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.
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.
MAKATI CITY – Continuing the effort to take the country’s manufacturing sector to greater heights and new frontiers, the Department of Trade and Industry (DTI), in partnership with the Federation of Philippine Industries (FPI) will hold the Manufacturing Summit 2019 on Tuesday, 3 December 2019, at The Peninsula Manila, corner Ayala and Makati Avenue, Makati City.
Now on its fourth year, the summit will once again gather stakeholders from the government, academe, industry, and various development partners to discuss pressing issues affecting the Philippine manufacturing landscape.
Amid the economic volatility, the Philippines has been growing steadily during the current decade, posting an annual average of 6.3%. This is a remarkable improvement from the 4.5% average during the 2000s. In 2018, we grew at 6.2%, one of the highest in Southeast and East Asia and exceeded only slightly by China and Vietnam.
While the country’s long-term figures looked rosy, the manufacturing industry this year only grew by 2.4 percent in the third quarter of 2019, slower compared to the 3.8 percent growth it posted in the same period last year.
The top industry contributory drivers to growth this year include the Chemical Sector with 9.7% growth, Food with 4.4%, Basic Metals with 17.2%, machinery equipment with 14.8%, and electrical machinery with 14.4%.
On the other hand, some sectors contracted, pulling down the growth of the Industry. Topping the list of decliners are Petroleum and Other Fuel Products, 28.3%; Radio, Television and Communication Equipment and Apparatus, 4.3%; Furniture and Fixtures, 11.3%; and Transport Equipment, 5.7%.
The lower growth figures this year pose as a challenge to the manufacturing sector to regroup and look at how to strengthen its core and keep its long-term growth trajectory on an upward path.
With this year’s theme being, “Preparing Philippine Manufacturing for the Future of Production,” the Summit will take stock of the performance of the manufacturing industry, highlight the changes in the domestic economy and global market; discuss the future of manufacturing and agribusiness under Industry 4.0; and consider future skills and human resource development for future production.
The Manufacturing Summit is held as part of the implementation of the government’s Inclusive Innovation Industrial Strategy (i3S). The Summit proceedings will be live-streamed via the official DTI Facebook page accessible at https://www.facebook.com/DTI.Philippines. The program details are available at https://mfgsummit2019.weebly.com/program.html. For further inquiries, you may email MFGSummit2019@dti.gov.ph.
