Stagnation in Philippine Exports: A Call for Action This is a polished and professional version of the blog post. It appears to be an analysis of the current state of the Philippines' exports, particularly in the hard goods and garments sectors, and proposes solutions to address the stagnation.

Here is a polished and professional version of the blog post

Stagnation in Philippine Exports A Call for Action

The Philippines' hard goods and garments exports have been stuck in a state of stagnation, with projected values remaining flat at $900 million for 2025. According to the Foreign Buyers Association of the Philippines (Fobap), this stagnation can be attributed to the uncertainty surrounding international trade policies.

Trump's Protectionist Policies A Cause for Concern

The expiration of the US Generalized Scheme of Preference (GSP) program on December 31, 2020, has led to many Philippine products losing duty-free status in the US market. Fobap President Robert Young notes that everyone is in a waiting game due to these protectionist policies.

A Lifeline for Exporters Reauthorization of GSP and FTA

To boost export revenues by 5-10 percent this year, particularly in the hard goods sector, Fobap is lobbying for the reauthorization of the US GSP program. Additionally, the association is pushing for a bilateral Free Trade Agreement (FTA) with the US. The Department of Trade and Industry (DTI) has expressed strong support for these efforts.

A Silver Lining Post-Pandemic Demand for Hard Goods

On a positive note, Fobap reports a post-pandemic rise in demand for hard goods. The association has clinched $2 million worth of new orders for products such as bread baskets, hampers, fruit baskets, and housewares made from natural fibers like abaca, sinamay, and tikog (native reed) from top furniture and houseware retail stores in America and Europe.

The Power of Natural Fibers A Competitive Advantage

Young highlights the preference for natural fibers among buyers. Most products from advanced countries are made of synthetic materials, and buyers still prefer natural fibers, like abaca for their tableware, he says. Fobap is working with indigenous fiber producers in Eastern Visayas to provide training for product quality specifications, enabling them to qualify as exporter suppliers.

Empowering Local Communities A Solution to the Skills Gap

The planned livelihood training program will benefit 250 weavers, addressing the skills gap and product quality issues. This initiative will not only ease demand for supplies but also empower local communities. Fobap is committed to fostering a culture of innovation, entrepreneurship, and sustainability in the export sector.

Conclusion Unlocking Growth Potential

The Philippines' hard goods and garments exports may be stuck in a state of stagnation, but there are glimmers of hope on the horizon. By reauthorizing GSP and negotiating an FTA with the US, the government can breathe new life into the sector. Meanwhile, Fobap's efforts to promote natural fibers and empower local communities demonstrate a commitment to driving growth through innovation and collaboration.

Keywords Philippine exports, hard goods, garments, Foreign Buyers Association of the Philippines (Fobap), Generalized Scheme of Preference (GSP), Free Trade Agreement (FTA), Department of Trade and Industry (DTI), natural fibers, abaca, sinamay, tikog.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.