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Streamlining of processes to speed up trade amid Covid-19 pushed

MANILA – To ensure a quick rebound of the country’s external sector, the government should implement measures that streamline processes to facilitate trade amid the coronavirus disease 2019 (Covid-19) outbreak, the National Economic and Development Authority (NEDA) said.

The Philippine Statistics Authority (PSA) reported that the country’s total merchandise trade grew by 4.1 percent, reaching USD15.1 billion in January 2020.

January’s trade performance is largely due to a rebound in exports, which grew by 9.7 percent, supported by strong expansions from manufactured goods, agro-based and mineral products, and forest products.

The Philippines overtook all neighboring Asian countries in export growth in January 2020.

Coming from strong growth in December 2019, Philippine exports to major markets, particularly to Korea, Hong Kong, the US, Thailand, China, and Japan, recorded positive growth.

Imports, meanwhile, broke its nine-month decline by registering a 1 percent growth on account of higher inward shipments of mineral fuels and lubricant, as well as capital goods.

There is, however, the looming slowdown in global demand partly due to the spread of Covid-19.

“The government should further intensify its trade efforts to minimize the impact of reduced external demand and manage timely recovery. This is while we are preventing the spread of Covid-19 with continued vigilance and implementation of health measures,” Socioeconomic Planning Secretary Ernesto Pernia said in a news release issued Wednesday.

Pernia said relevant government agencies should consider measures that would streamline procedures and facilitate trade, as well as reduce transaction costs.

“In consultation with the private sector, the government should ease (the) implementation of some regulations that will allow firms to manage costs and provide financing or loan restructuring to micro and small enterprises whose operations may have already been affected,” he added.

Pernia cited measures that were instituted to remove administrative constraints for the importation of agricultural products under Administrative Order 13, s. 2019.

These include streamlining procedures and requirements in the accreditation of importers and minimize the processing time of applications for importation; providing exemption to traders that are already accredited from registration requirements; and reducing transaction fees and cargo fees for a limited period.

He said relevant government agencies may institute similar measures.

The Anti-Red Tape Authority may also play a crucial role in helping businesses reduce their cost of production by fast-tracking the review of procedures of certain crucial agencies, such as the Food and Drug Administration of the Philippines, to allow the introduction of new and innovative products to the domestic and export markets, Pernia said.

He noted that the government, in coordination with exporters, can also facilitate the identification of new sources and markets, as well as diversification of its products to manage vulnerabilities.

“In the longer term, emphasis must be placed on developing backward and forward linkages that will encourage the production of raw materials and intermediate inputs – as well onward processing to finished products – in the domestic market to reduce reliance on foreign suppliers,” Pernia said. (PR)

 

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