Exporters group seeks more government support

MANILA, Philippines — The country’s umbrella group of exporters is pushing for stronger government support with export performance expected to fall below target this year.

“Our export of goods and services may only reach $110 billion this year with the country’s exporters leaving (performance) to chance due to the lack of support from the government,” Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. said during the group’s general membership meeting.

He said the $110-billion projection is below the export target of $113.42 billion under the Philippine Development Plan and the $163.6-billion goal under the Philippine Export Development Plan for 2025.

Under the PEDP, Ortiz-Luis said the aim was for total Philippine exports to reach $143.4 billion last year and $240.5 billion by 2028.

“In addition to the insufficient budget for export particularly exports promotion, we continue to face key domestic and external risks this year that include weather disturbances, extreme natural disasters and acute and protracted global economic slowdown in major economies, ongoing geopolitical tensions and conflicts, trade wars and protectionist trade policies especially in the United States,” he said.

While there are risks, the group expects the CREATE MORE Act to support the country’s exports performance.

Signed into law last year, the CREATE MORE is expected to position the Philippines as a key investment destination by improving the incentives system and simplifying processes for investors.

Ortiz-Luis said the passage of the law providing a refund of the value-added tax on local goods purchased by tourists is expected to boost the tourism sector.

The group is hopeful the measure will encourage foreign tourist spending on local goods and services to benefit domestic manufacturers and providers.

Ortiz-Luis said the group is also hopeful free trade agreements (FTA) to be entered into by the country would support export performance.

Ortiz-Luis said the FTA between the Philippines and the European Union is expected to enhance market access for goods, services and investments.