DTI eyes further easing trade restrictions as exports grow

THE Department of Trade and Industry (DTI) is keen on keeping the momentum for Philippine exports after registering double-digit growth last year as some commodity groups’ revenues returned to pre-pandemic levels already.

Trade Secretary Ramon M. Lopez said in a statement on Sunday that the DTI intends to further help exporters maximize the opportunities amid the improving global market performance by eliminating hurdles in trading.

“Our focus for the first half of 2022 is to unlock the unrealized export potential of the country and empower our exporters in seizing opportunities in the recovery of global markets,” Lopez said. “Unlocking trade barriers or frictions alone could add another $20 billion to our export earnings.”

The Trade official was referring to a study by International Trade Center (ITC), which computed $49-billion worth of unrealized export potential for the Philippines, $20 billion of which is due to product-market-specific frictions. The remaining $29 billion is attributed to the projected growth of the economy and export markets.

Citing the study, the DTI noted that the trade barriers are “often linked to lack of market knowledge, difficulties in complying with market requirements and difficulties in matching buyers with the right suppliers, among others.”

The department also aims to highlight the export potential of coconuts after being identified as a key product among agricultural products with more complex value chains.

It noted that coconut oil is one of the significant contributors of export revenues last month.

“As sales of coconut oil continue to accelerate, other coconut products are also gaining traction in the global market,” Lopez said.

The demand for coconut products is seen to rise substantially as the growth of urban population will result in more consumption of processed food products, the DTI said, citing a report.

The DTI, in promoting coconut as an export product, will target the health and wellness market and other non-food uses for the produce, as well as the traditional food product segments.

Undersecretary for Trade Promotion Abdulgani M. Macatoman said the DTI will extend assistance to coconut exporters through technical and marketing support, including training on export management and marketing and support to their participation in international trade fairs and business matching seasons.

“First for this year will be the export promotion activities in the Middle East/north Africa (MENA) region, including in-store promotion of Philippine food products in leading supermarkets in the United Arab Emirates (UAE), participation in Gulfood and a business matching session in Dubai,” Macatoman said.

Bananas, pineapple and tuna were also cited as products with high export potential. According to the ITC study, Philippine agriculture, food and beverage exports have an unrealized export potential of $5.2 billion.

For manufacturing, the study also highlighted motor vehicles and parts, plastics and rubber, optical products, watches and medical instruments and machinery and electricity as export growth drivers.

Philippine merchandise exports grew by 14.5 percent to $74.6 billion last year, according to the Philippine Statistics Authority. Top export markets for 2021 include the United States, China and Japan.