Garment exports up 11% in Q1

Exports of garments and textiles grew 10.52 percent to $713.96 million during the first quarter of the year even as the industry continues to resist preparations for the phaseout of garment quotas in 2004.

Data from the Garments and Textiles Export Board (GTEB) show that total exports to quota countries increased 11.7 percent to $628.16 million while exports to non-quota countries increased at a slower pace of 2.62 percent to $85.796 million.

According to GTEB, the share of non-quota countries declined from 12.94 percent of total exports in 1999 to 12.02 percent this year while exports to quota countries accounted for an increased share of 87.98 percent up from 87.06 percent over the same period.

The US remains as the country's biggest market, importing $535.321-million worth of garments and textiles, up by 10.55 percent from $484.214 million. This accounted for 74.98 percent of the country's exports, followed by the European Community which accounted for 11.18 percent, equivalent to $79.832-million worth of products.

Exports to quota countries increased as the industry scampered to take advantage of the final years of the garment quotas.

Exports to Japan, the biggest non-quota destination for Philippine garments and textile products, declined by 11.59 percent, from $33.011 million to $29.184 million.

Exports to non-quota countries were erratic, increasing by 12.03 percent in Hong Kong which accounted for the second biggest chunk, from $7.452 million from $8.384. Exports to Taiwan, on the other hand, cropped by 29.5 percent from $7.069 million to $4.984 million.

The garment industry has been under pressure to start making adjustments for the phaseout of quota systems by 2004 in compliance with an agreement signed under the aegis of the World Trade Organization (WTO).

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

GTEB indicated that the US continues to be the country's biggest market, accounting for 75 percent of total exports, up from 72 percent the previous year. The European Union and Canada accounted for 11 and 2 percent respectively, while non-quota markets accounted for the remaining 12 percent.

Data indicate that there are seven highly utilized US product categories, namely sweaters, nightwear, cotton trousers/shorts, trouser/shorts and man-made fibers, cotton knit shirts, knit shirts of manmade fibers and cotton/MMF skirts.

The GTEB said local exporters were able to carry over the unutilized portion of their 1998 quota to their 1999 exports.

Exports to non-quota countries continued to decline in terms of value, plunging by 20.42 percent from $428.291 million in 1998 to $340.825 million in 1999.

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 rats between 20 and 22 percent when quota allocations were negotiated bilaterally between the two countries.