Cebu exporters get support from Canada, Netherlands

Two countries have decided to join hands to save the struggling export industry in Cebu, through a three-year Business Support Organization Development (BSOD) program using the taxpayers' money of Canada and Netherlands.

The Canadian government through the Canadian International Development Agency (CIDA) funded program Pearl-2, and Netherland's Center for the Promotion of Imports from Developing Countries (CBI), formalized their commitment to help the bleeding export industry in Cebu, through the signing of Memorandum of Understanding (MOU), largely to provide exporters improved marketability and global competitiveness.

However, the two foreign funding agencies have not determined how much the total cost is of the three-year program, as most of the works will be done in tranches, mostly in transfer of technology, capability building coaching by foreign experts, among others. Direct financial assistance is not part of the deal though.

This is the first time that two foreign funding agencies have collaborated in helping the export industry.

PhilExport-Cebu president Jay Y. Yuvallos said "the timing is right," as the export sector is badly hit by a lot of internal and external factors.

While Pearl-2 had been helping several sectors in the Philippines in the last three years, this is the first time that the Dutch government of Netherlands has extended huge support to the export sector in Cebu.

This program is expected to arm Visayas exporters to effectively enter the "elusive" but fertile European Union (EU) market, as well as markets in the Northern American region, Yuvallos said.

According to Paula Schindeler, second secretary, economic and cultural affairs, Royal Netherlands' Embassy in the Philippines, the program is an important trading bridge for exporters to enter the 450 million consumer-base markets in EU member countries.

For his part, Canada Ambassador to the Philippines Peter Sutherland said more technical and technology transfer works will be provided to the export sector.

Pearl-2 will kick-off with seminar/workshop for the Board of Trustees of PhilExport dubbed "Developing an Effective Non-Profit BOT."

While, CBI will deliver the key modules on-organizational strengthening; market information system; export diversification; train the trainer program; and train the designer program."

Under the organizational strengthening module, CBI will assist PhilExport with the implementation of CRM system (Customer Relationship Management), assist in forging of strategic alliances with its stakeholders and donor organizations, assist in development of an export marketing curricula for the planned "virtual exporter training center," and help in the automation of PhilExport's one-stop documentation center.

Although the EU market had been the target of most exporters, to expand its global reach, stricter requirements and other trading hurdles have intimidated most exporters to enter the EU, which is composed of 27 member states.

With this program, Yuvallos is confident that exporters could now enter the huge EU market.

The strengthening Philippine peso to the dollar, weakening of global market, and aggressive moves of other competitor countries, and the political and bureaucratic problems in the government, have further tear down the Philippine export sector.



PhilExport-Cebu is the umbrella organization of all exporting sectors such as seaweed, furniture, home furnishing, gifts-toys-housewares, garments, electronics, food, among others.