Shipments of apparel and clothing accessories from the Philippines in June 2019 declined 8.7 per cent as compared the same period last year.Last year, exports of apparel and clothing fell 11.33 per cent.

Exporters, especially those operating in economic zones, want provisions securing tax breaks and exemptions for investors in the garments industry. Garment manufacturers want tax perks, such as reducing the 12 per cent value-added tax, granting a special concession power rate and providing incentives to compensate labor rate differential. They also want the duty-free importation of textile machinery and equipment to be extended and technical importation regulated to assist industry players. A tax reform package seeks to reduce the corporate income tax to 20 per cent by 2029, from 30 per cent at present, and overhaul the menu of incentives.

The trade conflict between the United States and China has not really resulted in increased orders for the Philippines. The country has benefitted only in a very small way, the reason being that the Philippines lacks competent manufacturers and locally milled textile plus the required accessories. So, the Philippines got just ten per cent of the relocated garment orders from China. Most of the orders went to manufacturing powerhouse Vietnam.