Export revenues seen to double by 2016

MANILA, Philippines - The Philippines expects its estimated $50-billion merchandise export figure this year to double by 2016, the Department of Trade and Industry (DTI) said yesterday.

“We see positive signs of growth as our exports level up with value-added products and the business sector together with the government step up strategies to boost our competitiveness in the international market,” said Trade and Industry Secretary Gregory L. Domingo.

Recently, close to 150 participants, the bulk of which were locators from the economic zones in Calabarzon joined the business information session on doing business in free trade areas to take advantage of the zero tariff and other opportunities in the country’s FTA markets.

To date, the Philippines has FTAs with ASEAN, Australia, New Zealand, China, Korea, and Japan. During the 2009 global financial crisis, thousands of Filipino workers were laid off in Calabarzon because of the contraction in the export market.

Local company KLT Fruits, Inc., manufacturer of tropical fruit purees, concentrates, and bean jams, with a plant in First Cavite Industrial Estate was among the locators present in the DBFTA Forum. The company enjoys zero tariff for its juice concentrates under the ASEAN Korea Free Trade Agreement or AKFTA.

Korea as a market has a 48.5-million consumer base and $832 billion GDP in 2009. It has total imports of $422 million. Philippine exports to Korea amounted to $2.5 million for the same period.

Korea imports 70 percent of its agricultural needs and has a growing market for organic products, marine products, fresh and processed fruits, frozen vegetables, sauce preparations, confectionery, and alcoholic beverages.

Under AKFTA, resource and agro-based products, chemicals, metals, and machinery enjoy zero tariff.

Trade Undersecretary Adrian S. Cristobal said, “These FTAs are strategic tools or pathways for growth and competitiveness. Not only do these open markets for our goods and services, but they also force us, as a people to take a hard look at our economic structures and implement the much needed reforms to put our economy in step with the global environment.”