Philippines : President Asks US To Increase Export Quota On Garments

In her visit to US, Arroyo the president of Philippines will tell US government to raise export quota on high-demand garment items of Philippines.

Donald Dee, chairman of the Confederation of Garments Exporters of the Philippines, told that the Philippine government, with the help of their group, has mapped out a bargaining strategy to entice the US to hike the Philippines’ garments export quota on “critical items.”

“We are going to bargain something. But I don’t want to reveal it now because I don’t want to preempt the President,” Dee said.

He said that should the so-called bargain work, the Philippine garments industry would be able to surpass last year’s total garments and textile export to the US worth $2.1 billion.

An indicator that the government is serious in negotiating for the quota increase is the inclusion of Department of Trade and Industry-Garment and Textile Export Board (DTI-GTEB) executive director Serafin N. Juliano in President Arroyo’s party to the US.

Juliano will leave for the US tomorrow, while Trade Secretary Manuel A. Roxas II left for the US yesterday.

President Arroyo, Dee said, will negotiate for more room in the quota level or quantitative limit on items with high demand, although he did not say what kind of products in particular.

Data from the GTEB showed the Philippines’ top selling garments to the US are cotton pants/shorts (Category 347/8), cotton knit tops (Cat. 338/9), knit tops of manmade fabrics (Cat. 638/9), infants’ sets (Cat. 239-quota free) and luggage/handbags (Cat. 670 LE).

However, skirts (Cat. 3/642), women’s cotton coats (Cat. 335) and polyester filament fabrics (Cat. 619) posted the highest increments in exports last year.

“We want to bring it up as high as we can. The government is hoping that the US would help us improve market access so we could reduce unemployment and poverty in the country,” Dee said.

He said that industry players have indicated to the government their preferred increase in the quota level although they are giving Arroyo “the room for negotiation.”

The US accounted for 74 percent of the Philippines’ total textile export of $2.444 billion last year.

Textile is the Philippines’ second biggest export product, next to electronics.

Dee said the garments industry is very important as it employs the less skilled among Filipinos, and is the biggest employer of women folk.

Currently, Dee said the industry employs around half a million people.

Earlier, the DTI said that the government would ask for duty-free privileges on more local products being exported to the US. These products include dried mangoes, pineapple juices, carageenan and tuna.