DTI urges exporters to take fresh look at Japanese mart

MANILA, Philippines - Department of Trade and Industry (DTI) urged local exporters to look afresh at the Japanese market.

Senen M. Perlada, director of Bureau of Export Trade Promotion (BETP-DTI) and concurrently the director of Export Development Council (EDC), said that this should be the attitude of exporters now that the needs of Japanese consumers are dramatically changing.

They are now looking for value for their money, spending most of the time at home, and are health- and environment-conscious about their products, he said during the recent Free Trade Agreement (FTA) information campaign dubbed Doing Business in Japan held in Pasay City organized by the Department of Trade and Industry.

He attributed these changes to the economic downturns and the losts of life-long jobs. He noted that Japan is yet to recover from the powerful earthquake and tsunami that hit them hard in the first quarter of the year, which was considered as the toughest and most difficult crisis in Japan.

In 2010, Japan recorded a 126-million consumer base; $5.46-trillion GDP; and the fourth largest importer of goods in the world, with $693 billion worth of imports.

Perlada said that Japan imports a wide range of many important products like minerals, semiconductors, electronic and machinery parts, and consumer items like food and garments, which makes Japan a huge market for Philippine exports.

The Philippine-Japan Economic Partnership Agreement (PJEPA) enhanced access by Philippine exports to the Japanese market, which accounted for 16.1 percent of Philippine exports as of August this year. Japan now emerged as the top destination of local exports, with revenue amounting to almost $652 million. It was higher by 7.3 percent from almost $608 million recorded for the same period a year ago.

Japan’s attractiveness as an export market is enhanced by the comprehensive bilateral economic agreement of the two countries. It covers trade in goods, services, customs procedures, investments, intellectual property and mutual recognition, movement of natural persons, cooperation, competition, and improvement of the business environment.

Japan hosts many important trade exhibitions, thus there are also opportunities to promote Philippine products to third countries through these exhibitions, he added.

It is all up to the exporters on how they will seize the opportunity of having the only bilateral economic agreement the Philippines has, he noted.

Perlada likewise challenged exporters to make use of the FTAs as it increases the competitiveness of exporters because of zero or lower duties to be paid by importers.

“If we don’t do anything, we will lose by default. We need to know the marketing strategy to compete,” he added.