Republic Act 10667, otherwise known as the Philippine Competition Act, was signed into law on Tuesday, July 21, by President Benigno Aquino.
Signed at the same time was Republic Act 10668 , otherwise known as the Liberalized Cabotaje Law.
Both laws are considered “game-changing,” that is will impact of the country’s economy.
The Competition Act seeks to curb cartels, price fixing and other forms of anti-competitive practices while the Cabotaje Law aims to drastically bring down costs of shipping.
During the signing ceremony, President Aquino said that both laws would ensure the reforms his administration began would continue.
He emphasized that “if we will allow the old system to persist, where there is no competition, we will be allowing our country to suffer from paltry benefits. It will also be allowing ourselves to be content with a system where only a few will thrive.”
House Speaker Feliciano Belmonte said that the laws would help local industries compete more strongly when the economies of the Asean start integrating by year end, whereby tariff and non-tariff barriers will be lifted as a single market is created among the ten-member group of economies.
Meanwhile, business groups, both local and foreign, welcomed the approval of the two laws.
PCCI President Alfredy Yao said the laws would ultimately benefit consumers because they would be able to get “better services, better quality of products and better pricing.”
In a statement, the European Chamber of Commerce of the Philippines said that the laws would create a more level playing field and offer cost reductions in domestic shipping.
Management Association of the Philippines president Francisco del Rosario said that the passage of the legislations “will encourage the growth of small and medium enterprises and is in line with the Asean integration.” He added that the people who would compose the Philippine Competition Commission should be chosen carefully and should be fair, honest, and strong.