The country’s garments exports may grow by two to five percent next year from the projected $1 billion this year as the government continues efforts to bring down the US’ tariff and industry players expand to new markets, according to the Foreign Buyers Association of the Philippines (FOBAP).
In a statement released by the Philippine Exporters Confederation Inc. (Philexport), the group said that the country’s garments, textile and apparel sector’s exports are projected to rise by up to five percent next year.
For this year, FOBAP president Robert Young said the country’s garments and apparel export revenues are expected to rise to $1 billion from around $900 million last year.
Young, who also serves as trustee for the textile, yarn and fabric sector of Philexport, said advance deliveries helped cushion the impact of the US tariff.
“We are again looking forward to 2026 that this (growth) will continue,” he said, citing the government’s efforts, including talks with US counterparts aimed at lowering the 19 percent tariff imposed on Philippine goods.
Last month, former Special Assistant to the President for Investment and Economic Affairs and now Finance Secretary Frederick Go said that the government hopes to secure exemptions from the US tariffs for the country’s garment, travel accessories and furniture exports.
At present, the 19 percent tariff imposed on Philippine goods entering the US does not apply to key semiconductor and agricultural exports.
Young said industry players also continue to look for other export markets including the European Union, the Association of Southeast Asian Nations (ASEAN), Canada and Australia.
He said the group is also banking on the opening of new markets through free trade agreements (FTAs) to support exports growth.
“We are requesting more FTAs because I think among the ASEAN countries, we have the least number of FTAs. When we compare it to our ASEAN neighbors, we have the least number of FTA so this is very important,” he said.
To make products more competitive, Young said industry players are also seeking subsidies to cover power cost, one of the key factors driving up commodity prices.
“We were asking for some subsidy for the power and labor cost as well. So we were also talking to the DOLE (Department of Labor and Employment) people to give us some leeway. If it’s like an export performance, it depends on the export performance, we will be given some tax deduction and all these kinds of things,” he said.
