DTI sees potential of PH-made travel goods in astute US market

The travel goods sector could significantly increase its workforce to over four million if it would take advantage of a trade perk granted for products entering the United States, the Department of Trade and Industry (DTI) said.

In a statement, Trade Secretary Ramon Lopez urged industry leaders in the local travel goods sector, which currently employs 300,000, to increase their production capacities following the recent expansion of the US Generalized System of Preferences (GSP) program.

The Office of the United States Trade Representative (USTR) approved in July the inclusion of Philippine travel goods in the new and expanded GSP program, allowing these products duty-free access to the US.

According to Lopez, these Philippine-made travel goods—including apparels, bags, wallets and backpacks—would enjoy zero duty after being previously charged 6-20 percent tariff.

“This is considered very important in our economic program under President Duterte’s administration, which aims to accelerate job and income generation activities especially in the countryside and help reduce inequality,” Lopez said.

He said other countries belonging to the Association of Southeast Asian Nations currently employs millions in their respective industries, a feat the Philippines could achieve “if we are able to attract more locators to produce in the country.”

DTI said the local industry had already committed to develop designs incorporating indigenous textiles in their travel goods for export to the United States. One leading exporter, which DTI did not name, has already bought samples of indigenous woven materials from Mindanao that would then be incorporated in their bags.

The garments and textiles sector has been declining since the mid-1990s. This sector’s exports decreased from an annual average of $2.4 billion between 1995 and 2006 to an average of $1.6 billion over the past five years, the DTI said.

“Now is the time to bring back the role of the sector as a contributor to job generation and economic development. Good relations will translate to good business, thus, generating jobs for the Filipinos,” Lopez added.

According to USTR’s previous statement on its website, the inclusion of travel goods would help US travel goods brands and retailers to “broaden their sourcing opportunities for these products.”