The new Motor Vehicle Development Program (MVDP), which implementation is being hampered by opposing interests among industry players, will provide new directions for the domestic automotive industry to be able to compete globally at a higher level which the old program could not.

This was stressed by Trade and Industry Undersecretary and Board of Investments managing head Elmer C. Hernandez as opposition to the new automotive industry blueprint led by CAMPI president Elizabeth H. Lee has gained new supporters in Fair Trade Alliance (FairTrade) and the Automotive Industry Workers Association (AIWA).

“We’ve done our job, we’ve addressed their concerns, and we’ve already furnished Malacañang copies of their letters. We have complied with all the requirements,” said the exasperated Hernandez.
Hernandez explained that without the new MVDP, a comprehensive industry development program, it would be difficult for the industry to aggressively compete in the global market.

“The new MVDP provides the new directions to be able to create a competitive environment in light of the new global environment because it is not only under the Asean Free Trade Area (AFTA), but we have ASEAN plus several dialogue regional partners. How can you compete using the old MVDP,” he said.

Hernandez even noted that the existing MVDP, enacted in 2002, even talks of the AICO (ASEAN Industrial Cooperation) when it is no longer applicable as it has been superseded with the effectivity of AFTA, where ASEAN tariffs are now down to zero.

“You cannot do AICO because we are in the AFTA regime already where tariffs are already at zero,” he said. Car companies have participated in the AICO because of the preferential treatment accorded under this program.

Hernandez also reminded the industry that the review was done at their request.

“The industry asked for the review so we did our job, we did consultations. Now, that we have the new MDVP they would say they prefer the old MVDP,” he said.

Hernandez said that all the necessary ingredients needed for the industry to compete globally are incorporated in the program including the review of the excise tax, standards, a replication of the old MVDP provision on used motor vehicles importation, and the creation of an industry council that will put more teeth into the implementation of industry programs and policies.

“We are eager to implement this new program so we can prepare the industry to a higher level of competitiveness,” said Hernandez.

The opposition to the new program centered its objection on the provision on the importation of used motor vehicles because the word used under the old MVDP was “prohibited”, which was changed to “regulated” under the new MVDP.

FairTrade and AIWA particularly opposed to the changing of the word “prohibited” to “regulated” on the importation of used motor vehicles.

The groups just wanted to retain the word “prohibited” used in the old MVDP or under Executive Order 156 saying the use of the word “regulated” practically allows the importation of used motor vehicles.