21 MARCH 2004

The economic partnership agreement which President Gloria Macapagal-Arroyo proposed to Japanese Prime Minister Junichiro Koizumi two years ago is about to bear fruit.

A free trade agreement (FTA) between the Philippines and Japan is expected to be signed by yearend, bringing with it beneficial outcome on domestic growth and a positive poverty alleviation effect, particularly in Metro Manila where most industries are located.

Socio-economic Planning Secretary Romulo L. Neri said the proposed pact augurs well for the economy as it will contribute to the country’s growth through increased exports and lower domestic prices.

"On the whole, it is expected to have positive impact on global competitiveness, sustainable growth, allocation efficiency and poverty alleviation," said Neri who is also the director-general of the National Economic and Development Authority (NEDA).

Citing studies by the NEDA’s Philippine Institute of Development Studies (PIDS), Neri said the proposed FTA is crucial since Japan is the second largest trading partner of the Philippines and a main source of the country’s official development assistance (ODA).

"The PIDS studies indicate that a bilateral agreement with Japan would provide a net positive impact on the economy (0.09 percent) if trade and investment facilitation, capability building, process improvement and enhanced cooperation being fostered by the agreement would happen," he said.

The benefits, Neri added, could be higher (1.7 percent) if potential foreign investment inflows and productivity gains arising from the Philippines-Japan FTA materialize.

The sectors expected to gain from the proposed pact include those industries involved in electronics, fresh fruits, housewares, construction materials, agriculture, and informal services.

Potential losers may include the cement industry and motor vehicle parts and components, according to the studies.

Dr. Caesar Cororaton, a research fellow at PIDS who analyzed the macroeconomic effects of the trade pact, said the proposed FTA could also improve exports since the agreement could be viewed as an extension of the overall tariff reduction program in the manufacturing sector.

Cororaton said the higher tariff reduction will result in an 8.88 percent decrease in the overall nominal tariff rate and consequently local cost of production is expected to decline by 0.12 percent which translates to an increase in Philippine export competitiveness.

"This partnership will promote a more comprehensive cooperation to include not only the common elements of the FTA but also other issues in need of improvement such as non-tariff barriers to goods, services, and investment," Neri said.

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President Gloria Macapagal-Arroyo has proclaimed Monday (March 22, 2004) as General Emilio Aguinaldo Day as well as an occasion for commemoration of the Tejeros Convention.

Proclamation No. 584, signed Friday (March 19) by Executive Secretary Alberto Romulo by order of the President, stressed "it is fitting that the Filipino people should continue to remember the sacrifices of our heroes."

General Emilio Aguinaldo Day was declared, however, as a "regular working day."

March 22 marks the birth anniversary of General Emilio Aguinaldo, who was the first President of the Philippine Republic.

On the same date, the Tejeros Convention was held in which General Aguinaldo won in absentia the first presidential election in the Philippines.

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ILOILO CITY – President Gloria Macapagal-Arroyo said today that a P6-billion international airport, which will be constructed here soon, will provide jobs and pour investments not only in Iloilo City but also in the Visayan region.

The President told a press conference, held this morning at the Boracay Ballroom of Sarabia Manor Hotel here, that Iloilo at present has the fourth busiest airport in the country after Manila, Cebu City and Davao City. "It’s time for Iloilo to have an international airport," she said.

The President said that after four years of hard work by Senate President Franklin Drilon, she could now announce that a contract has already been signed with the winning bidder, a Japanese construction firm, and it will be given Monday the notice to proceed with construction of the international airport

A P4.8 billion regional airport will be built in Silay, near Bacolod City, while the old Iloilo airport will be converted into a commercial and light industry complex that shall give more jobs to the people of Iloilo, she said.

"With the international airport in Iloilo," the President said, "we shall have planes coming from America and Europe, while with the regional airport we shall have planes coming from Japan, Korea and Guam. Together the two airports will provide a very, very modern infrastructure setting for good investments.

Present at the President’s news conference, aside from Senate President Drilon, were Iloilo Governor Niel Tupas, City Mayor Jerry Prenas, Press Secretary Milton Alingod, Percival Chavez of the Commission on Urban Poor, and Congressman Narciso Monfort.

