India-ASEAN free trade deal seen to benefit PHL economy

CEBU, Philippines - The existing FTA (Free Trade Agreement) between India and ASEAN countries is expected to benefit Philippine trade and provide promising market for struggling exporters, who are now affected by the weak economic state of traditional markets like United States and Europe.

In a report released by PhilExport, it encouraged exporters to intensify its entry to populous market, and develop relationship with emerging ASEAN markets to take advantage of the Philippine’s FTA with ASEAN member nations.

According to Rashmi Tolentino-Singh, chairperson of the Hospitality & Wellness Industries Furnishers & Service Providers Association, that the Philippine export products still has a lot of advantages in attracting the new wave of market potential.

“We have good products to offer. Quality is the battlecry. We need to have a culture of excellence, this will sustain us,” she said.

Singh mentioned that in a reseach study conducted recently, it bared that there are consumer shows abroad they can penetrate as well as other markets which have been considered competitors but are now actually their customers, like China and India.

On the other hand, Singh warned exporters that diligence is very important in entering the world’s most populous countries.

She said China is one of those markets that exporters should focus on. Likewise, India offers a huge potential but not so much for consumer-base but for institutional markets, such as hospitality sector because the country is building thousands of hospitals and they can not cope with demand of the market.

The Philippines’ FTA in ASEAN like Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand and Vietnam, should also be maximized, she recommended.

Meanwhile, she said Middle East also offers good potential for growth. Exporters are encouraged to focus on Qatar because it is the only country in the world that has not been affected by the recession.

She said Qatar is already preparing for the 2022 soccer World Cup so there are all kinds of construction going on there.

While some markets in Europe are struggling big time, she said some areas still offer opportunities particularly in northern Europe—Germany, as well as Paris, England.

Singh also identified Korea as another potential market for exporters.

Paris, in particular she said has a market that is global. England on one had, is another place that is very compatible for what the Philippines is producing “because they are very design-oriented.”

Another market to watch for is Korea, she added. The young people in Korea are inclined to demand for contemporary stuffs, which is one of the strengths of Filipino exporters. (THE FREEMAN)