WTO envoy: SMEs key to Philippines export goals

CEBU, Philippines — The Philippines is urging small and medium enterprises (SMEs) to strengthen compliance, scale up production, and build deeper partnerships with government as the country accelerates efforts to boost exports and integrate local producers into global value chains.

Philippine Ambassador to the WTO Manuel A.J. Teehankee in his recent visit to Cebu  said that global competitiveness “starts at the barangay level,” noting that enterprises must first prove commercial viability within their communities before expanding to neighboring islands, major urban centers such as Manila, and eventually Southeast Asia.

“All international trade starts local,” he said. “If you can succeed in Manila — our own version of New York — you can compete globally.”

While the government continues to simplify requirements through the Anti-Red Tape Authority, regulatory discipline remains non-negotiable.

Entrepreneurs unable to secure basic business permits — including tax, barangay, and municipal clearances — “are not in the right game,” he said.

Collaboration with local partners and tapping support units within the Department of Trade and Industry (DTI) remain key to navigating bureaucracy.

The Philippines is positioning SMEs to tap the 600-million-strong ASEAN market under existing free-trade agreements, before expanding further into APEC economies and WTO markets.

The country recently highlighted its export ambitions in Geneva during its National Day event, showcasing Philippine-origin products — from specialty spices and artisanal food items to cigars and premium ube-based desserts.

The gathering, attended by World Trade Organization Director-General Ngozi Okonjo-Iweala, featured emerging agricultural exporters now sending shipments to Europe and the United States.

One standout is an Australia–Philippines joint venture producing award-winning ube products from Bohol and Manila, which has secured global distribution after winning recognition in California.

However, scaling up artisanal goods requires heavy investment, particularly for products seeking Geographic Indication (GI) status.

Certification alone is insufficient, the Ambassador warned. Producers must allocate funding for research and development, improved quality control, licensing, and long-term supply expansion.

“To preserve a GI, you need sustained cooperation between government and the private sector,” he said adding that “Without investment after certification, GI becomes just a piece of paper.”

The government expects several Philippine products to obtain GI status within the next two to three years, though he cautioned that the subsequent five-year period will be critical in determining whether producers can scale without losing their artisanal identity. — (FREEMAN)