US-China trade war hurts exports

CEBU, Philippines — The export sector hopes that the trade war between the United States and China comes into an end this year, as the disagreement is dealing a blow to Philippine exports.

Philexport-Cebu executive director Fred Escalona said that the reconciliation of Washington-Beijing skirmish plays vital role in the Philippine export performance for this year.

The trade war, he said, already stained the export accomplishments in 2018, a year which stakeholders described as “year to be forgotten.”

According to Escalona the US-China trade war has resulted to market jitters and if it lingers, it will hit the export trading sector.

Meanwhile, local businesses are advised to tighten their hold in the local market, as the lingering trade war will result in the influx of cheaper Chinese goods in the Philippines.

“If China reroutes all of its export products to other countries like the Philippines, it would lead to trade disruption,” said Mandaue Chamber of Commerce and Industry (MCCI) president Stanley Go.

If product rerouting happens, it will be difficult to sell local products as cheaper China-made products will flood the market. As a result, it would be harder for local manufacturers to compete.

Thus, as early as now, local businesses must make drastic moves in strengthening their grip in the local market, said Go.

“We are very much affected by the trade war,” he said.

If this trade war lingers more, the world supply will be altered, which may either lead to opportunities or doom in businesses.

China and the United States are engaged in a trade war as each country continues to dispute tariffs placed on goods traded between them.

US President Donald Trump had promised in his campaign to fix China's "longtime abuse of the broken international system and unfair practices". (FREEMAN)