Garment exporters forecast as much as 12 percent increase in exports this year with minimum 8 percent growth contribution from countries under the Regional Comprehensive Economic Partnership (RCEP).

Marites Jocson-Agoncillo, executive director of the Confederation of Wearable Exporters of the Philippines (CONWEP), said they expect 8-12 percent growth in wearables (apparel, textile, garments, and leathergoods) this year to $1.76 billion from $1.633 billion in 2022.

“We are in full support of the ratification of RCEP simply because the data speaks for itself,” said Jocson-Agoncillo as the labor-intensive sector is expected to benefit from the wide market the mega trade deal has created.  

Based on their analysis, Jocson-Agoncillo said that base figure 2021-2022 showed that RCEP members alone account for 19.3 percent or $315 million of total $1.633 billion exports to the world in 2023. It also showed that exports to RCEP countries grew eight percent in 2022 from $293 in 2021.

Of the total garment exports to RCEP countries, Japan ranked first with 54 percent share or $170 million followed by China with $90 million and Australia with $25 million.

“It is for this reason that we would like to emphasize the inclusion of Philippines in RCEP. This is very important to us,” she added.

If the Philippines fails to join RCEP, Jocson-Agoncillo warned that the domestic economy stands to lose 20 percent of current export performance, which can be further diluted by exports by exports of other member countries.

Despite the global economic slowdown last year, the local garment sector managed to thrive. CONWEP has an estimated total employment of 280,000 workers.

Globally, the US remains the biggest market of Philippine wearables. Last year, CONWEP officials joined President Ferdinand Marcos Jr.’s visit to the US where they  met some American buyers.

CONWEP also presented to the President some intervention measures to help the industry. These include forging bilateral free trade deal with the US, which could be through a sectoral free trade agreement or revival of the previous Save Act proposal, and the ratification of the RCEP. CONWEP is also pushing for the expansion of the list of garment products to be eligible for zero-duty under the US-Generalized System of Preferences. In fact, she said, there are only 24 tariff lines for the leathergoods under the US-GSP