Landmark laws

While the country was caught up in the events leading to President Benigno Aquino III’s final State of the Nation Address (SONA), not everyone noticed him signing two landmark laws that may, among other things, prepare the country for the coming Asean market integration this December.

One of them, the Philippine Competition Law, is seen to eventually benefit the consumers by providing them with choices of products and services at lower prices while hopefully protecting and sustaining local industries by leveling the playing field and providing subsidies.

The subsidies is the tricky part, as organizations like the World Trade Organization (WTO) and the Association of Southeast Asian Nations (ASEAN) may view it as a form of protectionism which is antithetical to the free trade arrangement being sought in the region and around the world.

But competition can only be realized if the small and medium enterprises (SMEs) can compete with big business and even big-time cooperatives with assets of billions of pesos.

The country was one of five countries in the ASEAN that didn’t have a Competition Law. Advocates for such a measure like former National Economic Development Authority (NEDA) secretary general and now Inquirer columnist Cielito Habito said it took them 25 years for it to be passed and signed into law.

While the spirit of the law may be good, it’s up to the government to enforce its intent and mandate. To this end, a Philippine Competition Commission will be created two months from now to ensure it will be implemented.

We hope that as advocates and authors of the law like Sen. Paolo “Bam” Aquino assured the public, it will dismantle cartels in rice and agricultural produce that have created artificial shortages, causing prices of these products to jump to abnormal levels.

We also hope that this competition will break up monopolies in industries that will result in better services like Wi-Fi and Internet services and cheaper rates without sacrificing on quality.

Another law, the Philippine Cabotage Law, will allow foreign ships carrying imported cargoes to dock at multiple ports of entry in the country.

While it will reduce costs for suppliers and bring down prices for consumers, the government obviously needs to improve on port infrastructure to service these ships.

With this law, congestion in the ports of Manila and Cebu will be eased up and benefit other parts of the country that need these ships to increase government revenue.

If implemented well, the two laws will not only improve the country’s business climate but also help it stand shoulder to shoulder with its neighbors in Asia.