Bernardo also said he has stopped the redemption policy to stop the smuggling of vegetables.

The Macapagal-Arroyo administration is confident that it will be able to meet its gross domestic product (GDP) forecast of 4.2 percent for the coming year as the private sector is expected to regain its strength.

In a report to Malacanang, Socioeconomic Planning Secretary Romulo Neri said the resiliency of the private sector, particularly in services, would provide the stimulus for GDP growth in 2003. GDP refers to the total value of goods and services produced within the country for a specific period of time.

Neri, who is also the director general of the National Economic and Development Authority (NEDA), said the largest players in the telecommunications sector have already announced expansion plans while retail trade giants are also gearing themselves for further competition from foreign retailers.

He noted two important policies that could provide manufacturing firms with more leeway for flexibility in coping with the expected oil price adjustments next year.

First, minimum wage increases remain stable given the low inflation in 2002 and in 2003. Inflation is expected to remain modest in 2003 despite a moderate El Nino as the government implements measures to ensure adequate inventories of key commodities and improves the supply chain.

Second, tariff rates for capital goods and other inputs not locally produced have been reduced last week to zero percent. Tariff of about 40-information technology (IT) related product lines have also been lifted.

Neri added that the government is also well prepared to address the expected consequences of a mild El Niņo.

To maintain robust economic growth, Neri said, the government is set to pursue further structural reforms, which include the continuing modernization of the agriculture sector, improvement in port services, and liberalization in the airline industry.

"This will support our policy to enable industries to improve their supply chain," Neri said.

Neri also cited other policy directions to further improve the performance of the economy. These directions include: pursuing competitiveness-enhancing trade measures; reducing the fiscal deficit; continuing financial market reforms; investing in education, training, and health; creating high-wage and high skill jobs through human capital investments and technological progress; and promoting a culture of good governance in the public and private sectors.

The NEDA chief reported that the 2002 third quarter real GDP was recorded at 4.2 percent compared to 3.6 percent of the same period last year.

"The Philippines is one of the best performing economies in Southeast Asia, second only to Thailand, which reported a 4.9 actual GDP growth for the third quarter," he said.

The Philippines’ growth in GDP was fueled mainly by the continued strength of services and the recovery of other industries. The robust growth of services was supported by the continued expansion in telecommunications, trade and private services.

Growth in industry, on the other hand, was led by mining and quarrying, and construction. Agriculture slightly contracted due to bad weather but the non-crop sector improved.

NEDA has earlier reported that it foresees 2002 fourth quarter GDP growth rate at 4.6 percent. With this, GDP growth is expected to average 4.3 percent in 2002, which is within the initial projection of 4 to 4.5 percent.

Malacanang today said that the Philippine government is committed to support the United Nations resolution calling on Iraq to destroy all its weapons of mass destruction but added that it is still premature to say what action the government would take in the event of a unilateral attack by the United States on Baghdad.

In a press briefing this afternoon, Presidential Spokesman Rigoberto Tiglao said that it is "academic" at this point to say whether the Philippines would actively support such a unilateral US attack.

"There is no request for troops, there is no request for any kind of assistance that would require some response from the President’s office at this point," Tiglao said.

But Tiglao said that the Philippines is calling on Iraqi President Saddam Hussein to comply with the UN resolution for the sake of world peace.

He said that although there has been a lot of talk about an impending war in the Middle East, the Philippines has not been called upon to join any war at this point.

Earlier, Malacaņang announced that the government is continuously fine-tuning its contingency plan for the Middle East amidst reports that the United States and Great Britain would launch a military offensive against Iraq in January.

Press Secretary Ignacio R. Bunye said that Ambassador Roy Cimatu, head of the Middle East Preparedness Team (MEPT), would be leaving for the Middle East early January to personally monitor events there.

"We are continuously reviewing our contingency measures. Of course, our number one objective would be to protect our overseas Filipino workers (OFWs)," Bunye said.

Bunye said that the policy that has been adopted is for the relocation, and not evacuation, of Filipinos away from the conflict zone, but still within the Middle East.

Malacaņang today said that all Philippine consulates have been instructed to extend all assistance to Manila Congressman Mark Jimenez while he is on his way to Florida where he is facing a string of criminal cases.

In a press briefing this afternoon, Presidential Spokesman Rigoberto Tiglao said that Consul Marcos Punzalan of the Philippine consulate general in Saipan visited the congressman this morning to find out his needs.

He said Punzalan even bought a sandwich from the local outlet of Jollibee for the congressman who wanted a snack.

Reports said that the agents of the US Federal Bureau of Investigation (FBI), who accompanied Jimenez on his plane trip from Manila to Florida, brought the congressman to Saipan where there is a high-ranking US magistrate for the processing of his documents.

Tiglao said that Jimenez is now in the custody of the US Marshal’s Office, adding that the US Marshals have standard operating procedures to follow in treating all extraditees to the US, like Jimenez.

Tiglao also took exceptions to the parting words of Jimenez that he was being silenced by the government because of his so-called exposes against Justice Secretary Hernando Perez.

"We are not silencing him. We have to emphasize that his problem is not with the Philippine government but with the US justice system," Tiglao said.

Combined elements of Anti-Smuggling Intelligence and Investigation Center (ASIIC), Bureau of Customs, Presidential Security Group (PSG) and Intelligence Service of the Armed Forces of the Philippines apprehended today another P6 million worth of fresh vegetables at the South Harbor.

The vegetables, loaded in a 4 x 40-foot container, arrived from China on the last week of November on board the vessel Hunsa Bhum. The cargo was consigned to the Golden Crops Merchandising and did not have an import permit from the Department of Agriculture.

The apprehending party was led by Col. Pedrito S. Cadungog, Deputy Commander of PSG.

Customs Commissioner Antonio M. Bernardo ordered the filing of appropriate charges against the consignee.

Earlier this week, the same team apprehended P25 million worth of misdeclared agriculture products which also arrived from China.