Deletion from Watch List will bring in more FDIs, says PCCI

The Philippine Chamber of Commerce and Industry (PCCI) forecasts increased volume of foreign direct investments by US high-technology manufacturers due to the delisting of the Philippines from the Special 301 Watch List of the US Special Trade Representative.

“Many US manufacturers of high-technology products would be encouraged to locate here because of USTR findings that Philippine laws provide adequate protection of intellectual property rights,” said Alfredo M. Yao, president of the country’s biggest business organization.  “The delisting would signal effective enforcement against counterfeiting, piracy and other IPR violations.”

Mr. Yao listed examples of high-technology companies such as those engaged in pharmaceuticals, food manufacturing, software and information technology, chemicals and cosmetics and personal care products, machinery and equipment, automotive components, electronics, and research and development.

The USTR announced last month the deletion of the Philippines from the Special Watch List.

Mr. Yao lauded the successful efforts of the Philippine government for the deletion.

Mr. Yao added that weak protection of IPR deterred foreign direct investors from deciding to locate here.

Some technology-intensive companies merely showed their presence here through licensing or distribution agreements, he said.

According to Mr. Yao, strong IPR laws and their enforcement assure foreign direct investors of control of their production processes due to the high costs spent on development and innovation.

Weak IPR laws are considered by them as a competitive location disadvantage because they are exposed to piracy or imitations.  They also face breach of contracts by their local partners who could later become their competitors.

The more technology-intensive companies that the manufacture here, the more world-class products would be stamped as “Proudly Made in the Philippines”, he said.

“With increased volumes of foreign direct investments, the potential benefits include more choices for consumers, more reasonable prices, more government revenues, and more job opportunities,” Mr. Yao pointed out.

To strengthen awareness and appreciation of IPR and its importance to business and ensure the sustainability of IPR protection, PCCI and the Intellectual Property Office are organizing and will launch the Brand Development and IP Protection Council of the Philippines (BDIPCP) during the 1^st Brand Development and IP Protection Summit on May 22.  Through the Council, PCCI and IPO hopes to centralize all actions on IP protection and brand development.

The summit further aims to provide a ground for domestic and international brand owners to learn about the latest brand development strategies, to address the need to ensure IP protection and cooperative effort to combat counterfeiting and piracy. (PCCI)