THE PEDPs

AGNES P. R. LEGASPIExport Marketing Bureau (EMB)PEDP Regional Consultations

Through the Years

Highlights of the PEDP Periods…

Core Strategies

Milestones

Significant Events

PEDP 1994-1998

1994 1995 1996 1997 1998 1994 1995 1996 1997 1998

Value

13.4828955

42

17.4471861

35

20.5425463

99

25.2277026

3

29.4963528

68

% GR

18.532978833445

3

29.402368212755

2

17.741315075389

4

22.807086035001

3

16.920487372971

7

2.500

7.500

12.500

17.500

22.500

27.500

32.500

2.50

7.50

12.50

17.50

22.50

27.50

32.50

In U

S B

illi

on

In %

, G

row

th R

ate

PEDP 1994-1998)1st Philippine Export Development Plan (PEDP

Main Advocacy: Export Development Act (EDA)

•Export Winners •Common Service Facilities (CSFs)•Designation of Industry leaders as Export Champions

Double digit growth rates

Source: Raw data from 1994-2008 from National Statistics Office, processed in Tradeline Philippines database.

PEDP 1999-2001Core Strategies

1. Adopt Industry Clustering Strategy to enhance the competitiveness of export industries & link emerging domestic industries to global opportunities

2. Maximize benefits made available under GATS to increase opportunities for RP’s services exports

Milestones Harmonized classification of electronic products

Events -9/11 WTC Bombing (2001)-China accedes to WTO-Collapse of western export markets

With 30% PH exports share to US, the impact of the WTC 9/11 bombing weighed down on PHmerchandise exportsin 2001

Japan16%

ASEAN16%

USA30%

EU19%

Rest of the World12%

China7%

0

2001

Source: Raw data from 1994-2008 from National Statistics Office, processed in Tradeline Philippines database.

1999 2000 2001 1999 2000 2001

Value

35.03689266

38.078249794

32.150202692

% GR

18.7838130930784

8.68044196588296

-15.5680661114159

29.500

31.500

33.500

35.500

37.500

(17.50)

(7.50)

2.50

12.50

22.50

In U

S B

illi

on

In %

, G

row

th R

ate

PEDP 2002-2004Core Strategies

1. Product & Market Diversification2. China Strategy3. Implementation of internationally accepted

quality standards & accreditation program such as HACCP, GMP & Halal Program

4. Implementation of unimplemented EDA provisions (incentives & mandatory compliance/penal provisions)

5. Reduction of transaction cost/ cost of doing business

Milestones • Convergence of DTI, DA & DOST for National Clustering of identified sectors

• Automated Export Documentation System (AEDS) pilot run

• PD930 IRR revision with automated clearance procedure

Events Stringent import regimes by EU & US due to Sept 11 WTC Bombing

Effect of market diversification strategy started to be observed by the end of 2004

Japan20.1%

China14.6%

ASEAN17.2%

USA16.9%

EU17.2%

Rest of the World 14.0%

2004

Source: Raw data from 1994-2008 from National Statistics Office, processed in Tradeline Philippines database.

2002 2003 2004 2002 2003 2004

Value

35.208158692

36.231205444

39.68052048

% GR

9.51146725044106

2.90570932990159

9.52028781192876

32.500

34.500

36.500

38.500

40.500

0.50

2.50

4.50

6.50

8.50

In U

S B

illi

on

In %

, G

row

th R

ate

Strengthening of the peso & erosion of PH’s competitive-ness ranking in the global economy made the Council seriously focus efforts to institutionalize the competitiveness action agenda

PEDP 2005-2007Core Strategies

1. Expansion of Revenue Streams & Cultural Markets2. Strengthened efforts to streamline & simplify

export-related procedures; abolished or lowered fees charged

3. Financing assistance made available

Milestones • National Export Congress strengthened advocacies among agencies, including legislators and LGUs.

• BSP Grant (Php10.5 M) & Export Promotion Fund (P280M- contributed by DTI, DBM, BSP, & PHILEXPORT)

• National Competitiveness Summit leading to exec issuances: EO 551 - Designating DTI Secretary as Export Enforcer; EO 553 - Creating Task Force on Infrastructure Monitoring; EO 554 - Eliminating fees on export clearances, inspection; EO 557 - Creating an Anti Red-Tape Task Force; & EO 571 - Creating Task Force on RP Competitiveness

• Revitalized EDC Legislative Advocacy (2007)• Establishment of classification codes of services

exports for the development of a data collection system for IT-enabled services exports

• EO 589 - Travel Tax Exemption of Exporters, • Lowering of Export Wharfage Fees, • Exemption of Exporters from X-Ray Fees, • National Model Industry Clusters Award

Events Peso Appreciation (2007)

Japan15%

ASEAN16%

USA17%

EU17%

Rest of the World13%

China22%

2007

Source: Raw data from 1994-2008 from National Statistics Office, processed in Tradeline Philippines database.

