Workers urge government to defer tariff reductions

The Plastics Union Labor Alliance (PULA) has urged the government to defer the implementation of tariff reductions under the ASEAN Free Trade Area-Common Effective Preferential Tariff (AFTA-CEPT) and the Most-Favored Nation (MFN) scheme.

Workers belonging to the group said the tariff reduction has already caused job losses in many local industries due to the influx of imported products.

The PULA’s position is contrary to the position of the Philippine Plastic Industries Association (PPIA) which has chosen to push for tariff cuts for related industries such as petrochemicals.

"The PPIA is adopting a very myopic stand," said Wilfredo de la Cruz, one of the convenors of PULA and president of the National Federation of Labor Unions (NAFLU).

"The PPIA, which is an association of plastics manufacturers and fabricators, is not even considering the welfare of local workers who are losing their jobs to foreign workers," De la Cruz said.

PULA said it is concerned that the PPIA is actually advocating the death of the local plastic and petrochemical industry which would result in massive job losses to local workers.

PULA is urging the PPIA to file a petition with the Tariff Commission to increase tariffs on finished plastics products to 15 percent.

A 15 percent tariff rate, PULA said, would correct the tariff distortion between finished plastics and petrochemical polymers, the raw material for plastics.