Philippines

Philippines

The United States and the Philippines have had a very close trade relationship for more than a hundred years. We meet regularly with the Philippines under the auspices of a Trade and Investment Framework Agreement (TIFA) signed in November 1989. Several additional agreements have been signed under TIFA auspices, including a customs administration and trade facilitation protocol (2010), a memorandum of understanding to cooperate on stopping illegal transshipments of textiles and apparel (2006), and a memorandum of understanding regarding the implementation of minimum access commitments by the Philippines (1998).

The United States is among the Philippines’ top trading partners, and it traditionally has been the Philippines' largest foreign investor. Two-way goods and services trade between the United States and the Philippines totaled to $22 billion in 2011. The stock of U.S. foreign direct investment in the Philippines exceeded $5 billion.

U.S.-Philippines Trade Facts

U.S. goods and services trade with the Philippines totaled $22 billion in 2011. Exports totaled $9.9 billion; Imports totaled $12.1 billion. The U.S. goods and services trade deficit with the Philippines was $2.2 billion in 2011.

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 $5.2 billion in 2011. Services exports were $2.2 billion; Services imports were $3.0 billion. The U.S. services trade deficit with the Philippines was $827 million in 2011.

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% ($329 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 ($742 million), Cereals (wheat) ($720 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 ($706 million), soybean meal ($315 million), dairy products ($280 million), and red meats fresh/chilled/frozen ($104 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to the Philippines were $2.2 billion in 2011, 8.7% ($173 million) more than 2010 and 38% greater than 200 levels. The other private services (business, professional, and technical services) and travel categories accounted for most of U.S. exports in 2011.

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 14.6% 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 $3.0 billion in 2011, up 12.2% ($324 million) from 2010, and up 94% from 2000 levels. Other private services (business, professional and technical 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 138% increase ($834 million) over 2010.

The United States had a services trade deficit of $827 million with the Philippines in 2011, up 22.3% from 2010.

U.S. foreign direct investment (FDI) in the Philippines (stock) was $5.3 billion in 2011, a 1.1% decrease from 2010.

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

Philippines FDI in the United States (stock) was $114 million in 2011, up 10.7 percent from 2010.

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 $3.3 billion in 2010 (latest data available), while sales of services in the United States by majority Philippines-owned firms were $37 million.

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