The Philippines expects garment and textile exports to increase 10 to 20 per cent this year. Luxury bags brand Coach is expanding its existing four sourcing groups from the Philippines.

The US accounts for 67 per cent of the Philippines’ apparel exports including leather goods. In addition, the US also accounts for 27 per cent of the country’s textile, fiber and fabric exports.

What’s also helping Philippines is that some orders are being shifted from China to the Philippines to avoid the high tariffs imposed by the US on Chinese goods, including garments and textiles. One of the major hurdles Philippine exporters face is the Rules of Origin in Europe because even as the country enjoys EU GSP Plus, its textiles and fabrics are sourced elsewhere and are therefore slapped with higher taxes. EU GSP Plus, however, is expected to lead to more garment and textile investments in the country.

In addition, least developed countries enjoy zero duty when they export to the US as against the Philippines, which faces a 33 per cent duty on its garments, making Philippine garments more expensive than those from other countries.

Blouses from the Philippines have a tax of 12 per cent going to the US. Suits and blazers are at 33 per cent. The same products from LDC countries face zero duty.