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I. EXECUTIVE SUMMARY
The global export environment is evolving opportunities for the Philippines (PHL) to grow
exports of merchandise and services by forty percent (+40) in the next three years (2011-2013)
and double the prior-period average in 2016.
By 2016, total Philippine exports will exceed one hundred twenty billion U.S. dollars (US$ 120B).
This is achieved by building on the current business for the period 2011-2013 and developing
Key Export Sectors that have high potential for growth. In the subsequent three years (20142016), growth is attained by implementing an agro-industrial resource-base export development
program.
The characteristics of exports and global trade are radically changing as the world recovers
from the recent global financial crisis and the natural disasters in Japan. Moreover, the
unfolding political events in the Middle East and North Africa (MENA) will contribute to volatile
market conditions. The key features are the faster growth of emerging economies with large
consumer populations and the slower single-digit growth of developed markets. This is resulting
to a re-balancing of consumption, export market size and supply chain configurations in relation
to pre-crises periods.
Free trade agreements and international trade negotiations become important factors in this
changed environment as these elements are significant determinants in re-deploying resources
of global export products and services. Further influencing these changes are emerging
economies that are moving up the value chain like China, India and ASEAN among others.
The immediate consequence of these developments is the re-migration of certain supply chain
components to strategic locations that can access large consumer base markets and at the
same time provide a deep pool of cost-effective manufacturing and knowledge workers.
The situation presents an opportunity for the Philippines to capture export-oriented investments
considering that sixty-eight percent (68%) of PHL merchandise exports are intermediate goods.
This means that the main drivers of Philippine exports today are global supply and value chains
as well as direct investments.
Equally, the emergence of new middle class consumers in developing countries and the
recovery of mature economies offer Philippine finished goods renewed opportunities for growth.
However, income mobility and improved technological capabilities have created intense
competition in the marketing of finished goods necessitating investments in innovative
consumer-capture activities.
The key elements defining opportunities in this new world order are: a) supply and value chain
management; b) international trade negotiations; and c) innovations in finished goods
marketing.
In this context, the Philippine Export Development Plan (PEDP) 2011-2013 identifies Key Export
Sectors controlling eighty-seven (87%) of current business to drive export growth. These are:
IT-BPO and other services; electronics; agribusiness products (food, coconut and other
resource-based products); minerals; shipbuilding; motor vehicle parts; garments and textiles;
homestyle products (furniture, furnishings, decors); and wearables (fashion accessories, shoes,
bags, jewelry).
The PEDP reaffirms the President as the champion of Philippine exports. Through his inspired
and inspiring leadership, the EDC partnership will be strengthened, motivated and empowered
to grow exports through 2013 and double it by 2016.
MERCHANDISE
EXPORTS
US$ Million
105,300
MER.
GRWTH
%
40
SERVICES
EXPORTS
US$ Million
9,872
SERV.
GRWTH.
%
NA
TOTAL
EXPORTS
US$ Million
115,172
TOTAL
GRWTH.
%
40
MER.
SHARE
%
91
SERV.
SHARE
%
9
35,208
36,231
39,680
111,119
10
3
10
6
3,428
3,389
4,043
10,860
12
-1
19
10
38,636
39,620
43,723
121,979
12
3
10
6
91
91
91
91
9
9
9
9
41,254
47,027
50,276
138,557
4
14
7
25
4,525
6,444
9,766
20,735
12
42
52
91
45,779
53,471
60,042
159,292
5
17
12
31
90
88
84
87
10
12
16
13
49,023
38,436
51,498
138,957
46,319
-2
-22
34
0
9,717
11,014
13,243
33,974
11,325
-1
13
20
64
58,740
49,450
64,741
172,931
57,644
-2
-16
31
9
83
78
80
80
17
22
20
20
MER.
GRWTH
%
SERVICES
EXPORTS
US$ Million
SERV.
GRWTH.
%
TOTAL
EXPORTS
US$ Million
TOTAL
GRWTH.
%
MER.
SHARE
%
SERV.
SHARE
%
2011
56,619
10
15,503
17
72,123
11
79
21
2012
62,262
10
17,967
16
80,229
11
78
22
2013
68,480
10
20,735
15
89,215
11
77
23
187,362
35
54,205
60
241,567
40
78
22
2014
75,594
10
22,895
10
98,490
10
77
23
2015
83,466
10
25,266
10
108,732
10
77
23
2016
92,179
10
27,884
10
120,063
10
77
23
251,240
34
76,045
40
327,285
35
77
23
PEDP PERIOD:
PEDP 2011-13 TARGETS
199
208
Table 2: EXPORT PERFORMANCE OF KEY SECTOR GROUPINGS: PEDP ALIGNED WITH PDP
AVE PAST
3 YRS
EXPORTS
2006-2008
US$
Million
SHARE
OF
BUSINESS
vs. AVE. 3
YRS.
%
2010
ACTUAL
EXPORTS
US$
Million
2010
GRWTH
vs.
AVE 3
YRS.
%
2009
EXPORTS
US$
Million
2010
GRWTH
vs.
2009
TOTAL EXPORTS
57,418
100
64,741
13
49,450
31
TOTAL SERVICES
TOTAL
MERCHANDISE
8,642
15
13,243
53
11,014
20
48,775
85
51,498
38,436
34
50,005
8,642
87
15
57,937
13,243
16
53
43,545
11,014
33
20
ELECTRONICS
Electronics
30,173
53
31,080
22,098
41
AGRIBUSINESS
2,856
3,625
27
3,191
14
MINERALS
2,437
1,870
-23
1,615
16
TRANSPORT
Shipbuilding
0.4
1,543
554
586
163
6,576
16
5,041
30
OTHER SECTORS
236
5,661
2,974
3,679
24
2,605
41
Garments /Textile
1,682
1,871
11
1,671
12
528
427
-19
324
32
477
599
26
441
36
7,413
13
6,804
-8
5,905
15
Homestyle: Furniture /
Decors/Giftware
Wearables: Fashion
Accessories/ Bags/
Shoes/Jewelry
Others
Raw Data Sources: BETP for Merchandise Exports; BSP for Services
NOTE: Benchmark Average 3 years cover 2006-2008 "normal" market conditions.
These sectors belong to large categories in growing markets. They have reasonable probability
of continued success based on current volumes, supply chain attributes, local value-added and
total employment. Also, these sectors are consistent with the priorities of the Philippine
Development Plan (PDP) 2011-2016.
From a business perspective, current volumes refer to having attained the critical mass to allow
re-investment for growth. Supply chain attributes mean that these export sectors are in
activities that enable them to move up the value chain in manufacturing and designing service
offers or in capturing high-income consumers. Local value-added pertains to the ability and
potential of these sectors to cultivate indigenous innovation. Total employment is the capability
to contribute to economic and human development essential for businesses to prosper in the
long-term.
REVENUE STREAM/
PRODUCT GROUP
IT-BPO
Other Services
ELECTRONICS
AGRIBUSINESS
Food: Fresh/
Processed/Marine
Coconut Products
MINERALS
SHIPBUILDING
HIGH POTENTIAL
GROWTH SECTORS:
Motor Vehicle Parts
Garments/Textile
Homestyle:
Furniture/
Decors/Giftware
Wearables: Fashion
Accessories/Bags/
Shoes/Jewelry
2010
ACTUAL
EXPORTS
US$ Million
2010
GROWTH vs.
AVE 3 YRS
2006-2008
%
INDIC.
MARKET
SIZE
US$ Million
MARKET
SHARE
%
MARKET
GROWTH
%
LVA
%
LVA AMT. at
2010
ACTUAL
EXPORTS
US$ Million
ESTIMATED
NO. OF
WORKERS
11,041
2,202
31,080
3,625
21
42
3
27
62,000
30,800
1,900,000
1,369,000
18
7
2
0.26
30
8
5
10
90
90
30
80
9,937
1,982
9,324
2,900
526,000
1,131,000
520,000
10,764,000
2,116
1,508
1,870
1,543
35
93
-23
554
769,000
7,500
12,650,000
83,000
0.28
20
0.01
2
10
10
15
16
80
95
80
20
1,693
1,433
1,496
308
75,583
3,400,000
180,000
33,045
6,576
3,679
1,871
16
24
11
420,000
600,000
1
0.31
8
5
65
30
2,391
561
70,000
150,000
427
599
-19
26
469,000
400,000
0.09
0.15
7
10
80
70
342
419
2,100,000
140,000
Raw Data Sources: BETP for Merchandise Exports; BSP for Services
NOTE: Benchmark Average 3 years cover 2006-2008 "normal" market conditions.
