Fair Trade Alliance wants Malacañang to leave MVDP decision to next gov’t
As industry players have become fractious over the proposed new Motor Vehicle Development Program (MVDP), multisectoral group Fair Trade Alliance (FairTrade) on Wednesday urged Malacañang to leave the decision to the next administration to ensure a thorough review of the local automotive industry.
This was proposed Wednesday by FairTrade lead convenor former Senator Wigberto Tañada during a press conference wherein they strongly rejected the proposed new MVDP, which is now awaiting President Gloria Arroyo’s signature.
“So as not to make this proposed MVDP a midnight EO, we would rather than Malacañang would leave it to the next administration the decision of the proposed auto program,” Tañada said.
FairTrade co-convenor Rene Ofreneo also challenged the new Trade and Industry Secretary Jesli A. Lapus to, “Prove his sincerity by suspending what has been done by his underlings and undertake a through review of the local auto industry.”
The proposed new MVDP was the last act of then DTI Secretary Peter B. Favila before he assumed his new Malacañang appointment as member of the Monetary Board. Lapus just inherited the MVDP from Favila.
FairTrade together with the Automotive Industry Workers Alliance were particularly opposed to the changing of the word “prohibited” to “regulated” in the ban on the importation of used motor vehicles.
The groups just wanted to retain the word “prohibited” used under EO 156 or the existing MVDP saying the use of the word “regulated” practically allows the importation of used motor vehicles.
The proposed EO will now allow importation of motor vehicles with gross vehicle weight of above 2.5 tons to 6 tons, whereas EO 156 expressly prohibits the importation of motor vehicles with GVW of 6 tons and below.
Tañada said they are not convinced with the explanation of Board of Investments executive director Efren Leano calling it ambiguous.
“There was no categorical answer,” he said.
In answer to the FairTrade letter dated March 8, 2010, Leano responded in a letter dated March 24, 2010 saying, “The proposed EO has totally adopted the provision on prohibition on used vehicles Article 2 of EO 156 in view of the fact that the Supreme Court has already upheld the validity of this provision. To strengthen the ban, all importations of used vehicles allowed under certain conditions are even proposed to be regulated.”
Should the BoI not retain the word “prohibited,” the group would rather keep that the existing MVDP stressing this would only lead to the influx of used motor vehicles encourage smuggling and further worsen the environment.
AIWA president Angel Dimalanta said the DTI intentionally crafted a vague MVDP so as not to avoid violating the provisions of the Japan-Philippines Economic Partnership Agreement.
AIWA also objected the representation of the Department of Labor and Employment in their behalf in the proposed Automotive Industry Council saying that DoLE is not an expert in the automotive sector.


