THE PHILIPPINE Exporters Confederation, Inc. (Philexport) said urgent government intervention is needed as more of its members shut down, citing the absence of financing.
“Philexport has in fact received resignations from members closing shop,” Philexport President Sergio R. Ortiz-Luis, Jr. said at a general membership meeting last week, adding that the industry’s sentiment is that the government needs to step in.
At the National Export Congress, the Department of Trade and Industry’s Export Marketing Bureau (EMB) reported that the number of exporters declined to 4,000, or half of what the total was a decade ago.
He said exporters, especially micro, small, and medium enterprises (MSMEs), continue to face problems accessing financing and raw materials. They also have to deal with stiffer market requirements, supply-chain disruptions, and compliance.
“We raised this repeatedly in public statements urging the government to increase, not cut, funds for export promotion and MSME support,” he said.
“We made it clear that our budget for export development is almost nothing compared to our Association of Southeast Asian Nations (ASEAN) neighbors,” he added.
Such support, he said, allows Malaysia and Thailand to send over 200 firms to participate in international trade fairs, against the 10 firms the Philippines was able to send to a certain fair last year.
“This is unacceptable, and we aim to compete globally,” he added. “We are fighting for more support. We are finding markets, and we are pushing our government to recognize that export development is not an expense; it is an investment in national recovery.”
Philexport said it is banking on free trade agreements (FTAs) and US tariff concessions to drive growth next year.
“Our trade environment is opening new doors. The Philippines and Canada are supposed to launch negotiations for an FTA by early 2026,” he said.
“The ASEAN-Canada FTA is also on track for completion next year, while discussions for our entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership are advancing with member countries expected to consider our application soon,” he added.
He also cited the soon-to-be-signed FTA between the Philippines and the United Arab Emirates and progress in the country’s FTA negotiations with Chile.
Meanwhile, he said that the recent exemption of agricultural products from the US reciprocal tariffs will allow for 46% of Philippine exports to the US to enter tariff-free.
Under the revised Philippine Export Development Plan, the Philippines is targeting exports of between $116.1 billion and $120.2 billion next year, while exports of as much as $113.4 billion are expected in 2025. — Justine Irish D. Tabile