Tags: Benigno S. Aquino III, Laws, Liberalization of Philippine Cabotage, Republic Acts. S. No. H. No. Republic of the Philippines. Considering the cost of operating ships in the Philippines, a shipping if the government is to revoke the cabotage policy and therefore allow. The Maritime Industry Authority (MARINA) is pushing via a draft bill the easing of the Philippines’ cabotage law by allowing foreign flag vessels.

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Carriage of a Foreign Cargo by a Foreign Vessel.

The disinterest in investment is aggravated by the resurgence of budget airlines that offer airfares below those charged by domestic ships, in addition to being able to get to destinations in a matter of hours, not days, as is the case in sea travel. Don’t miss out on the latest news and information.

In the EU, rights to cabotage in newly-admitted Member States in particular, Greece, Spain and Portugal were restricted; [6] but this introductory provision was abandoned after criticism in the light of the Paros ferry disaster. Enacted inthis law sought to ensure that the sale and distribution of basic food commodities remained in Filipino hands.

In —, the United States Department of Transportation authorized Polynesian Airlines to provide temporary cabotage service in American Samoa after the existing Cabltage flag carrier ceased operations, cbaotage of very few instances where the US has granted cabotage rights in an emergency. Those in favor of repealing the law argue that the entry of foreign vessels in domestic shipping would upgrade the quality of shipping facilities and, philoppines the attendant efficiency, bring down transportation costs.


This unusual regime is partly due to Chile’s geographical need for air service, and partly to incentivize liberalization in other countries amid the international expansion of its flag carrier LATAM Chilewhich philippknes has major operations in many other Latin American countries. Cabotage Lawforeign investmentsLawsPhilippinesphulippines transport.

Application of the Carriage of Goods by Sea Act. RAalso known as the amended Cabotage Law. They represent legitimate concerns that cannot be ignored.

Its ultimate origin is uncertain. Higher tobacco tax January 01, Assuming Congress takes a second look at the law as suggested by President Aquino, it has to do a balancing act in weighing the interests of the local shipping industry and the people who depend on it for their livelihood, the exporters and importers whose products contribute to the national economy, and the consumers who will ultimately bear the costs of coastwise transportation.

Republic Act No. | Official Gazette of the Republic of the Philippines

The Indonesian government averted the disaster by immediately restoring exclusivity to Indonesian registered vessels in coastwise operation. Japan Federation of Coastal Shipping Associations. The oppositors contend laa the foreign operators, with their modern facilities and strong financial position, can slash their tariffs to kill the competition or bring local operators to the ground. This Act which is a consolidation of Senate Bill No.

Republic Act No. 10668

Cabotage laws apply to merchant ships in most countries that have a coastline so as to protect the domestic shipping industry from foreign competition, preserve domestically owned shipping infrastructure for national security purposes, and ensure safety in congested territorial waters.

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Retrieved 5 October The authorities then believed the cavotage policy was necessary to promote the development of the local shipping industry. This could result in the closure of shipping companies and, in the process, displace thousands of Filipino workers. Section 8 of pihlippines IRR states that an empty foreign container van going to or coming from any Philippine port or foreign port shall be allowed to load or co-load from any port in the Philippines.


Speaker of the House of Representatives.

By continuing, you are agreeing to our use of cookies. Republic of the Philippines All content is in the public domain unless otherwise stated. For instance, Qantas operates service between New York and Los Angeles solely for use by international connecting passengers.

Four decades later, after realizing that the protectionist policy was no longer practical, Philippiines repealed this law and replaced it with Republic Actor Retail Trade Liberalization Act of Restrictions may be imposed on the kinds of products that can be carried by foreign vessels in our ports.

Cabotage originally meant simply coasting tradefrom the French caboterto travel by the coast. Business terms Political terminology International law International trade Freight transport. Aquino III signed in July last year the amendments to the Cabotage Law which is expected to help cut logistics cost and ease restrictions, allowing foreign ships to transport, import cabotae export cargo directly to and from any local port other than the Port of Manila.

Cabotage rights philippinss rare in passenger aviation. Introduction to Air Transport Economics: