A legislator warned the proposed economic charter change (Cha-Cha) resolution might turn off investors given the tendency of the Philippines’ foreign policy direction to change when a new president is elected.

Nueva Ecija 3rd District Representative Rosanna “Ria” Vergara raised this concern to House committee on constitutional amendments chair Alfredo Garbin Jr during the plenary debates on Resolution of Both Houses (RBH) No. 2 on Wednesday, March 10. 

Vergara zeroed in on the proposal of RBH No. 2 to add the phrase “unless otherwise provided by law” to the economic provisions of the 1987 Constitution, with the end goal of empowering Congress to pass laws lifting current restrictions on foreign investors.

Garbin earlier said RBH No. 2 would give Congress the “flexibility” needed to attract foreign investors, but without necessarily hurting local industries. He said this is a “safeguard” as well, because if there is a need in the future to reduce or even restore restrictions, lawmakers can just pass another law.

But for Vergara, this is precisely the problem with the resolution.

“You said that the flexibility is actually the asset or beauty of this amendment. I agree that while flexibility will allow us to respond faster, I also worry that the flexibility might result [in] instability because every time there’s a new administration every 6 years, it’s possible that policy direction changes,” said Vergara.

She cited the case of former president Benigno Aquino III, under whose term saw the continuation of the “very positive” ties between the Philippines and the United States. But when Aquino was succeeded by President Rodrigo Duterte in 2016, the country did a pivot towards China.

“I fear these 5 words (‘unless otherwise provided by law’), the flexibility that it provides might cause more instability and as a result might actually be more of a deterrent to foreign investors,” said Vergara.

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Garbin, however, argued that legislators are expected to think of the “common good” whenever they pass laws.

“That’s the province of legislative power, the power to enact laws or repeal them when the common good so requires. So that is always the safeguard.… So I’m not worried at all,” said the Ako Bicol congressman.

Christian Monsod, one of the framers of the 1987 Constitution, had warned that Philippine lawmakers could sell out the country to foreigners should they succeed in amending the economic provisions of the charter.

Cha-Cha efforts have been revived in the House upon the orders of Speaker Lord Allan Velasco, who said he wants to ease the restrictions on foreign investors to help the country recover from the coronavirus pandemic.

But this is just the latest twist in efforts to change the charter under Duterte, who ordered Congress leaders to revive Cha-Cha not with COVID-19 in mind, but to further crack down on leftist party-list lawmakers.

Senators are still opposed to amending the Constitution, believing it would be “more practical” to just pass bills designed to attract more foreign investors than opting for the divisive Cha-Cha route. – Rappler.com