Trade with Japan expected to normalize within second half
The Department of Trade and Industry expects trade with Japan, the country’s top export destination in June, to start normalizing within the second semester, as the electronics sector begins to recover from the Japan crisis.
In a statement Friday, Trade Undersecretary Adrian Cristobal Jr. said the effects of the March 11 Japan disaster on the electronics supply chain should start to wear off by the end of the third quarter.
“Electronics companies with operations near the epicenter of the quake where buildings and equipment were damaged are expected to restore full shipments by early September, coinciding with the peak season for electronics and semiconductor sales during the third quarter,” he said.
Japan has long been one of the country’s top trading partners, particularly for semiconductors and electronics, which account for more than half of the country’s merchandise exports.
The March 11 Japan earthquake, which triggered a tsunami and a nuclear crisis, wreaked havoc on the electronics supply chain, affecting both imports and exports.
The effect, however, was not so bad that the government would have to revise its export growth target for the year, Cristobal said.
Article continues after this advertisement“We see no need to revise our 2011 export targets yet. The export sector expects to pick up in the second semester. The considerations and conditions set in the (Philippine Export Development Plan) have helped us anticipate a possible contraction in the market,” he said.
Article continues after this advertisement“We have to continue to diversify export products and target high-growth markets and global supply chains such as Brazil, Russia, India, China and Asean,” he added.
The latest PEDP lays down the country’s exports roadmap for the next three years, detailing strategies on how the country can expand its product offerings so it can be less dependent on electronics and other intermediate goods. It also contains strategies for market expansion and marketing innovation.
Under this plan, the country should be able to more than double its exports to $120 billion by 2016, from $50 billion last year.
According to data from the National Statistics Office, Japan became the country’s top export destination, with export receipts reaching $932.2 million, in June.
The value of goods shipped to Japan grew by 13.4 percent in the first half.
Exports to Asean member-nations likewise increased by 6 percent and those to Australia, New Zealand, and India by 31 percent.
