Filipino exporters are advised to increase production and unlock the $346-million export potential of handicrafts, wearables and cultural properties.
Citing the International Trade Centre’s (ITC) Export Potential Assessment (EPA) study, Export Marketing Bureau (EMB) consumer and industrial division chief trade and industry development specialist Rudolph Jay Velasco said of the total export potential, $204 million represents growth-based export potential which is based on the projected economic growth of the Philippines and/or the demand growth in the target market.
“To benefit from these opportunities mainly requires additional investments in production to ensure that we meet the additional demand. So the growth-based export potential is huge as compared to friction-based which is an indication that we still have things to address in terms of our capacities to supply these products,” he said in Usapang Exports organized by Department of Trade and Industry (DTI) and the EMB.
Velasco said $142 million frictions-based export potential is linked to a simple lack of market research.
“In the frictions-based, this is where most of the services of DTI are actually concentrated so we provide market and product intelligence. We provide information to reduce information and search costs and also market access concerns,” he said.
Velasco said wood, paper, rubber and plastics, which include wooden furniture, have the highest unrealized export potential of $122.14 million.
Adding to this are manufactured products; skins, leather, products thereof and footwear; minerals, metals and products thereof; apparel and textile products; and machinery and electronic equipment.
Velasco said the Philippines has a wide range and rich diverse cultural heritage, including indigenous crafts, historical artifacts, traditional textiles and even art works.
“It’s a wide array of types of products but they hold a very significant or importance for the exports, for the reason number one, the economic potential. So exporting cultural properties offers significant economic potential for the Philippines,” he said.