DTI chief vows to push for the retention of ESF

CEBU, Philippines - Trade secretary Gregory Domingo vowed to save the Export Support Fund (ESF) from being phased out, and will work in his power to include the exporters’ support facility on the annual budget of the Department of Trade and Industry (DTI).

“As of now, we are trying to ask for additional funds,” Domingo said following the urging of the private sector, specifically the PhilExport-Cebu to have the ESF program institutionalized.

Recently, PhilExport-Cebu expressed its need to continue the ESF, while the export sector has yet to recover from the slump brought about by the global recession.

PhilExport-Cebu executive director Fred Escalona said that having the ESF institutionalized through Congress would mean a steady financial support for exporters.

According to Escalona, when this program is formally institutionalized, this will help secure the export sector even if there will be changes in the country’s leadership.

Ideally, Escalona said the export sector in the Visayas would need at least a budget of P400 million annually to help fund the export promotions both in domestic and overseas markets. The fund helps exporters in a continued bid to become competitive, and discover innovations through technology trainings, and market updates.

At present, he said exporters spend about P500,000 to as high as P1 million for trade fairs alone.

Escalona said Philexport-Cebu is considering seeking the help of Cebuano lawmakers to help lobby for support on the ESF.

Managed by the Export Development Council, the fund originally set at P1 billion, was made accessible by past President Gloria Arroyo as an emergency grant at the height of the global recession in late 2008.

Cebu export sector is one of the most vocal export organizations in urging the government to continue the implementation of ESF, as the current administration is reported reviewing the program, if it’s worth to be continued.

In a separate interview, EDC private sector Representative Allan Suarez said that while the ESF is still facing a threat for discontinuation, EDC will help the export sector to encourage the Pnoy government to let the program stay.

“We will work together with the rest of the export-related organizations to lobby for the release of the ESF fund. We will convince President Aquino that majority of the exporters can’t hardly breathe because of the external challenges, including the volatile foreign exchange,” emphasized Suarez .

Suarez, who is also the former president of PhilExport Cebu added what made the export sector in the Philippines grew in the last few months compared to its performance a year ago was attributed to the improving and recovering market of export products made inside the economic zones, including business process outsourcing jobs.

Other export subsectors, he lamented, are still suffering, especially in Cebu where local exporters continue to feel the stiff competition in the global market.

“Cebu’s export products are marketed internationally and less in the domestic market,” Suarez added.

Former Trade Secretary Jesli Lapus, before he bowed out of office at the end of June 2010, announced there is no longer any available fund from the P1 billion.

This would give the EDC the resolve to ask the new administration to tackle the ESF in the DTI's regular yearly budget to assure that the EDC will have the resources to implement the programs and projects under the three-year Philippine Export Development Plan. (FREEMAN)