no objection to the review of economic provisions of our Constitution to address these barriers to investments," he said.

"We are just mindful of the current challenges brought about by the pandemic, including the nearing 2022 presidential elections that might affect the focus, nature and pace of the deliberations, but we leave that concern to the wisdom of our legislators," he added.

Because of this, Lopez urged lawmakers to also consider other legislative actions that will likewise result in the lifting of the economic restrictions, such as the modifications to the Retail Trade Liberalization Act and the New Public Service Act.

"Modifying the current Retail Trade Liberalization Act will boost foreign investments in the Philippine retail industry through amendments that lower the minimum paid-up capital requirement for foreign-owned businesses. This would give the country greater access to diverse consumer products, more competition among retailers, more retail market access and lower entry cost for MSME products and services, further technology and skills transfer, and additional jobs for Filipinos," he said.

"Meanwhile, liberalizing the present Public Service Act by refining or limiting what constitute a public utility may take certain industries out of the coverage of the constitutional limitations on foreign ownership," he added.

Resolution of Both Houses No. 2, which is the subject of the ongoing deliberations of the panel, inserts the phrase "unless otherwise provided by law" to the constitutional provisions on national patrimony and economy; education, science and technology, arts, culture, and sports; and on general provisions to give Congress flexibility to enact laws that would free up the economy to foreign investors.

Lopez said the Department of Trade and Industry has also been supportive of the reasonable opening up of the country's economy and liberalizing restrictions hindering its further growth.

"We welcome the efforts, whether through a Charter Change or the enactment of laws, in removing these economic restrictions and any barrier that limit foreign participation in investments, and economic activities," he said.

"Eliminating these barriers will certainly unleash the high growth potential of the Philippines, as it will facilitate the entry of more investments that will modernize our sectors, bring in technology & new capital flows, foreign exchange, improve cost efficiencies and generate jobs," he added.

In the same hearing, Finance Secretary Carlos Dominguez III also backed the proposed lifting of the restrictions in the economic provisions of the Constitution, but he said the ban on foreign ownership of land should stay as this "evokes strong emotional reactions."

"You cannot ignore the colonial past of the Philippines where it was thought that foreigners came and ended up owning the land, dispossessing the Filipinos," he said.

"The rest of the investment liberalization strategies should accomplish enough to enable our rapid economic recovery," he added. — DVM, GMA News