Foreign buyers are helping to absorb some of the 19 percent tariff on Philippine garment exports, the Foreign Buyers Association of the Philippines (FOBAP) said.
FOBAP said this could help the Philippine surpass $1 billion in garments exports this year.
FOBAP president Robert Young said long-standing buyers, particularly in the United States, have shown solidarity by agreeing to shoulder part of the tariff burden.
This has helped Philippine-made garments remain competitive against lower-priced exports from Vietnam, Bangladesh and Sri Lanka.
“Some of our big buyers even volunteered to pay up to 100 percent of the 19-percent tariff in the first year. This shows how important business relationships are,” Young said, noting that these commitments are crucial for sustaining orders.
The tariff continues to threaten the competitiveness of Philippine apparel, which is already priced 10 percent to 15 percent higher than that of its regional rivals, Young said.
Despite these challenges, FOBAP anticipates a stronger export performance compared to last year’s nearly $900 million, citing “push-out” or accelerated deliveries.
“We are hopeful this push will help maintain employment in the garment industry and keep dollar inflows to the country, which are crucial in paying off international debts,” Young said.
He noted that attempts to strike reciprocal deals in India during a recent Philippine trade mission yielded no gains.
“While we continue to buy fabrics and cotton from India, they have not reciprocated by buying our garments. We were hoping that India would buy some high fashion apparel or at least, indigenous slivers,” Young said.
The Philippines, through FOBAP, sources millions of dollars of Indian cotton and textiles annually.
As FOBAP celebrates its 48th year in November, Young said the group remains hopeful that continued support from foreign partners, along with possible legal challenges to the tariff in the US Supreme Court, will give the industry more room to compete.
“If the tariff is eventually cancelled, then we can go back to normal. Until then, the support of our buyers is keeping the industry afloat,” he said.
 is hopeful its garment exports will exceed $1 billion this year, thanks to support from foreign buyers who are helping to shoulder a 19% reciprocal tariff.){kind=link}