associate sector
auto parts & components sector
chemicals sector
electronics sector
fashion and accessories sector
food sector
furnitures sector
garments sector
housewares sector
information technology sector
leathergoods sector
decors and giftwares sector
metal sector
non-metal sector
resource-based sector
 
June 05, 2009

1. Business, academe, civil society back creation of trade negotiating office

Business groups, the academic community and civil society have thrown their support to the creation of a Philippine Trade Representative Office (PTRO) nearing passage into law in both Houses of Congress.

The support was arrived at towards the conclusion of a dialogue on creating such an office called by the Asian Institute of Management (AIM) with partner organizations the other day.

It was established during the dialogue that unlike other countries, the Philippines has no single authoritative agency that handles trade policy development and negotiations.

This came about even as the Philippines is at a frenzy at negotiating new bilateral and regional trade agreements, among them, the planned free trade deal with the United States and the European Union.

Former senator Wigberto Tanada, convenor of the Fair Trade Alliance, in addressing participants to the dialogue, said it all when he said that no public official can be made accountable for the trade and investment treaties they negotiate under s system where everything is done on an “ad hoc” system.

He also made it clear that with the creation of the PTRO, the formulation of trade policy backed with research on the ground will be institutionalized. So with a system of consultation with stakeholders whose interests will be most affected by these trade agreements.

He cited the new Japan-Philippines Economic Cooperation Agreement (JPEPA) as an example of a treaty that was negotiated in secrecy that should no longer happen. There were also instances, cited Tanada, even a regime during the time of then President Ramos, when the country decided to unilaterally cut down import tariffs at the detriment of domestic industries.

The PTRO bill (HB 5971), authored by Rep. Lorenzo Tanada III in the House of Representatives and co-authored by Speaker Nograles, has been passed on final and third reading, while its counterpart in the Senate is soon to convene a technical working group before the details are finalized by the trade committee of Sen. Manuel Roxas II.

Tanada expressed hope that Congress will finally give the PTRO as a gift to the people as an institution that forwards the country’s national economic interests in a globalizing world economy.

On the part of the alliance, Tanada revealed it has evolved a five-point economic development agenda to counter the “unbridled” and reckless trade liberalization.

The five-point agenda, he said, will benchmark Philippine trade development, rebuild our fences particularly in combating wide-scale smuggling, build the nation’s productive capacity through domestic direct investments, unleash the people’s productive capacity and the development of a culture of industrialism or tangkilikan, excellence and economic nationalism.

Tanada also lamented the fact that under the present set-up, our quality of negotiators is such that they have not determined what represents our national interests in negotiating trade, investment and other economic partnerships. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. Electronics exports start recovering lost grounds

The recovery has not been spectacular, but the country’s electronics industry has been inching up since the month of March.

This was the assessment given to the PHILEXPORT News and Features by Arthur Young Jr., chairman of the Semiconductor and Electronics Industries of the Philippines Inc. (SIEPI), the biggest export industry in the Philippines.

“The lowest ebb suffered by the industry was the last quarter of last year and the first two months of this year. The decline has been bottoming out since March,” said Young only days before official government report on exports for the month of April are to be released.

He explained that total performance in March, although still lower than the same month in 2008, already inched up by 6.5 percent compared to exports in the previous month of February.

Total exports this year may still be lower than in 2008, he explained. But by the third quarter, he expects that total sales will be higher than sales for the third quarter of last year when the industry suffered a double-digit retreat.

As a result of the slow recovery, companies are beginning to recall to work employees who were sent on extended leave at the height of the trade slowdown.

“We are going to win back lost grounds by next year or in 2011, depending on how fast the demand for electronics products kick up in major market,” he said. This would mean that by next year at the earliest, the industry would be enabled to export a total of $31 billion, its peak yearly export sale before the global recession hit our shores.

The industry has stopped retrenchments as a strategy, he intimated. In fact, there were just a few companies that closed shop, but it was the media that sensationalized the situation, Young claimed.

Demonstrating the industry’s confidence in the local economy, he said SEIPI and the Business Process Association of the Philippines (BPAP) have teamed up to launch an international investment promotions campaign that zeroes in on the high quality of Philippine workers.

He said that the team expects the investment promotions campaign to target new locators in the field of electronics manufacturing and business process outsourcing. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. Group certification available for small organic growers

Small organic growers have been encouraged to secure “group certification” as a way to cut guarantee costs.

This advice was given by Lani Limpin, board secretary of the Organic Certification Center of the Philippines (OCCP), as she dispelled misconception that their certification is favorable to large-scale producers.

OCCP is an independent, private and membership-based organic standard setting and organic certification body.

Limpin said eligible for group or multi-site certification are organic producers and processors whose farms are contiguous to each other.

“Our certification depends on the presence of their functional internal control system (ICS),” she said.

