The Philippine government is asking the Filipino-American community in the US to support a bill that will help improve the textile and garments industries in both countries.
"We ask you to write to the senators to promote this. It will help the US and the Philippines," Archimedez Gomez, Philippine Trade Representative told a forum in Las Vegas.
Gomez, who is from the Philippine Trade and Investment Center (PTIC) in Los Angeles, met with officers of the National Affiliation of Filipino American Associations—Nevada chapter (NaFFAA NV) to discuss the proposed legislation.
The Trade representative also got in touch with Nevada Congressman Shelley Berkley who suggested communication with the Filipino community to ask for their opinions.
"(So) you should promote this SAVE Act," Gomez told NaFFAA officers, who are also leaders of various Filipino-American organizations in Las Vegas.
The Save Our Industries Act or SAVE Act is a bilateral agreement between the US and the Philippines that would allow the latter to export locally assembled garments duty-free provided that these are made from fabric that was made and bought from the US.
Garments crafted from fabric made of US yarn and natural Philippine fabric like abaca or pineapple will be exported to the US at a 50% duty reduction.
The bill, which has recently won bipartisan support in the US Congress, is now under scrutiny at the committee level.
House Resolution 3039 was sponsored by Democrat Congressman Jim McDermott of Washington and Republican Congressman Brian Bilbray of California. In the Senate, meanwhile, Democrat senator Daniel Inouye of Hawaii and, Republican senator Christopher Bond, from Missouri, sponsored Senate Bill 3170.
Gomez said approval of the proposed legislation will benefit the Filipino-American community.
"Whatever increase in the Philippines’ GDP (gross domestic product) and available jobs, it will translate to increased activity in the economy. That will redound to the benefits of the Filipino Americans," he said.
"The SAVE Act (will provide) a win-win situation to the Philippines and the US," Gomez said at the Las Vegas forum.
The bill, if approved, would, for the first time give US textile producers a significant market for their products in Asia, a PTIC presentation showed.
Citing figures of the Confederation of Garment exporters, Gomez explained that some $200 million worth of US fabric will be bought in the first two years if the bill is passed. This amount will increase to $500 million in five years.
Gomez also said some 2000 jobs are expected to be created in the US, while the Philippine job market will see an increase of over 200,000 jobs.
The Philippines has suffered from dwindling garment exports to the US because it cannot compete with other Asian countries whose products are cheaper because of significantly lower labor costs, Gomez explained.
"Currently our (garments) export to the US is $1.2 billion. In 2000, it was at $3 billion," Gomez said.
"It was a big decrease and the reason is we cannot compete. If we have duty free products, we’ll be able to compete," he added.
The Philippine garments industry was also a victim of globalization after the US ended its quota regime and opened its markets to cheaper Chinese products as part of concessions for joining the World Trade Organization.
( Published June 17, 2010 in Asian Journal Las Vegas p. A1 )
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