Bureaucracy dampens growth in Phl import, export sectors

CEBU, Philippines - While Philippine export has continued to lose its hold in the global competition, it has to rethink the way it is doing the administrative facilitation in order to help Filipino exporters and importers stay in business.

Ramon L. Clarete, dean for University of the Philippines School for Economics, said despite the efforts introduced by the Philippine government to reduce documentary processes, exporters are still facing problems in trade facilitation, as it take 15 days for Filipino businesses to export.

"Obviously, one of the factors we have complications with is our export facilitation procedure," he said, mentioning that in the United States for instance, it only takes six days for exporters to start doing business outside of their country.

Asia countries like Korea and Malaysia have reportedly been able to reduce their export documentary procedures to three to four requirements. In the Philippines, a minimum of six documents are required, and it takes longer to get approval due to unresolved issue on bureaucracy.

According to Clarete, it is important for the Philippines to make serious effort in improving its way of facilitating trade requirements, specifically for exporters and importers, in order to help Filipinos take advantage of  the world market.

He said there is a good potential for Philippine export to recover and take its lead in the global landscape, however, the business environment in their home ground should be much friendlier.

Clarete mentioned that the Philippines for instance is seen to gain stronger market ground in exporting mango products. Filipino exporters should take advantage of this while the world still demanding for mango products coming from the Philippines.

He said because of tougher competition and other internal problems, the Philippine export is slowing down compared to its neighbors.

The Philippines' trade-to-GDP (gross domestic product) ratio has been declining, a good indicator that the country should fortify its export and import sectors.

The Philippine export sector performance hit the negative mark for the first 10 months of this year, down by 0.83 percent compared to the same period of  2012.

Latest record released by the Bureau of  Export and Trade Promotion (BETP) of the Department of Trade and Industry (DTI) revealed that the shipbuilding sector pushed down further as it dipped 15 percent from US$4.053 million in 2012 to US$3.093 million this year.

The country's biggest export contributor continues to show its weakness with a whopping 15 percent-drop of its total export revenue. Electronics sector only generated US$ 11.98 million in revenue this year versus US$14 million  it  registered in 2012.

Similarly, garments and textile export followed the challenging path in export business with 11.9 percent decrease in performance.

On the other hand, wearable exports, like fashion accessories, bags, shoes and jewelry recorded an encouraging third quarter result, with an increase of 129.07 percent, contributing a total revenue of  US $102 million  from US $ 44.54 million recorded last year.

Clarete underscored that while there is a good potential for Philippine exports to rebound, players are urged to strengthen their connection and penetration with international trade.

 "You have the world as your market," she said. /JMD (FREEMAN)