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DTI: MSMEs underutilize trade deals.
The Department of Trade and Industry (DTI) has recently released a report stating that Micro, Small, and Medium Enterprises (MSMEs) in the Philippines are underutilizing trade deals. This is a concerning issue as trade deals are meant to provide opportunities for businesses to expand their market and increase their revenue.
According to the report, only a small percentage of MSMEs are taking advantage of the benefits provided by trade deals such as the ASEAN Free Trade Area (AFTA) and the Generalized System of Preferences (GSP). These benefits include reduced tariffs, easier access to foreign markets, and increased competitiveness.
One of the reasons for this underutilization is the lack of awareness and understanding of trade deals among MSMEs. Many small business owners are not aware of the benefits that trade deals can provide and do not have the resources to navigate the complex regulations and requirements.
Another factor is the limited capacity of MSMEs to comply with the standards and regulations of foreign markets. Many small businesses do not have the resources to invest in the necessary equipment and technology to meet the standards required by foreign buyers.
To address this issue, the DTI is working to increase awareness and understanding of trade deals among MSMEs. The department is also providing assistance to small businesses to help them comply with the standards and regulations of foreign markets.
MSMEs play a crucial role in the Philippine economy, accounting for over 99% of all businesses in the country. It is important that these businesses are able to take advantage of trade deals to expand their market and increase their revenue. By providing support and assistance, the DTI can help MSMEs to fully utilize the benefits of trade deals and contribute to the growth of the Philippine economy.