Forget Floyd Mayweather!
People will certainly be surprised to learn that the next “fight” for our “Pambansang Kamao” is a non-title bout versus a yet to be confirmed cabinet member named “Gregory” Domingo, currently holding the top rank title of Secretary of Trade and Industry.
Unknown to many Filipinos, there is a five-year-old effort on the part of what is left of the Philippine garments industry, to duplicate or copy existing trade arrangements that countries like Haiti and those in Central America have with the United States.
Recently, Congressman Manny Pacquiao gave his full support to the effort both as a legislator as well as an international icon.
I’ve been told that Pacman even called the US Senate Majority Leader Harry Reid of Nevada to get his backing for the bill. It seems that Pacman had gone out of his way to publicly support Reid’s election bid, which was very much appreciated by the US Senator.
Senator Reid, as well as Senator Daniel Inouye of Hawaii are just some of the many lawmakers who have helped push for what is called the US Save Our Industries Act, a proposed bill that was initially filed in the US Congress in April 2009 and was filed in the US Senate in the first quarter of 2010.
If the efforts succeed, the Philippines will be part of an “exchange deal” program with the United States wherein US textiles will be sent to the Philippines tax free and will then be used in the manufacture of different garment products which would be sent back to US wholesalers and retailers.
As a consequence of the “exchange deal” it is envisioned that the US textile industry would directly benefit by having another market, while the Philippine garments industry will get an important lifeline in the US market.
In terms of possibilities, the arrangements could increase employment locally from the current 200,000 jobs to an easy 400,000 jobs. In terms of export sales the industry estimates sales at $1.5 billion three years from now, to as much as $2.7 billion.
So how did DTI Secretary Gregory Domingo get into the picture?
Accounts have it that the “Save Our Industries Act” was the result of the determined efforts of people in the Philippine garments industry who hired a US team of strategists and lobbyists, and was supported by the Department of Trade and Industry under then Secretary Peter Favila who authorized a contract agreement with Surrini-Samet & Associates, to help promote Philippine interests in Washington, specifically to duplicate the efforts made by other nations that resulted in favorable trade arrangements.
For their services, S-S &A billed the DTI $40,000 a month and has an on-going contract until March 2011. By US and international standards, the monthly fee was very reasonable. As a result of the combined efforts, the local garments industry went from dying to reviving.
When they started, the Garments and Textile Board had just been shut down and there was very little hope or knowledge of how local exporters could continue to sell to US retailers. Today, there is a pending bill in Washington that’s now a matter of time.
Apparently, Secretary Gregory Domingo who has extensive experience in the banking and investments sector is more pragmatic and less idealistic. He believes that the DTI must SAVE. So at the moment, the US consultants have reportedly not been paid for several months and Domingo has been heard as saying that he plans to pre-terminate the lobby contract.
Domingo is now in the cross-hairs of people because when he joined P-Noy in his first US visit, both of them expressed support and made mention of how important the US Save Our Industries Act was.
So while Congressman Manny Pacquiao is foregoing millions of pesos he could be charging for video endorsements and personally lobbying with US leaders, Secretary Gregory Domingo is poised to pull the plug on what could resuscitate the US textile industry and the Philippine garments industry.
What riles up people who have supported the lobby and the bill, is that President Noynoy Aquino and Secretary Domingo expressed support for the efforts when they both went to the US. Domingo reportedly even met with representatives of Ralph Lauren, the GAP and even witnessed contract signings between US-Philippine manufacturers.
Secretary Domingo clearly listens to people inside the DTI, but what the good secretary should pay attention to is what are the agendas or who are pushing the buttons of his advisers in the DTI.
When Peter Favila first entered the DTI he also fell for the sweet talk of certain old guards and interest groups who turned out to be more interested in channeling DTI funds to their interests and not national interest. Favila quickly caught on and changed tack.
Secretary Domingo may feel that he can’t afford $40,000 a month waiting for the bus or the boat to arrive. But in the case of the garments industry, the DTI is still in possession of some P600 million left over from the GTEB funds. Just like the Coco Levy, the GTEB fund was collected for the interest of the garments industry.
If Domingo put that money in the bank, the interest alone would pay for the consultancy fee of SS&A. Not continuing with the contract can and will result in sinking whatever chances the garments industry has for recovery, legally that in itself would be economic sabotage of the garments industry.
Finally going against what Pacman and US legislators have agreed to support is tantamount to saying; “Let’s get reaaaddddyy to rrrummmble!!!”
No matter how good his intentions are, the Secretary would be better off following his namesake Gregory Hines and dance because if he chooses to pull the plug on the bill, he will surely be “Cruisin for a bruisin” even before he becomes Secretary.
So far he has already antagonized people in the automotive industry and now the garments industry. All this even before facing the Commission on Appointments.