MANILA, Philippines - Exporters are optimistic that merchandise exports could still grow by 10 percent this year, citing strong demand for garments as well as an expected improvement in the performance of the electronics sector.
Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis, Jr. told reporters on the sidelines of the opening of the Franchise Asia Philippines 2013 Expo yesterday that to meet the 10 percent target for merchandise exports growth for this year, merchandise goods have to rise by 16 percent in the next few months.
“Even so, we remain confident that we will end the year with positive growth,†he said.
“Surprisingly, one of the bright spots is the garments sector as orders are up by 100 percent,†he said further.
He noted that there are good indications the garments sector could grow as Bangladesh, which has taken the Philippines’ market for garments, is no longer enjoying trade benefits under the Generalized System of Preferences (GSP) Program of the US and buyers are now looking at the Philippines.
The Office of the US Trade Representative said last month the Philippines could continue to enjoy duty-free entry of its exports to the US under the GSP.
The GSP provides preferential duty-free entry for up to 5,000 products from the 127 designated beneficiary countries and territories of the program.
Products that are eligible for duty-free treatment under the GSP include most manufactured items; chemicals; minerals and building stone; jewelry; many types of carpets; and certain agricultural and fishery products.
But while the garments sector is seen to contribute to the growth of the country’s merchandise exports, Ortiz-Luis said it would not be enough to offset the weak performance of outbound shipments of electronic products.
Ortiz-Luis remains hopeful the performance of shipments of electronic products would improve in the coming months as the US and European markets recover.
Latest data from the National Statistics Office showed that the country’s merchandise exports fell six percent to $21.093 billion in the January to May period from the $22.445 billion in the same period last year.
Last year, the country’s merchandise exports were valued at $51.994 billion.
Meanwhile, Trade Secretary Gregory Domingo told reporters in the same event that it would be difficult for his department to provide cash subsidies to franchisers given its limited budget.
“Usually we can provide some assistance like if there is a trade show abroad and then they participate, depending on our budget,†he said.
“But in terms of cash subsidy, we have no funds to give,†he added.
Philippine Franchisers Association chairman emeritus Samie Lim said earlier local franchisers want more support from the government in terms of subsidies for their participation in shows overseas to compete with foreign brands.