2005 2006 2007 2005 2006 2007

Value

41.254683469

47.41011734

50.465723919

% GR

3.967092593438

69

14.92056986844

99

6.445051711403

34

5.000

15.000

25.000

35.000

45.000

55.000

1.00 3.00 5.00 7.00 9.00 11.00 13.00 15.00

In U

S B

illi

on

In %

, G

row

th R

ate

PEDP 2008-2010CoreStrategies

1. Adopt strategies to take advantage of the Global Economic Recovery after the worst global recession in 65 years

2. Maximize benefits made available by FTAs3. Initiate Export Branding & Build up of Competitor

Intelligence4. Adopt Enterprise strategies (Export Pathways

Program/RIPPLES)5. Enhance Trade Facilitation

Milestones • Four successful legislative advocacies: Enactment of Magna Carta for MSMEs (2008), Ratification of JPEPA (2008), Amendments to Customs Brokers Act (2009), Ratification of RKC (2009),

• Export Support Fund (P200M of P1B released)• PHILEXPORT accredited by BOC to register

exporters in the Client Profiling System• Exemption of Exporters from 100% x-ray Scanning• CAO 5-2009, granting temporary relief to distressed

exporters who are unable to timely liquidate imported raw materials/ articles intended for re-export due to the impact of financial crisis.

• PPA’s 50% reduction of Export Wharfage fees• Enjoined DOTC to fast track completion of the

Strong Republic Nautical Highway (Ro-Ro)

Events Sept 2, 2008 – PEDP presented to PGMA Sept 15, 2008 – Lehman Brothers. Start of full blown

Global Economic CrisisMay 21, 2009 – Revised PEDP presented to PGMA

PH exports was not spared from the Global Economic Crisis.

Source: Raw data from 1994-2008 from National Statistics Office, processed in Tradeline Philippines database.

2008 2009 2010 2008 2009 2010

Value

49.0775405

09

38.4358061

6

51.4975146

07

% GR

-2.7507450645671

9

-21.683511925477

4

33.983178062213

4

5.000

15.000

25.000

35.000

45.000

55.000

(25.00) (15.00) (5.00) 5.00 15.00 25.00 35.00

In U

S B

illi

on

In %

, G

ro

wth

Rate

PEDP 2011-2013CoreStrategies

Product•Move up the Value Chain•Capture processes in Global Supply Chain•Link Organic, National & Certification- Enabled ProductsMarket•Maximize benefits of FTAs to PH exporters•Target High-Growth Emerging Markets•Attract Supply Chain Nodes to PHPromotion•Quality rather than Quantity•High Impact and High-Level In-Bound Fairs & Missions linked with Tourism•Comprehensive & Unified Country BrandingPoliciesExport Policy Reforms and Advocacy: Multi sectoral andCross

Cutting Concerns

Milestones • Reduced cost of doing busines: 50% reduction on port Charges at Batangas Int’l Port, No OT pay resulting from 24/7 operation in airports and seaports Reduction of export fees on fisheries;

• Senate approved CCT Bill, • Inclusion of the PH-China RO-RO linkage Mandatory implementation of AEDS Benchmarking of International Best Practices and Policies Philippine Qualification Framework for MRA National Export Development and Competitiveness

(NEDAC)Fund and• P20M released to CITEM for export promotion of

Manila Fame; P60M released to ROG for Shared Service Facilities in the region)

Events July 2011- PEDP presented to President B. AquinoUnstable national currency against dollars and eurosMarch 11, 2011 – Earthquake and Tsunami in JapanPH Super Typhoons (Pablo,Haiyan)

Slow but sure recovery.

Source: Raw data from NSO 2011-2013.

2011 2012 2013 2011 2012 2013

Value

48.304928134

52.099

53.976

% GR

-6.19949622300031

7.85441985437816

3.6027562909077

45.500

47.500

49.500

51.500

53.500

(7.00)

(3.00)

1.00

5.00

9.00

In U

S B

illi

on

In %

, G

ro

wth

Rate

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -

10.000

20.000

30.000

40.000

50.000

60.000

(30.00)

(20.00)

(10.00)

-

10.00

20.00

30.00

40.00 In

US

Bil

lio

n

In %

, G

row

th R

ate

9/11 WTC bombing

Global Economic

Crisis

Earthquake, Tsunamis, Typhoons

PEDP 1999-2001

PEDP 2002-2004 PEDP 2005-2007 PEDP 2008-2010 PEDP 2011-2013

Summary of interventions across PEDP periods

Main themes: Reducing the cost of business, enhancing competitiveness, fostering public-private partnership

Product & Market Diversification Program, continuously implemented

Implementation of internationally accepted quality standards & accreditation program such as HACCP, GMP & Halal Program

Explored opportunities in culture-based markets

Maximize benefits of FTAsEnterprise strategies (Export Pathways Programs/RIPPLES)

Industry Clustering Strategy initiated in 1999, & cascaded in the regions, & awarding of model industry clusters

Strengthened efforts to implement trade facilitation: necessary Presidential Directives & legislations put in place, advanced computerization of trade procedures, Acceded to RKC

Obtained alternative sources of financing to assist exporters to support export promotion & dev’t. projectsP10M BSP Grant (2005); P280M Export Promotion Fund (2007); P1B Export Support Fund (2009); NEDAC/SSF (2011)

• Solid foundations for policy reform, & programs to support exports have been laid down.

• Current need is to implement them effectively

• Strategies should be drawn to cushion exports from negative impacts in the dynamics of the global economy

• Support from stakeholders must be kept burning

Key Findings & Recommendations

Thank You