Roxas rejects USTR claim on RP retail trade

Trade and Industry Secretary Manuel Roxas II said yesterday there is no immediate need to revise the country’s Retail Trade Liberalization Law despite the US government’s reported request to scrap the requirement on reciprocity and local sourcing.

"We should allow the law to take its course," Roxas said.

The US Trade Representative, in a report, said the requirements on reciprocity and local sourcing are considered as trade barriers.

The two requirements have supposedly been the stumbling block to the entry of more US retailers in the Philippines.

US-retailer Wal-Mart has repeatedly expressed interest in establishing operations in the country. But negotiations with local partners have repeatedly collapsed due to various reasons that included the downturn in the economy and the political turmoil, plus the reciprocity and local sourcing requirement under the Retail Trade Liberalization Law.

"Other retailers, however, such as Watsons do not have a problem with it (Retail Trade Liberalization Law)," Roxas said.

"Another big US retailer, the PriceSmart Group, has successfully set up an initial three outlets in the country. Even McDonalds has not encountered any problem with the Retail Trade Liberalization Law," he added.

The law was enacted only in 2000 and only three have applied under the law – PriceSmart, Watsons and McDonalds.

Some European retailers also expressed interest in entering the local market but negotiations collapsed.

Those that had expressed interest were France’s retail giant Carrefour and the Casino Group.