Wearables industry sees possible double-digit growth if US grants favorable concessions on trade – BusinessWorld Online
By Justine Irish D. Tabile, Reporter
THE Confederation of Wearables Exporters of the Philippines (CONWEP) said that the industry can post double-digit growth this year if the Philippines is granted favorable trade terms by the US.
“Even just a simple announcement from the US Trade Representative that they are willing to negotiate a sectoral agreement with the Philippines (will mean) we will achieve double-digit growth,” CONWEP Executive Director Maritess Jocson-Agoncillo told reporters on Monday.
“Things will move fast because (trade will shift) from Cambodia and Vietnam (if) the Philippines is singled out favorably,” she added.
She said that without a preferential deal, the industry could still post 4-6% growth in exports this year.
She said confidence in the 4-6% growth forecast is underpinned by US strategic interest in the Philippines. Philippine imports from the US typically outweigh its exports going the other way.
“We are still geopolitically sensitive and important to the US,” she added.
CONWEP is among the industry groups whose input was solicited by the Department of Trade and Industry and the Office of the Special Assistant to the President for Investment and Economic Affairs before the Philippine delegation traveled to the US to negotiate a tariff deal.
“There will be specific industries that need to be carved out. We are still looking at three to four years of this Trump administration,” she added.
The US announced higher reciprocal tariffs in early April, with Philippine goods assigned a 17% tariff. These rates have since been suspended, with a 10% “baseline” rate imposed on most trading partners.
Ms. Jocson-Agoncillo said US President Donald J. Trump’s recent pronouncements concerning the wearables and textiles are a positive development, signaling that much of the industry could stay in Asia.
Mr. Trump said over the weekend that he aims to promote domestic manufacturing of defense and technology products, rather than commodities like socks and T-shirts.
“That only means that he is not interested in bringing it back to the US … (The industry is likely to) stay in Southeast Asia,” she said.
