|
Official second-quarter figures show the deceleration of economic (GDP) growth to only 4.6%, versus the more optimistic 8.3% posted in the same period last year.
In tune with the structure of the Philippine economy, external trade figures follow the sluggishness of overall growth. While total merchandise imports showed an improvement (-2.5% versus -11.6% growth for the second quarter of 2008 and 2007, respectively), this was due to the sharp rise in the importation of cereal and cereal products, which include rice, jumping more than 23% from a negative growth of 20% last year; and fertilizers which grew 37.4% from a negative 32.4% last year. Meanwhile, imports of products that are considered inputs to production have deteriorated from the year-ago levels. Mineral fuels, lubricants and related materials declined by 13.1%; textile yarns contracted 22.7%; and manufacture of metals dipped 25.1%. Lower import of productive inputs meant poorer export performance, which grew only by 5.5% compared to the 6.3% growth registered in the second quarter of 2007. The traditional main export (semi-conductors and electric microcircuits) contracted by 11%.
The country registers a trade surplus of almost ten billion pesos, or 0.54% of GNP, in the second quarter of this year.
Such surplus, however, is not expected to hold up until the end of the year, when imports usually pick up. The country enjoyed trade surpluses in only two (1999 and 2000) of the last 18 years. In 2007, the country's trade deficit reached US$5 billion.
Foreign Trade of
the Philippines
1990 to 2007
(F.O.B. value in million U.S. dollars)
|
Year
|
Total Trade
|
Exports
|
Imports
|
Balance of Trade
Favorable (Unfavorable)
|
|
2007
|
105,536.90
|
50,240.34
|
55,296.56
|
(5,056.22)
|
|
2006
|
99,183.79
|
47,410.11
|
51,773.68
|
(4,363)
|
|
2005
|
88,672.86
|
41,254.68
|
47,418.18
|
(6,163.50)
|
|
2004
|
83,719.73
|
39,680.52
|
44,039.21
|
(4,358.69)
|
|
2003
|
76,701.72
|
36,231.21
|
40,470.51
|
(4,239.30)
|
|
2002/r
|
74,444.67
|
35,208.16
|
39,236.51
|
(4,028.35)
|
|
2001/r
|
65,207.36
|
32,150.20
|
33,057.16
|
(906.96)
|
|
2000
|
72,569.12
|
38,078.25
|
34,490.87
|
3,587.38
|
|
1999
|
65,779.35
|
35,036.89
|
30,741.46
|
4,294.43
|
|
1998
|
59,156.64
|
29,496.75
|
29,659.89
|
(163.14)
|
|
1997
|
61,161.52
|
25,227.70
|
35,933.82
|
(10,706.12)
|
|
1996
|
52,969.48
|
20,542.55
|
32,426.93
|
(11,884.38)
|
|
1995
|
43,984.81
|
17,447.19
|
26,537.63
|
(9,090.44)
|
|
1994
|
34,815.46
|
13,482.90
|
21,332.57
|
(7,849.67)
|
|
1993
|
28,972.21
|
11,374.81
|
17,597.40
|
(6,222.59)
|
|
1992
|
24,343.24
|
9,824.31
|
14,518.93
|
(4,694.62)
|
|
1991
|
20,890.88
|
8,839.51
|
12,051.36
|
(3,211.85)
|
|
1990
|
20,392.19
|
8,186.03
|
12,206.16
|
(4,020.13)
|
Notes:
1.
Details may not add up to totals due to rounding.
2. Exports include
domestic exports and re-exports.
r -
revised
Source: National Statistics Office
Aside from the perennial deficit, Philippine trade is also characterized by narrow export base (few export products), and few export markets. Electronic products are the country's most important trade commodity, representing 62% of exports and 45% of imports in 2007. The country relies heavily on three export destinations – Japan, the United States and the European Union, which together account for more than half of the country's foreign sales. They are also sources of 40% of the country's imports.
