FPI, PCA back Asahi Glass’ bid for safeguard measures

The Federation of Philippine Industries (FPI), as well as the Philippine Constructors Association Inc. (PCA) are supporting Asahi Glass Inc.’s application for safeguard measures.

According to FPI’s position paper, the group supports Asahi Glass’ application for safeguard measures "because of the implication of this case for all Philippine industries, and not only for the glass industry."

The group said a decision in favor of Asahi Glass’ application would have "far reaching significance."

"The predicament of Asahi Glass is intimately connected with the decision of our government, early on to unilaterally accelerate reduction of MFN (most favored nation) tariff rates ahead of the reduction in those cost of doing business which are not within the control of individual enterprises,it added.

Uncontrollable business cost, according to the FPI, include power rates, interest rates, shipping cost, "which make it difficult for Philippine industries to be competitive globally, not to mention the absence of much needed reform in labor laws and persistent smuggling."

The government’s move to accelerate the reduction of MFN rates, the FPI lamented, is in contrast to the move of other Asian countries to maintain high MFN rates.

FPI confirmed that Asahi Glass’ claim that the much cheaper glass from China is being kept out of Malaysia, Vietnam and Thailand due to their much higher respective MFN rate of 60 percent, 40 percent and 30 percent. The Philippines imposes a rate of only 10 percent.