Gov’t urged to restudy export development plan

Local businessmen are asking the government to rethink its export development plan and investment priorities approach because the current one is not sufficient to keep businesses and industries competitive.  

“We need to triple our approach and focus on sectors that are competitive. Gone are the days where we enjoy the leeway for short-term and broad-based plans in promoting our exports. We need to think long term and sector-specific,” Special Envoy for Trade Negotiations Ambassador Donald G. Dee said.

During a speech before the participants of the Institutionalization of the Multi-stakeholder Consultation for Trade and Policy Negotiations (IMUST for Trade) Dee underscored the importance of identifying the sectors of the economy that the government should focus on.

According to Dee, a key emerging industry is the business process outsourcing (BPO).

 He said the sector has grown significantly in Manila and is also growing in Cebu, Laguna and Cagayan de Oro which are becoming important BPO hubs in the Philippines.

 “Today, instead of increasing exports we see import liberalization.  Our import component is very high which is translated to 70 percent at the minimum,” Dee noted.

“Therefore, basic cost becomes higher because we are dependent, for instance, to Japanese suppliers for the automotive parts,” he added.

In addition to overhauling the export development and investment priority plans, Dee said the policy on food has to change.

This translates to efficient utilization of agricultural lands to ensure stable supply of rice and other commodities.

Furthermore, Dee urged private sector stakeholders to actively participate and get involve with the privately-led trade consultations instead of solely depending on government to protect their industries.

 “We have to change our mindset if we are to survive. It is quite unfortunate that some of our stakeholders think that they still live in the 60s,” Dee pointed out.

He said private sector should do its share in helping the government attain economic progress.

 IMUST for Trade is funded by the British government and implemented by the Universal Access to Competitiveness and Trade (U-ACT), the research and advocacy think-tank of the Philippines Chamber of Commerce and Industry (PCCI).