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Plywood Woodstock Volume 9 No. 2 July - October 2011 PWPA Holds Forum to Mark 60th Year he Philippine Wood Producers Chancellor) Rex Victor Cruz served Association (PWPA) held a as moderator in the open forum fol- T forestry forum last August 24, lowing the presentations. 2011, at Makati Shangri-la Hotel with PWPA’s sole forum presenter, the theme An Outlook: The Future of R.I. Chemical Corporation, through Philippine Forestry to mark its 60th Manager for Plywood Adhesives Al- founding anniversary. The forum dis- len Diez, also delivered a technical cussed the current state of Philippine paper on Regulating Formaldehyde forests encompassing the impact of Emission from Wood Products. the logging moratorium on the wood Development. Society of Filipino industry, the role of forests in national Foresters President Renato de Rueda In his opening message, PWPA development and in climate change covered Attuning Forestry Practices for Chairman Fernando Lu said, “Now is a mitigation. Forest Resource Sustainability and good time to revisit the aims and aspi- Climate Change Adaptation. rations of our association. Have we Speakers representing the been faithful to our organization’s ob- government, academe, business and FAO Senior Forestry Officer Pat- jectives? On the whole, I would say rick Durst discussed The Relationship international agencies were invited to that we have… Those of us who are between De/Reforestation and Flood, provide their views in relation to the still here religiously practice sustain- forum theme. while SUDECOR President Aristeo able forest management. We are still Puyat presented The State of the FMB Director Neria Andin deliv- operating in the same forests where Wood Industry, Concerns and ered DENR Secretary Ramon Paje’s we started over fifty years ago. These paper, with the topic Thrust of the Action Plans. remain to be the most luxuriant in the Department vis-a-vis Forest Resource UPLB College of Forestry and country. We strongly believe that, Sustainability and Wood Industry Natural Resources Dean (now UPLB (Continued on p. 3 ) PWPA Pledges 5 Million Trees for NGP he Philippine Wood Producers witnesses were FMB Director Association (PWPA), through Neria Andin for DENR and T Chairman Fernando Lu, and the President Antonio Olizon for Department of Natural Resources PWPA. (DENR), through Assistant Secretary As lead implementing Marlo Mendoza representing Secretary agency of E. O. No. 26, Series of Ramon Paje, jointly signed last August 2011, otherwise known as the 24, 2011, at Makati Shangri-la Hotel a National Greening Program Memorandum of Commitments ensur- (NGP), the DENR has called on ing the availability of 1 million tree “all sectors of Philippine society seedlings per year, for the next five to support the purposes, goals years, for this administration’s National and realization of the NGP.” In Greening Program (NGP). The total of response, PWPA heeded the call 5 million tree seedlings substantially and during its 60th Year anniver- contributes to the 1.5 billion trees tar- sary event, pledged to be geted by DENR to be planted between PWPA Chairman F. A. Lu and DENR Assistant Secretary DENR’s partner in the NGP im- Year 2011 – Year 2016. Serving as M. D. Mendoza seals the MOC with a handshake. plementation. WoodStock Wood for Thought Confronting Our Industry’s Biggest Challenges by Tony Olizon progressing; but everyone knows the This development has become so believe the wood industry faces its real score; and people could read precarious for our domestic plywood most monumental challenge to between the lines! plants which didn’t have much choice date. Not that our association has One former secretary but to crush their prices to remain I not done anything to try to take us commented, “I don’t know if the Presi- competitive. Clueless consumers out of this seeming Ondoy or Pedring dent intends to see this industry die!” couldn’t care less if they buy substan- scale of a situation. But we are faced I believe we still have well- dard or inferior quality plywood! They with a tsunami. The odds - these too don’t care if the plywood they buy monstrous waves - have not changed meaning friends who want to help us - because they believe in our valuable does not have the Import Commodity course. They continue to bear on us Clearance (ICC) or BPS mark; or if the and batter us to pieces. role as countryside developers and as a significant economic force. But they plywood has been glued excessively Our main hurdle is Executive can only do so much; and to expect with formaldehyde - a chemical to Order No. 23. Even before it became them to stick their head out or take the embalm the dead! - which is very effective, the leaders of PWPA met bullet for us might be asking for the hazardous to anyone’s health. As long with Executive Secretary Paquito moon. as the price is cheap, the consumer Ochoa