Death by exaggeration

When Mark Twain learned about news reports claiming he had died, the American icon replied with the famous line: “The reports of my death are greatly exaggerated”.

In like manner, representatives of the textile and garments industry have recently come together to state for the record that the industry may be struggling but it is far from dead and gone. In fact, many industry players have been spending time together and taking stock of the situation in order to put their house in order and revitalize what was once one of the country’s principal money maker in terms of exports and job generation.

Leaders of the various industry associations representing remnants of the textile millers, garments exporters, garment manufacturers, foreign buyers representatives, the Department of Trade, the Department of Labor as well as from the academe have taken bold and basic steps to correct mistakes or oversights in the past.

As their first act, a select group of industry representatives earnestly sought out DTI Secretary Greg Domingo not only to pay a courtesy visit but also to sincerely clear the air concerning disagreements and misunderstandings in the past. What was suppose to be a brief visit turned into a full blown but productive meeting with each side making suggestions, setting goals and initial commitments.

Secretary Domingo stated for the record that the DTI under his leadership was committed to supporting the entire Garments industry from the ethnic weavers, designers, schools, local manufacturers and local retailers, all the way to the exporters. Domingo did stress his vision where Filipinos will not merely be a production unit for foreign companies but would evolve to designing and producing their own brand for the international market. Industry representatives on the other hand shared their plans to revive the industry, promote and produce local brands in cooperation with the DTI.

As a result of reaching out, the industry now has a number of DTI officers assigned to work with the association leaders concerning various programs and concerns. True to his word, Secretary Domingo as well as Undersecretary Panlilio participated in 8 meetings with several US Senators and Congressmen to gain support for a US congressional bill that would give Philippine garment manufacturers special concessions.

With the US – SAVE ACT still up in air in Capitol Hill, leaders of the garments and textiles industry have also begun to engage members of media as well as private sector groups to share their story as well as their plans to revitalize the industry. Over the weekend, they set a record when almost all sectors of the industry participated in the first of two SWOTS session to pin down the true Strengths, Weaknesses, Opportunities, Threats, Solutions of the garments and textile industry. Only by doing so, could the industry members begin to understand and come to terms with how such a successful and profitable industry end up being branded as a “sunset industry” or “Dead and Gone”.

Initial analysis points out that the industry took a lot of hits primarily because the key players were too busy doing business and left government in the past to make decisions on their own. When preferential quotas for exports were removed, government officials decided that the Garments Textile Exports Board (GTEB) which was the primary go to agency for the industry, was no longer necessary and all its remaining functions outside of quotas was spread out to the Bureau of Customs and the DTI.

As a result, the industry’s representation, access, as well as relationship with government rapidly deteriorated and eventually soured. This realization now has industry players back tracking and eager to correct situations as well as policies that have been detrimental to the industry. In their historic workshop, even representatives of DTI-CITEM, DOLE and UST (representing academe) actively participated and gave crucial inputs.

Coming out of their first session, participants established that there are still several local companies exporting quality, high-end garments abroad. Although, the textile sector will need more than a shot in the arm, the group realized the high potential of indigenous fibers such as abaca, which right now is being used by German automakers for the interior and upholstery requirements. Consequently, the textile group will be looking into renewed marketing and promotions as well as incentives for procuring and developing raw materials. In addition, suggestions were made to acquire mothballed equipment to increase local production.

The big news and big potential in the second life of the industry is that many local manufacturers have begun to create their own brand and now produce these lines for the Philippine market which will eventually compete with the “imported” brands such as Mango, Forever 21 and Uniqlo because of the manufacturers long history of producing quality garments for top brands abroad. By tapping young local designers, new brands and styles would be easy to start up and will be in tune with Filipino buyers.

Another piece of good news is the decision by Members of the European Parliament to create new trade preferences “where 3 countries namely Pakistan, The Philippines and Ukraine will be allowed to apply for zero EU duties to be charged on their exports to the EU under the GSP+ incentive scheme. This will certainly be a “major, major” break for the garments and Textile industry IF Malacanang gives it’s full support and push to the Department of Trade and Industry as well as the Department of Foreign Affairs in the next 9 months.

Judging from what the industry leaders have managed to do in less than two months alongside the positive response of the DTI and DOLE, it only takes a leap of faith to believe that the country can qualify for the GSP+ incentive scheme and that is not an exaggeration. 

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