RP expects 5%-10% hike in garment quota to US

The Philippines is still hoping to get a five to 10 percent increase in its garments quota to the US despite a recent defeat on the Rules of Origin (ROO) dispute with the US.

"The Philippines is hoping to secure the additional market access to the US through bilateral negotiations after failing to get a favorable result from the World Trade Organization (WTO) on the ROO issue," Garments and Textiles Export Board (GTEB) executive director Serafin N. Juliano said yesterday.

Juliano said the Philippines was actually a third party complainant over the ROO dispute.

The ROO dispute involved the US insistence that quotas extended to other countries should be based on the origin of the textile.

The Philippines is among the countries adversely affected by the ROO ruling because it imports most of its textiles and only produces the garments for export to the US.

The WTO recently ruled in favor of the US.

"The Philippines has decided to pursue bilateral negotiation with the US following the closure of the WTO option," Juliano said.

Because of the US and Philippines’ long-standing relationship and President Arroyo’s recent successful State Visit to the US, the GTEB is hopeful that the US would still be willing to extend some flexibility to the Philippines.

Likewise, Juliano said, American buyers are also well aware of the Philippines’ shift to quality garments manufacturing.