EXPORTS of garments, textiles, and apparel are expected to grow between 2% and 5% next year as the government negotiates a lower tariff with the US and as the industry explores new markets.
Foreign Buyers Association of the Philippines President Robert M. Young said exports this year were “surprisingly good” because of advance deliveries that were meant to cushion the impact of the US reciprocal tariff.
“Revenue is expected to hit $1 billion from around $800 million in 2024,” he said in a statement over the weekend.
He expects growth to continue next year as the government continues to negotiate a lower reciprocal tariff and exemptions.
“They are still asking for some adjustments, and they are trying to talk to Washington about decreasing the 19% (tariff), as President Trump did with three countries. Some were even reduced to zero,” he said.
“I hope we can also have that kind of treatment, and if that happens, that will be the best thing for us,” he added.
He said the industry has been exploring other markets, including the European Union, the Association of Southeast Asian Nations (ASEAN), Canada, and Australia.
“They are banking on the opening of new markets through free trade agreements (FTAs),” he said.
“We are requesting more FTAs because I think among the ASEAN countries, we have the least number of FTAs,” he said.
However, the group is seeking government subsidies to help offset the rise in input costs and make the industry’s products more competitive.
“We were asking for some subsidy for power and labor costs as well. We were talking to the Department of Labor and Employment people also to give us some leeway,” he said, noting that the industry is hoping for breaks like tax deductions.
“With all these things that could come into play, we hope to lower our FOB (free on board) cost,” he added.
He said that with government assistance and more FTAs in place, the industry can return in two to four years to the $5-billion export level of 10 to 15 years ago.
“When we say $3 billion to $5 billion in three or four years’ time, we are looking forward to some textile factories being established in the Philippines, (which will reduce) our fabric cost,” he added. — Justine Irish D. Tabile