Philippines

The United States and the Philippines met regularly in 2008 and 2009 under the auspices of a Trade and Investment Framework Agreement that was signed in November 1989.

In October 2009, United States Trade Representative Ron Kirk met with Philippine President Gloria Macapagal-Arroyo for a wide-ranging discussion of bilateral, regional, and multilateral trade issues. Ambassador Kirk emphasized the importance of further building bilateral trade and investment relations and addressing outstanding bilateral issues. Kirk and Arroyo discussed the need to explore new avenues of cooperation under the TIFA, including on issues such as customs, services, and trade and the environment.

The United States hosted a full interagency TIFA in October 2008 to address a wide range of issues including intellectual property rights, Philippine excise taxes on distilled spirits, and GSP issues including a GSP petition filed in 2007 by the International Labor Rights Forum (ILRF). Assistant U.S. Trade Representative Barbara Weisel visited Manila in March 2009 to follow up on these discussions.

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.

U.S.-Philippines Trade Facts

U.S. goods and services trade with the Philippines totaled $21 billion in 2007 (latest data available). Exports totaled $9.7 billion; Imports totaled $11.6 billion. The U.S. goods and services trade deficit with the Philippines was $1.9 billion in 2007.

The Philippines is currently our 35th largest goods trading partner with $17 billion in total (two ways) goods trade during 2008. Goods exports totaled $8.3 billion; Goods imports totaled $8.7 billion. The U.S. goods trade deficit with the Philippines was $418 million in 2008.

Trade in services with the Philippines (exports and imports) totaled $4.2 billion in 2008. Services exports were $2.0 billion; Services imports were $2.2 billion. The U.S. services trade deficit with the Philippines was $151 million in 2007.

Exports

The Philippines was the United States' 30th largest goods export market in 2008.

U.S. goods exports to the Philippines in 2008 were $8.3 billion, up 7.6% ($583 million) from 2007, and up 114% from 1994 (the year prior to Uruguay Round).

The top export categories (2-digit HS) in 2008 were: Electrical Machinery ($4.2 billion),
Cereals (wheat), ($771 million), Machinery ($663 million), Optic and Medical Instruments ($300 million), and Food Waste and Animal Feed (soybean residues) ($239 million).

U.S. exports of agricultural products to the Philippines totaled $1.7 billion in 2008, the 12th largest U.S. Ag export market. Leading categories include: wheat ($703 million), soybean meal ($244 million), and dairy products ($210 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to the Philippines were $2.0 billion in 2007 (latest data available), 12.9% ($229 million) more than 2006 and 70% ($822 million) greater than 1994 levels. Other private services (business, professional, and technical services), travel, and the other transportation (freight and port services) category accounted for most of U.S. exports in 2007.

Imports

The Philippines was the United States' 37th largest supplier of goods imports in 2008.

U.S. goods imports from the Philippines totaled $8.7 billion in 2008, a 7.4% decrease ($695 million) from 2007, but up 52% from 1994.

The five largest import categories in 2008 were: Electrical Machinery ($3.6 billion), Machinery ($1.1 billion), Knit Apparel ($736 million), Woven Apparel ($627 million), and Fats and Oils ($471 million).

U.S. imports of agricultural products from the Philippines totaled $916 million in 2008. Leading categories include: tropical oils ($470 million), and processed fruit and vegetables ($158 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $2.2 billion in 2007 (latest data available), up 22.9% ($402 million) from 2006, and up 107% ($1.1 billion) from 1994 levels. Other private services (business, professional and technical services), travel, and passenger fees categories for most of U.S. services imports from the Philippines.

Trade Balance

The U.S. goods trade deficit with the Philippines was $418 million in 2008, a 75.3% decrease ($1.3 billion) over 2007.

The United States has a services trade deficit of $151 million with the Philippines in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in the Philippines (stock) was $5.9 billion in 2008, down 16.3% from 2007.

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

Philippines FDI in the United States (stock) was $21 million in 2008, down 72% from 2007.

The distribution of Philippines FDI in the United States is not available in 2007.

Sales of services in the Philippines by majority U.S.-owned affiliates were $2.2 billion in 2006 (latest data available), while sales of services in the United States by majority Philippines-owned firms were $42 million.

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