DTI Reviews Export Targets Amid Crisis.

The Department of Trade and Industry (DTI) has ordered for a review of the country’s export growth targets in light of the uncertainties posed by the Japan crisis and the problems in the Middle East countries although exporters see no impact on exports in the long term.

The Philippine Exports Development Plan is targeting for an 11 percent growth target this year over last year and to double up exports by 2016 or from $51 billion in 2010 to $120 billion in six years.

Trade undersecretary for international group Adrian S. Cristobal said the agency is doing the assessment and reviewing the target to determine if the targets are going to be adjusted downward or upward.

“The DTI is reviewing our export targets to determine if we have to adjust our goals and strategies. We are urging our exporters to look into FTA markets they have competitive value proposition to sustain their business and to become more innovative in their product offerings,” Cristobal said at the Doing Business for FTA (DBFTA II) forum.

The private sector, however, is not keen at revising its growth export target in the next six years.

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, said that exporters are confident of their growth goals and that Japan impact is just a temporary setback.

“We are not planning to revise right now, but we are watching. The Japan incident is very temporary and would just last in a few weeks or a few months. Our target for the year is still safe at 11 percent,” Ortiz-Luis said.

In fact, Ortiz-Luis reported that for the first month this year, exports were expected to grow about 35 percent and if there would be a setback in the coming months the first quarter growth would cover for that decline.

The first quarter growth is expected to be within the vicinity of the 33 percent, he said.

“For the coming years, I don’t think there will be an effect on our exports. I even believe we would benefit from the reconstruction of Japan,” he added.

Already, the DTI has also mobilized its commercial posts abroad to study untapped businesss opportunities in their respective markets that exporters can seize.

Cristobal also noted that while recent crisis may affect global supply chains, the impact on the Philippines is, at worst, temporary and, at best, an opportunity to increase exports if we capture migrating supply chain components into the Philippines.

Nonetheless, he said, there remain other niche areas and emerging markets such as Brazil, Russia, India, and China that exporters can tap to balance their temporary deficits from disruptions in the global market.

Source : mb.com.ph