Direction of
Trade
2004 to 2006
(F.O.B. value in thousand U.S. dollars)
|
Countries
|
2004
|
2005
|
2006
|
|
|
Exports
|
Imports
|
Exports
|
Imports
|
Exports
|
Imports
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
39,680,520.48
|
44,039,212.44
|
41,254,683.47
|
47,418,182.55
|
47,410,117.34
|
51,773,684.17
|
|
Asia
|
24,310,854.64
|
29,130,333.66
|
25,448,184.59
|
31,667,383.48
|
28,411,947.31
|
36,218,677.64
|
|
ASEAN
|
6,837,882.86
|
8,355,856.65
|
7,143,786.45
|
8,867,131.21
|
8,192,204.35
|
10,218,342.41
|
|
Brunei Darussalam
|
4,027.04
|
310.63
|
9,398.67
|
924.25
|
6,285.50
|
75.83
|
|
Cambodia
|
5,404.53
|
1,318.89
|
7,695.33
|
1,503.97
|
8,518.03
|
1,012.27
|
|
Indonesia
|
375,662.51
|
936,007.60
|
476,465.91
|
1,002,781.87
|
364,023.46
|
986,581.08
|
|
Lao PDR
|
236.50
|
-
|
721.25
|
-
|
451.69
|
-
|
|
Malaysia a/
|
2,069,842.83
|
1,981,187.49
|
2,452,777.36
|
1,772,087.41
|
2,621,442.41
|
2,102,129.33
|
|
Myanmar
|
7,305.20
|
2,481.24
|
9,087.08
|
1,197.68
|
7,594.42
|
1,561.04
|
|
Singapore
|
2,630,505.84
|
3,420,971.08
|
2,706,923.13
|
3,727,434.32
|
3,505,006.37
|
4,378,718.17
|
|
Thailand
|
1,063,682.22
|
1,572,494.63
|
1,169,151.39
|
1,582,730.79
|
1,324,723.15
|
2,075,485.74
|
|
Viet Nam
|
681,216.18
|
441,085.09
|
311,566.35
|
778,470.93
|
354,159.33
|
672,778.96
|
|
East Asia
|
17,121,955.90
|
18,026,502.33
|
17,903,218.22
|
18,816,046.27
|
19,683,210.19
|
20,357,781.12
|
|
China
|
2,653,036.30
|
2,659,374.82
|
4,076,995.78
|
2,972,594.96
|
4,627,660.38
|
3,647,354.21
|
|
Japan b/
|
7,982,486.10
|
7,673,875.14
|
7,206,071.00
|
8,071,079.88
|
7,916,435.19
|
7,270,235.65
|
|
Hong Kong
|
3,145,608.50
|
1,738,759.51
|
3,340,699.30
|
1,928,979.32
|
3,706,005.16
|
2,095,595.86
|
|
Korea, Republic of
|
1,112,959.84
|
2,740,490.16
|
1,391,308.90
|
2,294,420.38
|
1,422,829.76
|
3,199,573.11
|
|
Taiwan
|
2,227,865.16
|
3,214,002.70
|
1,888,143.23
|
3,548,971.74
|
2,010,279.70
|
4,145,022.30
|
|
South Asia
|
125,310.80
|
306,512.45
|
149,056.65
|
382,341.53
|
191,053.71
|
470,496.95
|
|
Bangladesh
|
6,648.99
|
3,307.54
|
19,065.65
|
4,378.10
|
31,359.15
|
17,730.96
|
|
India
|
89,396.41
|
282,951.62
|
86,120.43
|
344,297.46
|
120,130.52
|
399,556.25
|
|
Nepal
|
861.24
|
13.05
|
210.05
|
138.57
|
465.92
|
897.01
|
|
Pakistan
|
20,312.49
|
13,913.64
|
31,620.49
|
24,677.67
|
28,787.68
|
42,288.97
|
|
Sri Lanka
|
8,091.67
|
6,326.59
|
12,040.03
|
8,849.73
|
10,310.44
|
10,023.76
|
|
Middle East
|
225,705.09
|
2,441,462.23
|
252,123.28
|
3,601,864.48
|
345,479.07
|
5,172,057.16
|
|
Bahrain
|
2,809.60
|
1,687.71
|
3,259.00
|
6,178.44
|
5,479.40
|
6,827.07
|
|
Iran
|
34,122.34
|
847,316.21
|
39,614.66
|
1,003,647.56
|
68,716.25
|
1,663,656.66
|
|
Israel
|
25,159.47
|
199,177.05
|
29,361.71
|
169,239.22
|
24,367.85
|
171,672.09
|
|
Jordan
|
2,808.82
|
5,567.74
|
2,359.31
|
6,741.03
|
2,280.03
|
5,040.81
|
|
Kuwait
|
14,815.58
|
12,861.53
|
20,205.70
|
17,704.26
|
29,835.70
|
43,337.88
|
|
Saudi Arabia
|
39,315.22
|
1,274,498.31
|
39,366.48
|
2,181,953.83
|
50,126.86
|
2,934,938.18
|
|
United Arab Emirates
|
106,674.05
|
100,353.67
|
117,956.42
|
216,400.14
|
164,672.99
|
346,584.49
|
|
America
|
7,579,014.77
|
9,054,671.05
|
7,910,657.06
|
9,850,576.34
|
9,239,973.22
|
9,185,770.77
|
|
North America
|
7,369,202.86
|
8,524,443.29
|
7,682,903.07
|
9,331,432.51
|
8,975,625.41
|
8,675,213.16
|
|
USA c/
|
7,087,855.23
|
8,270,234.93
|
7,417,629.39
|
9,096,256.88
|
8,689,531.70
|
8,436,962.80
|
|
Canada
|
281,347.63
|
