EDC slashes export targets

MANILA, Philippines — The Export Development Council (EDC), composed of the government and private sector, is trimming the export goals under the Philippine Export Development Plan (PEDP), with the new targets to be released within the current quarter amid developments seen to affect the sector’s performance.

Department of Trade and Industry (DTI) Export Marketing Bureau director Bianca Sykimte told reporters on the sidelines of the Tatak Pinoy Act Forum yesterday that the EDC is poised to slash export targets under the PEDP with the current performance showing it would be difficult to meet the export goals.

Latest data from the Philippine Statistics Authority showed the country’s merchandise exports rose by 7.8 percent to $30.84 billion in the January to May period of this year from $28.61 billion in the same period last year.

“When we look at the 2022 figures, which is actually the base figure after the pandemic, we’re still performing lower. So that is one of our considerations (in reducing the target),” Sykimte said.

Philippine merchandise exports were valued at $32.16 billion in the January to May period of 2022.

Sykimte said the EDC hopes to release the new targets within the third quarter.

While the export goals are being trimmed, she said these would not be lower than what was set under the Philippine Development Plan (PDP).

“The lower limit is the PDP target, definitely. We don’t want to set a target below the PDP because we want to contribute to the socioeconomic objectives of the PDP,” she said.

The PEDP has set more ambitious export targets than the PDP.

In particular, the goal under the PEDP is for the country’s total exports covering goods and services to reach $143.4 billion this year.

By 2028, the target is for the country’s total exports to hit $240.5 billion under the PEDP.

In the PDP, the target is for total exports to reach $107 billion.

For 2028, the goal under the PDP is for total exports to rise to $135.08 billion.

“What we will not meet are the more ambitious PEDP targets. But in terms of PDP, we’re on track,” Sykimte said.

Sykimte said among the factors that can affect the country’s export performance is inflation, not just in the country but also in export destinations, as well as market regulations being imposed by other countries and geopolitical issues.

As tensions between the Philippines and China may affect trade, she said the government is actively engaging China through the conduct of business missions.

“So we’re doing more on business-to-business (engagement) to caution, to counteract any negative sentiments,” she said.

China was the fourth top destination of Philippine merchandise exports in the January to May period of this year, accounting for a 13.4 percent share amounting to $3.73 billion.

Sykimte said the government’s priority right now is to improve the ease of doing business for exporters.

She said the DTI is backing the plea of exporters to exempt the sector from the implementation of the electronic tracking of containerized cargo (E-TRACC).

Exporters are seeking an exemption from the E-TRACC system citing its implementation will cause delays and additional costs.