Trading Partner Portal: Philippines
Overview
Trade Overview
The Philippines is a country in Southeast Asia in the Western Pacific comprised of more than 7,000 islands. The population was 113 million in 2021, making it the 13th 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 $394 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 2022, the U.S. exported $9.29 billion to the Philippines with processed foods making up $2.7 billion of the total, followed by computer and electronic products, agricultural products and chemicals. The U.S. imported $16.1 billion worth of goods from the Philippines in the same year, comprised $7.59 billion of computer and electronic products, followed by electrical equipment, and processed foods. The Philippines is the 37th largest export partner for the U.S.
In 2022, California exported $1.6 billion to the Philippines, making it California’s 22nd largest export partner. California’s main export to the Philippines is processed foods making up $736 million of the total, followed by computer and electronic products at $445 million, transportation equipment at $80 million, and chemicals at $64 million. Imports from the Philippines totaled $5.2 billion. California imports computer and electronic products (which made up $3.1 billion of the total), followed by processed foods, electrical equipment, and plastic and rubber products.
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 $4.724 billion of FDI in the Philippines as of 2020- ranks among the Philippines’ top investors. The Philippines invested $747million into the U.S. in 2021. 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
Per the most recent census, there are approximately 4 million Philippine-Americans living in the US with half or about 2 million living in California – many whom are American citizens or dual-citizens.
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
Events
Events
