The Philippines has urged US firms to expand their production in the country to take advantage of the recent inclusion of travel goods, which include handbags, luggage, wallets and backpacks, in the US generalized system of preferences (GSP) program. Such goods from the country, which earlier invited a tariff of 6-20 per cent, can now enter the US duty-free.
The invitation to US footwear and garment firms by department of trade and industry (DTI) secretary Ramon Lopez came at a recent regional gathering of key members of the American Apparel and Footwear Association (AAFA) and the Confederation of Wearables Exporters of the Philippines (CONWEP).
Easier market access to another country encourages producers and exporters to locate in the source-country, a newspaper report quoted Lopez as saying.
These labour-intensive sectors can generate more jobs and create business opportunities for small and medium enterprise servicing the sector, such as producers of raw materials, indigenous woven products, accessories, and service and logistics providers, he said.
The industry, which at present employs around 300,000, has the potential to bring it up to over 4 million, if the country attracts more locators to produce in the country, he added. (DS)
Fibre2Fashion News Desk – India