CONWEP sees Philippine wearable exports surge to EU as FTA talks start

European Commission President Ursula von der Leyen recently confirmed the resumption of the EU-Philippines FTA negotiations during her visit to Manila.

The sector can export goods worth $900 million-$1 billion in three to four years to the European market alone once the EU-Philippines FTA enters into force, CONWEP executive director Maritess Jocson-Agoncillo said on the sidelines of a press briefing by the department of trade and industry (DTI) in Makati City.

The US market is worth $900 million now.

In the first three years of FTA being in place, employment could rise by 100,000 to 200,000 jobs, Jocson-Agoncillo was quoted as saying by a Philippine news agency. The industry currently employs over 260,000.

“The surge will be coming from us —the garments sector, manufacturing (of) shoes and bags— simply because we have a limited access at the moment because of the GSP [Generalised Scheme of Preferences] restrictions on the rules of origin,” she was quoted as saying.

Even with the EU GSP+, Philippine-made wearables exported to the EU are still slapped with 12-per cent duty due to the rules of origin under the Multifibre Arrangement (MFA) of the World Trade Organisation (WTO).

The Philippines is interested in liberalising the rules of origin for its garments and wearables in its talks with the EU.

DTI secretary Alfredo Pascual aims to restart the scoping discussions for an FTA with the EU in September and conclude it before the year end to initiate formal talks by next year.

Fibre2Fashion News Desk (DS)