The Foreign Buyers Association of the Philippines (FOBAP) said the Philippines and China should include trade discussions in diplomatic talks to des-escalate tensions in the West Philippine Sea.
FOBAP president Robert Young emphasized the importance of including trade discussions alongside diplomatic efforts to ensure continued economic benefits for both nations.
He said China is the Philippines second-biggest trade partner.
Young also acknowledged the challenges facing the sector in 2024 as the ongoing conflicts in Ukraine and Israel continue to disrupt supply chains, prompting FOBAP to explore new markets in South America and the Middle East to supplement production volume.
FOBAP members export to established markets like the US, Canada, the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
Garment exporters are already receiving orders from these traditional markets alongside the new ones, but overall volume is still lower compared to the level in previous years.
Young said the government should try harder to secure more free trade agreements (FTAs) and address high energy costs through subsidies for the export sector.
“Our production costs are 15 percent higher than ASEAN competitors. This makes it difficult to secure sufficient quantities for production,” he said.
The extension of the EU’s Generalized Scheme of Preferences Plus (GSP+) program is also seen as a potential revenue booster for the sector.
“In terms of productivity, we are well-prepared with a sufficient workforce due to the current decrease in production orders,” Young said.