Tatak Pinoy protection

The Department of Trade and Industry (DTI) is the chief implementing agency of the Tatak Pinoy Act, or the Proudly Filipino strategy in achieving the vision to join the ranks of newly industrialized countries (NIC). This was declared a policy of the State in Republic Act (RA) 11981 to “encourage, support and promote the production and offering of Philippine products and services.”

It has been the long-cherished dream of each sitting president since the 1950s, as each one vowed to reach NIC-hood for the Philippines by the end of his or her term. Ma. Theresa Faustino, acting director of DTI’s Bureau of Policy Research and Innovation, recalled the history of the industrialization vision of the country’s past leaderships at the Kapihan sa Manila Bay news forum last Wednesday.

Faustino cited NIC-hood policy for the Philippines is now embedded in RA11981. A career executive at the DTI for the past 25 years, Faustino counts upon the Proudly Filipino strategy to finally turn into reality the ultimate dream of NIC-hood for the Philippines.

“It’s (Tatak Pinoy) a transformative policy for the Philippines…It is basically a new industrial policy now enshrined in our laws,” the DTI official enthused.

The “Tatak Pinoy Act” was signed into law by President “Bongbong” Marcos Jr. on Feb. 26 this year. The implementing rules and regulations (IRR) of RA 11981 came out in May. And next month, the DTI launches the initial list of locally-produced goods and services that will be given preference in government bid contracts as mandated by the “Tatak Pinoy Act.”

Faustino announced DTI “acting” Secretary Ma. Cristina Roque will formally launch on Dec. 4 at Sheraton Hotel the “Tatak Pinoy” list of certified Philippine-made products and services from various industries that will initially benefit from RA 11981. According to Faustino, the government is the biggest source of procurement contracts for office supplies and other products and services.

At the same scheduled launching rites, Faustino disclosed the DTI will also formally present to the public the draft of the Tatak Pinoy multi-year strategy to generate additional feedback, reactions and suggestions to further enhance the country’s branding of certified Philippine-made products and services.

Over the next ten years, RA 11981 mandates the Tatak Pinoy Council inter-agency body to draw up the “roadmap” to completing the country’s journey towards NIC-hood, she added.

The DTI secretary heads the Tatak Pinoy Council, which serves as the policy and advisory body of the President on creating policies and programs to diversify the productive capabilities of domestic enterprises. Aside from the inputs from all stakeholders, Faustino cited, the implementation of the Tatak Pinoy strategy is a “whole-of-government” undertaking that will also include the local government units.

At the same Kapihan sa Manila Bay news forum, SMEs on electronic commerce platforms (e-commerce) and big business and industries look forward to the full implementation of the Tatak Pinoy Act. Macy Castillo, chief executive officer of Enstack app e-commerce, welcomed the Tatak Pinoy Act as a much-needed boost to local SME entrepreneurs to get their big break in the digital marketplace. Castillo agrees this law can help expand the digital presence of Filipino entrepreneurs to get a greater slice of the international markets for the local products and services available online.

Cement Manufacturers Association of the Philippines (CeMap) president John Reinier Dizon, along with their group’s executive director Renato Baja, hailed the DTI as the lead agency for Tatak Pinoy Act. The CeMAP was profuse in lauding the DTI in its motu proprio investigation into the unfair competition from imported cement products being dumped into the country, mostly coming from Vietnam, Japan and Indonesia.

In the specific case of Vietnam, Dizon noted with concern that local cement producers were in the disadvantageous position to compete with their Vietnamese companies that are mostly state-owned. Vietnam has over-production of their cement products due to low demand and thus, the surplus was being dumped in the Philippines at very low prices, Dizon rued. And worse, he added, unscrupulous sellers/vendors mis-label these imported cement products with much more popular brands of local cement products.

Quality-wise, Baja takes pride that domestic cement products are much preferred in the construction business. This is because, he explained, our country’s cement products are 85-percent made of lime that abounds in the Philippines. Moreover, Baja added, our country’s capital-intensive cement factories are compliant with environmental laws, using additives to cement products geared for the Philippine seismic situation and weather-proofed to our country’s so-called “wet and wetter” season.

Invoking the authority vested under RA 8800 on Safeguard Measures Act, the DTI conducted preliminary investigation “to determine whether increased imports of cement is causing or threatening to cause injury to the domestic industry.” RA 8800 provides for temporary protection to a Philippine industry affected by the surge or dumping of products imported from other countries.

RA 8800 was signed into law by former president Joseph Estrada on July 19, 2000. It took effect five years after the Philippines joined the World Trade Organization (WTO) to protect domestic industries from the impact of unfair competition of foreign goods and services under the liberalized global trading regime we are now in. Citing 12.1 of the WTO Agreement on safeguards that a “member shall immediately notify the Commission on Safeguards upon (a) initiating an investigatory process relating to serious injury or threat thereof and the reasons for it.”

In its 26-page report signed by Roque and released last Oct. 28, the DTI found “prima facie evidence to motu proprio initiate and conduct preliminary safeguards investigation to determine whether cement is being imported into the Philippines in increased quantities and is causing serious injury to the domestic industry.” From Bureau of Customs data, 44 cement importers and 38 local cement producers/exporters will be covered by the DTI’s motu proprio investigation.

Carrying Tatak Pinoy protection on Philippine-made products and services will hopefully strengthen and enhance the competitiveness of our local industries in the global market.