Philippine exports of hard goods and garments to the US are expected to remain flat in 2025, with projections hovering above $900 million, according to the Foreign Buyers Association of the Philippines (FOBAP).
Industry leaders are cautiously optimistic, hoping for the reauthorization of the US Generalized System of Preferences (GSP) and the start of free trade agreement (FTA) negotiations with the US to drive future growth.
“If the GSP is not reauthorized, we’ll likely see flat growth, with garment exports potentially declining further due to rising prices and difficulties in meeting buyer demand,” said FOBAP president Robert Young.
Preliminary data from the Philippine Statistics Authority (PSA) showed that hard good and garments exports to the US amounted to $947.7 million in 2024.
“We’re all in a waiting game, particularly with the uncertainty surrounding President Trump’s ‘America First’ policy,” Young said.
The US GSP, which allowed duty-free access for over 3,000 Philippine products, expired in December 2020. Its renewal is under review in the US Congress.
Young said they remained hopeful that a revival of the GSP could boost export revenues by 5 percent to 10 percent in 2025, especially for hard goods.
The US remains the dominant market for Philippine exports, accounting for 90 percent of hard goods and garment sales, while ASEAN and the EU together make up just 10 percent.
Young also revealed that FOBAP secured new orders worth $2 million from top furniture and houseware retailers in the US and Europe for items such as bread baskets, hampers and fruit baskets made from indigenous fibers like abaca, sinamay and tikog (native reed).
“Natural fibers like abaca continue to be in demand, as buyers prefer them over synthetic alternatives for their eco-friendly appeal,” he said.
To meet growing demand, FOBAP and the Philippine Export Confederation Inc. are collaborating with indigenous fiber producers in Eastern Visayas to improve production capabilities.
“We’re addressing skill gaps and improving craftsmanship, which will help ease supply pressures,” Young noted, adding that the initiative has the backing of House Speaker Martin Romualdez and Tingog Partylist Rep. Yedda Romualdez.