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    Garments industry faces tough
    times with slowdown in US
     
    By Max V. de Leon
    Reporter
     

    THE ailing garments industry, now facing tougher times with the economic slowdown in the US, its main market, has asked the government to put up a unit similar to the defunct Garments and Textile Export Board (GTEB) that will help in the marketing efforts abroad and in the gathering of industry data globally.

    Ma. Teresita Jocson-Agoncillo, executive director of the Confederation of Garment Exporters of the Philippines (Congep), said they just need a small team that will probably be organized by the Department of Trade and Industry (DTI) that will take care of the concerns of the garments makers.

    “Even if it is just composed of 10 persons as long it is concentrated to us. Right now we have to talk to a lot of offices because the former functions of the GTEB were devolved to the other DTI units,” she said.

    Before 2006, when the industry was working on quota allocations given by the US for its shipments, the GTEB was there to take care of the quota distributions among the companies, promotions, monitoring and data gathering.

    “The quota disappeared, but we still need the three other functions,” Agoncillo said.

    For instance, Agoncillo said the group is now having difficulty gathering data, which are vital in their planning activities, including the identification of global trends.

    Also, the industry no longer has a body that will help identify the bad eggs that are giving it a bad name, she said.

    And while the industry has a road map, Agoncillo said there is no agency that is dedicated exclusively in helping them implement the policies.

    Last year the industry suffered a 13-percent drop in exports to only $2.2 billion, from $2.6 billion in 2006.

    The seven large companies that make up the Congep board represent 25 percent of the country’s shipment.

    Lawrence de los Santos, Congep president, said although the whole industry went on a negative exports last year, the group still posted about 12-percent increase.

    This year, however, de los Santos said the best that they are hoping for is a flat growth, with the January data from the Bureau of Customs already showing a 4-percent decline because of the developing recession in the US, where 70 percent to 75 percent of their shipments go.

    “We already saw the orders for up to August and it would be very difficult. We are now just relying on the spring orders for the last quarter of the year to provide the growth,” he said.

    The Americans at this time are now buying in mere bits and pieces, which causes uncertainty for the industry, he said.

    De los Santos said the creation of a similar unit to the GTEB does not require a law or an executive order from Malacañang. “A department order will do,” he said.

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