Higher garment quotas for RP seen

Trade and Industry Secretary Manuel Roxas II is optimistic the US will grant the Philippines’ request for higher garments and textile quotas.

Roxas, who accompanied President Arroyo during her state visit to the US, had met with US Trade Representative Robert Zoellick early this week to discuss the Philippines’ garments and textile quotas.

"We requested to have our quotas reevaluated in light of the Vietnam situation and the remaining time left before the end of the quota regime in 2005," Roxas said.

Local garment exporters are complaining over the US decision to increase Vietnam’s quota allocation.

Confederation of Garments Exporters of the Philippines chairman Donald Dee said that Vietnam’s quota allocation for cotton T-shirts was increased to 17 million dozens as compared to the Philippine’s allocation of only 3.5 million dozens for this year.

"Furthermore, Vietnam’s quota allocation for pants was increased to seven million dozens as against the Philippines’ 3.5 million dozens," Dee added.

Based on Dee’s computation, the 17 million dozen cotton T-shirt allocation to Vietnam is valued at $13.6 billion as against the Philippines’ $2.8 billion.

"The country is being prejudiced by the increased allocation to Vietnam," Dee said.

"The Philippines should be given at least the same quota level based on the US and Philippines’ long history of cordial and very friendly relations," he added.

Dee estimates that the Philippines would earn as much as $4 billion from an increase in US quota allocation.