Exporters: Gov't plays numb about our plight

Exporters in Cebu expressed disappointment over the government's inability to address their concerns on the effect of the strengthening peso to the export industry.

Early this week, top government executives from the Bangko Sentral Ng Pilipinas (BSP), Department of Trade and Industry (DTI), among others, met with the private sector especially the exporters to supposedly discuss possible solutions in protecting the export sector, as it is suffering from negative effects brought about by the strong peso value.

However, exporters were disappointed of the government's respond to their concerns. An export industry player said, exporters were not satisfied by the government executives' explanation saying "they don't understand fully the concerns of exporters."

The source who refused to be identified said exporters are already hit by mounting problems of global competitiveness, among other internal problems in the country, like bureaucracy, high cost of doing business, and now the upswing of peso value. Still the government continues to be numb about the alarming plight of the export sector in the country.

During the closed-door dialogue between exporters and other businessmen with the BSP, DTI and other government executives, the PhilExport -Cebu submitted and aired its position paper to ask help from the government over the negative effects brought about by the strengthening Philippine peso.

In the position paper prepared by PhilExport-Cebu, which carries the voice of the Cebuano exporters, it said "considering the losses that the exporters have been sustaining and the stiff competition they are meeting with the exporters from other Asian countries having favorable exchange rates, the export sector needs help."

"The exporters ask the support of the government to do everything in its power to protect the sector that generates dollars and jobs for the country, by stabilizing the peso to the competitive range of exchange of P53 to P54 per one US dollar," this is the highlight of the position paper of the Cebuano exporters presented to the top government officials early this week.

Despite the exporters challenging and alarming situation, the source said, government executives were not able to provide concrete solutions to the exporters' problem, however only said that the value of the peso to the dollar is largely market driven.

Last month, BSP reported that the country's more than eight million expatriate workers sent home a record P10.7 billion last year. Remittances as of end of 2005 were 25 percent higher than 2004's P8.5 billion. BSP had earlier estimated that the remittances could reach to P12.3 billion.

This continued surge of dollar remittances has significantly help strengthen the Philippine peso versus the Dollar. In three months time, the exchange rate moved from P56 to a little over P51 per one US dollar.

While the Philippine government sees this phenomenon positively, the export industry, which contributes an annual average of US$38 billion to the economy is hurting.

Aside from the electronics sector, the other sectors like the furniture, the food and other industries have claimed to have lost and continue to lose about 10 percent to 15 percent revenues.

"The export industry, starting with the Small and Medium Scale Enterprise (SMEs) will definitely not be competitive in the world market. This argument is somehow being validated by comments from buyers of exporters, that they find Philippines an expensive place to buy," the PhilExport-Cebu position paper signed by its president Apolinar G. Suarez, Jr. stressed.