HOUSE BILL NO. 3296

HOUSE BILL NO. 3296: An Act Creating the Tawi-Tawi Special Economic Zone and Free Trade Zone Act of 2007

Background:

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC). A single SEZ can contain multiple 'specific' zones within its boundaries. The most prominent example of this layered approach in the country is the Subic Bay Freeport Zone.

Philippine economic zones (ecozones) are collections of industries, brought together geographically for the purpose of promoting economic development. Although designed to operate separately from the political and economic milieu of surrounding communities. The Philippine economic zones do in fact interact with their neighbors. At present, there are 41 private-owned economic zones and four (4) government owned economic zones in the Philippines. Of the 41 private economic zones, the biggest exporter is Gateway Business Park in General Trias, Cavite and the second biggest private ecozone is Laguna Technopark Inc. The four governmentally owned are Cavite Economic Zone, Bataan Economic Zone, Mactan Economic Zone and Baguio City Economic Zone. Thus it is a useful act for the growth of economic zone of the country.


House Bill No. 3296:

Rep. Hermilando I. Manadanas of the Second District of Batangas introduced the HB3296 known shortly as the Tawi-Tawi Special Economic Zone and Free Trade Zone Act if 2007, or an Act Creating the Tawi-Tawi Special Economic and Free Trade Zone, Providing Incentives therefore and Establishing an International Transshipment Port at Sibutu Passage.


Potential Impacts of HB3296:

Political

- According to the UN Convention on the law of the Sea (UNCLOS), the Philippines has adopted the National Marine Policy which seeks to emphasize the country’s status as an archipelago.

- Under this Archipelagic Doctine, provided in Article 1, 1987 Constitution, the Philippine’s territory includes its Exclusive Zone of 200 nm (Nautical Miles) from its base/shoreline.

- The tolerance of the Philippine government to allow the foreign vessels through Sibutu Strait is in violation of Archipelagic doctrine and that of the territorial integrity of the Philippines as a sovereign state.

- Tawi-Tawi is located at the heart of Brunei-Indonesia-Malaysia-Philippines East Asian Growth Area (BIMP-EAGA) Polygon.

- Tawi-Tawi’s geographical location is highly strategic to the defense of the Philippines in our Southern perimeter. Tawi-Tawi is the first line of defense in the south in case of foreign aggression. It will check and minimize if not eradicate, through a tight security system, the nefarious trade, counter trade, smuggling, poaching, illegal immigrant, kidnapping and even piracy and terrorism in the area, and secure our sovereignty and preserve our territorial integrity as an archipelagic state. The measures calls for a full equipped special unit consisting of Police, Naval, Air. Amy land forces under a Commander to enforce the mandate of the act, a set-up that is designed to assure us that our frontiers in this part of Mindanao will not again be encroached upon.


Diplomatic

- Historically, for 125 years now, many foreign vessels have been freely using the archipelagic sea-lanes of the province of Tawi-Tawi without benefiting the government of the Philippines. Thus, the use of said sea-lanes started in 1880, two years after the Sultan of Sulu leased Sabah to a British Commercial Syndicate.

- The Protocol of 1887 among Germany, the Netherlands and great Britain reaffirmed the use of sea-lanes in 1885, but neither the Sultan of Sulu nor the Spanish insular government in Manila was consulted, hence, by any measure, the act was pure and simple usurpation by foreign powers to the exclusion of the Philippines, but by the right and by international law, however, it is the Philippines that has the sole and exclusive prerogative of determining whose vessels have access to the said passages, and under what terms and conditions may such access be granted.

- The National Mapping Resources Information Authority (NAMRIA) and the International Maritime Organization (IMO) has already succeeded in claiming three (3) sea lanes of the Philippines as International sea lanes, including the Balabak Strait of Palawan, the Surigao Strait, and the Bongao in the province of Tawi-Tawi as their safest route to and from mainland Asia.

- The Philippines lacks the requisite potency in safeguarding its wide archipelagic dominion that stretches from North to South up to the northern rim of Celebes Sea; in some developed countries, like Malaysia, Singapore, Japan, China, Korea and Australia the problem of waste disposal by foreign vessels has become alarming.


Economic

- Foreign vessels are just freely using our sea-lanes in Tawi-Tawi and also making them as a dumping site.

- Since the country is saddled with massive foreign debt, the people of Tawi-Tawi are faced with the challenge of harnessing their creativity and initiative and continually exploring for new possibilities to pull our nation out of the rubble of economic misery.

- Under the long term-plan, the fees of taxes collected therefrom will be used for the establishment or the construction of the Tawi-Tawi International Transshipment Port or an Export Processing Zone which would attract investments in Tawi-Tawi and thus provide employment to our people and the opening up of extensive trade with Malaysia, Singapore, Brunei, Indonesia, Papua New Guinea, New Zealand, Japan, Korea, China, and Australia.

- The collected taxes will be used also for the improvement of the surroundings of the Port facilities and for the operational expenses of the authority, with a reasonable percentage of the proceeds of collection going to the National Government in Manila, and to the province of Tawi-Tawi, in order to help achieve the economic status which it deserves.

Socio-Cultural

- The province of Tawi-Tawi, can showcase its customs, traditions, scenic and touristic views to local and foreign tourists and investors. This may prove to be a take-off point for newly found developmental initiatives that may contribute to the progressive course of our national destiny.

- The Mindanao State University (MSU) at Tawi-Tawi, particularly the College of Oceanographic Studies and Fisheries, will be allocated funds for the specific research and studies of our marine natural resources such as seaweeds, sea cucumber, fish corals, and other marine life.