Through the ICS mechanism, the group decides on members’ compliance to applicable standards. Non-compliances are dealt with according to a set of procedures and sanctions. Measures to handle appeals and complaints are also in place for some groups.

The International Federation of Organic Agriculture Movements (IFOAM), a worldwide alliance of organized groups involved in farming and food production, believes that the system of having a functional ICS together with an annual inspection/evaluation by a third party certification body offers a sound if not better organic guarantee system.

“The system offers two levels of control as opposed to one,” it said. “It encourages group organization, which enhances the overall capacity of individual members within the group to institute and further develop Good Management Practices.”

“Furthermore, the flow of products from individual producers is under greater control with centralized marketing as a group. The maze of transactions between different actors is a major cause of fraud in the organic industry, especially when they are certified by different bodies,” added IFOAM.

Likewise, Limpin cited the importance for growers to secure organic certification.

The certification is a way of protecting consumers, producers and traders against the use of misleading or deceptive labels, she said.

It also a marketing instrument enabling producers to access foreign and local markets for organic products and obtain premium prices, she added.

Limpin said the labeling of organically-grown products is among the salient provisions of Executive Order 481, also known as the Promotion and Development of Organic Farming in the Philippines. -- Danielle Venz, PHILEXPORT News and Features <--back

4. Sell seasonless, reasonably priced collection designs, retailers told

A style trend expert has urged retailers to offer seasonless and reasonably-priced collections in the market.

Ruth Marshall-Johnson, think tank senior editor of the Worth Global Style Network (WGSN), in a seminar said consumers are looking for seasonless collections that give more than just a quick fashion hit. WGSN is among the world’s leading style trends provider.

“Make sure the product is given space to shine,” she said. “Experiential selling will drive traffic to your stores so try selling experience as well as product.”

Johnson noted that “price sensitivity” can be also incorporated into their collection design to effectively capture the discount-driven market.

She said designs should be used strategically to build brand distinction.

“A strong personality will get you noticed by consumers, making you easier to identify with. If you haven’t got one, make one up!” she said.

Green is still a very important subject for consumers, Johnson noted, urging them to “ensure you have it on your agenda.”

She also underscored the need to develop collection designs geared specially for local consumers. “Take care of the locals; keep close to the consumer and offer a local, more targeted and more creative designs.”

Johnson said styling directions this and next year are new nostalgia, 80s power dressing accessories, earthbound, warrior goddess, baroque-rock and country grunge. Based on

WGSN’s commercial analysis, Johnson said velvet and furnishing fabrics will be fashion hits, while more consumers will opt for engineered prints.

On the other hand, color trends for the season are tinted, color washed, faded and brights, she said. -- Danielle Venz, PHILEXPORT News and Features <--back

5. RP to host meetings of inter-governmental groups on hard and natural fibers in October

Representatives of producing and consuming countries of natural fibers will gather in Manila this October to attend the joint sessions of the Inter-Governmental Groups on Hard Fibres and of Jute, Kenaf and Allied Fibers that will tackle pressing issues concerning their fiber industries.

Ellen Dimayuga, officer-in-charge of the Fiber Industry Development Authority’s (FIDA) marketing division, said the meetings, usually done in Rome, Italy, would be held at the Philippine International Convention Center (PICC) on October 20 to 22.

Dimayuga said among the expected participants at the sessions are representatives of Germany, United Kingdom, India, Brazil and Tanzania.

She said the meetings are part of the activities for the “International Year of Natural Fibres (IYNF)” in 2009 that aims to raise awareness and stimulate demand for natural fibers.

IYNF also intends to promote efficiency and sustainability of the natural fibers and foster an effective international partnership among the various natural fibers industries.

Its observance was declared by United Nations General Assembly and is being facilitated by the Food and Agricultural Organization (FAO).

Natural fibers are produced from plants and animals. These include abaca, alpaca, angora, coir, cotton, fique, flax, hemp, jute, kenaf, llama, mohair, ramie, silk, sisal and wool.

The Philippines is the world’s leading producer of abaca providing close to 86 percent of the world’s supply, followed by Ecuador capturing the remaining 14 percent.

As part of the observance of IYNF, Dimayuga said other activities have been held throughout the year in the different abaca-producing provinces across the country.

These are the farmers’ field day, the abaca seed production training, training on abaca package of technology and abaca farmers’ field schools.

Last month, abaca disease eradication was implemented in Maasin City, Southern Leyte; while a consultative conference on abaca and a fashion show featuring creations by Filipino designers using Philippine weaves were also held, she said.

Moreover, a book on abaca authored by Ms. Elizabeth Potter Sievert and published by Ateneo University in partnership with FIDA will be launched this July 27.

The issuance of commemorative stamps and other philatelic products in collaboration with the Philippine Postal Corporation is slated for October. -- Danielle Venz, PHILEXPORT News and Features <--back