John Avila

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Information about John Avila

Published on January 10, 2008

Author: Virginia


Technical Barriers Facing Philippine Exporters:  Technical Barriers Facing Philippine Exporters Case Study of Electronics and Garments Exports John Lawrence Avila University of Asia and the Pacific, Philippines From coconuts to chips:  From coconuts to chips Slide3:  Source: BETP/DTI Most Exports from EPZs:  Most Exports from EPZs EPZ Exports by Product, 1995-2004 (%):  EPZ Exports by Product, 1995-2004 (%) Exports grew at average 17%, 1995-2005:  Exports grew at average 17%, 1995-2005 Electronics exports stood at around USD 27.3 billion in 2005. Slide7:  Over 60% goes to East Asian region USA - 13% US$ 3.3 Billion EUROPE - 19% US$ 5.1 Billion JAPAN - 18% US$ 4.8 Billion OTHER ASIA - 37% US$ 10.6 Billion Hongkong - US$ 2.8 B Singapore - US$ 2.1 B Malaysia - US$ 2.1 B Taiwan - US$ 1.4 B Korea - US$ 1.0 B Others - US$ 1.2 B Source: Bureau of Export Trade Promotion, DTI CHINA - 13% US$ 3.5 Billion Slide8:  CLASSIFICATION OF THE ELECTRONICS INDUSTRY PHILIPPINE ELECTRONICS INDUSTRY ELECTRONIC DATA PROCESSING Personal Computers, Hard Disk Drives, Floppy & Zip Drives, CD ROM, Motherboards, Software Development, Data Encoding and Conversion, Systems Integration Customization TELECOMMUNICATIONS Telephones, Pagers, VHF,UHF Radios, Cellular Phones, Scanners, Satellite Receivers COMPONENTS AND DEVICES (SEMICONDUCTOR) Pentium III, DSPs, Integrated Circuits, Transistors, Diodes, Resistors, Coils, Capacitors, Transformers, Lead Frames, PCB OFFICE EQUIPMENT Photocopy Machines and Parts, Electronic Calculators COMMUNICATIONS AND RADAR Pagers, CCTV, Radar Detectors, Marine and Land Mobile Radios, CB Transceivers CONSUMER ELECTRONICS TV Sets, Electronic Games, Radio Cassette Players, Karaoke Machines, Radio Cassette, Recorder CONTROL & INSTRUMENTATION PCB Assembly for Instrumentation Equipment MEDICAL AND INDUSTRIAL Spiro Analyzers, Smoke Detectors AUTOMOTIVE ELECTRONICS Electronics Brake Systems (EBS), RC Systems, Car Radios, Wiring Harness Source: Masterplan for Philippine Electronics Industry 1998 Slide9:  Source: Masterplan for Philippine Electronics Industry 1998 EMS 26% SMS 74% Exports are mostly parts and components Slide10:  ISO 9000 Certified, member of International Electrotechnical Commission (IEC) Lead in ASEAN Electronics Forum and ACCI Electronics committee Observes best known methods in manufacturing (JIT,TQM, 5S, QPIC) Participates in MRAs for Electrical and Electronic products testing and certification Capabilities Range from IC Packaging, PCB Assembly, Full Product Assembly Promotes harmonization of safety and EMC standards in ASEAN Industry Standards Slide11:  Sources: Philippine Board of Investments (BOI) & Philippine Economic Zone Authority (PEZA) Exports are mostly intra-industry trade Declining share of Garments Exports:  Declining share of Garments Exports Garments Exports:  Garments Exports ASEAN: USD 19m CHINA: USD 4.4m JAPAN: USD 58m KOREA: USD 3.7m EAST ASIA: USD 104m United States: USD 1,737m Industry profile:  Industry profile Predominantly Filipino-owned SMEs Import-dependent, sourcing over 80% of their textile requirement (polyester fiber, cotton, rayon, and acrylic) from abroad Extensive sub-contracting practice stemming from relations fostered by MFA regime (particularly for US market) Philippine firms part of triangle manufacturing Standards issues for garments:  Standards issues for garments Subject more to fashion trends and less on government regulations Standards a function of sub-contracting arrangements and branding Conformity assessment costs usually assumed by buyer Social and labor standards imposed on those seeking access to US markets ROO and licensing issues more prominent Manufactures subject to NTBs:  Manufactures subject to NTBs Manufactures subject to NTBs:  Manufactures subject to NTBs Summary:  Summary Standards not a serious trade impediment Impact on standards is a function of buyer-driven model, i.e. specification of inputs is determined by foreign buyers Garments and electronics part of global production network AFTA is not a natural export destination for Philippine garments and electronics

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