Tuesday, February 06, 2007 Canada, Netherlands assist Cebu exporters
IN their thrust to assist the local exporting industry, two donor countries have decided to link for a three-year Business Support Organization Development (BSOD) program using their governments’funds.
The Canadian government, through the Canadian International Development Agency (CIDA) that funded program Pearl 2, and the Netherland’s Center for the Promotion of Imports from Developing Countries (CBI) inked a deal with the Philippine Exporters Confederation (Philexport) Cebu to provide local exporters an improved marketability and global competitiveness.
The two donor countries have not determined the total cost of the three-year program since direct financial assistance is not part of the deal.
According to their press statement, the key modules that will be delivered by CBI are organizational strengthening, market information system, export diversification, “train the trainer” program and “train the designer” program.
In addition, CBI will assist Philexport Cebu with the implementation of a Customer Relationship Management (CRM) system, forge strategic alliances with stakeholders and donor organizations, assist in the development of an export marketing curricula for the planned “virtual exporter training center,” and help in the automation of Phil-export’s one-stop documentation center.
This is the first time that two foreign funding agencies have collaborated with the local export industry.
“The timing is right,” said Jay Yuvallos, Philex-port-Cebu president, referring to the external and internal factors that badly hit the industry.
Local exporters are currently struggling with the strengthening of the peso against the dollar, which has made Philippine products more expensive ab-road, the threat of a legislated P125 across-the-board wage increase, weakening in the demand of the global market and aggressive moves of other competitive countries.
However, Yuvallos said he expects the program will further increase the chances of local exporters to penetrate the “elusive but fertile” European Union (EU) market, as well as markets in the Northern America region.
Although the EU market has long been a target of most exporters for expansion, stricter requirements and other trading hurdles have discouraged some exporters to enter the EU, which is composed of 27 member states.
According to Paula Schindeler, second secretary of the economic and cultural affairs of Royal Netherland’s Embassy in the Philippines, the program is an importing trading bridge for exporters to enter the 450-million consumer-based markets in EU member countries.
Canada Ambassador to the Philippines Peter Sutherland said that the local export industry will need more technical and technology transfer works that will help improve business performance of the small and medium enterprises (SMEs) in Cebu, which comprises the bulk of the local export sector.
Sutherland said the Canadian government has already invested some C$600 million in the form of grants since 1996. Pearl 2, in particular, has extended 50 business support organizations in the country.
Pearl 2 will kick-off with seminar-workshop for the Board of Trustees of Phil-export dubbed “Developing an Effective Non-profit BOT” as part of their participation for the program.
Meanwhile, Philexport Cebu is eyeing the Deutscher Entwicklungsdienst or the German Development Service as another potential donor.
Philexport-Cebu is the umbrella organization of all exporting sectors such as seaweed, furniture, home furnishing, gift-toys-house-wares, garments, electronics and food, among others. (MMM)