President Macapagal-Arroyo said that she also approved the segregation of certain portion of the San Pedro Military Reservation for distribution to some 1,700 urban poor families.

She also signed a cheque for P250,000 and presented it to Lolita Maprangala, chairwoman of Barangay Calumpang in Molo District, for improvement of the drainage system in her community.

Answering for the President why the people of Region 6 are supportive of her bid for a six-year term of office in the May 10 elections, Drilon said, "Basically, the Ilonggos feel that the President has given attention to both Negros and Panay islands, and this is evidenced by the fact that she has supported huge infrastructure programs here."

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PASSI CITY - President Gloria Macapagal-Arroyo said today that a "road map" for the recovery of the sugar industry, which she worked out with representatives of the sugar industry after assuming the presidency, increased the production and prices of sugar.

At the Pulong Bayan (town hall meeting), held this morning at the Passi 1 Elementary School’s covered court, the President acted on problems now confronting the sugar industry. There are some five million people depending on the sugar industry for livelihood.

She directed former Defense Angelo Reyes, chief of the National Anti-Kidnapping Task Force (NAKTAF) who has also been designated "anti-smuggling czar," to act on the smuggling of pre-mix sugar products.

At the same time, the Chief Executive hiked the tariff rate on pre-mix sugar products. She also instructed the National Food Authority (NFA) to buy the excess C-sugar from local farmers.

Some 2,000 people attended the Pulong Bayan. Also present were Iloilo Governor Niel Tupas, City Mayor Jesry Palmares, Presidential Assistant for Western Visayas Rene Villa, Congressman August Syjuco and Senator Noli de Castro, Mrs. Macapagal-Arroyo’s vice presidential running mate.

President Macapagal-Arroyo instructed Villa to coordinate with the Department of Foreign Affairs (DFA) in providing help to an overseas Filipina worker, Genoveva Palomello.

The 44-year-old overseas worker, who is married to a Pakistani, sought the President’s help in a case she had filed against her in-laws who had allegedly maltreated her while they were in Pakistan. She has three children, Joan, 10; Mary, 8; and Kevin, 3.

Palomello thanked the President, DFA, the Department of Social Welfare and Development (DSWD), and the Overseas Workers’ Welfare Administration (OWWA) for helping her and her children return to the Philippines.

Senator de Castro pledged to provide Palomello’s three children with scholarships until they finish college.

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Malacaņang said today that the government’s planned takeover of Maynilad Water Services, Inc. is based on recommendations by an International Arbitration Panel and still subject to approval by the court and the Securities and Exchange Commission (SEC).

In a radio interview this morning, Presidential Spokesman Ignacio Bunye stressed that the possible takeover had passed the usual legal processes and adhered to contract provisions that it be referred to and endorsed by an independent arbitration panel.

"Based on the provisions in the Maynilad concessionaires contract, it is indicated that the quasi reorganization plan of Maynilad should be referred to an international arbitration panel and await for its recommendations," Bunye said.

He pointed out that based on assessments of both parties, the proposal by the arbitration committee presents a "win-win situation" not only for Maynilad but also for the government.

Bunye stressed the importance of continuity in the supply of potable water to every household and not to allow water services to be disrupted by the government takeover.

Bunye said that Malacaņang has already anticipated the political accusations hurdled by the opposition camp.

But, the opposition seems bent only on disrupting the water services so that the Macapagal-Arroyo administration could take the blame, he said, adding that the President is clearly focused on serving the interest of every ordinary Filipino family who is entitled to clean water and good water services.

Earlier, the government had assured the people that there was no political consideration behind the pullout of the Lopezes from Maynilad.

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Malacaņang today lauded the "right formula" the law enforcers apply in scores of successful operations in the war against kidnapping syndicates as directed by President Gloria Macapagal-Arroyo.

Presidential Spokesman Ignacio Bunye told a radio interview this morning that the President also cited National Anti-Kidnapping Task Force (NAKTAF) chief Angelo Reyes, together with various government agencies, for the positive results of their anti-crime campaign.

