Check out the official photos of Mutya Ng Dabaw 2025: The Sashing and Press Conference!
Visitors of germanexpatinthephilippines/Besucher dieser Webseite.Ich liebe meine Flaggensammlung!
Monday, February 24, 2025
Urgency of PH-EU free-trade deal
For developed countries threatened by United States President Donald Trump’s announcement of higher tariffs on American imports, their natural reaction is to hit back by doing the same. But for smaller nations such as the Philippines, their more logical recourse should be to look elsewhere for new markets for their affected export products as well as other suppliers for their vital imports.
Exactly what Manila is doing now. Last week, the Department of Trade and Industry (DTI) said it is speeding up negotiations on a free trade agreement (FTA) with the European Union (EU), with both sides aiming to have it finally completed by next year. After the latest round of negotiations last Feb. 10-14, Trade Undersecretary Allan Gepty had told the Inquirer: “We see this FTA as a stable platform to strengthen the economic relations of the Philippines with the EU. Thus, we are working hard to fast-track the negotiations and hopefully conclude the same before 2027.”
In March last year in Belgium, where EU and Philippine officials announced the resumption of formal negotiations on the proposed FTA, European Commission Executive Vice President Valdis Dombrovskis noted that trade in goods between the Philippines and the European bloc was worth more than $19.27 billion or (or P1.2 trillion at the current exchange rate) in 2022.
Preferential status
An assessment presented during the resumption of the FTA negotiations in Brussels last October showed that the country has untapped export opportunities in the European market worth $8.3 billion (P480.37 billion) that can be addressed by a free-trade deal. The Philippines started negotiations on its free-trade deal with the EU in December 2015.
The primary reason why the government wants to have a more binding agreement with the EU is for Philippine products to continue entering that huge market without paying duties. The EU granted the Philippines the so-called Generalised Scheme of Preferences Plus (GSP+) status in 2014, which allows Manila to export more than 6,000 products to its market tax-free. However, the country loses this preferential status once it reaches upper middle-income country (MIC) status. Last year, President Marcos boasted about how close the Philippines is to reaching this and Secretary Arsenio Balisacan of the National Economic and Development Authority (Neda) even said that there is a good chance of reaching the goal this year.
Under the World Bank’s classification of countries, a country becomes an upper MIC if it reaches a per capita gross national income (GNI)—or the total amount of money earned by a country’s people and businesses at home and abroad—of between $4,516 and $14,005. The Philippines, which has been classified as a lower MIC since 1987, is near the next income threshold after posting a record-high GNI per capita of $4,230 in 2023.
European bloc
A free trade deal with the EU will therefore give the Philippines permanent duty-free access to a huge market. “So in that context, there’s a pressure for us to conclude the negotiations as soon as possible because we don’t want to have a gap in our trade with the EU as far as enjoying preferential arrangement is concerned,” Gepty pointed out. The European bloc is an important market for Philippine products such as tuna, coconut, cacao, pineapples, semiconductors, and electronics.
An FTA with the EU will also level the playing field for the Philippines versus other economies in the Association of Southeast Asian Nations that are also trying to close similar deals.
Aside from the risk of losing preferential treatment for Philippine exports, there are also the uncertainties in the country’s trade relations with the US under Trump. In his first few days in office, Trump announced—and later suspended—higher tariffs on many American imports from Canada, Mexico and China, warning to do the same to the EU. He also threatened other countries that he feels have more favorable trade balances with the US.
Universal tariffs
According to the Office of the US Trade Representative, American goods exports to the Philippines amounted to $9.3 billion in 2024, while imports totaled $14.2 billion—or an unfavorable trade position for Washington, albeit a very small percentage of total American trade.
Aside from the impact on the country’s exports sector, the prices of goods that the Philippines imports from the US can also be affected given the projection by some analysts that Trump’s policies will drive up American production costs.
Just this month, Trade Secretary Ma. Cristina Roque already warned that Trump’s proposed universal tariffs could have a potential impact on the country’s export sector, with its extent remaining largely uncertain as of now. It is thus very clear that looking for new markets for Philippine exports as well as cheaper non-American suppliers for the country’s essential imports will help cushion the economy against any potential harm from Trump’s America-first policies moving forward. Fast-tracking an FTA with the EU is a brilliant move.
Sunday, February 23, 2025
Delivery riders: What would a day be without them?
Delivery riders: What would a day be without them?
Feb 23, 2025 00:03 AM
It’s Sunday and many households will likely meet a delivery rider who will bring food, drinks, snacks, or gifts to their gates. Because of delivery riders, many of us will be able to stay home and rest, yet still enjoy the usual weekend treats like gourmet coffee, traditional desserts, or hot meals.
Delivery riders have long been the lifeline of modern commerce, ensuring that food, medicines, and essential goods reach customers efficiently. Their importance was never more evident than during the pandemic when they braved lockdowns, bad weather, and health risks to serve those following stay-at-home orders.
Even today, they continue to perform crucial services, from delivering food to transporting medical supplies and important documents, keeping households and businesses running smoothly. Yet many riders work long hours, relying on fluctuating customer demand and incentive structures that often fail to provide a stable income. If there are less delivery jobs for the day, many of them stay on to work up to 16 hours to make up for the loss of expected income for the day. Tips from customers contribute a lot to their income.
According to a 2022 report By the Oxford Internet Institute and the "Fairwork," WZB Berlin Social Science Center's research project, there are about 85,000 delivery riders in the Philippines, a number that has increased by today. The study said a rider has a compensation below the minimum wage.
Despite their essential role, most delivery riders remain classified as independent contractors, or “partners,” operating as third-party hires without the basic benefits afforded to regular employees. This means they lack regular wages, healthcare, and job security, exposing them to financial instability.
Two Senate bills were filed in 2022 seeking to protect delivery riders and other workers in the gig economy which relies on short-term and freelance work provided by online platforms for a certain service. The bills are Senate Bill No. 1275 also known as the Delivery Platform Riders Protection Act of 2022 filed by Senator Francis Tolentino as principal author; and Senate Bill no. 1373 also known as Protektado ng Online Workers, Entrepreneurs, Riders at Raketera (POWERR) Act of 2022, filed by Senator Risa Hontiveros.
Senate Bill No. 1275 seeks to provide delivery platform riders with fair wages, job security, and social protection under the Labor Code. The bill aims to establish an employer-employee relationship between digital platform companies and riders, ensuring they receive the same benefits as other workers, including the 13th-month pay, PhilHealth, Social Security System (SSS), and Pag-IBIG contributions. Additionally, it mandates protections such as holiday pay, night shift differentials, and occupational safety standards.
The two Senate Bills pushing for this legislation is a step toward addressing the vulnerabilities faced by delivery riders and gig workers. Without legal safeguards, they remain at risk of unstable income, and a lack of protection in times of illness or accidents. By integrating them into the formal labor force, the proposed bill would provide the dignity and security they deserve.
The government, digital platforms, and society must recognize their contributions and support efforts to provide them with just compensation and security. Making these changes possible faster needs more study by management experts who can work out a fair solution to breaking the lines between “partners” to “employees.”
Meanwhile, delivery riders could use all the kindness and generosity from customers. If you’re ordering food or drinks, include an item for him. And don’t forget to give a tip. Just think: what would a day without delivery riders be like?
Subscribe to:
Comments (Atom)