Coconut industry, soap makers look for compromise on petroleum surfactants

Philippines(BusinessWorld) 6/25/2001: The Philippine Coconut Authority(PCA) is confident soap manufacturers will eventually withdraw theirlawsuit against Executive Order 259, requiring soap firms to use acoconut-based ingredient called surfactants in making detergents.PCA administrator Danilo M. Coronacion said the recent lifting of apreliminary injunction against EO 259 will boost talks for an out-of-courtsettlement that will lead to the withdrawal of the case."That ruling would encourage both parties to seek a mutually beneficialarrangement... It will encourage a give and take situation between thesoapers and coco chemical companies," Mr. Coronacion told BusinessWorld ina telephone interview.Coconut chemical companies are currently offering concessions to the Soapand Detergent Association of the Philippines (SDAP) in the hope ofconvincing the group to formally drop its suit.SDAP wants EO 259 revoked since it wants unrestricted access to cheaperpetroleum-based surfactants. Surfactants or surface active agents, themain ingredient of laundry detergents, remove dirt from clothes.Mr. Coronacion said the court ruling will make SDAP seriously consider thecoco chemical companies' proposed compromise deal to keep their costsdown."It (court ruling) opens the door for solution... If government continuesto enforce EO 259 without the compromise deal, then the soap manufacturerswill be forced to buy coco surfactants at existing prices which exceedthat of petro surfactants," he said.Under its proposed compromise deal, the coco chemical industry pledges tosell coco-based surfactants and help soap manufacturers work for thefuture revocation of EO 259. In exchange, SDAP must continue buyingcoco-based surfactants for two to three more years.Coco chemical firms say they need the two-to three-year period to developnew markets before the law's repeal.An executive from a coco chemical firm also expressed optimism the courtruling will speed up the forging of a compromise deal.