THE Philippines is targeting markets like Spain for exports of high-value manufactured goods as a weakening peso provides an advantage to Philippine-made goods, Finance Secretary Carlos G. Dominguez III said.
At a briefing in Davao City last week, Mr. Dominguez said the strength of the dollar against Asian currencies provided an opportunity to expand trade, particularly to countries like Spain with which the country has a trade deficit.
The peso dropped to a 10-year low in November. It closed on Friday at P49.65, a notch higher from the P49.76 finish on Thursday.
“Our manufacturing base here is growing and growing stronger. The fact that our currency has depreciated is certainly an advantage. Plus I think also our production here is quite competitive with the rest of the world,” Mr. Dominguez said.
Mr. Dominguez said that the government aims to increase direct exports of locally manufactured high-value goods to Spain like computer parts and other electronic goods, which accounts for half of the Philippines’ total exports.
Philippine manufacturing grew 9.9% year on year in September, according to the Philippine Statistics Authority’s (PSA) Monthly Integrated Survey of Selected Industries.
However, Mr. Dominguez noted that manufactured products typically go through a third country before they reach Spain. Dominguez said that the Philippines should export directly to Spanish markets.
Bilateral trade with Spain amounts to $600 million, with imports from Spain accounting for $400 million.
Data from the Philippine Statistics Authority and the Department of Trade and Industry show that Spain ranks eighth among the 28 member-states of the European Union trading with the Philippines. It ranks 26th among all Philippine major trading partners, 25th as an export market and 23rd as an import
Source: Bworldonline.com
