Philippine Textile Industry
Garment makers upbeat about bill giving RP-made apparel duty-free access to US
GARMENT makers in the country are now outlining numerous initiatives that would help them gear up for a huge rebound by 2010, as they are upbeat on the chances of a bill giving Philippine-made apparel duty-free access to the United States getting passed by early next year.
Lawrence de los Santos, president of the Confederation of Garment Exporters of the Philippines (Congep), said the group believes the intense lobbying it is doing over the last two years has already mustered enough support from lawmakers, American textile makers and other stakeholders in Washington to give the 809 Program bill the needed boost.
“In the US, before they even file a bill, they want to know that they will not just get embarrassed. So these two years, before filing the bill, they had been insisting that we have to gather the support of the other industry associations in the US. That means at this time, we have been able to get enough support that the congressman dared to file this. So just a little more assistance from everybody and we will probably get this bill passed,” de los Santos told reporters.
According to the industry’s target timelines, the bill should be at the committee of ways and means of the US Congress by the third or fourth quarter of the year, and then become a law between March to June next year.
“It is very critical for this industry, especially in this kind of environment, to get this kind of bill passed as soon as we can. Because each day that passes, it’s getting very difficult out there,” said Dianna Santos of the Garment Business Association of the Philippines.
The industry is projecting an incremental growth of $1.1 billion in exports to the US after the first full year of implementation of the law. Aside from this, about $480 million in fresh investments are expected to pour in during the first two years, with approximately 60 new firms getting established in the country.
Also, in the first four years of its implementation, the 809 Program is seen to generate 210,000 new jobs.
To gear up for these expansions, the industry will be lining up several initiatives, including a series of road shows to spread the word to investors and buyers that the Philippines will be getting preferential treatment in the American market once the bill is passed.
“Congep is planning to have a road show in Hong Kong and in China and to invite some of our friends to come and invest in the country, and all of us will invite our customers to come and visit the Philippines. I think the 15- to 25-percent duty savings will make the product of the Philippines a lot more competitive,” Congep chair Henry Tan said.
De los Santos said they will invite some of the Chinese manufacturers to locate to the Philippines, as aside from the duty-free treatment that will be accorded Philippine-made apparel in the US, the cost of production and labor in China are now also rising.
The industry will also be training its employees in using advanced machineries.
Written by Max V. de Leon / Reporter
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Philippine Garments and Textile Industry Associations
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