“Buy Pinoy, Buy Local” is a movement that seeks to encourage Filipino consumers, Philippine businesses and government to patronize locally produced and processed products and services on the one hand, and encourage domestic and foreign manufacturers operating in the country to continue upgrading the quality of their products and services on the other.
The Federation of Philippine Industries (FPI) and the Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) are jointly spearheading the movement.
Participation in this campaign is open to all organizations advocating the use of local products and services.
The “Buy Pinoy, Buy Local” movement defines local products and services as those produced or processed here in the country using Filipino labor regardless of the source of raw materials. Under this definition, even goods manufactured by Philippine-based foreign companies, notwithstanding that these goods have imported contents, are also considered as local products.
The main determinant therefore is Filipino labor working on Philippine soil. For as long as Filipino workers provide the value added component, then a product or a service can be considered as local.
Smuggling flourishes because people buy smuggled foreign goods, which are cheap only because the correct duties and tariffs are not paid on their entry. By inducing Filipino consumers to switch to local products, “Buy Pinoy, Buy Local” could eventually dry up the market for smuggled foreign goods.
What many consumers fail to see is that cheap does not always translate to value for money. More often than not, the quality of smuggled goods is substandard. And because these goods are not brought into the country through the proper channels, no regulatory agency has checked on their safety and durability.
In fact, there have been numerous reports in the past of fires from substandard electrical wires, of buildings collapsing due to under-spec construction materials, and of people’s health being threatened by food items containing toxic substances.
“Buy Pinoy, Buy Local” aims to protect Filipino consumers from these low quality and hazardous goods, and Philippine-based businesses from unfair competition posed by smuggling.
If smuggling were totally eradicated or even just minimized, then more local and foreign investors could be enticed to set up legitimate businesses here. With nearly 90 million Filipinos, the Philippines is a huge mass market that businesses would find very attractive.
It is a very serious problem. Smuggling is costing the government billions in foregone revenues and loss of market for local businesses.
Per records of the International Monetary Fund (IMF), the total exportation to the Philippines from 2002 to 2007 amounted to US$284.70 Billion while the Bureau of Customs’ (BOC) records only showed US$195.01 Billion or a disparity of US$89.69 Billion. Hence, the average annual disparity therefore is US$14.95 Billion or the equivalent of PhP747.50 Billion (at the rate of US$1 to PhP50). Twelve (12%) percent VAT and an average duty of five (5%) percent will amount to a total revenue loss of PhP127.075 Billion per annum.
The entire country stands to benefit from the success of “Buy Pinoy, Buy Local.” It will create a stable domestic market for Philippine-made products and services that will surely attract new investments, both from domestic and foreign sources, which, in turn, will generate more employment, spur consumer spending and drive demand. This will encourage local manufacturers to increase production and invest in additional capacities. As production grows, manufacturers will achieve better economies of scale in their operation, allowing them to lower the prices of their goods.
Any increase in business activity will generate more taxes for government to spend on basic services and infrastructure that will create even better business and social environments.
With a strong domestic base, local manufacturers can move to the global markets and compete on even footing price-wise and quality wise. This early, the “Buy Pinoy, Buy Local” movement is already working closely with the Department of Trade and Industry (DTI), through the Bureau of Products Standard (BPS) and the Bureau of Food and Drugs (BFAD) under the Department of Health (DOH), so that only world-class products are sold to the consumers.
“Buy Pinoy, Buy Local” is a movement and not a legislation. Besides, it does not discriminate between products and services made by Filipino companies and foreign companies for as long as these are produced here by Filipino labor. Moreover, other countries like Indonesia, Brazil and India have initiated similar actions. In fact, even the U.S. government has included “Buy American” provision in its Stimulus Plan.
In the long run, “Buy Pinoy, Buy Local” will promote fair trade since it will create a prosperous Philippine market that can afford to buy quality goods.
While the USA, who is a signatory to the Government Procurement of the WTO, incorporated a “Buy American” provision in their stimulus plan, the “Buy Pinoy, Buy Local” is a movement initiated by the private sector.
The inspiration for “Buy Pinoy, Buy Local” came from President Gloria Macapagal-Arroyo, who announced in her speech during a command conference on March 25, 2008 at the Malacañang Palace that in government procurement, she would give priority to locally made products. Moreover, the movement’s leaders also cited Sec. 12, Art, XII of the Philippine Constitution that clearly states, “The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive” as well as Commonwealth Act 138 (Flag Law).
Thus, to implement this constitutional provision and the Flag Law, President Arroyo signed Administrative Order No. 227 on May 27, 2008, “directing all heads of departments, bureaus, offices and agencies of the national government including local government units, government-owned and controlled corporations, government financial institutions, state universities and colleges, military and police units to give preference in their procurement to materials and supplies produced, made and manufactured in the Philippines.
Under AO 227 the government procurement of imported goods are allowed if local product, materials and supplies are not manufactured domestically in sufficient quantity, or comparable quality, and at reasonable prices.
Moreover, the “Buy Pinoy, Buy Local” movement respects the government’s obligations or commitment under international agreements.
You can support the movement by simply buying any product manufactured and processed in the Philippines using local labor, irrespective of brands and origin of raw materials, and impart the importance of this action to your children, relatives, and friends.
Keep in mind that everytime you buy a locally made product, even small items like ballpen, hairpin, notebook, soap or cologne, you are helping a Filipino worker keep his job.
