Weak demand abroad won’t dampen revenue goal of exporters
ILOILO CITY—Local exporters are still batting for an eight to 10 percent growth in export revenues this year amid the slowdown of the Chinese economy and the softening in demand from other key markets.
Crucial to achieving this target, however, would be the aggressive implementation of trade facilitation measures in areas where markets have failed previously, Philippine Exporters Confederation Inc. (Philexport) president Sergio R. Ortiz-Luis Jr. said.
Ortiz-Luis acknowledged the target is a “tall order” given the continued decline in export numbers.
In July, Philippine exports declined by nearly two percent to $5.32 billion due to slow demand from major export markets such as China and the still fragile economies of Japan and the United States.
This had brought the country’s cumulative export receipts to $34.21 billion in the first seven months of the year, reflecting a decline of 4.1 percent from the $35.65 billion recorded in the same period last year.
Ortiz-Luis cited studies indicating better trade facilitation will be key to reducing the cost of international trade transactions through simplification and harmonization of trade procedures.
Another study made for the Asean and East Asia, on the other hand, revealed inefficient trade procedures such as a day’s delay in shipment already reduce trade volume by at least one percent, he added.
To facilitate trade, Ortiz-Luis said his group, in coordination with concerned government agencies, is pursuing programs such as the Revised Kyoto Convention, the National Single Window and the Asean Single Window, and the Automated Export Documentation System. These trade facilitation schemes basically expedite clearances for cargo movement.
He also cited as positive development Congress’ approval of the landmark and longsought pieces of legislation namely, the Philippine Competition Act and the Foreign Ships Co-Loading Act. The former promotes free and fair competition in trade while the latter allows foreign shipping firms to dock at multiple Philippine ports.
Ortiz-Luis also remained hopeful that the current Congress will approve a direct trade facilitation intervention called the Customs Modernization and Tariff Act, which anchors Bureau of Customs operations on international standards such procedures on the disposal of counterfeit goods.
The Philexport chief also identified other proposals and programs such as self-certification and e-certification, e-filing of government documents, virtual trade repository, one-stop shops and similar projects, which are seen as complementary trade facilitation schemes.
In an earlier interview, OrtizLuis noted Philippine exports may only grow by 3 percent if the global economic situation persists and no new measures or programs are instituted.