Save Act fails to pass US Congress

MANILA, Philippines - The Save the Industries Act, the bill that was supposed to save the ailing garments industry of the country, failed to pass the US Congress, the Board of Investments (BOI) said yesterday.

The new session of the US Congress is set to begin in January. The House of Representatives will now be under the control of the Republican Party.

BOI Executive Director Lucita P. Reyes said that they will simply re-file the bill. However, some industries are already calling for an audit of the funds being spent on the lobbying for the bill. An insider who spoke under the condition of anonymity called for an audit of the Garments and Textile Development Board (GTDO). The GTDO has P600 million and the insider said it is important to find out how much is left. The GTDO is funded by the BOI.

The Save Act bill was introduced by Congressman Jim McDermott and Congressman Brian P. Bilbray in June 2009 which had a total of 10 sponsors. A companion bill S. 3170 was introduced by Senators Kit Bond and Daniel Inouye.

Under the 809 component of the program, US made fabrics and yarns cut and wholly assembled in the Philippines would qualify to reenter the United States free of duty. In addition, garments made of US spun yarn or extruded yarn formed in the Philippines, may reenter the United States at 50 percent of the most favored nation (MFN) duty.

The Philippine garments export industry, during its peak, employed around 600,000 workers but was whittled down to 150,000 as cheaper garments are being manufactured from neighboring countries

Prominent Filipinos like Boxing champ Manny Pacquiao has already thrown their support for the Save Act.

Unfortunately during the lame duck session, US Senator Daniel Inouye nearly withdrew his support to the Save Act after he learned that a small group of Filipino World War II veterans decided to take the US government to court.

BOI managing head Cristino L. Panlilio said that for a while, the senator refused to meet with Filipino representatives.

In fact, during the time when the senator was threatening to pull out his support, Confederation of Garments Exporters of the Philippines (CONGEP) Executive director Maritess Agoncillo told reporters that the industry is already pulling out their support for the Save Act. Agoncillo made the statement outside the office of Panlilio. However, in an interview a few days later, Agoncillo retracted her statement and said they are still looking forward to the signing of the Save Act.