Tapping new markets will enable Philippine trade to bounce back from its slight decline in June 2017, urges the National Economic and Development Authority (NEDA).
NEDA-attached agency Philippine Statistics Authority reported that the country’s total trade contracted by 1.2% in June 2017 after posting 10 months of positive growth since August last year.
Despite the contraction, total merchandise trade grew by 11.2% for the first half of 2017 from the previous year, with exports (13.6% growth) and imports (9.6%) supporting the growth.
“We expect Philippine trade to recover, as the global economic recovery is seen to be on firmer footing in the second half of the year,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement.
He noted that to help open up new trade markets, the country can take advantage of its EU Generalized System of Preferences Plus (GSP+) preferential status.
Pernia also recommended that the Department of Trade and Industry continue its information sessions on “Doing Business with the EU using the GSP+” in key cities and towns in the Philippines.
“This will help businesses to comply with the requirements, such as rules of origin, and hurdle trade barriers, such as product standards,” Pernia, who is also NEDA director-general, said.
Meanwhile, modest growth in Philippine exports to the Association of Southeast Asian Nations (ASEAN), which accelerated 4.8%, and the European Union (3.9%) helped cushion the decline in traditional markets such as U.S. (-8.7%), Japan (-9%), and China (-2.4%).
For Philippine imports, growth in imports from ASEAN (4.5%) and EU (0.5%) helped offset the declines from the U.S. (-8.2%), China (-3.7%), and Taiwan (-33.1%).
“In light of our hosting of the ASEAN Summit this year, our country is also in a better position to push for a reduction in non-tariff barriers within the region,” Pernia said, noting that non-tariff measures had increased from 1,634 to 5,975 between 2000 and 2015.
Pernia also noted the need to continue regulatory reforms identified in the Philippine Development Plan 2017-2022, including delisting, abolishing, and consolidating or easing existing rules and regulations that affect doing business in the country.
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