PH Participation in China Expo a Resounding Success

The Philippines generated a record-high $655.15 million in sales through its trade fair participation at the China International Import Expo (CIIE) in Shanghai held early in November. This is the highest yield recorded for a Philippine country participation anywhere in the world for the year, and the highest sales generated from the CIIE since its inception in 2018.

The Philippines' hybrid participation, led by the Center for International Trade Expositions and Missions (CITEM), included 62 food and food-related companies, the highest number of Philippine exhibitors in the CIIE to date.

Secretary Fred Pascual of the Department of Trade and Industry (DTI), in his remarks during the official opening of the CIIE participation, stated that, “Our participation in the CIIE has become not only a practical response to opportunity but an imperative to expand our international market, cement the Philippines’ reputation as a reliable sourcing destination for food, and introduce more quality food products into China’s mainstream markets.”
On-site sales and bulk purchase contracts accounted for 97% of total sales, while the remaining 3% came from online business-matching activities.

“The amount of products we export to China has vastly increased in the past 5-6 years, and sales were 5 times higher compared to the first time the Philippines has participated in the 2018 CIIE,” said Philippine Trade and Investment Center (PTIC) Shanghai head Mario C. Tani.

The CIIE was launched in 2018 as one of China's major trade promotion initiatives, with China President Xi Jinping attending the first two editions in Shanghai. Despite the pandemic, increased sales were generated both in 2020 and 2021.

At the forefront of the CIIE pavilion design and conceptualization, CITEM presented a one-country promotional approach with a single storyline, a call to experience a “Festival of Island Flavors.” The Philippine pavilion showcased three brands: FOODPhilippines, CoconutPhilippines, and Liwayway China's well-known Oishi brand.

The DTI, through its Trade Promotions Group (TPG) and the Export Marketing Bureau (EMB), also established strategic alliances by signing cooperation intentions with two of China's largest food chambers, the Beijing-based China Chamber of Commerce of Foodstuffs and Native Produce (CFNA) and the Shanghai Food Association (SFA).

With a combined membership of 7,500 companies, these cooperation arrangements will be critical to enhancing cooperation between Philippine and Chinese companies in areas such as business-matching, technical cooperation, and investments to boost food production capacity.
“We value the partnership with CFNA and SFA as we pursue increased collaboration in enhancing food trade. We hope that this can progress to deeper collaboration in the whole value chain in food production, processing and marketing,” said DTI’s OIC for TPG, Assistant Secretary Glenn Peñaranda.
The Philippines' hybrid participation is led by DTI through CITEM, its export promotion arm. It is co-organized with the Foreign Trade Service Corps (FTSC) through the Philippine Trade and Investment Center-Shanghai (PTIC-Shanghai), the Export Marketing Bureau, together with partner agencies, the Department of Agriculture (DA) through the Office of the Agricultural Counsellor in Beijing (OAC-Beijing), and the Philippine Exporters Confederation, Inc. (PHILEXPORT).

About CITEM

The Center for International Trade Expositions and Missions (CITEM) is the export promotions arm of the Philippine Department of Trade and Industry (DTI).

For nearly 40 years, CITEM has established the country’s image as a premier destination for quality export products and services. It continues to set the highest standards of creativity, excellence and innovation to achieve competitiveness in the home, fashion, lifestyle, food, creative, and sustainability sectors.

CITEM is committed to developing, nurturing, and promoting micro, small, and medium enterprises (MSMEs), brands, designers, and manufacturers by implementing an integrated approach to export marketing in partnership with other government and private entities.

About FOODPhilippines

FOODPhilippines promotes the country as a source of quality food products and ingredients in physical and/or digital trade shows and business-to-business platforms in priority markets around the world.

Under the FOODPhilippines banner, the Philippines is positioned as an exporter of healthy, organic, natural, and specialty food products and services.

Industry Policy Determines Trade Strategy – DTI Chief

MAKATI – Department of Trade and Industry (DTI) Secretary Ramon Lopez said that industry policy determines trade strategy and shared DTI’s unified approach to spurring trade and investments in DTI’s One Country, One Voice (OCOV) forum last 4 December.

“Essentially, the objective is to develop and strengthen our industries that will generate local employment. Our positions in trade negotiations have to be aligned with our plans in industry development,” Sec. Lopez said.

“What industry do we think will be strategic? What industry should be developed? Where do we have comparative advantage? Then we will put our minds, our support and our programs behind all these industries which we will be promoting” he added.

The trade chief also stressed the importance of trade agreements, since 93% of all exports go to countries with existing agreements with the Philippines.

“President Rodrigo Duterte’s independent foreign policy allowed the Philippines to pursue trade relations with both US and China and helped begin trade relations with non-traditional partners, like Russia and some countries in the Middle East. The Department of Trade and Industry is doing its part to assure that the Philippines is a friend to all,” said Secretary Lopez.

