By JOSEPH G. LARIOSA

(© 2011 Journal Group Link International)

C HICAGO (jGLi) – United States Sen. Daniel K. Inouye (Dem.-HI) has re-introduced Senate Bill 1244 also known as the SAVE Act, a bill that “will provide preferential duty treatment to certain apparel articles of the Philippines in return for purchasing and using fabrics and yarns made in the U.S.”

If passed, the bill could reach potentially hundreds of millions of dollars and translate into upwards of 2,000 additional jobs in the U.S. fabric mill sector and 200,000 jobs in the Philippines.

Other co-sponsors of the bill are Senate Majority Leader Harry Reid (Dem.-Nevada) and Senators Roy Blunt (R-MO) and Daniel K. Akaka (Dem.-HI). The bill was referred to the Committee on Finance.

The House version of the bill, H.R. 2387, according to Philippine Trade and Industry Representative Glenn Penaranda in Chicago, Illinois, is sponsored by Rep. James McDermott (D-WA) and co-sponsored by Representatives Steve Austria (R-OH), Gregorio Sablan (D-MP), Brian Bilbray (R-CA), Bob Filner (D-CA) and Rep. Mazie Hirono (D-HI).

The SAVE Act is patterned after the Dominican Republic, Central America Free Trade Agreement, or CAFTA, which permits tariff-free import of apparel assembled in those countries in return for using cotton and manmade fiber fabrics still made in the United States.

It will provide Philippine textile companies with a new opportunity to export fabrics into the dynamic Asian market.

Leading the charge of enlisting the help of U.S. Congressional leaders is Philippine Ambassador to the U.S., Jose L. Cuisia, Jr., who has recently paid a call on Sen. Thad Cochran (Rep.-MS), Rep. Sablan and Rep. McDermont seeking their support.

Mr. Penaranda urged the Filipino-American community to assist the National Federation of Filipino-American Associations and other similar organizations and private individuals advocate for the passage of Save Act by registering their support at www.SaveOurIndustriesAct.org or by contacting the Philippine Trade and Investment Center of Chicago at 312.345.9030 or email at ptic-ch@sbcglobal.net and by sending petition letters to legislators.

PH APPAREL WELL ESTABLISHED

T he Philippine apparel-manufacturing industry is well established and known for its quality needlework and high-end fashion. It has been supplying top American brands and U.S. retailers for decades. With the growth of China in apparel production and the end of the quota system, Philippine apparel exports to the United States have dropped by 50 percent in the last five years. The Philippine apparel sector is in critical decline, with employment dropping by 75 percent since 2003.

In introducing the bill, Senator Inouye cited the Philippines as “arguably, our closest and most steadfast friend in Southeast Asia. They were our protectorate and strategic partner from the Spanish-American War through World War II. 10,000 American and Filipino servicemen died together in the infamous Bataan Death March after our forces were overwhelmed by the Japanese Army in 1942. More than 100,000 Filipinos then volunteered to fight alongside the United States and under U.S. command.”

PH PARTNER IN COUNTERTERRORISM

M ore recently, Mr. Inouye said, the United States and the Philippines have partnered in successful efforts to combat terrorists in and around their islands. Campaigns by the Armed Forces of the Philippines, trained in counterterrorism by U.S. troops, resulting in the deaths of the Abu Sayyaf leader and his deputy in 2006, as well as two other leaders in 2010.

“Our close partnership deserves to be mutually rewarding on an economic level. The SAVE Act would represent the first trade initiative with the Philippines in nearly four decades. Unlike other countries in the region, the United States and the Philippines share a balanced trade relationship. The SAVE Act would continue to build on this positive trade relationship and strengthen our economic ties with the Philippines by helping each other reestablish competitive textile industries.” Senator Inouye added.

In 2000, the garment was the second-most labor intensive industry in the Philippines after electronics because it can employ even elementary graduates. Prior to 2000, the Philippines had a quota to export garments to U.S. and Europe, earning for the Philippines US$2.8-billion.

In 2005, the garment and textile industry in the Philippines started to decline under the aegis of the World Trade Organization due to China's low cost and stable textile industry. In 2009, earnings for the Philippines for the textile industry went down to US$1.6-billion.

Textile exports of the U.S. to the Philippines were estimated at $13.5-million in 2009. This will increase to $250-million by Year Two and $500 million by Year Five of implementation, under the SAVE Act. Philippine apparel exports to the US is estimated at $1.32-billion in Year Two increasing to $3-billion in Year Five. # # #

Editor’s Note: To contact the author, please e-mail him at: (lariosa_jos@sbcglobal.net)