DTI eyes ‘high-end’ PHL garments exports to China

The government is eyeing a deal with China to get preferential treatment for Philippine garments exports entering the mainland, the Department of Trade and Industry said on Sunday. Lucita Reyes, head of the DTI’s Garments and Textile Industry Development Office (GTIDO), told reporters that the upscale Chinese garments market offers local exporters many opportunities. “We can’t compete in China’s low-end garments market because its domestic manufacturers churn out low-cost garments. But there are big prospects in the middle and high-end markets," Reyes said. “As many Chinese got rich, more became interested in branded items. There’s also a market for children’s wear," she said. Reyes said there is a very small number of Filipino garments makers exporting to China. The USA is the destination of 81 percent of Philippine garments exports, while the rest goes elsewhere, including China, Reyes said. Reyes said the government is mulling over pushing for an agreement with China similar to ‘Save our Industries’ or SAVE Act. SAVE was a US bill aiming to benefit Philippine garments exporters as well as American textile suppliers. “[But] we have to study China’s garments tariffs first. We also have to determine if [such a deal] would benefit China, because it already has a strong garments industry," Reyes said. Reyes said such an agreement may also attract Chinese investors that are into garments and textile production to put up factories in the Philippines. GTIDO will hold a seminar on January 18 for garments and textile manufacturers dubbed “Doing business for the China market." Officials of the China National Garment Association will present information about the Chinese’s buying patterns and the high-end garments they purchase. “We want to identify the types of garments we can export to China," Reyes said. Reyes added that the seminar will also help garment exporters know which Chinese provinces to supply, determine the distribution channels, and make the most from the Asean-China free trade agreement. — MRT/VS, GMANews.TV