On 21 July 2015, President Benigno Aquino III signed into law
two landmark measures which will play critical role in advancing
Philippines' readiness for the ASEAN Economic Integration. The
Philippines has finally waived its cabotage laws.
The Twin Measures are (i) The Philippine Competition
Act, which opens competition on its commercial waterways and
(ii) the Foreign Ships Co-Loading Act, which amends the
50-year-old Cabotage law to allow foreign ships carrying imported
cargo and cargo to be exported out of the country the ability to
dock in multiple ports.
Cabotage is defined as the carriage or transportation of
passengers or cargo between two points within a country via sea,
air or land transport by a vessel or vehicle registered in another
country. The Philippines adopted the cabotage principle from the US
Jones Act of 1920 whilst it was under United States' colonial
control. The Republic Act of 1937 enacted in 1957 continued the
adaptation of the said
