Fair Competition Act of 2014

Sen. Bam lauds Malacanang for Including Measures for Small Businesses in Priority Legislation

Senator Bam Aquino has lauded Malacanang for including his two priority measures that will further help in the development of the micro, small and medium enterprises (MSMEs) in the country in its legislative agenda.

 “We thank Malacanang for including the Cabotage Law and the Fair Competition Act in its legislative agenda,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

 “Through this, I expect the swift passage of these measures that I see as crucial to our economic growth, job generation and level playing field for all businesses,” the senator stressed, adding that he is committed to work for the passage of the two measures.

“These measures have been in the legislative pipeline for a long time. Finally, some political will to get difficult reforms passed which are pro-poor, pro-business and will lower cost of goods,” he added.

Passed by the Senate on third and final reading, Senate Bill No. 2282 or the Fair Competition Act of 2014 aims to shield small business owners and consumers from companies engaged in unfair business practices, which usually lead to increase in prices of basic goods and services.

Aquino said a fair competition policy will level the playing field for Filipino businesses and allow more Filipinos to exercise their entrepreneurial spirit.

 “The bill puts in place measures that will protect the welfare of businesses and protect honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk,” Aquino said.

If passed into law, the senator said Filipinos will enjoy a wider range of high-quality products and services at reasonable prices.

Aquino also filed Senate Bill No. 2364, which seeks to amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978, to lower local shipping cost in the country.

If enacted into law, foreign ships will be allowed to call in multiple ports provided that their cargoes are intended for import or export and duly cleared by the Commissioner of Customs, leading to lower cost.

The senator has filed the bill in response to President Aquino’s call to relax the country’s policies on cabotage.

It was discovered that it is cheaper to send products from other countries to the Philippines than to ship goods within the country.

For example, the cost of shipping a 20-foot equivalent unit (TEU) from Kaoshiung, China to Cagayan de Oro is $360 or P16,000 only.

However, the cost of shipping the same cargo from Manila to Cagayan de Oro will take $1,120 or almost P50,000.

“We’d like to put these policies in place this year to sustain the momentum of our growth we’ve experienced the past few years,” Aquino added.

Secure Competition Policy First, Cha-Cha Later – Sen. Bam

Pass the Fair Competition Act first before changing the economic provisions of the 1987 Constitution.

Senator Bam Aquino made this pronouncement, emphasizing that a competition law will provide Filipino businesses with the needed protection if economic provisions of the Charter are relaxed.

“We need to pass the competition law first. If you’re opening up the economic provisions of the Constitution at wala kang competition policy, then we’re opening up a lot of uncertainty,” Aquino said in a television interview.

“You’re opening up the gate pero hindi mo alam na ang papasok diyan will act fairly with the rest of the people in the house,” added Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

The senator stressed that amending the economic provisions of the 1987 Constitution is needed to entice foreign direct investments and push the country to the next level of development.

Aquino recently sponsored Senate Bill No. 2282 or the Fair Competition Act of 2014. Senate Bill No. 2282 is a consolidation of several measures, including Aquino’s Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013.

Aquino said the passage of the Fair Competition Act is long overdue because the Philippines is one of the few remaining countries without a competition policy that will protect consumers and businesses, whether big or small.

 Aside from this, the passage of a strong competition policy is crucial with the 2015 ASEAN Economic Integration fast approaching.

 

Fair Competition Act to Eliminate Cartels, Monopolies – Sen. Bam

The passage of the Fair Competition Act into law will eliminate monopolies, cartels and other unfair business practices that lead to high prices of goods and services.

Senator Bam Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, made this pronouncement during his sponsorship speech for Senate Bill No. 2282 or the Fair Competition Act of 2014.

“If this bill will be enacted into law, rice cartels that caused the sudden rice of prices will cease to exist,” the senator said, adding that President Aquino himself called for the elimination of this illegal practice to drive down prices of goods and other products.

Aquino said the bill safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk.

“The Fair Competition Act, moreover, promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs,” added Aquino, whose Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013 was among the measures consolidated under Senate Bill No. 2282.

In his speech, Aquino said the Fair Competition Act of 2014 will, among other things, promote and enhance economic efficiency and competition and ensure that industrial concentration would not limit economic power to a few.

“It will also prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines,” the senator stressed.

Aquino added that the push for inclusive growth would be much easier with a help of a competition policy that gives entrepreneurs and small businesses the capability to compete against big businesses.

“I’m hoping this competition policy, if passed, can support our micro, small and medium enterprises, let them grow into larger enterprises and provide more jobs to our countrymen,” Aquino emphasized.

At the same time, Aquino allayed fears that big businesses with high market share will be affected by the competition policy.

“This is not against companies that have high market share. It’s against companies with high market share and who are using that position to abuse their powers or abuse smaller players in the market,” he explained.

The Philippines is one of few developing countries that do not have a valid competition policy.

In the past two decades, Congress tackled several competition bills but lawmakers failed to find common ground on key provisions, hampering their passage into law.

“The Fair Competition Act is both pro-poor and pro-business.”

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