FPI, business group ink pact vs smuggling

The Anti-Smuggling Committee (ASC) of the Federation of Philippine Industries (FPI) signed yesterday a memorandum of agreement with the Businessmen Against Graft and Corruption (BAGCOR) in an effort to curb smuggling.

FPI president and concurrent chairman of the ASC Jesus Arranza said "no amount of laws or policies will solve the economic ills of the country if smuggling in all forms is not stopped."

The FPI, fortunately, Arranza said, is not alone in is fight against smuggling.

The FPI coordinates with the Philippine Chamber of Commerce and Industry, the Employers Confederation of the Philippines and the Federation of Filipino-Chinese Chamber of Commerce and Industry.

Smuggling, Arranza lamented, cost the government billions of pesos in unpaid duties and taxes and, at the same time, poses unfair competition to local manufacturers.

It results in business closures and adds to the unemployed.

Such closures and increasing jobless, Arranza said, contribute to increase the budget deficit and forces the government to resort to more borrowings.

Because of higher loan demand, interest rates rise, adding to the cost of local companies which then makes them uncompetitive. Debt servicing of foreign borrowing, Arranza said, contributes to the depreciation of the peso.