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EDC calls for amendments to export development act |
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Officials of the Export Development Council (EDC) are pushing for amendments to the Export Development Act, otherwise known as Republic Act No. 7844 of 1994, which mandates among others “to evolve export development into a national effort”.
Sergio Ortiz Luis, Jr., President of Philexport and Co-Chairman of the EDC, said that a resolution by the Council was approved to amend the Act in order to help exporters keep up with the increasingly competitive world markets. A roadmap for the export sector will also be drawn up.
Among the key areas that will be inserted into the revised act is the “institutionalization” of an export support fund and provisions on export financing.
In the present structure, although funds are committed for export development and promotion, releases of these funds are still subject to availability of government resources. Oftentimes, expectations are raised that programs will be funded, only to be realized later that there are no funds available.
Recently, for instance, only P200 million of a promised P1-billion export support fund was released to the Trade department for export promotion and development programs.
The 1994 law merely hints at a "funding mechanism" using "sums as may be necessary". Financial assistance to export organizations is on a project-to-project basis while a system is not yet in place.
"Whatever method the new administration will agree to is okay. One way is to include the fund in the budget of the Trade department," Mr. Ortiz-Luis said.
The law must also be amended to "punish those that impede the sector", he added.
Source: Business World
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