High hopes of Philippines textile sector from likely USFTA
বুধবার, আগস্ট ২৯, ২০১৮
Fibre2Fashion: The Philippines trade and industry secretary Ramon Lopez recently said the government will try to help the textile and garment industry through a possible free trade agreement (FTA) with the United States. He said this at the first ever ‘Philippine Garment Leader Goods Industries & Fabric Expo’, in which 81 domestic and foreign companies participated.
Around 20 domestic companies participated, reflecting the current state of the sector. Initial talks for the FTA are already under way to find enough mutual benefits to start formal negotiations, , according to a newspaper report in the country.
Export performance in the sector dropped after the abolition of textile quotas by the World Trade Organisation in 2005. As a result, many factories closed and some faced downsizing.
Lopez said companies can apply under the Investment Priorities Plan, which provides incentives such as income tax holiday on preferred kinds of businesses that help reach inclusive growth.
It is not clear, however, if any company in the garment and textile industry applied under the IPP, even though the list includes manufacturing activities.
Garments might be eventually included under the US generalized system of preferences (GSP), a trade arrangement allows market access for numerous Philippine exports, he added.