Bunye acknowledged the importance of people’s support in anti-crime drives as they provide valuable information that leads to the arrest of criminals, like the 13 out of the 24 most wanted kidnappers in the NAKTAF order of battle.

He said that people’s help also boosted the anti-illegal drugs campaign that President Arroyo started six months ago. The anti-illegal drug enforcers had raided several big shabu laboratories and arrested top druglords who are now facing charges in court.

Among the most wanted kidnappers caught in the NAKTAF dragnet were Feliciano Laygo, Ambrudin Macasilang, Teddy Padre, Franco Artoza, Allan Niegas, Vilmore Catamco, Joselim Amuco, Reynaldo Cachi, Joer Abonales, Ronnie Tan and Arnel Suellen.

Recently, NAKTAF agents swooped down a hideout of "Waray-Waray" kidnap-for-ransom gang in Antipolo City, arresting its leader identified as Senior Police Officer 4 Romeo Ayson and rescuing kidnap victim Chinese-Filipino Genevie Ong-Sy.

Only 11 top kidnappers remain at large, among them brothers Harold and Rolando Fajardo, each of whom carries a P1 million bounty on their head.

While, Dr. Roberto Yap, who headed a kidnapping gang that preyed mostly on rich Chinese-Filipino families, was killed in an encounter last November 2003

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Malacaņang hailed today the offer of Muslim community leaders to spearhead the implementation of an identification system (ID) for Muslims residing in Metro Manila in a bid to bring down the incidence of crime involving the ethnic group in the metropolis.

In a radio interview, Presidential Spokesman Ignacio Bunye said the move would give a big push for President Gloria Macapag-Arroyo’s peace and order initiatives.

Under the plan, Metro Manila-based Muslim organizations would enforce the implementation of the ID system without direct involvement of the government.

"Based on reports that we received, there are some Muslim organizations that volunteered themselves in implementing an ID system among their ranks in Muslim communities here in metro Manila, and this will be on a voluntary basis," Bunye said.

Bunye clarified, however, that the projected ID system still has to be coordinated with the pertinent authorities to ensure that the civil rights of the Muslims would be protected.

He said the government would look at the possibility of replicating the scheme in other ethic communities in the metropolis.

Director Ricardo de Leon, chief of the National Capital Region Police Office announced earlier that some 30 Muslim leaders had conveyed to him their plan to adopt the ID system, saying they plan to start implementing it among their member-brothers this week.

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ROXAS CITY—President Gloria Macapagal-Arroyo signed here today two bills into law: one converting a local state college into a university and the other creating two additional municipal trial courts in this city.

The signing rite highlighted a dialogue with local government officials and civic leaders at a jampacked session hall of the provincial capitol here.

Enacted House Bill 5534 converted the Panay State Polytechnic College (PSPC) into the Capiz State University, while House Bill 3404 created two more municipal trial courts in a bid to declog pending cases.

Among those who witnessed the enactment ceremony were Representatives. Rodriguez Dadivas and Fredenil Castro, Capiz Gov. Vicente Bermejo and Roxas City Mayor Antonio del Rosario.

The President arrived here at 1:30 p.m. from a successful political sortie in Iloilo City. She and her official entourage of K-4 senatorial candidates had a late lunch at the residence of Mayor Del Rosario.

Mrs. Macapagal-Arroyo then had an informal interaction with the 12,000 strong Capiz Women Inc. at the Gerry Roxas Foundation Convention Center where she told the members to avail themselves of the government’s universal PhilHealth program.

The Chief Executive also talked about responsible parenthood with childbirth spacing of two to three years to better ensure family welfare.

She said having less children would enable the parents to give them better education and training at home to make them productive members of society.

After the consultation meeting with local officials, Mrs. Macapagal-Arroyo and her K-4 team motored to Dinggoy Roxas Civic Center for the proclamation rally of former Trade and Industry Secretary Mar Roxas II who is seeking a senatorial seat in the May 10 elections.

The President and her party are expected to fly back to Manila at 6 p.m. today.

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