Dataline 24 by Department of Trade and Industry

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01 December 2014 1

01 December 2014 Vol. 19, No. 24

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A bi-monthly digest of global and domestic industry trends and developments. Published by the Knowledge Managment and Information Service of the Department of Trade and Industry  Manila, Philippines Tel. (632) 895.3611  Fax (632) 895.6487  To subscribe, email: publications@dti.gov.ph Online: http://www.dti.gov.ph

In this issue Focus Gov’t reassures improved business climate Inside DTI 1. Sec. Domingo, IP stakeholders laud IPOPHL 2. IPOPHL, KCC sign MOU on copyright protection

Business Update 1. PCCI recommends 8-pt plan to gov’t 2. PHL told to attract more exports investments 3. PHL readies for zero HCFC by 2040

Consumer News 1. Inspection of construction materials to be heightened 2. Retail flour prices checked by DTI 3. Timbangan ng Bayan installed Good News, Philippines! in Region 3 markets 1. ‘Now is the best time to invest in PHL’ 2. BIMP-EAGA trade fair Feature generates P2.9B ProGED makes MSMEs green 3. PHL seen to capture huge share of halal industry 4. Filipinos third most bullish consumers globally MSMEs 1. PHL biz sector primed for AEC 2. Aklan Product Expo 2014 launched 3. DTI holds cacao, coffee conference in Bukidnon

ASIA Watch 1. DTI pushes PHL as dev’t hub in Asia-Pacific 2. Viet Nam approves PHL’s plant products entry Statwatch

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Focus Gov’t reassures improved business climate

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he Aquino Administration reassured the business sector that the government is committed to creating a better business environment in the country. “It’s only been in the last few years that we’ve started getting back into the limelight and we do intend to maximize our exposure by really proving to all investors that it is really worth their while and a very sound decision to invest not just in the country but more importantly in the people,” President Benigno S. Aquino III said.

Addressing the 13th CEO Forum of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI), Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said that the DTI is conducting road shows to directly negotiate with potential investors. Domingo said the Philippines has seen “a really huge increase in our foreign direct investments (FDIs) starting out with about a billion dollar in 2010.” “It went up to USD 2B in 2011; about USD 3B in 2012; and USD 3.8B in 2013,” he said. “As of August this year, it was already USD 4B,” he added. Domingo attributed the surge of FDIs to the “President’s good governance agenda which has been very well

Inside DTI 1. Sec. Domingo, IP stakeholders laud IPOPHL

epartment of Trade and Industry (DTI) Secretary Gregory L. Domingo and the local and foreign intellectual property (IP) stakeholders lauded the Intellectual Property Office of the Philippines (IPOPHL) for the effective promotion of intellectual property and industry development in the country. Delivering the keynote message of President Benigno S. Aquino III during the 4th Philippine Anti-

received, resulting in credit-ratings upgrades.” “All of this is really reaping dividends. And we continue to work on improving the business environment including the development of roadmaps for many sectors,” he said. In the recently conducted Asia-Pacific Economic Cooperation (APEC) CEO Summit held in Beijing, China, the President assured Asia-Pacific business executives that the government is working hard for a sustainable economic growth (see related story on page 4). He cited some positive developments in the country such as: • improvement by 13 notches to 95th spot this year from 108th ranking last year in the World Economic Forum’s Global Competitiveness Report 2013-2014 • average gross domestic product (GDP) growth rate of 6.3% from 2010 to 2013 • higher infrastructure investment • 20 positive credit ratings • investment grade ratings from three major credit ratings agencies “These are just a few examples of our continued efforts to keep the dynamo of progress engaged in full throttle. And it is clear: there is no better time to invest in the Philippines than now,” Aquino said. (MAB 11/10; BMR 10/28)

Counterfeiting and Piracy Summit in Pasay City, Domingo recognized the remarkable efforts of IPOPHL and all the members of the National Committee on Intellectual Property Rights (NCIPR). “The achievements of our government agencies involved in IP development, protection, enforcement, and adjudication reflect a positive sign for industries both on the local and international levels,” he said.

