The leader of the Philippine Exporters Confederation, Inc. (PHILEXPORT) has called exporters and manufacturers to build sustainability into their business to create new markets or expand existing ones even amid challenging global trade environments.
PHILEXPORT President Sergio Ortiz-Luis Jr. said the national effort to develop and promote exports should strike a balance between economic gains and the need to strengthen social and environmental stewardship.
“More than a trend, going green has evolved to be our core strategy in sustainably developing and growing our exports,” he said during the 2024 National Exporters’ Week and National Export Congress.
Ortiz-Luis cited megatrends that support such consumer shifts and mindset change. These include the global adoption of circular business models and the growing momentum for carbon labelling, including for food and consumer packaged goods.
Recognizing the “very daunting” responsibilities especially for micro, small and medium enterprises, he said, private businesses stand to gain much from being aware and compliant.
Ortiz-Luis said they can unlock $12 trillion in business opportunities varying from industry and market by delivering the United Nations Sustainable Development Goals (SDGs).
“Working with a sustainability lens also enables companies to differentiate or build brands, penetrate new markets or new segments where sustainability matters, and develop new partnerships and sales channels,” he said.
“Further, there are a lot of investment funds and banks that offer preferential terms if companies can demonstrate that they are working within this framework,” he added.
Ortiz-Luis also underscored the need for local exporters to keep abreast and comply with sustainability policies and standards that are being imposed particularly by the European Union (EU), the country’s fourth-largest trading partner.
It is estimated that the EU market represents a further US$11 billion worth of unrealized export potential for the Philippines, he said.
Ortiz-Luis said PHILEXPORT has been heavily involved with legislative and executive advocacies to make the MSMEs sustainable and more productive, and help ease the cost and flow of doing business.
Meanwhile, the PHILEXPORT chief expressed concern about the 91 new trade-restrictive measures on goods introduced by G20 economies between mid-October 2023 and mid-October 2024, as indicated in the Trade Monitoring Report by the World Trade Organization (WTO).
G20 economies comprise 19 countries and two regional bodies that include some of Philippines export markets such as China, Japan, United States and the EU.
Ortiz-Luis said also weighing in this struggle are factors that include geopolitical shifts, effects of climate change, import regulations in key markets like the United States and the EU, and inflation that can affect purchases of consumer goods.
“Considering these developments, I believe that the ambitious targets set under the PEDP (Philippine Export Development Plan) of $143.4 billion for this year and $240.5 billion by 2028 will somehow be adversely affected and difficult to achieve,” he said during the PHILEXPORT General Membership Meeting.
Ortiz-Luis added the Department of Trade and Industry has estimated that at least, the country’s export performance will meet the $107 billion indicated under the Philippine Development Plan 2023-2028.