However, he added that trade relations should be fair to both countries: “We, the Philippines, are decent trading partners. We follow the rules and we expect partners to also treat us fairly. Otherwise, we will have no choice but to retaliate—but again still following the rules and procedures for negotiation.”

The Philippines has seven free trade agreements, two bilateral agreements, and 30 existing Joint Economic Cooperation agreements, and is benefiting from Generalized System of Preferences (GSPs) from 10 countries, namely US, EU, Australia, Belarus, Canada, Japan, Kazakhstan, New Zealand, Russia, and Turkey.

Ambassador Ron Sorini, Former Chief Negotiator for the Office of the US Trade Representative (USTR), said that for the US, the only serious candidate for free trade agreement negotiations is the Philippines. Amb. Sorini gave a talk on the topic “Identifying the Policy Environment for New Generation FTAs in the New Era of Globalization.”

Undersecretary Ceferino Rodolfo explained DTI’s “Last Touch Strategy” with the vision for the Philippines to become a strategic manufacturing and export base. This strategy aims to integrate the Philippines into the regional value chain production networks and provide the country with the greatest local value addition and best market access for its products.

To reap the maximum benefits from this strategy, Usec. Rodolfo added that the country must first ensure deep industrial capability in basic industries and have the widest network of supplying industries.

The OCOV forum informed stakeholders about the latest developments in the country’s international trade and investment engagements and revolved around three topics: Philippine development and trade policy; rising global protectionism; and forging ahead through strategic economic partnerships.

The forum’s speakers include Senators Imee Marcos and Koko Pimentel, Albay Congressman Joey Salceda, Former DTI Secretary Gregory Domingo, DTI Assistant Secretary Allan Gepty, Former USTR Director Kellie Meiman Hock, Solar Philippines President Leandro Leviste, Luen Thai Executive Vice President Sunny Tan, former National Competitiveness Council Co-chair Guillermo Luz, and Ambassador Antonio Basilio.

DTI Chief Eyes More Funds for MSMEs in Local, Int'l Trade Fairs

MANDALUYONG - Trade Secretary Ramon Lopez said that the Department of Trade and Industry (DTI) is awaiting the Senate's approval of additional budget to send more micro, small, and medium enterprises (MSMEs) to local and international trade fairs.

In his welcome remarks at the Kalakal CALABARZON Trade Fair and the National Capital Region's Metro Fiesta Trade Fair on 5 December, Sec. Lopez shared that MSMEs usually pay for their spaces at trade fairs, but if the agency's additional budget request will be approved, they would be able to provide said spaces for free.

"Market access is part of DTI's 7Ms of Successful Entrepreneurship and trade fairs give MSMEs access to a wider market for their products. We hope that exposure in these five-day fairs will be the beginning of their entry to the mainstream and export markets," said Sec. Lopez.

DTI holds several regional and national trade fairs and heads the country's participation in international trade fairs, like the China International Import Expo (CIIE). This year, Philippine exhibitors booked around USD 390 million from CIIE, and Sec. Lopez hopes that with more funds, more MSMEs can participate in CIIE and other trade fairs.

The trade chief, however, advised entrepreneurs to innovate continuously and work toward increasing their production capacity to meet future demands.

"Even if we're able to open market access to other countries, if MSMEs don't have enough products, they will still end up with nothing to sell," said Sec. Lopez.

For MSMEs looking for capital to increase production, he recommended DTI's Pondo sa Pagbabago at Pag-asenso (P3) Program, low-interest, no collateral business loan to combat "5-6" lenders. Entrepreneurs can go to any DTI Negosyo Center to know the nearest P3 conduit MFIs or cooperatives and loan amounts from PHP 5,000 to PHP 200,000. Those who wish to borrow larger amounts can go directly to the DTI-Small Business Corporation.

The Kalakal CALABARZON Trade Fair and Metro Fiesta will both run from December 4 to 8 at the Mega Trade Halls of SM Megamall. With 120 exhibitors from Metro Manila and 180 from Region 4A, shoppers can choose from a variety of products like processed food, wearables (footwear, bags, garments, and fashion accessories), and home and holiday decors.

Madame Honeylet Avanceña, a staunch supporter of MSME development and an entrepreneur herself, graced the opening of the trade expo. Also present were Senator Cynthia Villar, DTI Undersecretary Blesila Lantayona, DTI Assistant Secretary Demphna Du-Naga, DTI Regional Directors Malou Toledo, and Marcelina Alcantara, and Senator Koko Pimentel's Chief of Staff Jeffrey Yu.

