Netherlands extends support for exporters to penetrate EU

The Netherlands government, through the Center for Promotion of Imports from developing countries (CBI), is extending their help for Philippine exporters to fully take advantage of the growing 450 million consumers in the European Union (EU).

A team of Dutch business consultants led by Martin Bitter, CBI consultant from the Dutch ministry of Foreign Affairs in Amsterdam, were here in Cebu to introduce the Export Development Program (EDP) of CBI in partnership with the PhilExport boost export opportunities in European market in a two-and-a-half-day seminar event held at the Grand Hotel.

Bitter said the Dutch government is spending at least 50,000 Euro per company, in order to effectively do business in EU.

Part of the joint program is helping companies especially the Small and Medium Entrepreneurs (SMEs) to develop a business concept that would hit the consumers.

"We would like to help SMEs to know what the European consumer would like to have," Bitter said in an interview.

This is an opportunity for smaller exporters to grow their export business and penetrate the 25 countries under the E.U., he added.

Although the Dutch government is providing technical and financial help for this two-to-five- year export development program, member companies must also commit to spend at two percent of the total expenses.

Aside from the product development, improve management structure business matching and International fair promotions will also be included, among others.

Filipino exporters have had not been maximizing the huge export market in Europe because of E.U's stricter import regulations compared to other countries even United States.

However, Bitter said exporters have to dig deeper to familiarize how to enter the EU market, especially in food products, because it requires a high standard import regulations that involve safety, and other social accountability factors.

Companies joining this joint program of PhilExport and Netherland's CBI will take the initiative and efforts in entering the EU market, and make sure that they can sustain the long term demand.

While most SMEs in exports are currently having difficulties to take advantage of the European consumers, Bitter said the program would help smaller companies, with big potentials to do business and export to the 25 member countries of EU.

However, Bitter warned that entering the EU market should be a long-term commitment for the exporters, in order to build trust to Europeans.

"This is a long and hard journey. This is not hit and run thing. Once a company enters into supplying goods to EU, it should sustain the growing demand," he said.

This offer has brought good news for the Cebu export community as the industry is threatened by the weakening economy of the United States, the major market for Cebu exports.

PhilExport-Cebu executive director Federico T. Escalona said there are already 45 export companies in Cebu wanting to join the program, although the limit is only up to 35 companies.

With the inclusion of 10 more countries to the EU, from eastern and southern Europe, this market is 40 percent bigger than United States, and three times larger than Japan.