Camano, Ma. Reina Niña B.

BSA – IIIA
Philippine’s Trading Information

The Philippines is a densely populated island of 102.6 million residents located in south-
east Asia, and is officially named the Republic of the Philippines.
The Philippines shipped US$56.3 billion worth of products around the globe in 2016. That
figure represents roughly 0.3% of overall global exports estimated at $16.236 trillion for
the prior year 2015.
From a continental perspective, over two-thirds (67.7%) of Filipino exports by value are
delivered to other Asian countries while 17.3% are sold to North American importers. The
Philippines ships another 12.9% worth of goods to European clients with 0.5% going to
Africa.

Philippines Top Trading Partners

Below is a list showcasing Philippines top 3 trading partners, countries that imported the most
Filipino shipments by dollar value during 2016. Also shown is each import country’s percentage
of total Filipino exports.

1. Japan: US$11.7 billion (20.7% of total Filipino exports)

2. United States: $8.7 billion (15.4%)
3. Hong Kong: $6.6 billion (11.7%)

Philippines Top Trading Problems

The Philippine market can present challenges for foreign companies. The risks can be
overcome, but they do require a commitment in time and resources. Challenges include:

1. bureaucracy, as paperwork requires many signatures before final approval

2. corruption, which is improving, but remains a significant problem
3. restrictions on foreign ownership of companies, land and investment in certain sectors
 restricted participation in public procurement
 restrictions on ability of foreign individuals to practice in some professions

Philippines Top 10 Imports

The following product groups represent the highest dollar value worth of import purchases
during 2016. Also shown is the percentage share each product category represents in terms of
overall imports into the Philippines.

1. Electrical machinery, equipment: US$20.7 billion (24.1% of total imports)

2. Machinery including computers: $11.7 billion (13.6%)
3. Mineral fuels including oil: $8.4 billion (9.7%)
4. Vehicles : $7.6 billion (8.9%)
5. Plastics, plastic articles: $3.1 billion (3.6%)
6. Iron, steel: $3 billion (3.5%)
7. Aircraft, spacecraft: $1.8 billion (2.1%)
 8. Optical, technical, medical apparatus: $1.6 billion (1.8%)
9. Cereals: $1.5 billion (1.7%)
10. Pharmaceuticals: $1.4 billion (1.7%)

 Imported aircraft and spacecraft had the fastest-growing increase in value among the
top 10 import categories, up 570.9% for the 7-year period starting in 2009.
 In second place for improving import sales was the vehicles category up 270.6%, trailed
by Filipino imports of iron and steel delivering the third-fastest gain up 249%.
 Cereals was the only top 10 import to diminish in value posting a -26.3% decline in
value, caused mainly by a massive decline in imported rice.

Philippines Top 10 Exports

The following export product groups represent the highest dollar value in Filipino global
shipments during 2016. Also shown is the percentage share each export category represents in
terms of overall exports from the Philippines.

1. Electrical machinery, equipment: US$25.2 billion (44.8% of total exports)

2. Machinery including computers: $7.8 billion (13.8%)
3. Wood: $2.9 billion (5.1%)
4. Optical, technical, medical apparatus: $2.5 billion (4.4%)
5. Vehicles: $1.4 billion (2.5%)
6. Ores, slag, ash: $1.3 billion (2.2%)
7. Animal/vegetable fats, oils, waxes: $1.2 billion (2.1%)
8. Fruits, nuts: $1.1 billion (2%)
9. Ships, boats: $1 billion (1.8%)
10. Gems, precious metals: $757.4 million (1.3%)

 Wood was the fastest-growing among the top 10 export categories, up 232% for the 7-
year period starting in 2009.
 In second place for improving export sales were Filipino shipments of gems and
precious metals which rose in value by 158% led by booming international sales of gold.
 High expense items ships and boats posted the third-fastest gain in value up 148%.
 Only two of the top Filipino export categories declined in value, namely vehicles (down
-10% from 2009 to 2016) and machinery including computers (down -10.5%).

Bernardo M. Villegas is a Filipino writer and economist.

He was a member of the Constitutional Commission that
drafted the Philippine Constitution under the government of
President Corazon Aquino. He has been an advisor of the
recent Philippine Presidents. As of 2013, he was a professor
and senior vice-president at the University of Asia and the
Pacific (UA&P), the Chairman of the Center for Research and
Communication, a member of the Board of Trustees of the Makati Business Club, and visiting
professor at IESE. He is a Certified Public Accountant. He obtained bachelor's degree in
Commerce and the Humanities (both Summa Cum Laude) from De La Salle University. He
earned his doctorate degree in economics at the Harvard University. He became a
teaching fellow at Harvard's College of Arts and Sciences at the age of 21.