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This year’s Summit highlighted the importance of establishing an effective IP enforcement and a just and efficient adjudication system in the country. With the theme “Strengthening Intellectual Property Enforcement and Adjudication in the 21st Century,” the Summit provided a venue for the country’s top local IP experts and foreign delegates to discuss and share best practices. In 2012, the Philippines became the 85th member of the Madrid Protocol which serves to protect trademarks across the international community. And in 2013, a remarkable improvement on patent protection put the country at 2nd place in the Asia and Oceania Region and 25th in the world in the International Property Rights Index (IPRI) ratings. This year marked the country’s removal from the US Trade

2. IPOPHL, KCC sign MOU on copyright protection

he Intellectual Property Office of the Philippines (IPOPHL) and the Korea Copyright Commission (KCC) signed a memorandum of understanding (MOU) to strengthen the copyright industries of both countries. The MOU establishes a collaborative relationship between the two countries to promote the fair use of intellectual works and to develop and improve the creative industries. “More important than the signing, we look forward to the implementation of our cultural bridge with our cultural brothers,” IPOPHL Director General Ricardo R. Blancaflor said. Meantime, Korea’s Ministry of Culture, Sports and Tourism

Representative’s (USTR) Special 301 Watch List. This was due to a series of significant legislative and regulatory reforms to enhance the protection and enforcement of IPR in the country, such as: • special rules of court procedure, • increased effective enforcement activities, and • effective public education and awareness. The Watch List identifies countries which do not provide "adequate and effective" protection of intellectual property rights (IPR) or "fair and equitable market access to United States (U.S.) persons that rely upon IPR". “The continuing push to improve IP enforcement and adjudication in the country is aligned with our bigger objective of having a demystified, democratized, and a developmentoriented IP system,” IPOPHL Director General Ricardo R. Bancaflor said. (MCST)-Copyright Bureau Director General Young-Goog Park said the MOU will consolidate the foundation for mutual exchange and cooperation between the two countries. The World Intellectual Protection Organization (WIPO) defines copyright as the legal protection of intellectual property creators over their literary, dramatic, musical, artistic, and other intellectual works. The MOU signing was held during the annual copyright forum held last 18 September at Dusit Thani Manila in Makati City which was attended by copyright stakeholders from creative industries and government agencies from Korea and the Philippines.

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Good News, Philippines! 1. ‘Now is the best time to invest in PHL’

2. BIMP-EAGA trade fair generates P2.9B

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resident Benigno S. Aquino III highlighted the Philippines’ recent economic gains and his Administration’s achievements in improving the country’s business environment during the 22nd Asia-Pacific Economic Cooperation (APEC) CEO Summit held in China.

ooked sales worth P2.9B were generated during the Brunei Darussalam-IndonesiaMalaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) and the Indonesia-Malaysia-Thailand Growth Triangle (IGT) trade fair held last October 2014 in Davao City. The fair drew some 1,500 participants, including those from outside the two sub-regions such as Canada, Japan, Mexico, the Netherlands, Singapore, South

3. PHL seen to capture huge share of halal industry

he Philippines is ready to clinch a big chunk of the trillion-dollar halal industry once the Association of Southeast Asian Nations (ASEAN) economic integration gets formalized next year, the Department of Agriculture (DA) said. The DA has been preparing halal agri-based commodities as top priority in preparation for the ASEAN Economic Community (AEC), DA Halal Focal Person Norodin A. Kuit said. The government has readied several training activities for next year to improve the capacity of those who will be directly involved in the production of halal products.

