"The agency cannot be a mere bystander."
"The agency cannot be a mere bystander."
Of the P4.5 trillion worth of expenditures embodied in the national budget (General Appropriations Act) for 2021, at least P1 trillion will consist of government payments for imports of all kinds—finished products, semi-furnished products and raw materials. Given such a financial magnitude, Filipino taxpayers, who pay for the imports, would expect that there exists a system for the rational, efficient and orderly policy structure for the fulfillment of the import needs of the government.
Recent developments indicate, however, that this is not the case and that it is every-agency-for-itself where government import operations are concerned. Such operations should be coordinated by a government entity, but this does not appear to be the case.
The most recent of these developments is the decision to import pork to make up the supply deficit created by the African Swine Flu (ASF). The decision appears to have been made on the basis of a DA (Department of Agriculture) recommendation to Malacañang. Is the DA now in the import business? What happened to the government department mandated to manage the nation’s trade?
An equally recent event is the order issued by a DA-supervised agency, SRA (Sugar Regulatory Administration) (1) approving the import of sugar to fill domestic-supply gap and (2) mandating the export of non-existing surplus sugar. Did the government department created to supervise this country’s imports and exports—the DTI (Department of Trade and Industry) have a say in the matter? DTI appears to be clueless about the SRA action!
Further back in time, before the passage of the Rice Tariffication Act, there were the decisions of the DA and its subsidiary agency, NFA (National Food Authority) to enter into contracts, usually government-to-government, for the import of rice. Was the DTI consulted on the matter which involved this country’s extended trade? In all the public discussions on the matter, the name DTI was never mentioned.
This makes no sense. In all matters and issues relating to trade—external or domestic—DTI should be in the forefront of discussion. Why call in the Department of Trade and Industry if it will always be bypassed and ignored?
It goes without saying that the determination of domestic production and supply conditions are the original domain of the various government departments, e.g., Department of Agriculture, the Department of Health or the Department of Energy. But DTI must be involved in the process of deciding whether imports or exports of particular products are required in order to maintain domestic price stability, DTI cannot be a mere bystander as the parade goes by.
A few months ago, a major scandal involving a quietly operating agency, PITC (Philippine International Trading Agency) hit the headlines. The PITC issue is worthy of another column for itself, But for now let it be said that PITC, with its international-trading mandate, should be firmly attached to DTI and be made the vehicle for a more rational government import system.