Foreign buyers group sees growth in garments export

CEBU, Philippines - The Foreign Buyers Association of the Philippines expects increase of export earnings in the garments and hard goods following the declaration of European Union's Generalized Scheme of Preferences Plus status to the Philippines.

In a report furnished by PhilExport-Cebu, FOBAP president Robert Young, said that footwear, garments and the handicrafts are expected to enter the EU bloc at zero duty.

This development is seen to re-energize the export sector, specifically in these sub-sectors, which will also mean increased employment requirement from companies.

Young's pronouncement is also backed by the positive outlook of furniture, handicraft makers in Cebu for this year.

Young said the country's improving global competitiveness ranking will be another key factor to export earnings growth this year.

"This will be noticed by the foreign buyers, it is one factor in attracting businesses in the Philippines. The FOBAP is looking forward to more buyers coming into the country to look for merchandise for export to their own countries," he noted.

The hosting of the Philippines of the Asia Pacific Economic Cooperation  summit next year is also seen to boost the country's grip in the export market, Young added.

"Buyers again will get excited and those who are not yet buying from the Philippines will get interested to learn about more of the Philippine products," he said.

Germany and France are identified as the biggest buyers of Philippine handicrafts and other hard goods, while the United Kingdom of children dresses.

"They are more attractive to handcrafted skills of the Filipinos rather than the other countries. The artistry in the Philippines is actually global in standards already... So definitely, we will be more competitive than the other guys in the Asean region as we apply more handicraft jobs in the products," he added.

Meanwhile, the export sector in general expects an improvement of performance this year, although players are called to be more cautious in the intricacy of competition with the entry of integrated ASEAN.

Philexport-Cebu executive director Fred Escalona said that although the industry is seen to speed up with favorable market environment,  players are advised to still adopt cautious approach for its main trading partners like Japan, the United States, and European Union and Japan are still showing fragile economic condition,

Japan’s  third quarter growth rate recorded negative movement at minus 1.9 percent. The US on the other hand, will be holding a presidential election in November of 2015 and the EU growth slows down with Greece requiring new rescue facility from the IMF.

On the plus side, Escalona said the price of crude oil crashing in the international markets, improving jobs numbers in the US and moderate growth in the EU. Cheaper oil and gasoline prices could spur growth in the economies too dependent on imported oil.

"We must also consider regional tensions, especially in South China sea, as these could affect global trade next year. Under normal conditions though some export sectors in the Philippines will do well while some sectors will be hurt by outside influences," added Escalona. (FREEMAN)