Department of Trade and Industry (Philippines)
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| Established: | June 23, 1898 |
| Secretary: | Peter B. Favila |
| Budget: | P2.179 billion (2007) |
| Website: | www.business.gov.ph |
The Philippines' Department of Trade and Industry (Filipino: Kagawaran ng Kalakalan at Industriya), abbreviated as DTI is the executive department of the Philippine Government tasked to expand Philippine trade and industry as the means to generate jobs and raise incomes for Filipinos.
[edit] History
The Department of Trade and Industry had its beginnings on June 23, 1898 when President Emilio Aguinaldo formed three government agencies, the Departments of Navy, Commerce, Agriculture and Manufacturing.
On September 6, 1901, the Philippine Commission established the Department of Commerce (and Police). After World War II, President Manuel A. Roxas issued Executive Order (EO) No. 94 on October 4, 1947 creating the Department of Commerce and Industry (DCI). Cornelio Balmaceda, a much sought-after professor of economics and director of the Bureau of Commerce (BOC), was appointed acting secretary of the newly created Department of Commerce and Industry.
Prior to EO 94, the Bureau of Commerce was tasked to develop and promote the country's trade and industry, under the overall supervision of the Department of Agriculture and Commerce, as stipulated by Act 4007 by the Philippine Legislature, enacted on December 5, 1932.
By 1972, the DCI had grown into a big organization with 10 regular bureaus and 22 agencies under its direct supervision. The DCI was mandated to promote, develop, expand, regulate and control of foreign and domestic trade and industry, as well as tourism.
To have closer supervision and to ensure more effective delivery of services, President Ferdinand E. Marcos issued Presidential Decree (PD) 189 on May 11, 1973 creating the Department of Tourism to handle all tourism-related matters. A year later on June 21, 1974, Marcos issued PD 488 creating the Department of Industry whose principal function was to promote and enhance the growth of the country's existing and thriving industries.
On June 2, 1975, the Department of Trade was created under PD 721 to pursue efforts of the government toward strengthening the country's socio-economic development, particularly in the area of commercial activities. A key strategy of the new department was vigorous export promotion to generate much needed foreign exchange. A Bureau of Foreign Trade was also particularly established to push for domestic trade and marketing programs.
In the early 1980s, the Marcos government's goal of national economic development required the need to hew industrial promotion efforts with the expansion of Philippine trade overseas. This resulted in the creation of the Ministry of Trade and Industry on July 27, 1981, which took over the functions of the subsequently abolished Departments of Trade and of Industry.
Drastic changes followed after the 1986 EDSA Revolution. President Corazon Aquino signed Executive Order No. 133 on February 27, 1987 effectively reorganizing the Ministry of Trade and Industry and renaming it the Department of Trade and Industry (DTI). This was further strengthened by the issuance of Executive Order 292 (Administrative Code of 1987). Other latter legislations have also amended its functions and structures.
[edit] How to invest in the Philippines
The Philippines is the third-largest English speaking country in the world, enabling its manpower to have a unique edge over neighboring countries in terms of labor quality. Flanked by the Pacific Ocean and the South China Sea, its strategic location makes it a critical entry point to some 500 million people in the ASEAN market - offering vast trade opportunities - and an ideal base for business. It is also the best Asian country in terms of overall quality of expatriate life, considering its cultural compatibility with expatriates, housing, sporting and recreational facilities, quality healthcare, and first-rate educational institutions.
Being an archipelago, the Philippines has a lot to offer as well in terms of natural resources. Its 7,100 islands boast numerous white and black sand beaches, making it eminently attractive to vacationers and tourists. Its amazing marine biodiversity affords abundant species of flora and fauna. Land-wise, it is also among the biggest producers of copper and gold in the world.
Considering its strategic location, unique edge as an English speaking country and rich natural resources, the cost of doing business in the Philippines is surprisingly low, with wages down to less than one-fifth of that in the U.S. Communication, electricity and housing costs can go as low as a mere half of the costs in the U.S. Foreign companies now outsourcing programming and business processes to the Philippines incur 30 to 40% business cost savings, 15 to 30% call center services, and 35 to 50% application systems and software development.
Business policies of the government tend to be investor-friendly. It has allowed more private sector participation in the development of infrastructure and services through privatization. The innovative Build-Operate-Transfer scheme has been adopted by the government. Foreign ownership of up to 100% is also allowed in almost all economic sectors. Attractive incentives are offered in numerous Special Economic Zones and Industrial Estates, which are being promoted as agricultural, industrial, commercial and recreational hubs.
Foreign corporations must first register with the Securities and Exchange Commission before they can engage in business in the Philippines. The necessary licenses or registration certificates must be secured from the appropriate government agencies, depending on where the project is to be located.
For projects outside special economic zones (SEZs), go to the Board of Investments.
For projects in any of the SEZs under the PEZA, go to the Philippine Economic Zone Authority.
For projects in the Subic Bay Freeport, go to the Subic Bay Metropolitan Authority.
For projects in the Clark SEZ, go to the Clark Development Corporation.
For projects in the Cagayan SEZ, go to the Cagayan Economic Zone Authority.
For projects in the Zamboanga City SEZ, go to the Zamboanga City Special Economic Zone Authority.
[edit] External links
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