THE Confederation of Wearables Exporters of the Philippines (CONWEP) is hoping to see a recovery in wearable exports this year amid plans to secure a trade agreement with the US and relaxed requirements for garments in the UK.
“We are trying to mitigate the 4% decline in 2024. We are targeting to raise the bar and break even at least in 2025, just so we can retain jobs,” said CONWEP Executive Director Ma. Teresita Jocson-Agoncillo in a Viber message.
“That will happen if something moves between the Philippine and the US government in the discussion on the trade reference agenda; (exports) could pick up very fast,” she said.
However, she said that without the agreement with the US, the industry can still maintain last year’s export levels and register flat growth.
CONWEP reported that apparel exports declined 6% to $661.75 million last year, while exports of travel goods slipped 4% to $546.62 million.
Meanwhile, textile exports rose 3% to $256.44 million while footwear exports rose 11% last year.
These brought total wearable exports to $1.299 billion in 2024, down 4%.
She said the expected relaxation of requirements in the UK market can also help the industry.
She said that before the pandemic, the industry’s utilization rate of trade preferential schemes was only between 6-7% due to the strict rules of origin.
“That is why our utilization is normally below 10%. But that will rise if the rules are relaxed,” she added.
Last week, the Department of Trade and Industry’s Export Marketing Bureau said that the UK is looking at relaxing some of the rules for industries that are underutilizing the UK’s Developing Countries Trading Scheme. — Justine Irish D. Tabile