Value-Enhanced Categories
There are certain products in the Philippine export portfolio whose features are different from
the common characteristics of the Key Export Sectors. These products compete in rapidly
growing export markets where the Philippines is capturing shares meaningfully.
For purposes of this Plan, these products are called Value-enhanced Categories.
In prior PEDPs, Organic and Natural Products (ONP) were included among the Revenue
Streams. ONPs are still a priority considering the growing size of this business around the
world. One estimate is that the global revenue stream of ONP-related businesses is more than
one trillion U.S. dollars. Additionally, there is an expanding sector in the Philippine exporting
community engaged in ONP and related enterprises successfully promoting Filipino talent and
natural resources.
ONPs and related services have a wide range of business applications embracing virtually every
product and service category. From tourism to medical services; leisure sports to health and
wellness; food to textile products; and green cell-phones to hybrid cars. In fact, because of
9
10
V. SECTOR TARGETS
The PEDP total export targets are the sum of the targets of the Key Export Sectors plus
forecasts for the rest of the export product categories. The sector targets, on the other hand,
are a function of the roadmaps and business strategies of the firms comprising the sector.
Based on extensive consultations earlier described, targets were assessed and agreed utilizing,
among others, conventional benchmarks to ascertain achievability.
Table 4 shows the PEDP growth targets for 2011 according to Key Export Sectors in the context
of historical sales and market growth indicators.
Table 4: KEY SECTOR TARGETS 2011
IN CONTEXT OF HISTORICAL SALES AND MARKET GROWTH INDICATORS
2011 TARGETS BY
KEY EXPORT
SECTORS
TOTAL
EXPORTS
TOTAL
SERVICES
IT-BPO
SERVICES
TOURISM &
OTHERS
TOTAL
MERCHANDISE
TOTAL KEY
SECTORS:
SERVICES
EXPORT
SECTOR
ELECTRONICS
EXPORT
SECTOR:
AGRIBUSINESS
EXPORT
SECTOR:
MINERALS
EXPORT
SECTOR
TRANSPORT
EXPORT
SECTOR
REVENUE STREAM/
PRODUCT GROUP
2010
ACTUAL
EXPORTS
2010
GROWTH
vs. 2009
%
2010
GROWTH
vs. 20062008 AVE
%
64,741
31
13,243
20
ESTIMATED
MARKET
SIZE
2010 EST.
MARKET
SHARE
%
EST.
ANNUAL
MARKET
GROWTH
%
2011
GROWTH
TARGET
%
2011
TARGET
EXPORTS
13
11
72,123
53
17
15,503
11,041
17
12,962
2,202
15
2,541
51,498
34
10
56,619
57,937
34
16
12
64,734
IT-BPO AND
OTHER SERVICES
13,243
20
53
62,000
15
30
18
15,627
TOTAL
ELECTRONICS
31,080
41
1,900,000
10
34,188
3,625
14
27
1,369,000
0.3
10
10
3,987
930
15
-7
0.1
10
1,023
648
-7
32
0.1
10
713
538
-11
0.1
10
592
1,508
54
93
7,500
20
10
1,659
1,870
16
-23
12,650,000
0.01
15
1,964
1,543
163
554
83,000
16
12
1,728
TOTAL
AGRIBUSINESS
FOOD: Processed
& Beverages
FOOD: Fresh
FOOD: Marine &
Aquaculture
COCONUT
PRODUCTS
MINERALS:
Metallic/NonMetallic & Others
SHIPBUILDING
769,000
11
Table 4. (Cont.)
2011 TARGETS BY
KEY EXPORT
SECTORS
2010
ACTUAL
EXPORTS
2010
GROWTH
vs. 2009
%
2010
GROWTH
vs. 20062008 AVE
%
6,576
17
-3
3,679
41
24
420,000
3,973
1,871
12
11
600,000
0.31
15
2,152
427
32
-19
469,000
0.09
457
599
36
26
400,000
0.15
10
10
659
TOTAL OTHERS
6,804
-8
10
7,512
ELECTRICALS
1,510
26
10
10
1,661
CHEMICALS
1,172
51
45
10
1,289
REVENUE STREAM/
PRODUCT GROUP
HIGH
POTENTIAL
GROWTH
SECTORS:
MOTOR VEHICLE
PARTS
GARMENTS /
TEXTILE
HOMESTYLE:
Furniture/Decors/
Giftware
WEARABLES:
Bags/Shoes/
Accessories/
Jewelry
OTHER
PRODUCTS
New Sectors for
Assessment:
ESTIMATED
MARKET
SIZE
2010 EST.
MARKET
SHARE
%
EST.
ANNUAL
MARKET
GROWTH
%
2011
GROWTH
TARGET
%
2011
TARGET
EXPORTS
7,241
12
2012
2013
REVENUE STREAM
GROWTH
%
VALUE
in US$
Million
GROWTH
%
VALUE
in US$
Million
GROWTH
%
VALUE
in US$
Million
TOTAL EXPORTS
TOTAL SERVICES
IT-BPO SERVICES
OTHER SERVICES
TOTAL MERCHANDISE
TOTAL KEY SECTORS:
IT-BPO AND OTHER
SERVICES
ELECTRONICS
AGRIBUSINESS
FOOD: Processed &
Beverages
FOOD: Fresh
FOOD: Marine &
Aquaculture
COCONUT PRODUCTS
MINERALS
SHIPBUILDING
HIGH POTENTIAL
GROWTH SECTORS:
MOTOR VEHICLE
PARTS
GARMENTS/TEXTILE
HOMESTYLE:
Furniture/Decors/Giftware
WEARABLES: Fashion
Accessories/Bags/Shoes/
Jewelry
OTHER PRODUCTS
11
17
17
15
10
12
72,123
15,503
12,962
2,541
56,619
64,611
11
16
15
18
10
11
80,229
17,967
14,958
3,009
62,262
71,936
11
15
14
20
10
11
89,215
20,735
17,112
3,622
68,480
80,060
17
10
10
15,503
34,188
3,987
16
10
10
17,967
37,607
4,386
15
10
10
20,735
41,367
4,825
10
10
1,023
713
10
10
1,126
785
10
10
1,238
863
10
10
5
12
592
1,659
1,964
1,728
10
10
5
12
651
1,825
2,062
1,936
10
10
5
12
716
2,007
2,165
2,168
7,241
10
7,979
10
8,800
8
15
3,973
2,152
8
15
4,291
2,474
8
15
4,634
2,846
457
489
523
10
659
10
725
10
797
10
7,512
10
8,293
10
9,155
Importantly, the earthquake, tsunami and nuclear-reactor disasters in Japan last March 11,
2011 coupled with the unfolding socio-political events in the Middle East and North Africa
(MENA) which started in February 2011 will have global economic consequences.
While the immediate outlook is one of dramatic contraction in Japans exports and overall
contribution to the world economy and oil-price instability because of conflicts in the MENA
Region, rebuilding Japan and prospects in a democratized MENA will have their positive
outcomes.
The worlds experience with natural calamities and man-made crises illustrate this point.
Hurricane Katrina, the Kobe earthquake, the Indian Ocean tsunami and many more similar
disasters in the past twenty years demonstrate how affected countries and the international
community can work together to quickly recover from these tragic events. Equally, the British
Petroleum oil-rig explosion in the Gulf of Mexico and other oil-spills, the Three-Mile Island and
Chernobyl nuclear plant accidents, and the recent 2008 global financial crisis, are profound
examples of how nations and governments find effective solutions to problems that appear
insurmountable at the onset.
In the case of Japan, its expected massive disaster-recovery efforts will generate opportunities
considering its global financial resources, technological capabilities, supply chain model and
export market shares. In the case of the MENA region, the experience of many countries
transitioning from centrally-controlled economies to market-based democracies, whether or not
these political transformations result to replacements in leaders and personalities, demonstrate
that economic growth inevitably follows these changes. Moreover, the obvious importance of oil
to the world has always compelled the community of nations to collaborate in swiftly reestablishing supply and price stability during episodes of volatility.
The world is united in emphasizing that human development, restoring and improving quality of
life, and securing the future are the priorities in Japan and the MENA Region. In fact, everyone
in general recognizes that the welfare of people is the priority in responding to natural
calamities or armed conflicts.
It is precisely these priorities that create international trade and investment opportunities.
On the other hand, emerging economies are expected to grow YOY by six percent (+6%) in the
next three years. Crucially, regions with the largest consumer base will grow year-on-year at an
average of more than three times that of developed nations: China by eight-and-a-half percent
(+8.5%), India by seven-and-a-half percent (+7.5%) and ASEAN by four percent (+4%).
For the private sector, the implications of this situation on export sales, market development
investments, consumer market size, supply chain dynamics, and a host of other strategic
business determinants are profound. This is especially true for multinational corporations which
are driving Philippine exports. Re-setting the plans and operations of these companies will take
more than three years to complete.
