Ratification of the Regional Comprehensive Economic Partnership (RCEP) is one of the factors recommended to ensure attainment of targets to be set under the “new and bolder” Philippine Export Development Plan (PEDP).
Sergio Ortiz-Luis, president of the Philippine Exporters Confederation Inc. (PhilExport) said as he reported that the “new and improved” PEDP for the period 2023-2028 is in its final stages of completion after the Executive Committee of the Export Development Council (EDC) recently discussed the draft plan in a recent meeting. There were no targets set yet but the meeting has identified some factors that could support exports growth over the next six years.
Ortiz-Luis, who is also EDC vice-chairman, said that part of key recommendations at the meeting was the ratification of RCEP. The RCEP is a free trade agreement among the 15 Asia-Pacific nations including the Philippines, creating the largest trading block representing nearly a third of the world’s gross domestic product.
“We’re optimistic about the new PEDP. It’s more than just renewing commitment to export development, it’s about being bold and aggressive, while recognizing persistent areas for improvements where we must have the determination to solve permanently,” said Ortiz-Luis.
The Senate failed to ratify RCEP in the previous Congress and due to strong opposition from various farmer groups that highlighted the adverse impact of the mega trade deal on local agriculture products and farmers.
Another recommendation at the EDC meeting includes the lifting of land ownership ceilings for commercial scale agribusiness, establishing a Bureau of Agri-Industrial Cooperatives Development in the Department of Agriculture, and amending the charters and regulatory frameworks of the Land Bank of the Philippines, Development Bank of the Philippines and the Small Business Corporation to allow them leeway to fulfill their mandates, are just some of the bold and innovative solutions proposed.
Equally, the plan also highlights private sector opportunities to hone Filipino creative capabilities and build global brands from the unique features and benefits of the Filipino products and services.
“This time, the PEDP will no longer just play the course, but will directly play the competitor. With new directions, capabilities, scale and strength.” Ortiz-Luis said.
Earlier, the Department of Trade and Industry (DTI) said it was looking at $110-billion exports for 2023, lower than the 2022 target of $122 billion to $130 billion.
In a presentation during the House ways and means committee hearing on the 2023 budget for the agency, the DTI has allocated P773 million for exports and investment development programs, which got the biggest allocation of the agency’s total 2023 budget.
The budget was P17 million lower than its P790 million allocation in 2022. The 2023 DTI export forecast of $110 billion would just be enough to approximate the unmet growth targets during the two-year pandemic period. The 2017-2022 PEDP targeted $102.8 billion - $105.8 billion in 2020, and $111.6 billion-$117.3 billion in 2021.
For 2022, the PEDP had set a goal of $122 billion to a high of $130.8 billion. The actual exports performance for 2020 reached only $80 billion and $87.8 billion in 2021 or 9.7 percent growth. The proposed DTI budget in the 2023 National Expenditures Program (NEP) has been reduced by 10 percent to P22.96 billion from P24.596 billion in 2022 with the budget for micro, small and medium enterprises (MSMEs) being slashed by 35 percent.