4. Filipinos third most bullish consumers globally

ilipinos remained the third most optimistic consumers ` globally, the Q3 2014 quarterly report released by Nielsen showed. The Nielsen report ranked the Philippines with a score

Meanwhile, a recent World Bank (WB) report showed that the ease of doing business in the country improved by 13 notches from 108th place a year ago to 95th this year. (MB 11/10)

Korea, Taiwan, United Kingdom (UK), and the United States (U.S.). Some 25,000 individuals visited the five-day international trade fair. Among the most ordered products during the fair were raw and processed food, textile, clothing, furniture, and kitchenware. Products from agri-based companies and tourism services also fared well. (BWD 10/30)

A recent study by the Dubai Chamber of Commerce and Industry (DCCI) estimates the halal food and beverage global market at a USD 1.1-T industry in 2013. The report also expects the market to grow into a USD 1.6-T industry by 2018, growing at a compound annual growth rate of about 6.9%. (BM 10/30)

Halal agri-based commodities    

halal feeds for aquatic and poultry animals halal broiler chicken halal aquaculture products golden crops (corn, cocoa, cassava, coffee, and coconut)

of 115 index points after India (126) and Indonesia (125). The Philippines’ score was better than the average of 107 and 98 index points for Asia and the Pacific and for the rest of the world, respectively.

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Nielsen’s Consumer Confidence Index, which began in 2005, measures perceptions of local job prospects, personal finances, and immediate spending intentions. Scores above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

MSME News 1. PHL biz sector primed for AEC

The latest survey was conducted among 30,000 respondents with Internet access in 60 economies from 13 August to 5 September 2014. (BWD 10/30)

o help prepare the local entrepreneurs for the upcoming Association of Southeast Asian Nations (ASEAN) Economic Community (AEC), MediaCom Solutions Inc. held the 2nd Philippine Small and Medium Enterprise Business Expo (PhilSME) 2014

at the SMX Convention Center, SM Mall of Asia (MOA) last 21-23 November 2014. With the theme "Boost Your Business," PhilSME 2014 provided information on the latest business innovations and trends. (www.PhilSME.com)

PhilSME Activities

Details

Philippine SME Business Conference

Topics like new business trends, pitfalls, and best practices were discussed. Areas included retail, manufacturing, technology, innovation, and marketing and sales.

Face2Face Business Matchmaking Service

Company owners met up, seeking business synergies to compete in the AEC. Available exclusively for exhibiting companies.

International Pavilion

Exhibiting companies included international participants from the ASEAN region, seeking for partners with local manufacturers, distributors, and retailers.

Product Knowledge Workshops and Interactive Activities

Include SME CEO Forum, SME TechForum, SME AgriForum, and Youth Start-Up Forum

Source: PhilSME

2. Aklan Product Expo 2014 launched

and provide opportunities for these MSMEs to increase their sales,” DTI-Aklan Provincial Director Diosdado P. Cadena Jr. said.

“The Aklan Product Expo aims to sustain the competitiveness of Aklan MSMEs in the local markets

Some 38 MSMEs participated in the event. Cadena said hand-woven items, gifts, and housewares developed by Aklan MSMEs through the SME Roving Academy (SMERA) and Grassroots Participatory Budgeting were highlighted during the one-week exposition held from 23 to 29 October 2014.

he Department of Trade and Industry (DTI) and the Hugod Aklanon Producers Association, Inc., in partnership with the provincial government of Aklan, conducted the Product Exposition 2014 to provide opportunities for the province's micro, small, and medium enterprises (MSMEs) to showcase their innovative products.

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3. DTI holds cacao, coffee conference in Bukidnon

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he Department of Trade and Industry (DTI) conducted the Investment Opportunity Seminar on Coffee and Cacao in Valencia City, Bukidnon last November under the SME Roving Academy (SMERA) project. Attended by over 100 micro, small, and medium enterprise (MSME) owners and would-be entrepreneurs, the confab focused on growing and trading high-quality coffee and cacao products.

