Exporters expect to close the year on negative note

CEBU, Philippines – Amid some flicker of hope towards an anticipated recovery, Cebu’s export sector expects to hit a negative growth by end of the year.

Philexport-Cebu executive director Fred Escalona expressed apprehension that although other sectors in the industry have reported improvements, this is not expected to pull up the slow performance of other industries like food processing export.

"We have slow orders. Before we use to receive orders from China, for example, but now there is none. Winners and losers now are per company and not per sector," said Escalona.

He said those who already have captured markets are doing well but companies whose engagements are in economies that have problems are suffering, he added.

Struggling market globally and other factors continue to give stress to the export sector's feasibility, mentioning the impending US election, Japan's economic hiccup, the concerns in Greek, which affects the entire market of Europe, and the ongoing struggle of China's economy.

What worsens the problem is the government's lack of interest to support the export sector, especially in terms of hearing their immediate concerns.

"We are very far from the target already if you refer to the national figures in the Philippine Export Development Plan (PEDP)," he emphasized.

Under the PEDP for 2014 to 2016 submitted by the EDC to President Aquino, total exports are targeted to grow by eight to to 9.3 percent in 2014 from $78.5 billion in 2013.

But, Philippine Statistics Authority reported that exports dropped 24.7 percent in September, the sharpest decline since September 2011. For the first nine-month period, exports plunged by 6.9 percent to $43.746 billion from $46.976 billion in 2014.

"Our government is putting a lot of barriers to trade by implementing rules and laws that are overlapping, tedious, redundant and sometimes an overkill," Escalona reiterated, adding that this alone could already poison the life of the export business. (FREEMAN)