Trade News:
The United States furthered its dialogue with the Philippines in 2006, holding several rounds of consultations under the Trade and Investment Framework Agreement (TIFA). The consultations were used to make progress in addressing outstanding concerns.
In February 2006 the United States made a determination to lower the Philippines from the Priority Watch List to the Watch List under the Special 301 Review, which examines in detail the adequacy and effectiveness of intellectual property rights (IPR) protection. A review concluded that the Philippines had bolstered efforts to stop illegal production of pirated optical discs by controlling the licensing of and conducting raids against pirate optical disc production facilities. In addition, Philippine authorities conducted numerous raids on retail stores selling pirated and counterfeit goods. However, the Review also concluded that sustained effort and continued progress on key IPR issues will be essential to avoid a future return to the Priority Watch List.
In August 2006 the United State and the Philippines signed a Memorandum of Understanding (MOU) to Cooperate on Stopping Illegal Transshipments of Textiles and Apparel through the Philippines to the United States. The MOU provides for customs cooperation, identification of the actual textiles and apparel manufacturers and joint verification visits to provide our governments with the information necessary to stop textiles and apparel transshipments.
Since the signing of the United States-Philippines TIFA in 1989 two-way trade has grown, reaching $17.3 billion in 2006.
The Philippines is the United States’ 28th largest trading partner.
Trade Data:
U.S. goods exports in 2006 were $7.6 billion, up 10.5 percent from the previous year. Corresponding U.S. imports from the Philippines were $9.7 billion, up 4.8 percent. The Philippines is currently the 26th largest export market for U.S. goods.
U.S. exports of private commercial services (i.e., excluding military and government) to the Philippines were $1.7 billion in 2005 (latest data available), and U.S. imports were $1.7 billion. Sales of services in the Philippines by majority U.S.-owned affiliates were $1.8 billion in 2004 (latest data available), while sales of services in the United States by majority the Philippines-owned firms were $19 million.
The stock of U.S. foreign direct investment (FDI) in the Philippines in 2005 was $6.6 billion (latest data available), up from $6 billion in 2004. U.S. FDI in the Philippines is concentrated largely in the manufacturing, finance, and nonbank holding companies sectors.
Agreements
