PHILEXPORT MULLS CHINA DELEGATION

Cebu executive director Fred Escalona says the plan is seen as a way to establish a good trading partnership with one of the largest markets in the world.

The Confederation of Philippine Exporters (Philexport) Cebu plans to send a delegation to China this year to explore trade opportunities.

Although not yet final, Philexport Cebu executive director Fred Escalona yesterday said this is one of the organization’s plans to establish a good trading partnership with one of the world’s largest trading nations.

“There is a possibility of a trade delegation composed of Philexport members going to China as part of our plan to tap this market,” he said.

In past interviews, Escalona has recognized China and Russia as new potential trading partners. Back then, though, he said that exporters still remain cautiously positive with the government’s achievements in developing new deals with these two countries.

However, he admitted the need to build capacity to trade with China, since it is the world’s biggest market.

“We need to build up China, should exports to the US and EU decline,” he said.

Food, home decor, furniture, seaweed, metals and fruits are some of the top Cebu exports that have the potential to grow in China.

China consistently remains one of the Philippines’ largest trading partners, ranking third on the average in the last five years.

The country’s exports to China surged 2.2 percent to over $6.1 billion as of August 2016, representing an 11.4-percent share in

We need to build up China should exports to the US and EU decline. FRED ESCALONA Philexport Cebu

total Philippine exports.

Philexport is pushing for various interventions, including support for promotion and financing access to strengthen trade ties with China, according to Philexport.

Philexport president Sergio Ortiz-Luis, Jr. in a statement, said increased market intelligence and business matching will help exporters, especially the micro, small and medium enterprises (MSMEs), better position themselves to penetrate the large Chinese market.

“Like most countries, China is a highly segmented marketplace where consumers and their purchasing habits differ in various regions and provinces,” he said.

He projected that the growth rate of the country’s exports to China will increase more than that of Japan and the US. He noted that China’s rise as an economic powerhouse is one of the key factors that helped propel Philippine exports.

He added China will need to import more to sustain its 1.3 billion people and their requirements. These imports include metals, electronics and agri-based products. “This projection is supported by the increase in China’s demand for processed Philippine food products and fresh fruits like bananas, as well as minerals and metals like iron ore, copper and nickel,” Escalona said.