Philippines exporters hoping for renewal of US GSP

February 9, 2025 | 12:00am

MANILA, Philippines — Philippine exports of hard goods and garments are expected to remain flat at around $900 million this year, but industry players are hoping for a boost if the United States renews its trade preference program and starts negotiations for a bilateral free trade agreement (FTA).

Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP) and trustee of the Philippine Exporters Confederation Inc. (Philexport) for  the textile, yarn and fabric sector said that if the US Generalized System of Preferences (GSP) is not reauthorized, “we will just be flat, we will just survive.”

He said sales from garments exports could go even lower because the country can no longer supply buyers with the required quantity due to prices.

“Everybody is in a waiting game because of (the leadership of new US President Donald) Trump,” he said.

If the US revives the US GSP, he said export revenues may increase by five to 10 percent this year, especially from hard goods.

The US GSP, which expired in 2020, allowed the duty-free entry of products to the US coming from 122 designated beneficiary countries and territories, including the Philippines.

Young also expressed optimism on prospects of a free trade deal between the Philippines and the US.

“I don’t know if the FTA can be granted by the Trump administration although our DTI (Department of Trade and Industry) is strongly lobbying right now. DTI Undersecretary Ceferino Rodolfo already announced that they are trying very, very hard (in pushing for the bilateral FTA) so that is good news because you know, the orders are there, ” Young said.

Earlier, Rodolfo said the Philippines would actively push for a bilateral FTA with the US to take advantage of the interest shown in trade deal with the Philippines during Trump’s first term as US president.

“Looking at the track record of Trump and his announcements in the confirmation hearings, we’d really like to take advantage of this to convert this into actual policy initiatives that would move forward the Philippines-US bilateral FTA,” Rodolfo said.

Young said the US accounts for 90 percent of the Philippines’ total exports of hard goods and garments, while the balance is held by Southeast Asia and the European Union.

He said the FOBAP has received new orders for hard goods worth $2 million from top furniture and houseware retail stores in the US and Europe.

The orders are for goods including bread baskets, hampers, fruit baskets and housewares made from vegetable fibers like the abaca and tikog (native reed).

“Most of the products that are coming from the more advanced countries are made of synthetic (materials) so more buyers still prefer natural fibers like abaca for their tablewares,” Young said.

To fulfill orders placed by international buyers, Young said FOBAP and Philexport have tapped producers of indigenous fibers for hard goods in Eastern Visayas.

He said there would be training for around 250 weavers on product quality specifications for the producers to qualify as exporter suppliers.

“This way, we can solve the skills gap and the (product) quality problem, craftsmanship problem and at the same time, it will somehow ease up our demand for supplies of these products,” he said