Importantly, the assessment is higher and sustainable export growth will come from agricultural
(food) and resource-based products (homestyle, construction materials, natural & organic
industrial and finished goods) given the local value-added of these categories, the global market
size where they compete and the product differentiation features of Philippine design and
functionality. Given the scope of this activity, an export development program anchored on our
agro-industrial resource-base must be formulated in the next three years and implemented in
the next PEDP cycle (2014-2016).
14
TOTAL EXPORTS
TOTAL SERVICES
IT-BPO SERVICES
OTHER SERVICE
TOTAL MERCHANDISE
TOTAL KEY SECTORS:
IT-BPO AND OTHER SERVICES
ELECTRONICS
AGRIBUSINESS
FOOD: Processed & Beverages
FOOD: Fresh
FOOD: Marine & Aqualculture
COCONUT PRODUCTS
MINERALS
SHIPBUILDING
HIGH POTENTIAL GROWTH SECTORS:
MOTOR VEHICLE PARTS
GARMENTS/TEXTILE
HOMESTYLE: Furniture/ Furnishings/Decors
WEARABLES: Fashion Accessories/
Bags/Shoes/ /Jewelry
OTHERS
2015
2016
GROWTH
VALUE
GROWTH
VALUE
GROWTH
VALUE
%
10
10
10
12
10
11
10
10
12
12
12
12
12
8
15
13
12
15
10
in US$
Million
108,732
25,266
20,706
4,560
83,466
98,176
25,467
50,055
6,052
1,553
1,083
898
2,518
2,525
2,867
11,210
5,813
3,763
633
10
10
10
12
10
11
10
10
12
12
12
12
12
8
15
13
12
15
10
in US$
Million
98,490
22,895
18,824
4,072
75,594
88,748
23,078
45,504
5,404
1,387
967
802
2,248
2,338
2,493
9,931
5,191
3,272
575
10
10
10
12
10
11
10
10
12
12
12
12
12
8
15
13
12
15
10
in US$
Million
120,063
27,884
22,776
5,107
92,179
108,624
28,106
55,060
6,778
1,740
1,212
1,006
2,820
2,727
3,297
12,655
6,511
4,328
696
12
8
893
9,924
12
8
1,000
10,758
12
8
1,120
11,662
15
2011
2012
2013
ACTUAL
EXPORTS
Growth
EXPORT
Value
Growth
EXPORT
Value
Growth
EXPORT
Value
Average
Share
in US$ M
in US$ M
in US$ M
in US$ M
MERCHANDISE
51,498
10
56,619
10
62,262
10
68,480
78
SERVICES
13,243
17
15,503
16
17,967
15
20,735
22
TOTAL
64,741
11
72,123
11
80,229
11
89,215
100
SECTOR:
2015
2016
Growth
EXPORT
Value
Growth
EXPORT
Value
Growth
EXPORT
Value
Average
Share
in US$ M
in US$ M
in US$ M
MERCHANDISE
10
75,594
10
83,466
10
92,179
77
SERVICES
10
22,895
10
25,266
10
27,884
23
TOTAL
10
98,490
10
108,732
10
120,063
100
16
17
SHARE
%
100
60
23.0
19.9
16.7
19
17.8
0.8
0.04
0.0
18
17.9
0.3
1.4
1.1
0.4
1.4
1.0
0.4
0.7
0.7
0.01
0.003
0.1
This is in contrast to ten years ago (2001), where fifty percent (50%) of PHL exports went to
the US and EU and forty-eight (48%) to North and Southeast Asia. The pie-chart below shows
the shift in the market for Philippine exports.
18
2006-2010 AVE
The shift of our export business from North America and Europe to North and Southeast Asia is
a result of the combined effects of increased consumer incomes in the larger populations of the
developing economies in Asia and changes in the global supply chains enabled by Free Trade
Agreements. Most notable are the ASEAN Free Trade Agreements (FTAs) and the regionalbilateral trade agreement initiatives being phased-in by the US and the EU.
On the part of Asian economies, Philippine exports of intermediate goods achieved incremental
growth as consumers in global manufacturing bases began buying export branded finished
goods made up of components coming from the Philippines. This is further enhanced by
emerging distribution channels being established among Asian countries.
On the part of the US and the EU, their phased trade agreement initiatives expand multicountry manufacturing and distribution facilities as global and regional companies set up multiplatform supply chains for branded products and services. This is done to provide for peaks and
valleys in the demand of branded products in rapidly emerging consumer markets with varying
levels of development and consumption behavior, while at the same time ensuring a steady,
predictable and reliable supply of inventories to developed markets.
Central to this unfolding reality is China. China as a major manufacturing base and consumer
market is moving up the value chain. As it does, it sustains its rapid economic growth creating
large numbers of Chinese consumers with high disposable incomes and rapid consumption
behavior for quality branded products. Moving up the chain increases the cost of manufacturing
in China while evolving new types of production processes that accrue to higher economic value
for Chinese companies. This is resulting to a shift in the global chains characterized by the remigration of certain manufacturing facilities to alternative locations in Asia. Key considerations
to the re-migration are speed-to-market and cost-effectiveness rather than manufacturing costs
alone.
Prime candidates for this re-migration are strategically located countries which can costeffectively access as many of the developed and developing mass consumer markets possible.
Countries that at the same time possess a deep pool of skilled and trainable workers,
professional managers and knowledge employees. Countries like the Philippines.
This explains the shift of our exports to Asia. At the same time, similar changes are taking place
in similarly situated countries and regions around the world explaining the growth of our
19
20
C. Promotions Strategies:
1. Undertake Focused Promotions with Emphasis on Precision Rather than
Profusion
Focus on precision (quality) rather than profusion (quantity) in conducting
promotions. Identify and participate in select high-impact, high-level trade events.
On-premise traffic of consumers and companies in these events must be consistent
with target audience.
Equal emphasis must be given to investments-capture and tourism promotion given
the character and needs of the overall export portfolio. This will drive investments in
22
23
Finally, the exporting community believes that the key to the success of Philippine exports is
The President of the Philippines.
The PEDP reaffirms The President as the champion of Philippine exports.
Through his inspired and inspiring leadership, the EDC partnership will be strengthened,
motivated and empowered to level-up exports through 2013 and double-up by 2016.
-oOo-
25
26
ANNEX 1:
Sectoral Strategies and
Activities
27
28
A. FOOD
Priority Products
Priority Markets
2011 10%
2012 10%
2013 10 %
Promotion
Capacity Building
29
30
Priority Products
High-end Gowns/Dresses
Ethnic Natural Fiber
Barong
Lingerie/ Night Wear
Priority Markets
USA
EU
Japan
2011 15%
2012 15%
2013 15%
Baseline US$ 599 M
More than 15% if Save Our Industry Act is passed by the
US Congress
Promotion
Campaign for the approval of the SAVE ACT in US Congress
Expand and improve market access
Work for preferential regimes (EU-GSP)
Intensify market access (re-negotiate ROO for PJEPA)
Maximize benefits of existing free trade agreements (FTAs)
Develop brands for emerging markets
Conduct strategic selling missions for SMEs to target EU
countries
Create new markets in ASEAN and China
Capacity Building
Implement industry accreditation and tracking of social
compliance program
Investment promotion to revive the textile industry
Industry mapping, accreditation and tracking program
Synchronize (CHED, TESDA) efforts in skills training
Upgrade technology
Disseminate incentives for investors
31
Priority Products
Costume/Fine Jewelry
Bags
Footwear/Slippers/Shoes
Priority Markets
2011 10%
2012 10%
2013 10%
Baseline US$ 599 M.
