Exporters train sights on Eastern European marts

Exporters are now looking at Eastern Europe as a potential market for Philippine products as economists earlier predicted a slowdown in consumption in the United States, the top destination for the country’s export products.

American consumers remain the biggest buyers of Philippine products, accounting for nearly 20 percent of local goods sold overseas.

"They (exporters) want to develop the Eastern European markets," said Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. in an interview at the sidelines of the Japan-Philippines Economic Partnership Agreement (JPEPA) conference held at the National Economic and Development Authority (NEDA) complex.

He said there is a demand for agriculture products, low cost furniture and houseware in that region.

He added that the development of this market is one of the potential proposals to be reviewed for funding of the newly established public-private partnership for the promotion of the export industry.

The government and a group of exporters has put up P280 million to bankroll the creation of an Export Promotion Fund (EPF) tasked to supplement the financing for the promotion and development of local exports.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said the EPF will provide supplemental financing to projects that are expected to promote growth of the export sector and provide opportunities for job creation. The projects to be funded must be sustainable and will focus on capacity building, product design and market research.

Seed contributions came from the Department of Budget and Management (DBM) which gave P100 million; the Department of Trade and Industry (DTI), P100 million; BSP, P50 million; NEDA representing the National Government as the owner of the Industrial Guarantee and Loan Fund, P20 million and Philexport, P10 million.

A memorandum of agreement was signed Thursday by the five contributors providing for the terms and mechanics for disbursement, utilization and management of the fund. The contributors likewise agreed to the formation of a committee to review and act on proposals for funding assistance of export promotion activities.

Other Asian countries like Malaysia and Hong Kong have undertaken similar initiatives to help enhance the competitiveness of the export sector and small and medium enterprises.