The Department of Finance (DOF) said the recently approved amendments to retail trade liberalization law along with other economic loosening initiatives will support the continued recovery of trade and economic activity in the country.
Finance Undersecretary Gil S. Beltran said the nearly a quarter growth in external merchandise trade recorded from January to December last year is an indication of the country’s sustained economic recovery amid the prolonged pandemic.
Beltran, who is also the DOF’s chief economist, explained that the robust trade receipts could be sustained as long as the sector is supported by other legislative economic reforms.
In particular, Beltran cited the recent enactment of Republic Act (RA) No. 11595, which amended the Retail Trade Liberalization Act (RTLA), as support to the continued recovery of trade in general.
Aside from RTLA, Betran said Congress should also amend the Foreign Investment Act and the Public Service Act to maintain the trade recovery momentum seen last year.
On Dec. 7, 2021, the Senate and House of Representatives ratified the final bicameral report on the proposed Amendments to the Foreign Investments Act.
Meanwhile, the amendments to the Public Service Act, which seeks to open key sectors such as transport and telecommunications, is currently being deliberated in the Bicameral Conference Committee.
The National Economic and Development Authority earlier said the Philippines is currently the most restrictive in foreign investments in the region, and the third most restrictive in the world according to the Organization for Economic Cooperation and Development in 2020.
Despite restrictions, the Philippines total external merchandise trade from January to December last year hit $192.4 billion, up 24 percent compared with the previous year.
Also, the full year export value of $74.6 billion was also 5.2 percent higher than the 2019 level, while total import value for 2021 of $117.8 billion was 5.5 percent larger than the 2019 level.
“As the country continues to grapple with the risks posed by the COVID-19 virus and its variants, the country needs to continue to be vigilant and be ready to respond with the appropriate measures lest the recovery momentum be lost,” Beltran said.
“To this end, the sustained vaccination drive for Filipinos and a calibrated reopening of the economy will be key in helping the Philippines preserve the gains in containing the virus,” he added.