Promotion
Integrate promotional efforts
Promote via international media
Mount showrooms in Philippine embassies and airports
Subsidize participation in trade fairs abroad
Develop an iconic tourist retail center
Capacity Building
Upgrade technology
Prepare impressive brochures/catalogues
Intensify gathering of commercial intelligence in US, EU,HK
and Japan
Provide information on market requirements and trends
Develop/update designs of products
Provide financing assistance (non-collateral loans)
32
Priority Products
Priority Markets
Europe
US
Asia (China & India)
2011 7%
2012 7%
2013 7%
Baseline US$ 427M
Promotion
Integrate promotional efforts (Manila FAME, Manila NOW,
CebuNext)
Build brands based on green approach
Provide financial support for selling missions and trade fairs
to identified markets
Advertise in foreign media
Maximize benefits from free trade agreements
Capacity Building
Re-energize and sustain industry clusters
Continue to develop designs using mixed media
Implement productivity enhancement programs
Link up furniture and furnishings/decor industries with the
tourism industry
Conduct market intelligence with the private sector/ hire the
best foreign consultants for market intelligence and design
Simplify shipment documentation procedures
33
Priority Services
Voice Services:
Contact center
Non Voice Services :
Back-office/KPO
IT (software development, application,
maintenance)
ESO/Engineering and design processes
Health Information Management
Transcription (Legal & Medical)
Animation
Game Development
Priority Markets
2011 18%
2012 16%
2013 14%
Promotion
Consolidate dominance in the US and aggressively promote /
grow footprint in the UK and APAC
Create a more interactive website/ International promotion
(Multimedia)
Capacity Building
Rapidly demonstrate capability and scalability outside of
voice, with a focus on high-growth segments for the future
Accelerate scale-up of talent, while sustaining or improving
cost competitiveness, regulatory environment, capital
availability and risk perceptions
Retain momentum in developing Next Wave Cities
34
Priority Products
Semiconductors
Electronic Data Processing
Automotive Electronics and Solar Power/ Photovoltaic
Cells
Priority Markets
USA
Europe
Japan and China
2011 10%
2012 10%
2013 10%
Baseline: 2010 US$ 31.080B
Major Policy
Concerns/ Policy
Support Needed
35
Priority Products
Priority Markets
2011-10%
2012-10%
2013-10%
Baseline: 2010 US$ 1.71M
For coconut oil:
2011- 10%
2012- 10%
2013- 10%
Baseline: 2010 US$ 1.506B
Coco coir products:
36
37
Priority Products
Priority Markets
Export Growth
Targets
Major Policy
Concerns / Policy
Support Needed
2011 5%
2012 5%
2013 5%
38
Priority Products
Priority Markets
Replacement parts:
radiators, leaf springs, filters, batteries, alloy wheels,
exhaust system
OEMs:
Developed Economies USA, Japan and Korea
Emerging Economies China and India
Regional Australia, New Zealand and ASEAN
Replacement Parts:
USA, China/Japan, Western Europe (Germany and
Netherlands
Major Policy
Concerns/ Policy
Support Needed
2011 8%
2012 8%
2013 8%
Baseline: 2010 US$ 3.679B
1. Implementation of EO 877-A
(New Motor Vehicle Development Program)
Implementation of the Support Program for parts
and CKDs
Serious government commitment to promote
exports
2. Proactive efforts to develop linkage with neighbors
in complementing policies on taxes, tariff, labor
incentives, customs and trade to harmonize
standards.
39
40
ANNEX 2:
Market Briefs
Data for General Trade Indicators were taken from ITC Trademap to allow for global comparison (e.g.,
country market shares vs. the world market). Bilateral Trade data were taken from the Trade Relations
Report (TRR) prepared by the BETP which makes use data from both ITC Trademap and the National
Statistics Office (NSO), the official Philippine data source which provides more recent Philippine trade
data.
41
42
(2010)
:
:
:
351.4
3,500
7.3
ASEAN
Share
in
World
Imports
(2010)
Growth
of
ASEAN
Imports
(20092010)
ASEAN
Imports
from PH
(2010)
in US$
Thousand
Share of
PH to
Total
ASEAN
Imports
(2010)
Growth of
PH
Exports
to ASEAN
(20092010)
Share of
ASEAN
to Total
PH
Exports
(2010)
6.4%
-3.77%
11,557,639
1.21%
-7.18%
4.91%
For 2010, ASEANs imports amounted to US$ 957.10 billion, this accounts for 6.4% of total
world imports. But from 2009-2010, ASEAN imports have declined by 3.77%.
Philippine exports to ASEAN for 2010 were valued at US$ 11.55 billion. This represents
4.91% of the countrys total exports but only 1.21% of ASEANs total imports from the world.
Moreover, Philippine exports to ASEAN have declined by 7.18% from 2009-2010.
Total
Trade
18,906,246
21,482,971
22,379,493
17,516,160
27,827,451
PH Exports to
ASEAN
8,192,202
8,031,907
7,089,911
5,844,310
11,557,639
PH Imports
from ASEAN
10,714,044
13,451,064
15,289,582
11,671,850
16,269,812
Balance of
Trade
(2,521,842)
(5,419,157)
(8,199,671)
(5,827,540)
(4,712,173)
Total bilateral trade with the ASEAN for 2010 amounted to PhP 27.82 billion, a 58.86%
increase from the previous year. Moreover, the balance of trade has been in the
negative for the period 2006-2010. However, the trade deficit has decreased by 19.13%
from PhP 5.82 billion in 2009 to PhP4.72 billion in 2010.
Philippine exports to the ASEAN in 2010 represent 22.47% of total PH exports to the
world of $51.43 billion. ASEAN imports account for 27.94% of PH imports from the
world of $58.22 billion.
43
Top ASEAN export markets are Singapore, accounting for 63.43% of total Philippine
exports for 2010, followed by Thailand with 15.44% and Malaysia with 12.08%. Top
ASEAN import suppliers are Singapore with 33.43%, Thailand with 25.19%, Malaysia
with 15.75%, Indonesia with 14.75% and Vietnam with 10.75%.
1
2
3
4
5
6
7
8
9
TOTAL PH EXPORTS
TOTAL PH EXPORTS TO THE
ASEAN
Singapore
Thailand
Malaysia
Viet Nam
Indonesia
Myanmar
Cambodia
Brunei Darussalam
Lao People's Democratic Republic
FOB
% Share
51,431,703
100.00
11,557,639
22.47
7,331,225
1,784,167
1,396,496
570,550
449,217
11,233
8,495
5,955
301
63.43
15.44
12.08
4.94
3.89
0.10
0.07
0.05
0.0
1
2
3
4
5
6
7
8
9
SUPPLIERS
TOTAL PH IMPORTS
FOB
58,228,624
% Share
100.00
16,269,812
27.94
5,439,478
4,098,377
2,562,475
2,399,713
1,750,771
13,378
2,912
2,696
38
33.43
25.19
15.75
14.75
10.76
0.08
0.02
0.02
0.0
44
Exports
(US$ 000)
11,557,639
7,274,710
1,212,346
782,985
490,795
%
Share
100.00
1
2
3
4
338,221
2.93
111,621
0.97
7
8
106,942
101,459
0.93
0.88
98,448
0.85
93,178
0.81
9
10
62.94
10.49
6.77
4.25
Imports
(US$ 000)
%
Share
100.00
1
2
16,269,812
3,591,609
3,175,996
1,834,560
11.28
Cereals
1,567,224
9.63
1,566,662
9.63
640,808
3.94
280,604
1.72
8
9
263,646
247,549
1.62
1.52
10
238,402
1.47
22.08
19.52
45
A. ECONOMIC INDICATORS
(2010)
:
:
:
2.194
10,900
7.5
Brazils
Imports
from the
World
(2010)
in US$
Thousand
181,648,672
Brazils
Share
in
World
Imports
(2010)
Growth
of
Brazils
Imports
(20062010)
Brazils
Imports
from PHL
(2010)
in US$
Thousand
Share of
PHL to
Brazil's
Total
Imports
(2010)
1.2%
15%
131,467
0.07%
Growth
of PHL
Exports
to
Brazil
(20062010)
13
Share
of Brazil
to Total
PHL
Exports
(2010)
0.3%
At the moment, Brazil is one of the worlds darling economies. After all, Brazil is the B in
BRIC (Brazil, Russia, India & China) , the acronym that represents the worlds biggest
emerging markets. In 2010, Brazil ranked 22nd biggest importer in the world. Its total
imports amounted to US$ 181.65 billion, accounting for 1.2% of total world imports.
From 2006 to 2010, Brazils imports increased by 15%.
In 2010, Philippines exports to Brazil were valued at US$ 131.47 million, representing
only 0.2% of Brazils total imports from the world and only 0.3% of the Philippines total
exports. From 2006-2010, Philippine exports to Brazil have grown by 13%.