Business Update 1. PCCI recommends 8-pt plan to gov’t

he Philippine Chamber of Commerce and Industry (PCCI) presented at the conclusion of the 40th Philippine Business Conference last October an eight-point recommendation on some of the country’s most pressing concerns.

DTI-Bukidnon Provincial Director Ermedio J. Abang said field agriculturalists and industry experts discussed the basics of coffee and cacao production and trading. The conference provided continuous learning program for entrepreneurs to help them better set up their operations and improve their competitiveness, thereby facilitating easier access to domestic and international markets.

President Benigno S. Aquino III appreciated the proposals from the private sector, saying the government is now undertaking steps to address these problems, particularly the power supply and port congestion. (TPS 10/25)

Concern

PCCI’s recommendation to the government

Energy and power

Formulate an integrated and sustainable energy and power roadmap target level of power supply capacity and with a definite rate; a well-defined process and timeline for achieving this goal

Education and human resource development

Join hands with the private sector to provide the workforce with relevant skills for employment

Association of Southeast Asian Nations Economic Community (AEC)

Formulate strategies and programs that would integrate small and medium enterprises (SMEs) into the regional and value chains to ensure their competitiveness when the AEC is fully realized in 2015

Port congestion

Develop countryside; maximize the utilization of the Subic and Batangas ports to decongest the Port of Manila

Traffic congestion

Ensure smooth flow of traffic in Metro Manila

Transportation infrastructure

Prioritize the full development of the Clark and International Airport (CRK) parallel with the Ninoy Aquino International Airport (NAIA) before other airports

Agriculture

Implement proper infrastructure and policy directions to ensure food security in the country

Rehabilitation efforts in Typhoon Yolanda-hit areas in Eastern Visayas

Fast-track the completion of post-typhoon recovery in Eastern Visayas

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2. PHL told to attract more exports investments

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he Philippine Exporters Confederation Inc. (PHILEXPORT) urged the government to work on drawing in more exports investments to prepare for a projected increase in outbound shipments to the European Union (EU) should the Philippines qualify for the European Union (EU) Generalized Scheme of Preferences Plus (GSP+). The said preferential tariff scheme is seen to provide tax advantages, resulting in lower product costs.

a beneficiary of the regular GSP which provides for reduced tariffs or zero tariffs to a limited number of products. Once the country's application to GSP+ is approved, exporters will enjoy zero tariffs on all products covered by the scheme including big-ticket items that the Philippines is currently exporting under GSP. PHL’s product sectors most likely to benefit from GSP+  

The EU Commission has positively endorsed to the EU Parliament and Council the Philippines’ application to qualify for the GSP+ . GSP+ is a program under the EU GSP that offers eligible countries in the form of zero tariffs on all products covered by the scheme. At present, the Philippines is

3. PHL readies for zero HCFC by 2040

he Philippines will decrease the importation level of Hydrochlorofluorocarbons (HCFCs) by 10% starting 2015 to adhere to the Montreal Protocol, the Department of Environment and Natural ResourcesEnvironmental Management Bureau (DENR-EMB) said.

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Animal/vegetable fats and oils Prepared foodstuff Machinery and mechanical appliances Chemical products Textiles and garments Footwear Plastic products

Source: PHILEXPORT

The decision on granting GSP+ status to the Philippines is expected to be announced on 20 December this year. (TPS 10/20) for having a lower ozone-depleting potential (ODP). Use of CFCs, also known as freon, was totally banned in the country in 2010. (MB 03/11)

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Allowed importation levels of HCFCs will be further decreased every five to 10 years until reaching zero by 2040. The DENR-EMB conducted industry consultations regarding the HCFC import reduction last August, with the support of the Japanese government and the United Nations Industrial Development Organization (UNIDO).

