Tatak Pinoy Act: Bringing Filipino Products to the Forefront of Global Economy, Productivity and Competitiveness

By: Joaquin Gabriel B. Flores and Roderick R.C. Salazar III

Filipinos are very proud of their heritage and their countrymen. The term “proud to be pinoy” normally goes with the celebration of the success of a Filipino, who rises on the international stage and gains global recognition. Filipinos love to bask in the glory of having a fellow countryman, who carries the Philippine Flag on his back, succeed in his chosen path, be it through sports or the arts.

However, one may ask, when was the last time a Filipino product gained the same recognition as a Filipino athlete or artist does? Without thoroughly sifting through records, one can probably name only a handful. The reason here is simple; for the longest time, the Philippines would rather buy products from foreigners than produce its own.

It is no secret that the Philippine economy heavily relies on importation of goods. In April 2024 alone, the total imported goods amounted to 10.98 billion USD. This indicates a 12.6% increase in importation from the same month the previous year, which then only amounted to 9.75 billion USD.[1] Thus, statistics are clear in showing that a good portion of the Philippine economy relies on trading with foreign countries.

In effect, Filipinos are consumers, rather than producers of products that could compete globally. This is the reason why the lawmakers and the current administration pushed for the enactment of a law which would take Filipino products to the forefront of the global economy.

As such, on February 26, 2024, Republic Act No. 11981 or the Tatak Pinoy (Proudly Filipino) Act was signed into law.

The Tatak Pinoy Act aims to bolster the productivity of the Philippine industry and improve its competitiveness in the global market. Essentially, at the core of this law intends to promote and upgrade local enterprises to strengthen their presence on the global value chain through the partnership of the private and public sector.

In pursuit of this, a Tatak Pinoy Strategy (TPS) shall be crafted to outline the plans and actions of the country,[2] which shall focus on five pillars:[3] (1) human resources; (2) infrastructure; (3) technology and innovation; (4) investments; and (5) sound financial management.

One of the notable effects of the Tatak Pinoy Act is the creation of the Tatak Pinoy Council (TP Council), which would be spearheaded by the Secretary of Trade and Industry as Chairperson, and the Secretary of National Economic and Development Authority, and Secretary of Finance as Vice-Chairpersons.[4] Moreover, the TP Council would formulate, implement, monitor, evaluate the TPS, as approved by the President.

The TP Council shall also be the main advisory board of the President in policy-making that will diversify the productive capabilities of the domestic enterprises. This Council shall also identify the relevant public-private initiatives and the government support to be provided per targeted sector under the five pillars mentioned.

More importantly, the Tatak Pinoy Act aims to ensure the availability of financing to domestic enterprises through government financial institutions such as the Land Bank of the Philippines, the Development Bank of the Philippines, the Philippine Guarantee Corporation, and the Small Business Corporation. This then gives access to domestic enterprises to funds to be used to expand their business, perform necessary technology upgrades, and other capacity-building activities leading to more sophisticated products and services.[5]

In relation to exporting, the Tatak Pinoy Act also mandates the creation of Green Lanes for Tatak Pinoy investment and exports. Meaning, all relevant licensing bodies and agencies shall expedite and streamline the processing and issuance of licenses, permits, and other certifications to those industries identified in the TPS.[6]

Best of all, for 10 years, preference and priority in procurement shall be given to Philippine products and services in sectors and economic activities covered by the TPS. This covers all levels of the procurement process, including raw materials, ingredients, supplies, and fixtures.[7]

The Tatak Pinoy Act intends to make Filipino products world-renowned by ensuring that the public and private sector works hand-in-hand and that all the relevant domestic enterprises are supported in growing, developing, and expanding their reach.

In short, if this law is properly implemented, the term “proud to be pinoy” would not be exclusively used when praising Filipino athletes or artists, but to Filipino products as well.