Total
Trade
325.54
439.72
428.74
305.11
339.24
Exports to
Brazil
76.41
75.74
69.02
83.30
131.47
Imports from
Brazil
249.13
363.98
359.72
221.81
207.77
(2.79)
12.53
(8.23)
Balance
of Trade
(172.72)
(288.24)
(290.70)
(138.51)
(76.30)
46
Exports
(US$ Million)
%
Share
131.47
100.00
27.84
21.18
25.41
11.37
19.33
8.65
10.96
7.95
5.66
5.20
4.31
3.95
4.88
3.71
3.81
2.90
3.35
3.02
2.55
2.30
Imports
(US$ Million)
%
Share
207.77
100.00
35.76
32.61
17.21
15.69
20.44
18.25
17.88
10.99
9.84
8.78
8.61
5.29
9.09
7.77
6.84
3.29
4.37
3.74
3.29
1.58
47
A. ECONOMIC INDICATORS
GDP PPP (US$ trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)
(2010)
:
:
:
10.09
7,600
10.3
Chinas
Imports from
the World
(2010)
in US$
Thousand
1,394,199,479
Chinas Growth
Share
of
in
Chinas
World Imports
Imports (2006(2010)
2010)
9.3%
13%
Chinas
Imports
from PHL
(2010)
in US$
Thousand
5,701,504
Share of
PHL to
China's
Total
Imports
(2010)
Growth
of PHL
Exports
(20062010)
Share of
China to
Total PHL
Exports
(2010)
1.2%
-3
11.1%
China is one of the fastest-growing economies in the world, ranking as the 2nd biggest
importer in 2010. Its total imports amounts to US$ 1.4 trillion, accounting for 9.3% of the
worlds total imports. From 2006-2010, imports of China have grown by 13%.
In contract, Philippines exports to China have fallen by -3% from 2006-2010. Philippine
exports to China were valued at US$ 5.70 billion, accounting for only 1.2% of Chinas
total imports from the world for 2010. But China remains as an important Philippine
market as exports to China represent 11.1% of the countrys total exports.
Total Trade
8,497.05
9,982.76
10,030.27
6,994.32
10,635.41
0.94
Exports to
China
4,627.66
5,749.86
5,469.19
2,933.92
5,701.50
Imports from
China
3,869.39
4,232.90
4,561.09
4,060.39
4,933.90
-3
4.54
Balance of
Trade
758.27
1,516.97
908.10
(1,126.47)
767.60
48
In 2010, China moved to fourth slot as the Philippines top trading partner (next to Japan, the
US, and Singapore). Bilateral trade between the Philippines and China amounted to
US$10.31 billion (9.71% of the Philippines total external trade) in 2010. Of which, exports to
China went up by 94.61% from US$2.93 billion in 2009 to US$5.70 billion in 2010 making
China as the fourth largest export market. On the other hand, China ranked as the
Philippines fourth largest supplier of imports in 2010.
Top Philippines exports to China in 2010 consisted of Machinery, nuclear reactors and
boilers; Electrical and electronic equipment; Ores, slag and ash; Copper products; and
Mineral fuels, oils and distillation products. Major imports consisted of Electrical, electronic
equipment; Machinery; Iron and steel products; Mineral fuels, oils, distillation products; and
Plastics and articles thereof..
2010 TOP PHILIPPINE EXPORTS TO CHINA
Products
TOTAL
1
2
3
4
5
6
7
8
9
10
Exports
(US$ Million)
5,701.50
2,452.79
1,831.13
322.03
236.39
190.61
125.91
98.08
92.62
64.33
42.29
%
Share
100.00
43.02
32.12
5.65
4.15
3.34
2.21
1.72
1.62
1.13
0.74
Imports
(US$ Million)
%
Share
4,933.90
100.00
1,242.15
912.08
265.01
223.47
158.17
154.17
128.13
114.34
113.87
97.08
25.18
18.49
5.37
4.53
3.21
3.12
2.60
2.32
2.31
1.97
49
A. ECONOMIC INDICATORS
(2010)
GDP(US$ Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)
:
:
:
16.07
32,700
1.8
EUs
Share in
World
Imports
(2010)
Growth
of EU
Imports
(20092010)
5,240,732,339
34.9%
-23.0%
EU
Imports
from PHL
(2010)
in US$
Thousand
7,412,441
Share of
PHL to
EU's
Total
Imports
(2010)
0.14%
Growth
of PHL
Exports
to EU
(20092010)
-6.97%
Share of EU
to Total PHL
Exports
(2010)
14.41%
As a trading bloc, EU is the largest importer in the world. In 2010, the EUs imports
amounted to US$ 5.24 trillion, accounting for 35% of total world imports. However, in 20092010, total EU imports declined by 23%.
Accounting for 0.14% of EUs total imports from the world, Philippine exports to the EU for
2010 were valued at US$ 7.41 billion. This represents 14.41% of the Philippines total
exports to the world. Philippine exports to the EU declined 6.97% for the period 2009-2010.
YEAR
TOTAL
TRADE
PH EXPORTS
TO THE EU
PH IMPORTS
FROM THE EU
BALANCE
OF TRADE
2006
13,008
8,737
4,271
4,466
2007
12,085
8,592
3,493
5,099
2008
13,284
8,519
4,765
3,754
2009
13,509
7,967
5,542
2,425
2010
11,683
7,412
4,271
3,141
(1.03)
(3.96)
4.72
Ave Growth
Rate% 2006-2010
Source: ITC Trademap.
50
Total bilateral trade with the EU posted a negative average growth of 1.03% in the last
five years (2006-2010). Worldwide economic slowdown particularly affected majority of
eurozone economies beginning 2009 which, in turn, caused exports to shrink 3.96% on
the average during the same period. Imports, however, grew 4.72%. Balance of trade
continues to be in favor of the Philippines.
Top EU export markets are Germany, the Netherlands, France, the UK, Italy, Belgium,
and Spain. Top EU suppliers are Germany, France, Ireland, the UK, the Netherlands,
Belgium, Italy, Austria, Spain, and Finland.
Top 10 imports from the EU include electronic ICs, aircraft (helicopters, airplanes) and
spacecraft (satellites), medicament mixtures, electric apparatus for line telephony, parts
and accessories of computers, structures (rods, angles, plates) of iron and steel, and
vaccines/toxins/micro-organism cultures.
Data Source: ITC Trademap.
MARKETS
Value
% Share
51,431,703
100.00
7,412,441
14.41
GERMANY
2,505,597
35.85
NETHERLANDS
2,428,878
32.77
FRANCE
413,323
5.58
UK
394,962
5.33
ITALY
349,382
4.71
BELGIUM
347,043
4.68
51
SPAIN
158,189
2.13
HUNGARY
128,556
1.73
CZECH REPUBLIC
112,175
1.51
10
FINLAND
84,673
1.14
11
AUSTRIA
77,067
1.04
12
POLAND
67,834
0.92
13
SWEDEN
38,539
0.52
14
GREECE
37,985
0.51
15
DENMARK
31,380
0.42
16
IRELAND
19,241
0.26
17
MALTA
13,506
0.18
18
PORTUGAL
12,757
0.17
19
ROMANIA
10,403
0.14
20
SLOVAKIA
8,558
0.12
21
BULGARIA
6,150
0.08
22
CYPRUS
4,492
0.06
23
LITHUANIA
2,517
0.03
24
LUXEMBOURG
2,362
0.03
25
SLOVENIA
2,156
0.03
26
ESTONIA
1,577
0.02
27
LATVIA
1,422
0.02
52
RANK
SUPPLIERS
Value
% Share
58,228,624
100.00
4,270,634
7.61
GERMANY
1,182,262
27.68
FRANCE
692,433
16.21
IRELAND
321,729
7.53
UK
303,212
7.10
NETHERLANDS
298,716
6.99
BELGIUM
271,521
6,36
ITALY
225,608
5.28
AUSTRIA
188,161
4.41
SPAIN
177,885
4.17
10
FINLAND
145,903
3.42
11
SWEDEN
128,503
3.01
12
CZECH REPUBLIC
115,497
2.70
13
DENMARK
105,344
2.47
14
ROMANIA
43,047
1.01
15
HUNGARY
26,011
0.61
16
BULGARIA
13,317
0.31
17
POLAND
9,526
0.22
18
LITHUANIA
4,826
0.11
19
SLOVENIA
4,588
0.11
20
PORTUGAL
4,550
0.11
21
GREECE
2,562
0.06
22
LUXEMBOURG
2,318
0.05
23
CYPRUS
1,284
0.03
24
SLOVAKIA
1,281
0.03
25
ESTONIA
410
0.01
26
MALTA
163
0.00
27
LATVIA
27
0.00
53
Products
TOTAL
2010 EXPORTS
(US$ Million)
7,412
%Share
2,238
30.19
894
12.06
614
438
8.28
5.91
319
4.30
313
4.22
264
3.56
226
3.05
179
122
2.42
1.65
100.00
2010 EXPORTS
(US$ Million)
%Share
4,271
100.00
1,119
26.20
344
8.05
131
6.06
3.07
103
2.41
86
83
2.01
1.94
68
68
1.59
1.59
62
1.45
259
54
A. ECONOMIC INDICATORS
(2010)
GDP (US$Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)
:
:
:
4.046
3,400
8.3
Indias
Imports from
the World
(2010)
in US$
Thousand
Indias
Share in
World
Imports
(2010)
Growth
of
Indias
Imports
(20062010)
17
220,290,676
1.5%
15%
Total
Imports
from PHL
to India
(2010)
in US$
Thousand
409,845
Share of
PHL to
India's
Total
Imports
(2010)
Growth
of PHL
Exports
to India
(20062010)
Share of
India to
Total PHL
Exports
(2010)
0.2%
25%
0.8%
India, one of the worlds emerging economies, ranks as the 17th biggest importer in the world for
2010. Total imports amount to US$ 220.29 billion, accounting for1.5% of total world imports.
From 2006 to 2010, Indias imports have increased by15%.