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25-year HCFC import reduction targets 2020-35% 2025-67.5% 2030-97.5% 2040-100% HCFC and CFC use Aerosols Chemical production Cleaning agent or solvent Cooling agents for: - Air conditioning systems - Freezers - Refrigerators - Transportation Fire extinguishing agent Foam blowing Halons Insulator foams Refrigerants Solvents

The government has been regulating the importation of HCFCs since 2013, setting the base importation level at 2,644 metric tons (MT).

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HCFCs became an alternative to chlorofluorocarbons (CFCs)

Source: DENR

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Consumer News

1. Inspection of construction materials to be heightened

he Department of Trade and Industry-Consumer Protection Group (DTI-CPG) intensified its quality inspection of construction materials beginning this last quarter of 2014 in anticipation of the increase in construction projects by 2015. DTI is focusing on galvanized-iron (GI) sheets and steel bars given the rise in importation of these products.

2. Retail flour prices checked by DTI

Metro Manila cities monitored by DTI    

Caloocan Malabon Manila Muntinlupa

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Pasay Pasig Quezon

The Department recently confiscated P700,000 worth of substandard and unlicensed construction materials from sellers across Metro Manila. Confiscated items include angles bars, ceramic files, and steel bars. Meanwhile, the price of cement has dropped by P10 to P15 for a 40kg bag, bringing the predicted retail price to P215 to P220 as of 13 November 2014. (BM 31/10)

he Department of Trade and Industry (DTI) has issued Show Cause Orders (SCOs) to 15 retailers in Metro Manila who were found selling overpriced flour.

As stipulated in Republic Act No. 7581 or the Price Act, the penalty for price manipulation is five to 15 years imprisonment and a fine ranging from P5,000 to P1M.

Following a monitoring report which found that 25-kg. bag of flour is being retailed at P860 to P950, the DTI conducted market inspections in some cities in Metro Manila.

Meanwhile, the price of Harinang Pinoy, which is used to make Pinoy Tasty and Pinoy Pandesal, has dropped from P750 to P730 per 25 kg. bag since the middle of October.

Prices of 25-kg. bag of local flour are not supposed to go beyond P900 as the ex-mill price of locally produced flour has gone down by P5 to P50 since March 2013, the DTI said.

Starting 7 November, the price of Pinoy Tasty per loaf was posted at P36.50, down by P0.50, while a 10-piece pack of Pinoy Pandesal

Result of monitoring activity by DTI conducted on 29 October 2014 City

Retailer

Flour brand

Caloocan

Aimai Bakery Supplies RRDT Enterprise

Sunshine, Washington Gold, Wellington Angel White, Wellington

Malabon

Malabong Longlife

Wellington

Manila

Acorico Trading Ces Trading Monton Trading Windon General Merchandise

Wellington Wellington Wellington, El Superior Wellington

Muntinlupa

Cielo May Enterprise Gold Flour General Merchandise M2DC General Merchandise MVJM Bakery Prima 3 Commercial RCHG Store

El Superior, King Wellington El Superior Wellington Wellington Wellington

Pasig

Quezon City Jubille Unigold Pasay Source: DTI

No violators found

King, Sun Moon Star Emperor, Wellington

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now costs P22.25, a decrease of P0.25. The price of Harinang Pinoy is seen to be continuously dropping, prompting the Department to consider the possibility of decreasing the price of the Pinoy Tasty by another P0.50 and Pinoy Pandesal by P0.25. (PDI 30/10)

3. Timbangan ng Bayan installed in Region 3 markets Eight basic consumer rights 1. 2. 3. 4. 5. 6. 7. 8.

Right to basic needs Right to safety Right to information Right to choose Right to representation Right to redress Right to consumer education Right to a healthy environment

Five consumer responsibilities 1. 2. 3. 4. 5.

Critical awareness Action Social concern Environmental awareness Solidarity

he Department of Trade and Industry (DTI) inaugurated its Timbangan ng Bayan project in Central Luzon during the celebration of the 2014 Consumer Welfare Month (CWM) last October. The region was provided with 280 double-faced units of weighing scales, worth a total of P2.8M, which were distributed to key public markets. Protective cages house the units which were calibrated by the Department of Science and Technology (DOST) prior to distribution. Featured on the sides of the units are lists of the eight basic consumer rights and five consumer responsibilities.