DTI CHIEF OPENS PH NATIONAL PAVILION IN CHINA EXPO

SHANGHAI – Department of Trade and Industry (DTI) Secretary Ramon Lopez opened the Philippine (PH) National Pavilion at the China International Import Exposition (CIIE) on 6 November. This aims to improve the market access of PH products into China. CIIE runs from 5 to 10 November and features 3,000 exhibitors from 130 countries.

“The Philippines appreciates the Chinese government’s thrust to deepen its globalization commitment.  CIIE is China’s way of conveying to the world that it is ready to open more its market and encourage more exporters to China,” said the DTI Secretary, Sec. Lopez added: “It sends a strong signal to the world that China would also like to help balance trade with its trading partners as China believes in promoting globalization that's is more inclusive, to achieve the goal of having shared prosperity with other countries.”

The 136-square meter PH national pavilion, themed “Partner Philippines: Building Value Together,” showcases the country’s initiatives in trade, investment, and tourism. It features 10 partner government agencies and companies as well as 11 universities. These universities are promoting their undergraduate and graduate programs, as well as English as a Second Language (ESL).

Aside from the national pavilion, there are 36 booths in the Enterprise Zone featuring Filipino exhibitors: 28 for food, five for consumer goods (apparel, accessories and consumer goods, electronics, automobile, and information technology), and three for services (tourism and service outsourcing).

Sec. Lopez cited the close trade relations between PH and China. China is PH’s largest import partner at US$ 17.5 billion in 2017 and fourth-largest export market at US$ 8 billion in the same year.

Also present at the opening ceremonies were PH Ambassador to China Jose Santiago Sta. Romana, Ministry of Commerce of the People's Republic of China (MOFCOM) Trade Director General for Asian Affairs Peng Gang,  Former Commercial Counselor of China to the Philippines and MOFCOM Director General for Foreign Trade Development Bureau Wu Zhengping, Special Envoy to China Carlos Chan, DTI Undersecretary Nora Terrado, and DTI-CITEM Executive Director Pauline Juan.

The Philippine participation to the CIIE is spearheaded by the DTI, in cooperation with the following government and private sector partners: Department of Science and Technology (DOST), Department of Agriculture (DA), Commission on Higher Education (CHED), Department of Tourism (DOT), the Tourism Promotions Board (TPB), Philippine Chamber of Commerce and Industry (PCCI), Philippine Airlines, Federation of Filipino-Chinese Chambers of Commerce and Industry, Anvil business club, Philippine Franchise Association and the Integrated Development Studies Institute.

DTI set to Participate at China’s Largest Expo

As  the Philippines’ main export and investment promotion agency, the Department of Trade and Industry (DTI) has organized the country’s participation in the first China International Import Expo (CIIE) on November 5 to 10, 2018 at the National Exhibition and Convention Center in Shanghai, China.

This is in line with the DTI’s aim to further penetrate the huge Chinese market through country participation in trade expositions and facilitation of its business-to-business linkages.

Dubbed as China’s largest expo, more than 100 countries are anticipated to join the CIIE, while over 100,000 professional Chinese buyers have registered to attend the event.  The week-long expo will also include side activities such as business matching meetings as well as trade and investment forums.

Philippine Trade and Industry Secretary Ramon M. Lopez will lead the country’s CIIE participation this year, along with DTI Trade and Investments Promotions Group (TIPG) Undersecretary Nora K. Terrado.

“China is a priority market for the Philippines and we want to push for exports of our products and services. We are also keen on attracting Chinese investments,” said Lopez.

Under the theme: “Partner Philippines: Building Value Together,” the Philippine National Pavilion will showcase at CIIE the country’s initiatives in the areas of trade, investment, and tourism.

The highlights of the major pavilion also include traditional Filipino performances and a video installation depicting the milestones of Philippine-China relations, which dates back to the 16th century.

Meanwhile, Sec. Lopez and Usec. Terrado will represent the country at the Hongqiao International Forum and at the official opening ceremony of CIIE, which will be presided by Chinese President Xi Jin Ping on November 5, 2018.

“Our Philippine Trade and Investment Centers in Beijing, Guangzhou, and Shanghai will be arranging business meetings for our major Chinese buyers and our Filipino exhibitors during the CIIE,” said Terrado.

“We will gauge our success by the number of new business connections that we will be able to establish during this CIIE participation,” she added.

As part of the country’s goal to cater to the diverse Chinese consumer market, a total of 36 Filipino exhibitors are set to feature top-notch products and services from the Philippines.

Out of the 36 exhibitors, 28 will promote food products including snacks, alcoholic beverages, coconut, mango, nuts, chocolates, and coffee at the Food and Agricultural Products Halls 7.2 and 8.2.

China currently serves as a top export market destination for the Philippines, with $940 million or 15.3 percent of the latter’s total exports in August, according to the latest trade data by the Philippine Statistics Authority.

This recorded a 34.4-percent increase from the export value of $699.5 million in the same month last year.