Philippines

Philippines

The United States and the Philippines meet regularly under the auspices of a Trade and Investment Framework Agreement (TIFA) that was signed in November 1989.  Under the TIFA, a Memorandum of Understanding to Cooperate on Stopping Illegal Transshipments of Textiles and Apparel was signed by the Philippines and the United States in 2006. A Memorandum of Understanding Regarding the Implementation of Minimum Access Commitments by the Philippines was signed in 1998.

Key Events

On September 27-28, 2010, Assistant U.S. Trade Representative Barbara Weisel visited the Philippines to meet with senior officials of the new Aquino government.  At the Department of Trade and Industry, she met with Secretary of Trade and Industry Gregory Domingo and Undersecretary of Trade and Industry Cristobal, and the two sides agreed to step up their engagement under the TIFA, with meetings to be held quarterly.  The United States and Philippines plan to hold a TIFA meeting in December or January, and the United States welcomes any issues or other input stakeholders can provide ahead of this meeting.

Weisel also met with Secretary of Labor Rosalinda Dimapilis-Baldoz, Customs Commissioner Alvarez, Director-General Blancaflor of the Intellectual Property Office of the Philippines, and Chairman Ricketts of the Optical Media Board.  Key agenda items of the meetings included intellectual property rights, customs and trade facilitation, GSP issues, and potential new initiatives to expand the bilateral trade and investment relationship. 

U.S.-Philippines Trade Facts

U.S. goods and services trade with the Philippines totaled $20 billion in 2010 (latest data available). Exports totaled $9.4 billion; Imports totaled $10.6 billion. The U.S. goods and services trade deficit with the Philippines was $1.2 billion in 2010.

The Philippines is currently our 35th largest goods trading partner with $16.8 billion in total (two ways) goods trade during 2011. Goods exports totaled $7.7 billion; Goods imports totaled $9.1 billion. The U.S. goods trade deficit with the Philippines was $1.4 billion in 2011.

Trade in services with the Philippines (exports and imports) totaled $4.6 billion in 2010 (latest data available). Services exports were $2.0 billion; Services imports were $2.6 billion. The U.S. services trade deficit with the Philippines was $569 million in 2010.

Exports

The Philippines was the United States' 33rd largest goods export market in 2011.

U.S. goods exports to the Philippines in 2011 were $7.7 billion, up 4.5% ($330 million) from 2010, but down 12.3% from 2000.

The top export categories (2-digit HS) in 2011 were: Electrical Machinery ($2.9 billion),

Machinery ($741 million), Cereals (wheat) ($719 million), Optic and Medical Instruments ($365 million), and Food Waste and Animal Feed (soybean residues) ($343 million).

U.S. exports of agricultural products to the Philippines totaled $2.1 billion in 2011, the 11th largest U.S. Ag export market. Leading categories include: wheat ($705 million), soybean meal ($315 million), dairy products ($281 million), and red meats fresh/chilled/frozen ($103 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to the Philippines were $2.0 billion in 2010 (latest data available), 9.2% ($168 million) more than 2009 and 69% greater than 1994 levels. The other private services (business, professional, and technical services) and travel categories accounted for most of U.S. exports in 2010.

Imports

The Philippines was the United States= 38th largest supplier of goods imports in 2011

U.S. goods imports from the Philippines totaled $9.1 billion in 2011, a 14.5% increase ($1.2 billion) from 2010, but down 34.4% from 2000.

The five largest import categories in 2011 were: Electrical Machinery ($3.8 billion), Machinery ($905 million), Knit Apparel ($675 million), Fats and Oils (coconut oil) ($603 million), and Woven Apparel ($507 million).

U.S. imports of agricultural products from the Philippines totaled $1.4 billion in 2011. Leading categories include: tropical oils ($603 million), raw beet and sugar cane ($263 million), processed fruit and vegetables ($189 million), tree nuts ($111 million), and fruit and vegetable juices ($74 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $2.6 billion in 2010 (latest data available), up 3.3% ($82 million) from 2009, and up 148% from 1994 levels. Other private services (business, professional and technical services and telecommunication services), travel and passenger fares categories account for most of U.S. services imports from the Philippines.

Trade Balance

The U.S. goods trade deficit with the Philippines was $1.4 billion in 2011, a 137% decrease ($831 million) over 2010

The United States had a services trade deficit of $569 million with the Philippines in 2010 (latest data available).

Historical Trade Data

U.S. Goods Trade with the Philippines (in billions of dollars)

U.S. Services Trade with the Philippines (in billions of dollars), 1994, 2000, 2004-2010

Investment

U.S. foreign direct investment (FDI) in the Philippines (stock) was $6.6 billion in 2010 (latest data available), a 11.4% increase from 2009.

Reported U.S. FDI in the Philippines is mostly in the manufacturing sector.

Philippines FDI in the United States (stock) was $147 million in 2010 (latest data available), up 12.2 percent from 2009.

The distribution of Philippines FDI in the United States is not available.

Sales of services in the Philippines by majority U.S.-owned affiliates were $2.7 billion in 2009 (latest data available), while sales of services in the United States by majority Philippines-owned firms were $35 million.

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.