Valued at US$ 409.84 million, Philippine exports account for just 0.2% of Indias total imports
from the world in 2010. While India currently represents only 0.8% of the countrys total
exports, exports to India have grown by 25% from 2006-2010.
Total Trade
519.68
735.58
808.50
702.69
975.59
Exports to
India
120.13
243.97
193.35
200.31
409.84
Imports from
India
425.01
514.52
654.29
523.32
565.75
2006
2007
2008
2009
2010
Growth
Rate (%)
20062010
11.82%
25.32%
6.07%
Balance of
Trade
(304.88)
(270.55)
(460.77)
(365.45)
(155.91)
In 2010, India ranked 15th among the top trading partners of the Philippines. Total
bilateral trade was registered at US 975.60 million, representing 0.8% of total Philippine
trade to the world. Exports increased by 25.32% from US$ 120.13 million in 2006 to
55
Top exports included the following products: integrated circuits, parts and accessories of
the motor vehicles and computer data storage units.
Major imports included boneless meat of bovine animals; motorcycles and cycles fitted
with an auxiliary motor; and medicaments.
2010 TOP PHILIPPINE EXPORTS TO INDIA
Products
TOTAL
Exports
(US$ 000)
% Share
409,845
100.00
142,083
34.67
34,023
8.30
21,013
5.13
20,601
5.03
18,920
4.62
16,696
4.07
11,481
2.80
8,759
2.14
7,761
1.89
Ammonium sulphate
7,650
1.87
10
56
Total
1
Imports
(US$000)
% Share
565,756
100.00
106,475
18.82
39,382
6.96
28,126
4.97
18,409
3.25
16,969
3.00
13,404
2.37
12,999
2.30
9,694
1.71
8,134
1.44
7,380
1.30
6
7
10
57
A. ECONOMIC INDICATORS
(2010)
GDP(US$Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)
:
:
:
5.46
34,000
3.9
Japans
Total
Japans Growth
Imports
Imports
Share
of
from the
from PHL
in
Japans
World
to Japan
World Imports
(2010)
(2010)
Imports (2006in US$
in US$
(2010)
2010)
Thousand
Thousand
692,620,567 4.61%
2%
7,827,498
Share of
PHL to
Japan's
Total
Imports
(2010)
1.13%
Growth
of PHL
Exports
to
Japan
(20062010)
-1.84%
Share of
Japan to
Total
PHL
Exports
(2010)
15.2%
As an industrialized country, Japan ranks as the 4th biggest importers in the world for 2010,
with total imports amounting to US$ 692.62 billion. This accounts for 4.6% of total world
imports. From 2006-2010, imports by Japan have grown by 2%.
For 2010, Philippine exports to Japan were valued at US$7.83 billion. This represents
15.2% of the Philippines total export and 1.14% of Japans total imports from the world.
Philippine exports to Japan have declined by 1.84% from 2006-2010.
Total Trade
2006
2007
2008
2009
2010
Growth Rate
(%) 2006-2010
15.60
14.52
14.83
11.97
15.13
-2.50
Exports to
Japan
7.92
7.30
7.71
6.21
7.83
-1.84
Imports
from Japan
7.68
7.22
7.12
5.76
7.30
-3.19
Balance of
Trade
0.24
0.09
0.59
0.44
0.53
58
Japan was the Philippines leading export market and import source in 2010.
Imports from Japan decreased from US$7.68 Billion in 2006 to US$7.30Billion in 2010
and imports from Japan in 2010 accounted for 12.33% of total Philippine imports from
the world.
Philippine exports to Japan in 2010 accounted for 15.22 percent of total Philippine
exports to the world.
Major exports to Japan in 2010 were computer input/outputs, with or without storage
(17.25%), builders joinery and carpentry of wood (12.30%), ignition wiring set and other
wiring sets used in vehicles/aircraft (5.78%), parts and accessories of automatic data
processing machines and units thereof (5.41%) and sulphides of metals nes;
polysulphides of metals (3.70%).
Imports from Japan in 2010 amounted to US$7.30 Billion accounting for 12.33% share of
the total Philippine imports.
Top imports from Japan were parts and accessories parts and accessories of automatic
data processing machines and units thereof (17.39%), parts of electronic integrated
circuits and micro assemblies (7.67%), electronic integrated circuits, monolithic,
analogue (5.41%), gold in other semi-manufactured form non-monetary including gold
plated with platinum (3.56%) and parts of machines and mechanical appliances nes
having individual functions (2.63%).
Products
Exports
(US$ Million)
7,827.49
1,350.37
% Share
TOTAL
Computer input/outputs, with/without storage
962.64
12.30
452.09
5.78
423.43
5.41
289.56
3.70
237.91
3.04
183.16
172.58
2.34
2.20
167.80
165.63
2.14
2.12
6
7
8
9
10
100.00
17.25
59
Products
TOTAL
Parts & accessories of automatic data
processing machines & units thereof
Parts of electronic integrated circuits and micro
assemblies
Exports
(US$ Million)
7,304.75
7.67
560.54
259.80
192.39
7
8
9
10
100.00
17.39
1,270.33
% Share
5.41
395.29
3.56
2.63
2.14
156.40
152.90
149.92
147.65
131.69
2.09
2.05
2.02
1.80
60
A. ECONOMIC INDICATORS
(2010)
:
:
:
2.229
15,900
3.8
Russias
Import from
the World
(2010) in
US$
Thousand
217,415,099
Russias
Share in
world
Imports
(2010)
1.4%
Growth
of
Russias
Imports
(20062010)
8%
Russias
Imports
from PHL
(2010) in
US$
Thousand
34,527
Share of
PHL to
Russias
Total
Imports
(2009)
0.02%
Growth
of PHL
Exports
to Russia
(20062010)
13%
Share of
Russia to
Total PHL
Exports
(2010)
0.07%
Viewed as one of the emerging economies in the world, Russia ranks as the 18th biggest
importer for 2010, with total imports amounting to US$ 217.41 billion. This accounts for
1.4% of total world imports. Imports of Russia have grown by 8% from 2006-2010.
In 2010, Philippine exports to Russia were valued at US$ 34.53 million, representing 0.07%
of the countrys total exports. From 2006-2010, Philippine exports to Russia have grown by
13%.
Total Trade
Balance of Trade
241.94
Exports to
Russia
23.53
2006
218.41
(194.88)
2007
141.43
25.88
115.55
(89.67)
2008
178.2
33.92
144.28
(110.36)
2009
302.35
39.09
263.27
(224.18)
2010
501.04
34.53
466.51
(431.98)
24.80
12.51
26.38
Ave. Growth
Rate 2006-2010
61
Trade with Russia continues to be sharply skewed in Russias favor, with the trade balance
ballooning to negative $432 million in 2010 .
Exports posted a positive average 12.51% growth in the last five years (2006-2010), likewise
imports posted a positive average 26.38 growth in the same period.
Top PH exports for 2010 were desiccated coconut, carrageenan, garments, tobacco,
lighters, activated carbon, personal care products, electric accumulator, and banana chips.
Top imports are crude petroleum oils, products of iron and non-alloy steel, bars and rods,
wheat and meslin, fertilizers, mineral fuels, iron and steel, cereals, fertilizers, organic
chemicals, wheat flour, articles of rubber, inorganic chemical, copper and printed materials.
2010 TOP PHILIPPINE EXPORTS TO RUSSIA
2010 Exports
Products
%Share
(US$ Million)
34.53
100.00
4.89
14.15
4.86
14.08
3.12
9.04
3.07
8.89
2.48
7.19
1.38
3.99
1.31
3.79
1.27
3.67
1.14
3.30
1.12
3.26
10 Electric accumulator
Source: ITC Trademap 2011
62
2010 Exports
Products
%Share
(US$ Million)
466.51
100.00
342.30
73.37
46.72
10.02
27.34
5.86
26.06
5.59
8.31
1.78
3.47
0.74
2.25
0.48
2.24
0.48
1.94
0.42
1.41
0.30
63
A. ECONOMIC INDICATORS
(2010)
GDP(US$ Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)
:
:
:
14.72
47,400
2.8
US World
Ranking
as
Importer
(2010)
Total US
Imports from
the World
(2010)
in US$
Thousand
US
Share
in
World
Imports
(2010)
Growth
of US
Import
s
(20062010)
1,966,496,750
13.1%
-2%
Total
Imports
from PHL
to US
(2010)
in US$
Thousand
7,568,138
Share
of PHL
to US
Total
Imports
(2010)
Growth
of PHL
Exports
to US
(20062010)
Share of
US to
Total PHL
Exports
(2010)
0.4%
-5%
14.7%
As the largest importer in the world for 2010, US total imports amounted to US$ 1.97 trillion.
