Senate approves Budapest Convention on Cybercrime, 4 other treaties

The Senate concurred Last Monday in the ratification of the Budapest Convention on Cybercrime, four other treaties on double taxation avoidance, and creation of a regional economic body.

The chamber approved on third and final reading the Budapest convention; the Double Taxation Avoidance Agreement between the Philippines and Mexico; the country’s separate DTAAs with Thailand, and Sri Lanka; and the Agreement Establishing the ASEAN+3 Macroeconomic Research Office (AMRO) as an International Organization.

The chamber last week passed on second reading five treaties.

The Budapest Convention on Cybercrime is the first international treaty that aims to address internet crimes.

Sen. Loren Legarda, chair of the Senate committee on foreign affairs, said the Budapest Convention on Cybercrime remains the only binding international legal mechanism adopted by countries to address the threats posed by cybercrimes.

“The internet improved many things and ushered in a more intertwined humanity. But it also gave rise to numerous unintended consequences, foremost of which is cybercrime,” Legarda said.

“Since cybercrime, by its very nature, is borderless, simultaneous and persistent cooperation, coordination and collaboration with other countries is therefore vital,” she added.

The Budapest Convention on Cybercrime will provide the Philippines distinct guideposts on the track toward harmonizing its national laws with prevailing international legal frameworks and practices.

Meanwhile, the DTAAs generally provide for the elimination of double taxation between the Philippines and Thailand, Sri Lanka and Mexico.

To promote cross-border trade and investment, these agreements seek to allocate taxing jurisdiction so as to avoid double taxation; reduce source-State taxation; prohibit discrimination based on alienage, foreign organization, or foreign ownership; and promote resolution of situations in which the income taxable by one contracting state as opposed to the other contracting State is in question.

The agreement establishing the AMRO will constitute the body as an international organization with full legal personality.

The AMRO, initially established as a company limited by guarantee in Singapore, aims to contribute to securing the economic and financial stability of the region through the conduct of regional economic surveillance, and by supporting the implementation of the Chiang Mai Initiative Multilateralization, a multilateral currency swap arrangement among ASEAN+3 members.

To date, the Philippines is the only ASEAN+3 member state that has not yet ratified the AMRO Agreement.

In this situation, the country is exposed to reputational risk in terms of its commitment to the ASEAN+3 Cooperation, she said.

“The international organization status will afford the AMRO an intangible capital that can give it access to intelligence, research and other resources owned by other international organizations, and regional and global fora,” Legarda said.

“This will provide greater macroeconomic surveillance capability for the institution, and consequently benefit the Philippines as one of its clients together with other ASEAN+3 members,” Legarda noted.