Philippines Garments Exports Seen Growing Up To 5% Next Year
The Philippines’ garments and apparel exports are projected to grow by 2 to 5% next year, rising from an estimated US$1 billion in 2025, as the government intensifies efforts to reduce US tariffs and exporters diversify into new markets, according to the Foreign Buyers Association of the Philippines (FOBAP).
In a statement released through the Philippine Exporters Confederation Inc. (Philexport), FOBAP said the broader garments, textiles and apparel sector is expected to record modest but steady growth despite ongoing trade challenges. FOBAP President Robert Young noted that export revenues are likely to reach US$ 1 billion this year, up from about US$ 900 million in 2024, supported in part by advance deliveries that helped offset the impact of higher US tariffs.
Looking ahead to 2026, Young expressed optimism, citing ongoing government discussions with US counterparts aimed at lowering the 19% tariff imposed on Philippine goods. He added that securing tariff relief would provide a significant boost to export momentum. Recently, Finance Secretary Frederick Go said the government is seeking tariff exemptions for key export categories, including garments, travel accessories and furniture.
Beyond the US market, Philippine exporters are actively expanding their footprint in alternative destinations such as the European Union, ASEAN, Canada and Australia. The industry is also pushing for the negotiation of additional free trade agreements (FTAs) to improve market access, noting that the Philippines currently lags behind several ASEAN peers in the number of FTAs in force.
To enhance global competitiveness, industry players have also sought government support in the form of subsidies for power and labour costs, which remain major contributors to production expenses. FOBAP said discussions are underway with relevant agencies to explore incentives, including tax deductions linked to export performance, to help sustain growth in the sector.
