RP to lose $1 B in exports

MANILA, Philippines – Filipino exporters warned that the country would lose an estimated $1 billion in export revenues next year after Japan, the country’s second largest trading partner, entered into a recession.

“This year our exports to Japan are still not affected. The existing orders were not cancelled. But next year, for sure, we will feel the crunch,” Sergio Ortiz Luis, president of Philippine Exporters Confederation Inc. (Philexport), told The Star.

Japan entered into a recession after its economy contracted for two straight quarters. Current Philippine exports to Japan total around $7 billion.

“Next year will be a little less than that but definitely it will not go down to $5 billion,” Ortiz-Luis stressed.

He said that 14 percent of the country’s total exports go to Japan.

Filipinos sell agriculture products, mineral ore and services to the Japanese market.

Ortiz-Luis downplayed the impact to the country’s exports of the Japanese recession, but he said that exporters should look for alternative markets.

“We need back-up markets for our goods for us to maintain or even increase our exports,” Ortiz-Luis further explained.

Markets the Philippines are looking to develop are the Asian market, specifically our neighbors in the Association of Southeast Asian Nations.

Likewise, Ortiz-Luis said China is a big emerging market. “We are catering to mainland China, Taiwan and Hong Kong.”

He said Australia is also a good place to sell Filipino products.

“We can sell what we are selling in Japan in Australia because they also need agricultural products and mineral ore.”

Merchandise exports to Japan remained stable in the eight months to August, growing 5.4 percent to $6 billion.

Shipments from the Philippines accounted for 1.2 percent of Japan’s total imports valued at $509.5 billion, as of August.

Exports to Japan increased by 2.1 percent to $698.8 million compared to the same month in 2007.