ASEAN pertains to Association of
South East Asian Nations which was established in 1967, it has 10 members to
date. The ASEAN Community (AEC) creates a region with free flow of goods,
services, investment, skilled labor and capital. It aims for the following
characteristics: (a) a single market and production base, (b) a highly
competitive economic region, (c) a region of equitable economic development and
(d) a region fully integrated into the global economy.[1]
ASEAN members were committed for the
integration to happen on 2015, this leaves a question whether Philippines is
ready to keep pace with other members of the ASEAN community. Our country has been lagging behind the rest of
our counter-parts, in terms of economy and foreign investment. AEC
blueprint provisions which opens restricted industries to foreign individuals
welcome potential growth to different sectors. In short, more foreign investment in the Philippines will
mean more jobs for Filipinos at home.[2] ASEAN Integration
envisions a free flow of goods and services among the 10 members, this includes
our country which its foreign policies are very strict, creating a problematic
scenario in complying with ASEAN integration.
The 1987 constitution and Corporation
Code have numerous provisions where it expressly restricts foreign management
and ownership over the following industries:
- · Mass media, except recording
- · Except in cases prescribed by law, the practice of all
professions, including, but not limited to, engineering, medicine,
accountancy, architecture, customs brokerage, geology, and agriculture
- · Retail trade enterprises with a paid-up capital of less
than US $2.5 million
- · Private security agencies
- · Small-scale mining
Also, there are certain
industries that allows foreign ownership but subject to limitations, like natural resources, public utilities, and
nonsectarian educational institutions, advertising and corporations.[3]
These strict provisions of the law are not in harmony with AEC goals which deeply affects our country’s compliance.According to the World Bank, the Philippines was among the AEC members that have strict foreign policies, hence provisions on AEC blueprint may only materialize if the legal restrictions of our country will be reformed or relaxed. This is very problematic because our government is not really keen in pursuing a charter change or amendments in the constitution and until the Philippine’s current legal framework stays in status quo, the aim of benefiting from ASEAN integration on 2015 is far from reality and the promise of AEC’s free flow of market will not be enjoyed by the Filipino people.
These strict provisions of the law are not in harmony with AEC goals which deeply affects our country’s compliance.According to the World Bank, the Philippines was among the AEC members that have strict foreign policies, hence provisions on AEC blueprint may only materialize if the legal restrictions of our country will be reformed or relaxed. This is very problematic because our government is not really keen in pursuing a charter change or amendments in the constitution and until the Philippine’s current legal framework stays in status quo, the aim of benefiting from ASEAN integration on 2015 is far from reality and the promise of AEC’s free flow of market will not be enjoyed by the Filipino people.
[1] http://www.asean.org/archive/5187-10.pdf
[2]http://www.investphilippines.info/arangkada/climate/foreign-equity-and-professionals/#fnote_213
[3] http://www.bakermckenzie.com/
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