and briefed him about our will buy it! industry. We were confident that we After giving him the lowdown on EO 23, I received this advice from one Our Association has appealed to had effectively and convincingly Customs Commissioner Alvarez to communicated our message, because Cabinet member: the key is in finding the key to open the door. Well, we just contain this outright and blatant he reassured us, “The President will smuggling (of course no taxes!); and get to know your position.” have to heed his advice - find the key, and find it fast, to unlock and uncork the rampant mis-declaration/ under Sec. Ramon JP Paje, on the other the President’s ears to our voice. declaration of these imports. We have hand, had been very straight-forward. made representations with the Depart- He would not assist or make an We don’t want to be presumptu- ment of Trade and Industry and appointment with the President for us, ous, but we believe that given a Bureau of Product Standards. The he declared. He did not want to appear chance to verbalize the economic status? So far, there has been no - to be lawyering for the private sector. significance of our industry - as well as repeat NO - apprehension by the Sec. Paje probably also realized that our very legitimate yet mostly unher- Bureau of Customs. The DTI has we would present to President Aquino alded role as guardians of our pounced on a few hardware stores the issues relative to EO 23 - and country’s environment - we can get the selling substandard China plywood since the fundamentals of EO 23 came President to listen and convince him (unmarked, unlabelled) but these are from him - it then seemed logical for that, yes, this industry must be allowed just drops in the bucket - not even one Sec. Paje not to appeal to the Presi- to thrive, for the sake of the millions of percent of the volume of smuggled/ dent on our behalf. Filipinos who depend on us for their substandard plywood in the market. very lives. The situation we face today is We are being deluged by hurri- quite the reverse of what we’d experi- canes. It’s up to us if we will remain enced with past DENR Secretaries. Now, let me discuss the second standing or cave in. To act, to look for Remember when the late President issue - plywood smuggling. that key, to remain vigilant and prove Cory Aquino accommodated our Unbelievable but true! Based on our detractors wrong. Because what comprehensive industry presentation - the records of “China Plywood we’re standing for is worth our blood, complete with merienda and souve- Exports”, this year’s January to August sweat and tears. nirs, courtesy of then Sec. Jun China plywood export to the Philip- We have to re-assess our position Factoran? pines totaled 91,000 cubic meters. and pray hard how to overcome these We know that other DENR/FMB With simple computation, this figure challenges to our wood industry. officials could not even implement the amounts to some 3,500 plywood other important provisions of EO 23 - crates a month, equivalent to 20% of for reasons known only to them. We of our monthly domestic production. course see programs seemingly Page 2 WoodStock All About Plywood “Ply-by-Night” Plywood ith the issuance of Execu- with the Bureau of Import services these imports also allowed them to tive Order No. 23 or the showed that only a very small portion unfairly compete and undercut the moratorium on harvesting of these importations have been prop- prices of locally-manufactured ply- W trees in natural or residual erly declared with the Bureau of Cus- wood. forests, the price of wood products in toms. At this level of import surge, Chi- the local market have increased by 25- To further validate industry infor- nese plywood have very swiftly taken 30% due to lack of supply, while prices mation and assess how widespread away almost 25% of the local plywood of wood products in the world market these Chinese plywood have pene- market, unfairly competing with their have also increased by 60%. trated the market, the Department of substandard products, improperly im- Similarly, starting in April, 40-foot Trade and Industries (DTI) and Bureau ported, under declared, or outright container loads numbering about 200 of Product Standards (BPS) carried smuggled, and with an export subsidy to 450 containers per month have out a market monitoring program to given by the Chinese government un- been brought into the country. Majority help in the enforcement of mandatory der the guise of an “export rebate.” standards. (See related story on pages of these imports were reported not to With over 30 plywood mills in the have paid the right duties or taxes as 10 & 11).The drive has started to make Philippines, directly employing over they were either mis-declared, or out- a difference in checking hardware and 30,000 workers whose families depend right smuggled into the country.
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