Exports of garments, hard goods seen rising 15%

MANILA, Philippines – Local garments and hard goods manufacturers expect export earnings to increase by 10 to 15 percent this year after the grant of the European Union’s Generalized Scheme of Preferences Plus (GSP+) status to the Philippines.

Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP), said the group’s basic merchandizes – footwear, garments and the handicrafts will be exported to the EU bloc at zero duty.

“This means more business, more exports, more production and more labor generation for the Philippines,” he said.

Young said the country’s improving global competitiveness ranking will be another key factor to expanding exports earnings this year.

“This will be noticed by the foreign buyers, it is one factor in attracting businesses in the Philippines. The FOBAP is looking forward to more buyers coming into the country to look for merchandise for export to their own countries,” he said.

Further, Young said the Philippines hosting of the Asia Pacific Economic Cooperation (APEC) Summit this year will be an added mileage to the sectors’ exports.

“Buyers again will get excited and those who are not yet buying from the Philippines will get interested to learn about more of the Philippine products,” Young said.

Young identified Germany and France as the biggest buyers of Philippine handicrafts and other hard goods, while the United Kingdom of children dresses.

“They are more attractive to handcrafted skills of the Filipinos rather than the other countries. The artistry in the Philippines is actually global in standards already... So definitely, we will be more competitive than the other guys in the Asean region as we apply more handicraft jobs in the products,” Young said.

Young expects the establishment of the Asean Economic Community (AEC) this year will bring regional competition in terms of costs.