1. Spirits

Strong lobbying by all the European Chambers culminated in the visit in October of EU representatives for consultations with the RP Government regarding their compliance with WTO regulations on the discriminatory excise tax  on imported spirits. These consultations did not lead to any positive results. The EU team therefore recommended that a panel be convened to resolve the issue. This was approved in December by their Commissioner for Trade, Baroness Ashton.

The RP Government, as expected have appealed this decision requesting further consultations, but this has been rejected and the composition of the Panel is expected to be announced early in 2010. Diageo, our Premier Member is strongly affected by this.

2. Common  Carriers Tax

This discriminatory tax on several European airlines and shipping companies has been highlighted to RP Government by the EU MAT Committee and a formal response is still awaited. Although this largely affects European rather than UK companies, the BCCP supports the MAT initiatives.

3. Financial Services

The issue of limitations on foreign bank’s branch expansion is now on the EU MAT agenda with our Premier Member HSBC and SCB affected. The BCCP and British Embassy will be holding discussions with both of them in order to provide input to EU MAT in the first quarter of 2010 before any decisions are taken on the direction of any future lobbying to the RP Government.

4. Renewable Energy

The UKTI have been strongly involved in the lobbying for this sector and the significant contributions UK companies can make to expand the opportunities in the RP. However, concern regarding the 40% maximum foreign ownership which has been included in the investment guidelines, despite not being in the actual Renewable Energy Act which was passed in November 2008.
           
The European National Chambers (ENC) have expressed their concern on the guideline clauses  as we see it as a serious limitation to the foreign investment potential in this extremely developable sector.

5. Pharmaceuticals

Continuing concern has been expressed by the EU MAT  on the possibility of extending the Cheaper Medicines list on foreign products. Although a voluntary price reduction programme was implemented on more products than specified on the original list, the foreign companies have been advised that the list may be further extended, which will create further erosion to profit  margins and make these products’ sales and distribution even more unsustainable. BCCP and UKTI is strongly supporting their concerns as two of our Premier Members GSK and AstraZeneca will be significantly impacted should a second list be authorized by the RP Government.

6. Digital TV

Despite the adoption of the UK developed DVB system by most of the ASEAN countries and also receiving the majority support by the RP reviewing panel; the RP government appears to be favouring the Japanese (ISDB) system.

The EU MAT has acknowledged its support for the DVB system and its endorsement by the RP reviewing panel, and should be carefully reconsidered before a final RP government decision is made.

7. Events

Apart from these business issues, I am delighted to report that the BCCP’s joint Christmas Party together with the British Women’s Association, the Lighthouse Club and the Manila Club held at the Manila Club on December 18th, attracted record numbers (see Events section for a full report and photographs.

 Our two Guest Speaker/ Networking Evenings held in the last quarter of 2009 featured Gina Lopez’s) stirring and emotional presentation on the “Pasig River Rehabilitation” and Frank Beaumont’s, “The Story of Manila Water”. Both events received high attendance and very positive reactions. The Board can assure members of continuing “topical and niche” guest speaker events in the coming first quarter of 2010!

8. Lifetime Individual Membership Award

Finally may I warmly announce the award of our first Lifetime Individual Membership to Mr. John Aspinall, who has been a member of both the BBA and BCCP since their inception in 1997 and 2001 respectively. John, welcome to this very exclusive club currently consisting of only you!

On behalf of the Board of Directors the Chamber wishes all of our Members a “Happy and Productive 2010”.

 

Best regards,
Leslie J. Stokes, OBE.
Chairman
British Chamber of Commerce of the Philippines