Thursday, October 11, 2007 JPEPA seen to boost furniture industry
THE Japan-Philippine Economic Partnership Agreement (JPEPA), if ratified, is opening a huge market in Japan for the local furniture industry.
This was the position made by the Cebu Furniture Industries Foundation (CFIF), the primary industry support organization of furniture and exporters in the Philippines, at the roundtable discussion on the implications of the JPEPA organized by the Universal Access for Competitiveness and Trade (U-ACT) recently.
U-ACT is a non-profit, non-stock and private led advocacy think-thank that provides policy and research support on trade relations.
Marlene Gatpatan-Bedia, advocacy officer of the CFIF, said that while others perceive Jpepa as detrimental, the local industry welcomed the undertaking because it will provide greater access of Filipino furniture manufacturers in Japan.
She said the industry suffers from a steady decline in terms of furniture exports due to the softening of US market, which accounts for 60-70 of their sales. This is going on due to the emergence of new competitive players like Vietnam, Thailand, and China.
"The JPEPA can help in terms of opening new markets for the furniture industry aside from our existing US and European markets. The Japanese have a different way of doing business. They have a way of looking at the products compared to the Americans and the Europeans. It will be a challenging market. In terms of design, we can easily adjust in designing for Japan," Bedia said.
Japan is one of the top 10 markets of Philippine furniture. In terms of quality and design, the local furniture makers have the competitive edge that can easily attract the Japanese market.
"That is why we decided that we are not going to compete in terms of volume but we will be competing in terms of design and find our own niche," Bedia added.
Bedia also attributed the weakening of the industry to the strengthening of peso versus the dollar. As a result, she said, people have slowed down in buying furniture.
She said that the industry has to be more aggressive in its marketing and in looking for new markets so as to recover from its present state.
Established in 1974, CFIF is composed of 162 manufactures and exporters and 12 subcontractors in the country. (Donna Brazas/PNF)
