By Kris M. Crismundo
MANILA, Sept. 4 (PNA) — The country’s exports of garments and hard goods are seen to double in the next two years hitting USD 1.5 billion, Foreign Buyers Association of the Philippines (FOBAP) President Robert Young said.
Young attributed the optimism of the industry to trade schemes that the Philippines is benefiting such as the European Union Generalized System of Preference Plus (UE GSP+) and the GSP from the United States as well as regional economic integrations taking place globally.
The GSP+ granted by the European Union in December 2014 slashed tariffs to 6,274 products from the Philippines exported to EU market.
In June 2015, US President Barack Obama signed Trade Preferences Extension Act of 2015 which will implement the US GSP until December 2017 after it expired at end-July 2013.
Young said the full implementation of ASEAN integration is also expected to boost Philippine exports.
He added that the Philippines, once pushes its membership and be approved to join the US-led Trans Pacific Partnership (TPP) Agreement, will be beneficial for the garments’ exports.
In order to seize the opportunity, Young said the Philippines should hasten its social compliance awareness program for the export manufacturing industry.
“We are really after the improvement of the laborers’ conditions plus the economic condition of the Philippines in terms of exports. This is also in connection with the generation of labor or workforce. If a factory is compliant, definitely there will be more orders. If there will be more orders, the factory will expand, then there will be more jobs for the Filipinos,” he said.
“They have to shape up or ship out because the competition will be very tough as soon as the ASEAN integration comes into effect. This will be a borderless trade and all the competition is just like limitless as far as price, quality and design are concerned,” he added. (PNA)