DTI sees lackluster ’15 exports report
Philippine exports are expected to post a slight decline to an estimated $85 billion in 2015 from the $86.9 billion posted in the previous year, given the sluggish global demand.
Senen M. Perlada, director of the Export Marketing Bureau at the Department of Trade and Industry (DTI), was however highly optimistic that there would be a recovery in the country’s export performance this year, which included both merchandise and services.
Among the drivers that will enable merchandise exports to snap back to the growth track in 2016 would include “sustained, though moderate, growth in demand from the United States; traction from China’s recently announced stimulus package to revitalize its growth momentum; ramped up investment-driven exports coming from new and expanding projects coming on stream in 2016; and a more competitive exchange rate.”
Export revenues from electronics products are also expected to continue being a significant contributor.
According to Perlada, the DTI will be releasing soon new targets for the year, noting that while the growth rates will likely be the same, the base will be different given the lower-than- expected export revenues in 2015.
In an interview last month, Perlada said the DTI was expecting export growth in 2016 to hit 8 to 9 percent on the back of improved global conditions and higher utilization of existing preferential trade agreements.
Another factor seen to further boost exports this year would be the expected higher utilization of the benefits under the generalized system of preferences (GSP) of the European Union and the US, and the various free trade agreements of which the Philippines is part.
The EU GSP+ allows the zero-duty entry into the 28-member bloc of Philippine-made products across 6,200 lines within a 10-year period, while the US GSP eliminates duties on about 5,000 types of products if American firms import these from 122 designated beneficiary countries and territories, which included the Philippines.
The Philippines has also so far signed seven free trade agreements, only one of which was a bilateral, while the remaining six are through the Asean. These are the Asean FTA; Asean-China FTA; Asean-Korea FTA; Asean-Australia-New Zealand FTA; Asean-Japan Comprehensive Economic Partnership Agreement; Philippines-Japan Economic Partnership Agreement (PJEPA) and the Asean-India FTA. Discussions and negotiations for FTAs with other countries are underway. Amy R. Remo
