|
ALTHOUGH
it is allowed by the Constitution, the government would
still need an enabling law if it would move to ban or
regulate the export of waste paper as a way to protect
local paper manufacturers.
A ranking trade official said the state
can safeguard the survival of domestic industries by
making sure that the raw materials needed by the economy
are not shipped abroad.
In the case of local paper
manufacturers, which are in danger of being obliterated
by the brisk buying of waste paper—now being done by
China—the source said they should go to Congress or
Malacañang and seek an enabling law to give relief to
the industry.
“We can regulate export, impose export
tax or ban it. But there is no law that enables that.
The Constitution says that the state should protect the
local industries,” the official told the the
BusinessMirror.
Earlier, market leader Trust
International Paper Co. (Tipco) said it is not
considering adding new capacity because the supply of
waste paper, its main raw material, is tight anyway.
This, despite the potential huge
increase in demand for its products, in the wake of the
financial and operational problems of its main rival
Picop Resources Corp., which uses virgin pulp as raw
material.
Miguel del Rosario, president of the
Pulp and Paper Manufacturers Association (Pulpapel),
said the Philippines is now exporting 5,000 tons of
waste paper per month, mostly to China.
“Compared with last year, the increase
is dramatic and if this continues, and China is willing
to buy anything, our whole paper industry is in severe
danger,” del Rosario said.
The trade official said during the time
of former President Ferdinand Marcos, the government
came out with several orders to protect the interest of
domestic manufacturers.
One of these, the official said, is
Letter of Intent 1416, which regulates the export of
copper to make sure that Philippine Associated Smelting
and Refining Corp. (Pasar) will get all its raw-
material requirements.
There are also laws that ban the export
of certain indigenous materials.
“If this was done then, Congress should
also pass a law to protect the local industries. If we
need the raw materials, why should we export them?” the
source said.
Right now, the official said the
exporters are so eager to ship the waste paper out of
the country that they would even send their container
vans to the junkshops to pick them up and then send them
directly to the ports.
“And this is on cash basis, and based on
international price,” the official said. |