STATWATCH USD 1.1T Market size of the halal food and beverage global market in 2013 USD 4B Value of foreign direct investments (FDIs) that entered the Philippines in the January-August 2014 period. Philippine FDIs grew to USD 3.8 in 2003 from USD 3B in 2012 P2.9B Booked sales generated during the Brunei Darussalam IndonesiaMalaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) and the Indonesia-Malaysia-Thailand Growth Triangle (IGT) trade fair held last October in Davao City

6.3% PHL’s average gross domestic product (GDP) growth rate from 2010 to 2013 Pioneer Timbangan ng Bayan Central Luzon beneficiaries     

FEATURE ProGED makes MSMEs green

The region’s DTI provincial offices and local governments also signed a Memorandum of Agreement (MOA) to make sure that the units are maintained and calibrated regularly.

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(PIA 11/03)

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he Department of Trade and Industry (DTI) and Deutsche Gesellschaft für Internationale Zusammenarbeit’s (GIZ) Promotion of Green Economic Development (ProGED) have joined hands to introduce “green” concepts in the value chains of micro, small, and medium enterprises (MSMEs).

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Angeles City, Pampanga Balanga City, Bataan Baler, Aurora Baliuag, Bulacan Bongabon, Nueva Ecija Cabanatuan City, Nueva Ecija Capas, Tarlac Dinalupihan, Bataan Malolos City, Bulacan San Antonio, Zambales San Narciso, Zambales San Fernando, Pampanga

Upgrading value chains is seen to improve MSMEs’ competitiveness by providing stronger links among stakeholders who could be actors (operators in the value chains), enablers (support institutions in the value chains), and between actors and enablers.

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Every value addition to a product in a value chain means a business opportunity for MSMEs, ProGED said.

ASIA Watch 1. DTI pushes PHL as dev’t hub in Asia-Pacific

he Department of Trade and Industry (DTI) and the Board of Investments (BOI) are working together to position the Philippines as Asia-Pacific region’s advancing development hub. The country was invited by the Association of Southeast Asian Nations-Korea Center (AKC) to promote the Philippine game development industry in the Korean market through the Global Game Exhibition (G-STAR 2014) held in Busan, South Korea last month.

2. Viet Nam approves PHL’s plant products entry

“In this event in Korea, we intended to pursue business development initiatives of the industry, and represent the various Philippine game development services such as art, animation, programming, and support services,” DTI-Industry Promotions Group (IPG) Undersecretary Ponciano C. Manalo Jr. said.

The annual trade show for the computer and video games industry provided business networking prospects between Philippine companies and Korean buyers.

The Philippine delegation that attended the event were comprised of BOI and Philippine Trade and Investment Center’s (PTIC) staff, as well as industry leaders and representatives from the Game Developers Association of the Philippines (GDAP) and the Animation Council of the Philippines Inc. (ACPI). (TPS 10/26)

fruits like dried mangoes, banana chips, and canned pineapple are among the Philippine exports to Viet Nam.

iet Nam has accredited the Philippines’ application as exports source of plant products, the Department of Agriculture (DA) reported. Fresh and processed fruit exporters are expected to benefit from this development, Philippine Embassy in Thailand Special Agriculture Representative Ana GM B. Abejuela said.

“This accreditation reflects how we have improved, particularly on our products of plant origin. We are positive that this accreditation will further build our integrity in the ASEAN and the international market,” DA Secretary Proceso J. Alcala said.

Fresh fruits such as Cavendish bananas and pineapple, processed

Legend BMI BWD MAB PDI TPS

Greening the value chains considers looking at the impact of production operations to the environment and the opportunities for green products and services.

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