Electronic exports seen to rebound after US-China deal

MANILA, Philippines — The Department of Trade and Industry (DTI) hopes to see an improvement in electronic exports which have been affected by trade tensions between US and China.

Trade Secretary Ramon Lopez yesterday said the agency would want to see the country’s shipments of electronic products improve given the recent development between the US and China.

He said electronics, which account for bulk of the country’s merchandise exports, have been affected by the trade tensions between the two countries.

This, as the country’s electronics industry forms part of the global supply chain with shipments particularly of semiconductors going to different products including consumer goods.

While the country’s electronic exports are still growing, it is expanding at a much slower pace.

“It’s not negative but what used to be growing at six percent is now just about three percent. That part will hopefully improve with at least a signing taking place, some kind of optimism in the air as we see this Phase one signing,” Lopez said.

Data from the Philippine Statistics Authority (PSA) showed the country’s electronic product exports increased 2.8 percent to $37.57 billion in 2018 from $36.54 billion in 2017.

As of end-October, electronic exports rose 2.7 percent to $33.20 billion from $32.34 billion in the same period in 2018.

Under the Phase one deal signed by the US and China, the latter would be importing an additional $200 billion worth of US products over two years.

In addition, the deal provides protection for intellectual property of US technology.

While the first phase trade deal has been signed by the US and China, it was reported that tariffs earlier imposed by the US would remain and only be removed after Phase two.

Lopez said the Phase one deal is a welcome development as it addresses uncertainties in global trade. 

“It’s good to ease the tension between the two,” he said.