Senate Minority Leader Aquilino Pimentel III called for reforms at the Center for International Trade Expositions and Missions (CITEM) which he said has failed to fulfill its mandate of developing, nurturing, and promoting micro, small and medium enterprises, brands, designers, and manufacturers.
Pimentel raised concerns over the practice of CITEM of charging high costs for exhibitors that has left out small businesses.
Pimentel also raised concerns over a 50-year lease agreement with an exporters group which he said is “grossly disadvantageous” to the government.
“CITEM seems to be encountering a lot of issues and challenges preventing it from fully functioning and fulfilling its mandates,” Pimentel said in a resolution filed Monday.
Pimentel chided CITEM for passing on at least 80 percent of its exhibition costs to exhibitors in the form of participation fees, which has made it difficult for many small businesses to participate in overseas trade shows.
“The high cost of joining exhibits and expositions organized by CITEM is a big hindrance to small businesses which have the capability to offer world-class products,” Pimentel said in Pilipino.
Under the 2024 national budget, CITEM is allotted a government subsidy amounting P195.6 million, Pimentel saidd.
He also noted that CITEM promotes Philippine products to only six countries such as Germany, France, Japan, Malaysia, United Arab Emirates, and China, covering only two product sectors, namely home and fashion, and processed food.
Pimentel also noted a duplication of functions as there are other agencies that conduct their own promotional events abroad such as the Department of Trade and Industry, its mother unit, as well as the Department of Agriculture and Department of Science and Technology.
He also cited structural issues in CITEM’s building, which the Department of Public Works and Highway has declared “structurally precarious.”
