Quantcast
Latest Stories

Group hits ‘policy instability’ in Fedex case

MBC pushes move to lift restrictions on foreign investments

By

Ramon Del Rosario Jr. INQUIRER FILE PHOTO

The head of the Philippines’ most influential business group has thrown its support behind Federal Express after the Court of Appeals voided one of the international cargo forwarding giant’s permits to operate in the country.

According to Makati Business Club (MBC) chair Ramon del Rosario, the recent CA ruling—which declared FedEx a foreign-owned public utility and, as such, prohibited by the Constitution from operating locally—highlighted the risks that make foreign investors think twice about doing business here.

“This is most unfortunate as it again illustrates the lack of stability and predictability in our economic policy environment,” Del Rosario said in a text message to the Inquirer.

At the same time, he pointed out that the court ruling “emphasizes the urgent need to address a fundamental problem in attracting foreign investments,” which are the restrictive economic provisions of the 1987 Constitution that limit foreign ownership to 40 percent of any local firm.

Del Rosario drew parallels between the recent adverse ruling against FedEx and a similar ruling released last year by the Supreme Court against telecommunications giant PLDT.

“The FedEx and PLDT court rulings demonstrate the inadequacy of relying on executive pronouncements and rulings that are subject to judicial challenge, without dealing with the constitutional restrictions,” he said.

Del Rosario said MBC was backing the moves of Congress to liberalize laws on foreign ownership in order to make the local environment more attractive to investments from overseas.

“It is time for Congress to act on these restrictions and we support [House] Speaker [Feliciano] Belmonte’s efforts in this regard,” he said.

FedEx—one of the largest freight forwarding companies in the world—holds a five-year permit to operate in the country granted by the Civil Aeronautics Board (CAB) in May 2011. The CAB permit was backed by a Department of Justice opinion issued in 2004 stating that “international air freight forwarders are not covered by the nationality requirement under the 1987 Constitution, hence, may be issued a certificate of public convenience subject to the CAB’s pertinent rules and regulations set forth under Republic Act No. 776 and other existing laws.”

However, in its decision first issued on Jan. 23, 2013, the CA said it was “not bound by the resolution of the justice secretary.” Siding with locally owned complainants Merit Freight International Inc. and Ace Logistics Inc., the court denied FedEx’s appeal in another decision dated June 6.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , economy , Federal Express , Makati Business Club , News

  • Jake Lopez

    Let’s admit it. Filipino managers are good…if…led by a foreigner. Why not allow foreigners to invest and run businesses here in the country? We could learn from their expertise, in addition, they have the capital.

  • TV

    The Philippine constitution is outdated and needs to be overhauled to accommodate the modern ways of doing business in a globalized economy. Beats me why we keep holding back progress by sticking to an obsolete constitution.

  • http://antipinoy.com/ BongV

    and why should Filipino consumers protect the lousy services of Merit Freight International Inc. and Ace Logistics?

    Merit Freight International Inc. and Ace Logistics – and other Filipino providers should deliver value to consumers… like you know… actually delivering the parcels they were paid to do so – instead of preventing other firms who can do a better job and deliver value to Filipino consumers.

    An economy is made up of consumers and producers/providers. Why are we protecting providers at consumers expense? That is wrong – and is an obvious case of Filipino ignorance of the law of supply and demand.

    It is time to remove the economic restrictions. Enough with the duopoly of Globe and PLDT, ABS-CBN and GMA7 – don’t Filipinos get tired of having the same lousy services for decades? Geez.. it’s supposed to be a no-brainer.. though not for the Philippines where the average IQ is 86 – borderline em ow ar ow en es.

  • TruthHurts

    “a Department of Justice opinion issued in 2004 stating that “international air freight forwarders are not covered by the nationality requirement under the 1987 Constitution, hence, may be issued a certificate of public convenience”

    Where did the DOJ get that opinion and what is the rational basis for that? I couldn’t even find a rational basis for that opinion, which is the lowest and most basic of the three levels of scrutiny applied by courts when considering constitutional questions.

    “Del Rosario said MBC was backing the moves of Congress to liberalize laws on foreign ownership in order to make the local environment more attractive to investments from overseas.”

    Is that one way of saying that the MBC is incompetent to provide enough local jobs and regional trading to stir the local economy? Or is that another way of saying that the MBC is secretly in cahoots with foreign forces who desire to gain a foothold on a very lucrative country? They always cite “to make the Philippines and Philippine enterprises more globally competitive” when global competitiveness is not the problem of Filipinos but grave domestic problems such as poverty which could be remedied locally within the country.

  • RyanE

    I’m not a liar err lawyer but I think the CA decision is correct. There’s really a need to revisit that 60-40 provision in our constitution but sadly our alligators err legislators are quite pre-occupied with their pork barrels.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • 14 killed in car bombing in Homs
  • 57-nation group plays key Ukraine monitoring role
  • French President Hollande’s top aide resigns
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • Marketplace