‘We want funding’

THE Philippine Exporters Confederation Inc. (Philexport) - Cebu urged the government to pour in more funds to grow the country’s export sector amid the softening of the global market.

Exports of Region 7 has been declining at 23 percent from January to April 2019, and this drop is continuing to date, according to Philexport Cebu executive director Fred Escalona.

He cited the low global demand and uncertainties brought about by the unresolved trade tensions between China and the US, as some of the factors that contributed to the decline in exports in Central Visayas.

President Rodrigo Duterte approved the new Philippine Export Development Plan (PEDP) 2018 to 2022 short of a year after it was submitted to his office.

On Monday, July 1, 2019, the Malacañang released Memorandum Circular 62, dated June 26 bearing the President’s approval.

The PEDP tasked the concerned agencies within 60 days after the effectivity of the circular to submit to the Export Development Council and the Office of the President an inventory of relevant policies, programs and action plans which are aligned with the strategies under the PEDP.

Targets

The roadmap targets total export revenues — consisting of goods and services — to reach US$122 to US$130.8 billion by 2022 from US$74 billion in 2016. This target entails a compound annual growth rate of 8.89 to 9.96 percent.

The plan also outlined three strategies to make the export industry competitive.

First, is to improve the overall export development by removing unnecessary regulatory impediments and raising productivity and competitiveness of Philippine enterprises.

Second, is to exploit existing and prospective opportunities from trading arrangements through the number of existing and prospective bilateral, regional and multilateral trading agreements the country can use to access markets.

Lastly, is to design comprehensive packages of support for selected products and services sectors. It identified three general product categories “with potentially wider spread and impact due to comparative advantages or in meeting global challenges,” namely, electronics; processed food, vegetables and beverages; and information technology services.

However, Escalona said these three strategies, if adopted, will offer nothing new.

He said that what the export industry needs is financial assistance to strengthen the industry’s presence globally through marketing and branding.

“What exporters need is government financial support in terms of subsidies for trade exhibitions and marketing of products,” said Escalona.

Under the plan, export of goods is targeted to post a 6.11 to 6.46 percent compound annual growth rate (CAGR) to US$61 billion to US62.2 billion in 2022 from US$42.7 billion in 2016. Export of services, on the other hand, is projected to post an 11.78 to 13.9 9 percent CAGR to US$61billion to US$68.6 billion from US$31.2 billion in 2016. JOB with KOC