254,208.36
|
265,273.68
|
235,175.63
|
286,093.70
|
238,250.36
|
|
Central America
|
133,920.46
|
21,182.95
|
125,144.68
|
32,234.43
|
143,638.16
|
43,370.60
|
|
Mexico
|
133,920.46
|
21,182.95
|
125,144.68
|
32,234.43
|
143,638.16
|
43,370.60
|
|
South America
|
75,891.45
|
509,044.81
|
102,609.31
|
486,909.40
|
120,709.65
|
467,187.01
|
|
Argentina
|
6,293.61
|
263,971.69
|
11,199.11
|
246,879.18
|
25,197.82
|
218,026.84
|
|
Brazil
|
23,004.12
|
230,997.34
|
75,848.93
|
221,811.23
|
76,411.43
|
217,709.13
|
|
Colombia
|
4,068.33
|
5,144.03
|
6,324.95
|
9,057.06
|
4,632.89
|
6,141.84
|
|
Peru
|
4,520.02
|
8,028.26
|
2,370.80
|
8,481.55
|
7,414.39
|
24,944.37
|
|
Venezuela
|
38,005.36
|
903.50
|
6,865.53
|
680.38
|
7,053.11
|
364.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
6,578,914.86
|
4,387,070.06
|
6,867,433.85
|
4,294,666.70
|
8,632,199.41
|
4,775,647.44
|
|
Western Europe
|
5,517,305.46
|
2,592,832.69
|
5,888,004.49
|
2,486,336.14
|
7,589,080.77
|
2,693,495.55
|
|
Austria
|
21,056.19
|
72,849.22
|
21,031.58
|
46,290.28
|
53,489.78
|
58,194.20
|
|
Belgium
|
264,685.48
|
196,960.51
|
270,085.86
|
213,964.53
|
734,009.83
|
264,249.66
|
|
France
|
185,393.58
|
356,693.39
|
186,829.14
|
397,875.70
|
215,278.08
|
336,197.66
|
|
Germany
|
1,435,756.86
|
1,195,689.47
|
1,349,364.40
|
1,131,450.09
|
1,781,287.14
|
1,368,070.29
|
|
Luxembourg
|
1,529.49
|
1,843.74
|
335.04
|
1,008.10
|
2,472.74
|
971.41
|
|
Netherlands
|
3,582,949.78
|
390,210.08
|
4,032,644.15
|
407,380.18
|
4,769,195.12
|
409,467.70
|
|
Switzerland
|
25,934.07
|
378,586.28
|
27,714.32
|
288,367.26
|
33,348.08
|
256,344.63
|
|
Northern Europe
|
768,447.96
|
1,097,894.21
|
640,384.52
|
1,168,267.24
|
686,325.01
|
1,577,768.22
|
|
Denmark
|
26,912.92
|
47,868.82
|
17,308.34
|
56,887.54
|
23,181.33
|
55,931.32
|
|
Finland
|
45,452.51
|
136,268.46
|
40,058.00
|
82,935.01
|
46,357.87
|
124,700.64
|
|
Ireland
|
123,109.22
|
311,727.93
|
123,453.29
|
522,601.05
|
96,703.12
|
884,565.52
|
|
Norway
|
5,018.50
|
8,093.58
|
7,841.90
|
10,300.58
|
8,917.49
|
23,539.26
|
|
Sweden
|
13,202.88
|
145,378.85
|
14,913.47
|
102,663.00
|
27,065.26
|
123,007.90
|
|
United Kingdom
|
554,751.94
|
448,556.58
|
436,809.52
|
392,880.06
|
484,099.95
|
366,023.59
|
|
Southern Europe
|
262,053.55
|
316,340.08
|
285,801.29
|
282,519.65
|
319,833.90
|
297,580.18
|
|
Greece
|
11,784.46
|
2,347.65
|
29,646.54
|
2,625.88
|
14,093.18
|
5,866.74
|
|
Italy
|
124,877.91
|
153,769.35
|
166,394.58
|
178,725.38
|
198,447.02
|
164,526.15
|
|
Portugal
|
15,389.49
|
6,677.97
|
17,797.68
|
6,558.28
|
15,095.88
|
12,223.61
|
|
Spain
|
105,589.84
|
151,667.82
|
68,307.44
|
92,144.46
|
87,332.62
|
112,637.31
|
|
Yugoslavia (Macedonia)
|
191.29
|
280.58
|
9.39
|
-
|
395.18
|
16.02
|
|
Slovenia
|
2,233.89
|
1,109.51
|
2,529.31
|
2,025.88
|
3,119.47
|
1,912.90
|
|
Croatia
|
1,986.68
|
487.20
|
1,116.35
|
439.76
|
1,350.55
|
397.46
|
|
Eastern Europe
|
31,107.89
|
380,003.09
|
53,243.56
|
357,543.67
|
36,959.73
|
206,803.49
|
|
Poland
|
12,524.88
|
2,226.36
|
16,808.64
|
3,927.59
|
13,426.49
|
1,972.28
|
|
Russian Federation
|
18,583.01
|
377,776.73
|
36,434.92
|
353,616.08
|
23,533.24
|
204,831.20
|
|
Oceania
|
553,523.41
|
920,645.37
|
518,166.23
|
923,171.36
|
561,234.95
|
1,062,331.27
|
|
Australia
|
481,737.30
|
579,357.83
|
455,055.01
|
531,056.02
|
488,213.24
|
618,247.30
|
|
Guam
|
27,292.97
|
1,631.05
|
19,455.63
|
935.11
|
14,685.52
|
364.80
|
|
Nauru
|
13.70
|
1.11
|
-
|
-
|
6.11
|
-
|
|
New Zealand
