PH Bolsters Trade, Investment and Tourism Drive in China, Southeast Asia at 15th CAEXPO

The Philippines seeks to broaden its relations in areas of trade, investments and tourism with China and members of Association of Southeast Asian Nation (ASEAN) as it returns in the 15th China-ASEAN Expo (CAEXPO) on September 12 15 at the Nanning International Convention and Exhibition Center (NICEC) in Guangxi, China.

CAEXPO is the second biggest trade event in China, with a total exhibition space of about 80,000 sqm. and 4,600 exhibition booths with around 57,000 participants all over the world.

It is the only international trade fair in the region dedicated to promoting the building of China-ASEAN Free Trade Area (CAFTA) and celebrating regional economic and trade cooperation.

“Expect a bigger and bolder Philippine delegation at CAEXPO as the government redoubles its efforts in strengthening the country’s economic ties with China, ASEAN nations and other partner regions,” DTI Undersecretary for Trade and Investments Promotion Group (TIPG) and concurrently CITEM Officer-in-charge (OIC) Nora K. Terrado.

Led by the Department of Trade and Industry-Center for International Trade Expositions and Missions (DTI-CITEM), partner agencies supporting the Philippine delegation includes the Provincial Government of Tarlac, Philippine Trade and Investment Center (PTIC) in Guangzhou, DTI – Export Marketing Bureau (EMB), DTI – Bureau of Domestic Trade Promotions (BDTP), DTI – Regional Operations Group (ROG), Board of Investments (BOI), the Department of Agriculture – Agribusiness and Marketing Assistance Service (DA-AMAS), and the country’s Tourism Promotions Board (TPB).

Last year, 42 local companies under the Philippine delegation generated $37.94 million export sales from 4,076 buyers, increasing its sales by more than six-fold compared to the $6.747 million in 2016.

The Philippine delegation also bagged three major awards in the 2017 CAEXPO, including the “Best City of Charm Pavilion,” “Best Promotion on Investment Cooperation,” and “Best Trade Visitor Organizer.”

DTI-CITEM targets 100 exhibitors, $26M export sales
For 2018, DTI-CITEM targets to bring around 100 micro, small and medium enterprises (MSMEs) to penetrate the Chinese and Southeast Asian markets, and secure at least $26 million in export sales.

The country’s contingent in China will highlight the Philippines’ trade potential through an exhibit of products and commodities from various sectors, including home, fashion and wearables, gifts, handicrafts, personal care, and food.

“Together with our partners, we are confident that we can emulate last year’s success as we look to elevate Philippines’ position as a source for high-quality products and services, as well as a premier tourism destination. This is also an opportunity to show our goodwill to our economic partners in China and other Asian neighbors,” explained Terrado.

DTI-CITEM will also spotlight the cultural tourism and investment priority areas of the province of Tarlac as this year’s selected “Province of Charm.”

“Returning to CAEXPO is part of the government’s strategic plan to open more areas of cooperation between Philippines and China that will continuously elevate both country’s bilateral relations onto new greater heights,” said Terrado.

CAEXPO is significant to the Philippines as it provides access to diverse opportunities for trade and investments with China’s continuous economic expansion with its Belt and Road Initiative. It is also an important platform to showcase the Philippines as a viable source of quality products and services and to promote goodwill with the Chinese government on different levels—trade, tourism, and investment promotions.

This year, being the 15th and milestone edition of the show, CAEXPO will invite all Heads of States of ASEAN to be part of the Commemorative Summit in the show. The 15th CAEXPO will also focus on the partnership between the ASEAN and China in building the China-led Silk Road Economic Belt and 21st-Century Maritime Silk Road.

Through the Silk Road, China eyes to boost its investments in ASEAN countries and provide infrastructure networks particularly for MSMEs to participate in the global value chain.

It also targets to strengthen cooperation towards the ASEAN-led Regional Comprehensive Economic Partnership (RCEP), a trade pact of the economic bloc with its six dialogue partners including China.

China as PH top trading partner
China emerged as the Philippines’ top trading partner in 2017, the first full year of the Duterte administration, with total bilateral trade valued at $23.82 billion, an increase from $21.9 billion in 2016

In terms of exports, 2017 marks the first time that the Philippines has shipped sugar to China. It is $8 million worth of sugar to China after some local investors were able to get an allocation from China as a result of the warming relationship between Manila and Beijing.

The Philippines also recorded an increase of 50 percent in fruit exports last year, particularly bananas and pineapples, to China ever since the ban was lifted in 2016.

Just last April, President Duterte visited China again for the Boao Forum for Asia and brought back a US$9.8-billion worth of investments, which would generate 10,000 jobs for Filipinos.

“These milestones have made Philippine companies in the food and other sectors bullish on the renewed prospects in the Philippine-China trade,” said Terrado.

She added: “Beyond export sales, we want our MSMEs to benchmark themselves and appreciate the opportunities in the Chinese market wherein there is an overwhelming demand for healthy foods, marine products, fresh fruits and intermediate goods.”