PHILIPPINE exporters are learning to maximize their use of a Generalized System of Preferences (GSP) arrangement with the US, resulting in increased exports overall to that country, the Department of Trade and Industry (DTI) said.
Exports to the US rose 15.83% in 2018 to $1.73 billion, with exporters filling about 72% of the available $2.41 billion that could have been taken in by the US. In 2017, the corresponding usage rate was 67%.
In an e-mail, Assistant Secretary of the DTI’s Industry Development and Trade Policy Group Allan B. Gepty said that the increase in exports was due to the inclusion of a number of travel goods categories for export to the US starting July 2017.
“Philippine exports to the United States under the US GSP scheme continued to increase. One of the major reasons for this is the increase in exports of travel goods (e.g. handbags, travel, sports and similar bags, cases, bags and containers) which were included in the coverage beginning July 1, 2017.”
Some travel goods were among the top exports to the US in 2018, with handbags with plastic sheeting placing fourth ($64.24 million), handbags with leather composition placing fifth ($62.95 million), travel and sports bag eighth ($47.98 million) and cases, bags and containers placing ninth ($44.97 million).
The top export to the US under the GSP arrangement in 2018 was pneumatic radial tires for motor cars, amounting to $119 million, up from $113.7 million a year earlier.
“It was also noted that exports of electric motors, insulated electric conductors, and telescopic sights significantly increased in 2018,” Mr. Gepty said in the e-mail.
Telescopic sights were the number two export to the US in 2018 at $96.17 million, up 9% from a year earlier. Insulated electric conductors amounted to $64.33 million, up 10%.
“Other” cane sugar products, however, declined 42.24% amounted to $60.82 million.
“One of the reasons for the decrease was due to the reduction of allocation for the US market as a result of an increase in the domestic demand for sugar,” said Mr. Gepty.
The DTI is optimistic on the outlook for US trade relations. In 2018, trade with the US was worth $18.7 billion, accounting for 10.3% of total trade. He expects the growth to be “sustained.” — Katrina T. Mina
