JFC Statement on the Retail Trade Act
October 5, 2011 at 11:17
In summary, the Joint Foreign Chambers of Commerce do not believe that the Retail Trade Act has achieved its objective of liberalizing foreign ownership in the retail trade sector due to various restrictions it imposes requiring 100% local ownership for most retail businesses with capitalization below USD 2.5 million and other conditions which deter many investors. We have found very few similar restrictions elsewhere in Asia, a situation that results in the Philippines being at a serious competitive disadvantage in seeking foreign investment for medium-sized businesses which should be the backbone of the Philippine economy and employment generation. To rectify this situation we recommend that the current legislation be amended to reduce the threshold at which foreign investment is allowed to the level of the Foreign Investments Act (Republic Act 7042, as amended by RA 8179) and otherwise to remove conditions not found in RA 7042, as amended. Our analysis and commentary on this situation with the current legislation is given in detail below.
