Philippines’ textile and apparel (T&A) exports are projected to grow by 2 per cent-5 per cent in 2026, building on an expected revenue increase this year. According to the Foreign Buyers Association of the Philippines (FOBAP), this optimism is fueled by government efforts to reduce US tariffs and industry expansion into new markets.
Robert Young, President, FOBAP, who is also a trustee for the textile sector of the Philippine Exporters Confederation Inc. (Philexport), stated, revenues from apparel and garment exports in 2025 are expected to rise to $1 billion, from approximately $900 million last year. Young noted, advance deliveries helped mitigate the impact of the current US tariff.
A key factor driving the positive outlook is the government’s push to secure exemptions from the current US tariff, which stands at 19 per cent for most Philippine goods entering the country. Frederick Go, Finance Secretary recently indicated the government’s hope to eliminate this tariff for garment, travel accessories, and furniture exports, following the precedent set by key semiconductor and agricultural goods that are already exempt.
Young stressed the industry's need for stronger market access through trade agreements. He pointed out, the Philippines lags behind its neighbors, having the ‘least number of FTAs among the ASEAN countries,’ and urged the government to pursue more Free Trade Agreements with regions like the European Union, Canada, and Australia to support continued export growth.
Furthermore, to boost competitiveness, industry players are requesting government subsidies to offset high operating costs, particularly for power and labor. Young mentioned ongoing discussions with the Department of Labor and Employment (DOLE) to potentially secure tax deductions or other concessions tied to export performance. The successful reduction of the US tariff and expansion of the FTA network are seen as critical factors determining the industry’s success in 2026.
