The Philippines has an unrealized export potential of $49 billion, according to the Export Potential Assessment (EPA) report released by the International Trade Centre (ITC).
The untapped amount is about half the $107- billion total export potential of the Philippines in the products covered by the study.
The study is part of the ARISE Plus Philippine Project, a four-year project funded by the European Union (EU), which is focused on building the competitiveness of the Philippines.
According to the study, unrealized export potential may be due to the expected supply and demand growth; non-tariff measure affecting this particular exporter and product (e.g. rules of origin); price / quality positioning not in line with market demand; lack of market intelligence or business contacts and; any other friction that affects the exporter’s ability to export a specific product to a specific market.
The study found the Philippines has the most potential – 75 percent in exporting machinery and electronic equipment.
Electronic equipment, in particular, has a large export growth potential of $29 billion and is a valuable pillar of the country’s exports, according to EPA.
The other top sectors are manufactured products ($5.1 billion); horticulture ($4.8 billion) and, minerals, metals and products thereof ($3.5 billion).
For agriculture, the total export potential is $16 billion, out of which $5.2 billion is still untapped. Products include bananas ($1.9 billion), pineapples ($642 million) and tuna ($448 million).
The report said while coffee has no export potential, but is among the top products with diversification potential.
The EPA also cited bamboo and rattan which have some export potential for specific products.
According to the study, total export potential is highest in East Asia, but growth opportunities are higher in the EU.
The report recommends that market diversification should focus on EU and Asean
The EPA is based on an ITC methodology identifying products, markets, and suppliers with untapped export potential as well as opportunities for export diversification.
Findings of the study serve as a tool to inform the Philippine national planning and policy-making body, including the new Philippine Export Development Plan. IRMA ISIP