This accounts 13.1% of total world imports. US imports registered a negative growth of 2%
from 2006 to 2010.
Philippine exports to the US for 2010 were valued at US$ 7.57 billion. This comprises
14.7% of the Philippines total exports but only accounts 0.4% of total US imports from the
world.
Moreover, Philippine exports to the US have declined by 5% from 2006-2010.
Total
Trade
17,396.32
16,716.74
15,954.56
12,285.31
13,860.60
Exports to
US
8,697.64
8,601.40
8,216.44
6,797.10
7,568.14
Imports from
US
8,698.68
8,115.34
7,738.12
5,488.21
6,292.46
(7.34)
(5.01)
(9.87)
Balance of
Trade
(1.04)
486.06
478.32
1,308.89
1,275.68
In 2010, USA was the second single country export market of Philippine exports next to
Japan. Total bilateral trade was valued at $13.86 billion. Exports to USA declined by
5.01% from $8.70 billion in 2006 to $7.57 billion in 2010. Imports also decreased by
9.87% from $8.70 billion in 2006 to $6.29 billion in 2010.
64
Exports
(US$ Million)
%
Share
7,568.14
100.00
980.11
12.95
468.76
6.19
404.40
5.34
366.01
4.84
Static converters
360.17
4.76
308.37
4.07
303.69
297.57
4.01
3.93
260.74
3.44
245.17
3.23
Imports
(US$ Million)
%
Share
6,292.46
100.00
1,683.16
26.75
1,284.44
20.41
337.47
5.36
281.82
4.48
6
7
213.42
3.39
Soya-bean oil-cake
202.10
3.21
141.53
2.25
115.71
70.26
1.84
1.12
70.16
1.11
2
3
65
A. ECONOMIC INDICATORS
(2010)
:
:
:
882.4
41,000
2.7
Australia
Growth
Imports
Australia
of
from the
Share in
Australia
World
World
Imports
(2010)
Imports
(2006in US$
(2010)
2010)
Thousand
1.3%
188,740,660
8%
Australia
Imports
from PHL
(2010)
in US$
Thousand
Share of
PHL to
Australia
Total
Imports
(2010)
348,770
0.2%
Growth
Share of
of PHL
Australia
Exports
to Total
to
PHL
Australia
Exports
(2006(2010)
2010)
-12%
0.7%
Australia ranks as the 19th biggest importer in the world for 2010, with total imports
amounting to US$188.74 billion. This accounts for 1.3% of total world imports. Imports of
Australia have grown by 8% from 2006-2010.
In 2010, Philippines exports to Australia were valued at US$ 349 million, representing 0.7%
of the countrys total exports. From 2006-2010, Philippine exports to Australia have declined
by 12%.
Total
Trade
1,153
Exports to
Australia
488
Imports from
Australia
665
Balance
of Trade
(177)
2007
1,289
528
761
(233)
2008
1,428
471
957
(486)
2009
1,081
296
785
(489)
2010
1,251
349
902
(553)
(0.13)
(11.74)
6.62
66
%
Share
349
100.00
37
10.60
26
7.45
21
6.01
18
18
5.16
5.16
16
4.58
10
2.87
Coconuts, dessicated
Light petroleum distillates
Games, coin or disc-operated, other than
bowling alley equipment
9
9
7
2.58
2.58
2.01
Products
TOTAL
1
2
3
4
5
6
7
8
9
10
Imports
(US$ Million)
%
Share
902
230
42
35
31
100.00
25.50
4.66
3.88
3.44
24
24
24
2.66
2.66
2.66
20
2.22
20
19
2.22
2.11
67
A. ECONOMIC INDICATORS
(2010)
:
:
:
117.8
27,700
1.5
New
New
Zealands
New
Growth
Zealands
Imports
Zealands
of New
Imports
from the
Share in Zealands
from PHL
World
World
Imports
(2010)
(2010)
Imports
(2006in US$
in US$
(2010)
2010)
Thousand
Thousand
0.2%
30,157,848
1%
32,701
Share of
PHL to
New
Zealand's
Total
Imports
(2010)
Growth
of PHL
Exports
to New
Zealand
(20062010)
Share
of New
Zealand
to Total
PHL
Exports
(2010)
0.11%
-21%
0.1%
New Zealand ranks as the 56th importer for 2010, with total imports amounting to US$30.16
billion. This accounts for 0.2% of total world imports. Imports of New Zealand have grown
by 1% from 2006-2010.
In 2010, Philippines exports to New Zealand were valued at US$ 32.70 million, representing
only 0.1% of the countrys total exports. From 2006-2010, Philippine exports to New
Zealand have declined by 21%.
Total
Trade
341,775
486,247
477,238
347,040
459,259
Exports to
New Zealand
53,171
114,154
49,308
28,714
32,701
2.57
(20.96)
6.45
Balance
of Trade
(235,433)
(257,939)
(378,622)
(289,612)
(393,857)
68
%
Share
32,701
100.00
7,325
22.40
3,494
10.68
2,171
6.64
1,344
4.11
1,341
4.10
Coconuts, dessicated
955
2.92
894
2.73
858
2.62
772
2.36
10
761
2.33
Products
TOTAL
1
4
5
6
7
8
69
%
Share
TOTAL
Milk powder not exceeding 1.5% fat
426,558
121,212
100.00
28.42
67,857
15.91
53,800
12.61
29,806
6.99
23,901
5.60
14,927
3.50
11,106
2.60
10,388
2.44
8,686
2.04
Butter
8,041
1.89
Products
2
3
5
6
7
8
9
10
Source: ITC Trademap
70
A. ECONOMIC INDICATORS
GDP (US$ BILLION)
GDP PerCapital (US$)
GDP Growth Rates (%)
(2010)
:
:
:
960.5
12,300
8.2
Turkeys
Import from
the World
(2010) in US$
Thousand
20
185,541,037
Source: ITC Trademap.
Turkeys
Share in
world
Imports
(2010)
Growth of
Turkeys
Imports
(20062010)
Turkeys
Imports
from PHL
(2010) in
US$
Thousand
Share of
PHL to
Turkeys
Total
Imports
(2009)
Growth of
PHL
Exports
to Turkey
(20062010)
Share of
Turkey to
Total PHL
Exports
(2010)
1.2%
4%
61,885
0.03%
-12 %
0.12%
Turkey is emerging from the global crisis in relatively good shape. Imports and
exports are on the rise. However, Turkey continues to rely on the EU as
destination of 45% of its exports, which makes it vulnerable to the effects of
the euro crisis. Nevertheless, growing domestic consumption contributed to
the 4% average growth in imports in the last five years (2006-2010).
Turkey is the 20th importer in the world, but the Philippines share in Turkeys
annual imports is only around 0.03%.
YEAR
2006
2007
2008
2009
2010
Ave. Growth Rate
(%) 2006-2010
TOTAL
TRADE
101,775
108,713
118,353
86,100
120,834
1.11
EXPORTS
IMPORTS
78,711
73,434
63,174
33,902
61,885
(11.79)
23,064
35,279
55,179
57,739
58,949
26.74
BALANCE
OF TRADE
55,647
38,155
7,995
(18,326)
2,936
Products
1
2
3
4
5
6
TOTAL
Flat rolled products of iron & steel,
plated/coated
Television cameras, transmission apparatus
Parts & accessories of motor vehicles
Coconuts processed
Coconut oil (crude)
Yarn of artificial fiber
7
Electronic ICs & micro assemblies
New pneumatic tires, of rubber
8
9
Yarn of synthetic fiber, not put up for retail
10 Parts of TV reception apparatus
Source: ITC Trademap.
2010
EXPORTS
(US$000)
61,885
7,992
%Share
100.00
12.91
7,978
7,320
6,144
5,556
5,269
12.89
11.83
9.98
8.98
8.51
5,082
2,741
2,460
1,947
8.21
4.43
3.98
3.15
72
Products
1
2
3
4
5
6
7
8
9
10
TOTAL
Wheat or meslin flour
Unmanufactured tobacco
Medicament mixtures
Lifting/handling/loading machinery
Knitted or crocheted fabrics
Electric transformer, static converter
Iron & steel stoves, ranges, grills, etc.
