ARE THERE NATIONAL LAWS REQUIRING THE GOVERNMENT TO BUY LOCAL PRODUCTS?

 ARE THERE NATIONAL LAWS REQUIRING THE GOVERNMENT TO BUY LOCAL PRODUCTS?

The short answer is yes. The long answer is more complicated—and more troubling.

Because while we already have many laws requiring the government to buy local goods, the real issue is this: why are we still importing so much?

Let’s start with the basics. The recently enacted Republic Act No. 11981 is perhaps the most ambitious policy to date. It clearly mandates that the government must give preference to Filipino products. Not just symbolic preference—but actual, measurable advantage.

Under the law, local suppliers can win bids even if their prices are up to 15% higher than foreign competitors. In other words, the government is allowed to pay a little more to support Filipino industries.

That is not a sign of  inefficiency. That is strategy.

But this is not new. As early as 1936, we already had the Commonwealth Act No. 138, which required government agencies to prioritize local products. Decades later, Administrative Order No. 227 reinforced the same idea—buy local whenever possible, and import only when necessary.

Then we have Republic Act No. 11321, which allows the government to directly purchase agricultural products from farmers and cooperatives—no complicated bidding required.

So let me ask the obvious question: if we already have all these laws, why does it feel like nothing has changed?

The problem is not legislation. The problem is implementation.

On paper, local products have an advantage. In reality, they often lose. Why? Because procurement is still driven by the lowest price, not the highest value.

Let me put it this way. If a local product is slightly more expensive, but creates jobs, builds industries, and reduces imports—is it really more expensive?

Or are we just not counting the full benefits?

Think of it like a golf handicap. You give a player a few strokes not to make the game unfair—but to make it competitive. That is exactly what these laws are trying to do: level the playing field.

But a handicap is useless if it is ignored.

Here’s another reality. Government procurement is one of the biggest markets in the country. If even a fraction of that is consistently directed toward Filipino products, it could transform entire industries.

Imagine if all government agencies bought locally made rescue boats, farm equipment, construction materials, even office supplies. That alone could create thousands of jobs.

It could also encourage innovation. Because once local producers know there is a guaranteed market, they will invest, improve quality, and scale up.

This is how countries industrialize.

Even the Department of Trade and Industry, through the Tatak Pinoy Council, is now trying to push for more “economic complexity”—meaning we should not just produce basic goods, but higher-value, more sophisticated products.

But again, policy is one thing. Practice is another.

So how do we fix it?

First, enforce transparency. Every government agency should publicly report how much of its procurement goes to local suppliers.

Second, strengthen monitoring. Compliance should not be optional—it should be audited.

Third, simplify accreditation for local producers. Many small businesses cannot even enter the bidding process because of bureaucratic requirements.

Fourth, educate procurement officers. Buying local products is not just compliance—it is nation-building.

And finally, change the mindset.

We should stop treating “buying local” as a favor to Filipino businesses. It is not a favor.

It is an investment in our own economy.

Because every peso spent on imported goods is a peso that leaves the country. Every peso spent on local products circulates, creates jobs, and builds industries.

The laws are already there.

The real question is: do we have the political will to follow them?

RAMON IKE V. SENERES

www.facebook.com/ike.seneres  iseneres@yahoo.com  senseneres.blogspot.com  09088877282/06-15-2027