Garment exports up 1.6%

Turning around from its decline in 1998, the country's garment exports inched up by 1.62 percent in 1999, from $2.838 billion to $2.884 billion as exporters improved the utilization of quotas from major markets led by the US.

Data from the Garments and Textiles Export Board (GTEB) show that the US continued to be the country's biggest market, according for 75 percent of total exports, up from 72 percent the previous year.

The European Union and Canada accounted for 11 and two percent, respectively, while non-quota markets accounted for the remaining 12 percent.

GTEB said the increase can be attributed to the corresponding increase in US garments and textile imports as it slowly phases out the quota system to comply with the terms of the World Trade Organization (WTO) agreements.

Data show that there were seven highly utilized US product categories, namely sweaters, nightwear, cotton trousers/shorts, trousers/shorts of man-made fibers, cotton knit shirts, knit shirts of man-made fibers and cotton/MMF skirts. The GTEB said local exporters were also able to carry over the unutilized portion of their 1998 quota to their 1999 exports.

In terms of value, the country's garments and textile exports to the US increased by 6.72 percent from $2.409 billion to $2.542 billion while exports to the EU increased by 0.42 percent from $322.928 million to $324.293 million.

Exports to Canada, on the other hand, declined by 7.36 percent from $58.307 million to $54.015 million.

Exports to non-quota countries likewise continued to decline in terms of value, plunging 20.42 percent from $428.291 million to $340.825 million.

According to GTEB, Philippine exporters could continue to improve their performance by optimizing higher value items in the quota categories as long as the volume quota is met and fully utilized, in order to improve actual export value. GTEB said Philippine exports to the US used to grow at rates between 20 and 22 percent when quota allocations were negotiated bilaterally between the two countries. --