Monday, December 31, 2012

Trade, investment hopes spring in 2012

Manila (Philippine Daily Inquirer/ANN) - The Philippines' Department of Trade and Industry (DTI) will likely end 2012 on a happy note as officials welcome improvements from last year as well as optimism going into the new year. Merchandise exports benefited from a low base and the absence of major supply chain disruptions similar to the triple disaster in Japan and the flooding that hit Thailand in 2011. Robust shipments helped the economy expand in terms of gross domestic product (GDP), which economists expect to hit about 7 percent this year. "People thought I was crazy when I said before that GDP could hit 7 percent," Trade Secretary Gregory Domingo told the Inquirer in an interview. "And yet, here we are, with 6.5 percent GDP in the first nine months, growing exports, and high investor interest." Government wants the economy to grow at an average yearly rate of 7 to 8 percent to curb poverty. Merchandise exports are expected to breach the record $51.4 billion set in 2010, and may even reach up to about $52 billion from last year's $48 billion, Trade Undersecretary Cristino Panlilio said in a separate interview. Related story: Poll: 9 of 10 Pinoys have high hopes for New Year Interestingly, Panlilio said, growth comes despite the flat performance of electronics, which make up nearly half of outbound shipments. This means growth is largely coming from non-electronics exports, particularly agro-industrial products. It may take officials until February to consolidate and publish exports data, but Panlilio is confident that sales of most Philippine merchandise, including fruits, coconut oil, and sugar will hit a new record. Cumulative merchandise exports for the first ten months of 2012 grew by 7.1 percent to $44.475 billion, from the $41.532 billion posted in the same period last year, according to the National Statistics Office. Going into 2013, trade officials also expect fresh investments as they follow up on inbound missions-business trips comprising 5 or so companies-from various countries. Such missions may reach 35 by the end of December 2012, Panlilio said. There were 18 registered in 2011, according to DTI data. Among the notable missions this year came from Russia, France, Italy, Turkey, and the United Kingdom. "The key factor is, if the markets will absorb more of our exports," said Sergio Ortiz-Luis, Jr., Philippine Exporters Confederation president. Also read: Envoys upbeat on Philippines-US ties Part of DTI's strategy to boost outbound shipments is to educate exporters and would-be traders on how to benefit from free-trade agreements (FTA). A free-trade agreement is a deal between two or more countries to eliminate or reduce tariffs and other requirements that restrict trade among nations. The DTI's Bureau of Export Trade Promotion (BETP) and the Philippine Trade Training Center facilitate the seminars. From January to October this year, the DTI conducted 95 seminars on FTAs, trade standards, and even product design preferences of consumers in target markets. The Philippines' participation in trade agreements aids 55 percent of exported merchandise, BETP director Senen Perlada said. Among these are food and beverages, jewelry, appliances and electronics, furniture, handicraft, cosmetics, agro-industrial products, and chemicals. Presently, the Philippines has FTAs with the Asean, China, Japan, Korea, India, Australia and New Zealand. Customs brokers, BPOs, and the academe also benefit as they provide linkages and services, Perlada added.