Local exporters must continue diversifying their markets, particularly to ASEAN and the rest of Asia which provide significant opportunities, amid uncertainties posed by the United States tariff policy, according to Philippine Exporters Confederation Inc. (PHILEXPORT) President Sergio Ortiz-Luis Jr.
Ortiz-Luis said that while the country’s semiconductor and electronics industry and information technology and business process management industries anticipate export revenue growth despite tariff challenges, other sectors are bearish.
“Furniture, garments and textiles and coconuts are not as bullish about their exports to the US because of the higher tariffs, especially if their raw materials are sourced from economies that are slapped with bigger tariffs. Unfortunately for these sectors and for us, the US comprises the bulk of their market,” he said during the second quarter General Membership Meeting of PHILEXPORT.
To mitigate the impact of US tariffs, Ortiz-Luis said exporters need to reduce reliance on the US and explore opportunities of other markets.
“ASEAN and the rest of Asia indeed offers viable business propositions considering the supply chain disruptions, high logistics costs and regional production networks that we have already established here,” he said.
Ortiz-Luis said around 15 percent of the Philippines’ total export revenue or about $11.02 billion was accounted for by exports to ASEAN member countries in 2024.
Data also indicates that electronic products were the leading export to ASEAN, making up 57.5 percent of the total exports to the region.
Ortiz-Luis said it is thus worth revisiting the country’s positioning in the region given the newly launched ASEAN Economic Community (AEC) Strategic Plan 2026 to 2030.
“Serving as a five-year strategic roadmap, it aims to position our region as the world’s fourth-largest economic bloc by 2030 with a target to double the digital economy to an estimated $2 trillion through a seamless ASEAN single market driven by innovation, sustainability, and productivity, while reinforcing the region’s role in global value chains and supporting its aspiration to become the world’s fourth largest economy,” he said.
Further, Ortiz-Luis said it is also timely that the country started with its free trade agreement (FTA) negotiations with the Middle East, Canada and other countries that promise to open new and significant opportunities for local exporters.
He said the Philippines has also formally submitted its application to join the high-standard Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) this year. The CPTPP is composed of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and recently, the United Kingdom.
“In line with this, we strongly invite you to use the Philippine FTA Information Portal which later on will be expanded with the FTA Origin Management System. These digital platforms simplify access to tariff rates, origin requirements, and trade documentation,” he added.
Ortiz-Luis also encouraged exporters to utilize International Trade Centre market tools, including Trade Map that are free, convenient, easy and smart instruments for market matching and access.
To boost the growth of the export sector, the PHILEXPORT chief also pushed strengthened support for micro, small and medium enterprises (MSMEs), including targeted funding for export promotion, market compliance and certifications; research and development; technology and innovation; and capacity-building initiatives.
“To help lessen the cost of doing business, we cannot overemphasize the importance of improving our logistics, digital or ICT (information and communication technology) infrastructure, energy and road access,” he said.
