Businessmen in Negros Oriental have expressed apprehension over the impending implementation of the zero tariff in 2015 under the Asian Free Trade Agreement.
The AFTA is scheduled to impose the zero tariff by 2015 where imported products from neighboring Asian countries that make their way to the Philippine market shall be tax free.
Ed Du, president of the Negros Oriental Chinese Chamber of Commerce & Industry, who attended the Micro, Small & Medium Enterprises Roving Academy of the Department of Trade & Industry Wednesday in Dumaguete, said local businessmen feel threatened by the AFTA as the government is apparently not yet ready to compete with foreign products.
Du cited as an example sugar, where Thailand and Vietnam will be strong competitors to local sugar cane planters and sugar manufacturers as the sugar production is subsidized by their respective governments.
While in the Philippines, prices of sugar are higher compared to other countries in the region as production costs are expensive on top of the 12 percent Value Added Tax being collected by the Bureau of Internal Revenue, he added.
Also, production of fruits and vegetables must be improved to be able to compete with imported varieties, Du said.
The NOCCI president has recommend a partnership between the Philippine government and other neighboring Asian countries for the return of the barter trade concept. He explained that products of each country in the region should not be up for competition to protect the interests of each country.
This concept will protect local farmers from being at a losing end and at the same time allow them to maintain their hold in the market, Du pointed out.
The national government, he said, should identify its best products that can be mass produced.
Du also credited community cooperatives in their role in helping small farmers build up their businesses by providing opportunities for startup capital. (PNA)