|
38,469.59
|
273,314.97
|
38,864.08
|
276,250.14
|
53,170.58
|
273,404.45
|
|
Papua New Guinea
|
6,009.85
|
66,340.40
|
4,791.51
|
114,930.10
|
5,159.51
|
170,314.72
|
|
Africa
|
55,361.75
|
47,507.80
|
54,995.75
|
61,003.56
|
66,783.49
|
50,131.83
|
|
Egypt
|
6,399.95
|
3,977.86
|
8,314.17
|
9,445.76
|
9,036.99
|
12,355.93
|
|
Nigeria
|
6,475.70
|
3.88
|
11,552.69
|
43.98
|
6,522.41
|
65.15
|
|
South Africa
|
42,486.11
|
43,526.06
|
35,128.89
|
51,513.83
|
51,224.09
|
37,710.76
|
|
Others
|
602,851.05
|
498,984.50
|
455,245.99
|
621,381.11
|
497,978.95
|
481,125.22
|
a - Includes Sabah and Sarawak. b
- Includes Okinawa. c - Includes Alaska and Hawaii.
Source: National Statistics
Office.
Free Trade (FTAs) and Economic Partnership Agreements (EPAs)
Compared to its immediate neighbors, the Philippines may seem to be conservative when it comes to signing bilateral FTAs. To this day, it has only signed one bilateral FTA, the Japan-Philippines Economic Partnership Agreement (JPEPA). JPEPA was signed at the sidelines of the Asia-Europe Meeting in Helsinki in 2006, away from prying eyes. Earlier this month, Senator Miriam Defensor-Santiago, Chair of the Senate Committee on Foreign Relations, expressed certainty that JPEPA will be ratified after the exchange of notes between the Foreign Affairs Departments of Japan and the Philippines expressing "shared understanding" intended to remove "constitutional issues".
But conservative the Philippines is not. Outside JPEPA, the Philippines is negotiating and/or already implementing seven regional FTAs. Table below shows what these regional FTAs are, their status, and target completion dates.
Regional FTAs the Philippines is Party to
|
FTA
|
Status
|
Targets/Objectives
|
|
ASEAN-Common Effective Preferential Tariff (CEPT) / ASEAN
Free Trade Area (AFTA)
|
Implemented since 1994
|
Common market by 2015; full commitment by the Philippines
by 2010
|
|
ASEAN-China Comprehensive
Economic Cooperation Agreement (CECA)
|
Trade in goods signed November 2004, in force January 2005;
trade in services signed January 2007, implemented July 2007
|
The Philippines has flexibility until 2012
|
|
ASEAN-Korea CECA
|
Trade in goods signed August 2006 (except Thailand); trade
in services November 2007
|
Target full implementation for 2012
|
|
ASEAN-Japan Comprehensive
Economic Partnership Agreement (AJCEPA)
|
Agreement completed in April 2008; passed in the Japanese
Lower House May 2008
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Full implementation by 2018
|
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ASEAN-India Regional
Trade and Investment Agreement (RTIA)
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trade-in-goods agreement signed 28 August 2008
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Has flexibility provisions until 2016
|
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ASEAN-Australia
and New Zealand FTA
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negotiations started 2005, expected to be completed in
2008
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Full target by 2013
|
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ASEAN-EU FTA
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Negotiations launched in May 2007 in Brunei; Trade Sustainability Impact Assessment by European consulting firm Ecorys underway; 6th Joint Committee Meeting scheduled for October 13-15 in Hanoi
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Programmes 
