Philippines Trading Partner Portal

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 109.58 million in 2020, 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 $361.48 billion. Until 2020, the Philippines had a year-on-year growth that was one of the fastest in the region, growing 6.119% in 2019.  Export.gov

In 2021, the U.S. exported $9.26 billion to the Philippines with computer and electronic products making up $2.49 billion of the total, followed by processed foods, chemicals, and agricultural products. The U.S. imported $14 billion worth of goods from the Philippines in the same year, comprised $6.68 billion of computer and electronic products, followed by electrical equipment, and food manufactures. The Philippines is the 33rd largest export partner for the U.S.

(In USD Millions) – Source: trade.gov

In 2021, California exported $1.34 billion to the Philippines, making it California’s 27th largest export partner. California’s main export to the Philippines is processed foods making up $526 million of the total, followed by computer and electronic products at $444 million, transportation equipment at $78 million, and chemicals at $63 million. Imports from the Philippines to California totaled $4.7 billion. California imports computer and electronic products (which made up $2.8 billion of the total), followed by processed foods, electrical equipment, and apparel.

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 $5.19 billion of FDI in the Philippines as of 2020- ranks among the Philippines’ top investors. The Philippines invested $659 million into the U.S. in 2020. 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].”

Regional Comprehensive Economic Partnership (RCEP)

After 8 years of negotiations, the Regional Comprehensive Economic Partnership (RCEP) was signed on November 15, 2020. The RCEP is a free trade agreement (FTA) with 10 Association of Southeast Asian Nations (ASEAN) member states—Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam—and the five states with which ASEAN has existing FTAs—Australia, China, Japan, South Korea and New Zealand.

Please see the CalChamber’s RCEP page for more info.

RCEP – Association of Southeast Asian Nations

Text of the Regional Comprehensive Economic Partnership Agreement