RP, Thailand forge countertrade pact

The Philippines will soon be able to export fertilizer to Thailand in exchange for rice under a recently concluded countertrade agreement.

Under the agreement reached between the Philippine International Trading Corp. (PITC) and Thailand’s Ministry of Commerce-Department of Foreign Trade, the Philippine Phosphate Corp. (Philphos) will export $6.4 million worth of fertilizer to Thailand while Thailand will ship $12.8 million worth or 70,000 metric tons of rice to the country.

The countertrade agreement will cover a period of two years.

The PITC is also identifying other viable products such as information technology services which could be used in other countertrade agreements with Thailand.

Philphos, a joint venture between the Republic of Nauru and Delphi Holdings, is Asia’s largest and most modern phosphatic fertilizer plant.

Philphos was previously a joint venture between the Philippine government and the Republic of Nauru. But as part of the government’s privatization program, the government sold its 45 percent stake in Philphos to Delphi Holdings.

Delhi Holdings is controlled by businessman Jose Ch. Alvarez who also has an investment in Columbian Motors which holds the BMW franchise.

The Philphos plant is located in Isabel, Leyte. The 180-hectare plant has a capacity of one million metric tons of fertilizer a year.

Philphos was one of the 10 industrial projects of former Trade and Industry Secretary Roberto V. Ongpin during the time of former President Ferdinand E. Marcos.