Trading Partner Portal: Philippines

Overview

Trade Overview

USA, Phliippines, California FlagsThe Philippines is a country in Southeast Asia in the Western Pacific comprised of more than 7,000 islands. The population was 103.3 million in 2017, making it the 12th largest country in the world. It also has one of the youngest populations in the world, with more than two-thirds of the population under the age of 35.  The Philippines has a GDP of $304.9 billion, with a year-on-year growth that is one of the fastest in the region (6.1% in 2015, 6.9% in 2016, and 6.7% in 2017).  Export.gov

In 2017, the U.S. exported $8.46 billion to the Philippines with computer and electronic products making up 35.7% of the total, followed by food manufactures and agricultural products. The U.S. imported $11.6 billion worth of goods from the Philippines in the same year, comprised 44% of computer and electronic products, followed by food manufacturers and electrical equipment. The Philippines is the 31st largest export partner for the U.S.

California Exports to Philippines

In 2017, California exported $1.284 billion to the Philippines, making it California’s 27th largest export partner. California’s main export to the Philippines is computer and electronic products, making up 32.3% of the total, followed by food manufactures 27.7%, transportation equipment 8.2%, and machinery except electrical 6.8%. Imports from the Philippines to California totaled $4.25 billion. California imports computer and electronic products (which made up 61% of the total), food manufactures, apparel and manufacturing products, and electrical equipment, appliances, and components.

Net foreign direct investment (FDI) inflows have been on an upward trend since the administration of former President Benigno Aquino III and rose by more than 40 percent year-on-year during 2016 to a record-high $7.9 billion (from $1.1 billion in net FDI flows in 2010 when the former President assumed office). The United States — with an estimated $4.7 billion of FDI in the Philippines as of end-2015 — ranks among the Philippines’ top investors. The Philippines has improved in various competitiveness rankings. However, the inadequate state of infrastructure remains a weak spot and investors also continue to cite government red tape, regulatory uncertainties, a slow judicial system, and corruption as challenges to doing business in the country. Export.gov

How About a U.S.-Philippine Free Trade Agreement, U.S. Chamber of Commerce, January 8, 2018

Joint Statement Between the United States of America and the Republic of the Philippines
White House, November 13, 2017

 

Trade Agreements

Trade Agreements

How About a U.S.-Philippine Free Trade Agreement, U.S. Chamber of Commerce, January 8, 2018

One tangible outcome of President Trump’s recent visit to Manila was an agreement that the two countries would hold exploratory talks on a bilateral free trade agreement. As the joint statement between Trump and Philippine President Duterte said, “The United States welcomed the Philippines’ interest in a bilateral free trade agreement and both sides agreed to discuss the matter further through the United States– Philippines TIFA [Trade and Investment Framework Agreement].”