Duty-free goods bill from ‘Yolanda’ areas set for US Congress

The government has delayed plans over its proposed bill asking the US government to grant duty-free access of goods produced in areas affected by super- typhoon Yolanda until the US mid-term election is finished.

Trade and Industry Secretary Gregory L. Domingo said the DTI has already a draft bill for this Philippine initiative but it has to wait until after the US mid-term elections.

“There has been a draft for several months but it had to wait until the mid- term elections are finished so we can find sponsors for it,” Domingo said in a text message.

Domingo had already discussed this with Ambassador Jose L.Cuisia Jr., Philippine envoy to Washington.

The Philippines has to look for sponsors in the Lower House as well as in the Senate and must have enough support to get the bill passed.

The duty-free privilege to enter the US market would be attractive enough for companies to invest in the Yolanda-affected areas. This move is expected to generate economic activities, create jobs and help rebuild lives in the Visayas-affected areas.

It will also entice residents who have left their homes to come back.

Earlier, Domingo said they are planning of enticing light to medium manufacturing companies to locate in the ar- eas but labor-intensive operations. Domingo has also asked the Philippine Economic Zone Authority if they have an available space that can be converted into an ecozone.

“This would be labor-intensive industries like garments. We’ve talked to the garment’s industry already,” said Domingo noting that these companies are willing to relocate in the Yolanda- affected areas. Part of the plan is to create an economic zone for the new investors.

The volume of goods to be exported to the US duty-free may not be that big and would be time bound but that should be a good incentive for new businesses to locate in an area ravaged by the strong typhoon.