Other firearms and similar devices
Machines & mechanical appliances
Fruit and vegetable juices, unfermented
2010
IMPORTS
(US$000)
58,949
25,637
7,398
6,711
%Share
100.00
43.49
12.55
11.38
2,349
1,541
916
3.98
2.61
1.55
778
762
680
671
1.32
1.29
1.15
1.14
73
A. ECONOMIC INDICATORS
(2010)
:
:
:
1.467
30,200
6.1
South
Koreas
Imports
from the
World
(2010)
in US$
Thousand
425,098,361
South
Koreas
Share
in
World
Imports
(2010)
Growth
of
South
Koreas
Imports
(20062010)
South
Koreas
Imports
from PHL
(2010)
in US$
Thousand
Share of
PHL to
South
Koreas
Total
Imports
(2010)
2.8%
6%
2,228,182
0.52%
Growth
of PHL
Exports
to
South
Korea
(20062010)
10
Share
of
South
Korea
to Total
PHL
Exports
(2010)
4.3%
South Korea is an export-oriented country, with a total trade volume of US$892.8 billion in
2010. This figure also makes them the 7th largest exporter and 10th largest importer in the
world. Its total imports amounted to US$ 425.10 billion, accounting for 2.8% of total world
imports. From 2006 to 2010, South Koreas imports increased by 6%.
In 2010, Philippines exports to South Korea were valued at US$ 2,228.18 million,
representing only 0.52% of South Koreas total imports from the world and only 4.3% of the
Philippines total exports. From 2006-2010, Philippine exports to South Korea have grown
by 10%.
Total
Trade
4,755.18
5,187.64
5,651.04
4,989.06
6,262.63
5.25
Exports to
South Korea
1,422.83
1,783.73
2,522.52
1,828.20
2,228.18
9.66
Imports from
South Korea
3,332.35
3,403.91
3,128.52
3,160.86
4,034.45
Balance of
Trade
(1,909.52)
(1,620.17)
(606.01)
(1,332.66)
(1,806.27)
3.13
74
Exports
(US$ Million)
%
Share
1
2
3
4
5
TOTAL
Electronic integrated circuits and micro assemblies
Electrical capacitors, fixed, variable or adjustable
Crude petroleum oils
Automatic data processing machines; optical reader
Parts & accessories of computers & office machines
74.97
3.36
7
8
62.21
45.56
2.79
2.04
42.23
35.60
1.90
1.60
9
Oil-cake
10 Petroleum oils, not crude
Source: ITC Trademap
2,228.18
638.10
340.22
290.97
145.84
94.56
100.00
28.64
15.27
13.06
6.55
4.24
Imports
(US$ Million)
%
Share
4,034.45
1,646.76
472.29
209.43
102.42
95.64
90.79
100.00
40.82
11.71
5.19
2.54
2.37
2.25
83.60
73.02
57.97
2.07
1.81
1.44
47.44
1.18
75
A. ECONOMIC INDICATORS
(2010)
:
:
:
524
10,700
2.8
S. Africa
Imports
from the
World
(2010)
in US$
Thousand
80,139,282
S.
Africa
Share
in
World
Imports
(2010)
0.53%
Growth
of S.
Africa
Imports
(20062010)
S. Africa
Imports
from PHL
(2010)
in US$
Thousand
Share of
PHL to S.
Africa's
Total
Imports
(2010)
1%
128,727
0.2%
Growth
of PHL
Exports
to S.
Africa
(20062010)
19
Share
of S.
Africa
to Total
PHL
Exports
(2010)
0.3%
IN 2010, South Africa ranks as the 35th biggest importer in the world. Its total imports
amounted to US$ 80.13 billion, accounting for .53% of total world imports. From 2006 to
2010, South Africas imports increased by 1%.
In 2010, Philippines exports to South Africa were valued at US$ 128.73 million, representing
only 0.2% of South Africa total imports from the world and only 0.3% of the Philippines total
exports. From 2006-2010, Philippine exports to South Africa have grown by 19%.
Total
Trade
91,677
164,560
157,397
154,316
187,352
Exports to
S. Africa
51,224
106,004
92,647
92,157
128,727
Imports from S.
Africa
40,453
58,556
64,750
62,159
58,625
14.63
19
8.35
Balance
of Trade
10,771
47,448
27,897
29,998
70,102
76
1
2
3
4
5
6
7
8
9
10
TOTAL
Parts & access of motor vehicles
Tobacco unmanufactured
Organic surface-active agents, washing & clean
preparations
Medicament mixtures, put in dosage
Breakfast cereals & cereal bars
Electric transformer, static converter
Articles for funfair, table/parlour games & auto
bowling alley equipment
Optical fibre, cables; sheets & plate of polarising
materials
New pneumatic tires, of rubber
Automatic data processing machines;optical reader
Exports
(US$ 000)
%
Share
128,727
55,014
14,671
9,404
100.00
42.74
11.40
7.31
5,597
5,462
4,806
4,766
4.35
4.24
3.73
3.70
2,674
2.08
2,232
1,929
1.73
1.50
1
2
3
4
5
6
7
8
9
10
TOTAL
Maize (corn)
Flat-rolled prod of iron or non-alloy /steel, clad,
plated or coated
Chemical wood pulp, soda or sulphate, other than
dissolving grades
Vegetable tanning extracts; tannins & their salts
Semi-finished products of iron or nonalloy steel
Ethyl alcohol & other spirits
Cotton, not carded or combed
Electronic integrated circuits and micro assemblies
Unsaturated acyclic & cyclic monocarboxylic acid &
anhydrides, halides
Mechnical wood pulp
Imports
(US$ 000)
%
Share
58,625
20,390
7,643
100.00
34.78
13.04
3,350
5.71
3,085
2,787
2,516
2,176
1,540
1,356
5.26
4.75
4.29
3.71
2.63
2.31
1,188
2.03
77
78
ANNEX 3:
The National Export
Development and
Competitiveness Fund
79
80
BACKGROUND:
Funding assistance for export development is premised on business realities. Every type of
business has to invest in the marketplace to be able to capture shares. Generally, most businesses
need to invest even more in order to increase their share of the market. Although companies that
have attained critical mass can maintain and grow profits while spending significant amounts on
market promotions, national export development is configured differently and needs government
assistance in addition to private-sector market investments.
The reason is that Philippine exports consist of a wide range of business activities- from supply
chain components to finished goods and services of varying gross profit margins constantly affected
by foreign exchange fluctuations and competitive action. The amounts necessary to promote,
innovate and build in-country capacity in order to achieve significant export growth cannot be wholly
generated much less sustained by the margins structure of the exporting community.
Furthermore, export manufacturing facilities of intermediate goods are largely a component of
multinational, multi-country supply chains where Philippine participation is pre-determined by longterm supply chain strategies. Moving up this chain becomes an in-country initiative dependent on
Philippine capacity developed by local and foreign investments typically motivated by government
promotion programs.
These are the fundamental reasons why the Export Development Act provided for promotion
funding for exports. As contained in Section 14 of the Act, the EDC through the DTI shall develop
an export promotion privatization program. Section 14 further provides that until funding is secured
from the export promotion privatization program, the national government shall appropriate such
sums as may be necessary to the Council for export promotion and information.
Because of differences with Congress pertaining to appropriations for government promotional
functions affected by the EDAs export promotion privatization program, implementation of this
program was stalled. Meanwhile, from 1999 to 2004 (a period covering two PEDP three-year
cycles), export promotion assistance was mainly drawn from the activities of the Bureau of Export
Trade Promotion (BETP), the Center for International Trade Exhibitions and Missions (CITEM), the
Foreign Trade Service Corps (FTSC), the Philippine Trade Training Center (PTTC), the Product
Development and Design Center of the Philippines (PDDCP), the Garments and Textile Export
Board (GTEB), the Philippine International Trading Corporation (PITC) and the Board of
Investments (BOI- for investment promotion). While this arrangement was helpful at the time, the
evolving competition in a fast-paced global export environment and challenging economic
conditions in mature and emerging export markets called for higher levels of funding support beyond
the budgets appropriated to these various government export promotion agencies with the
exception of the GTEB.1
Responding to competitive pressures from China and other rapidly developing exporting countries in
ASEAN and Eastern Europe coupled with the difficulties arising from an appreciating peso and the
effects of the global financial crisis, an Export Promotion Fund managed by the EDC and DTI was
established. In 2005, the BSP granted the EDC a Php 10.5 million fund. In 2007, the BSP, DTI,
DBM, NEDA and PHILEXPORT pooled together a Php 280 million Export Promotion Fund (EPF). In
The GTEB was deactivated at the end of the sectors quota regime in 2004. Its residual funds were remitted
to the National Treasury for draw-down by the DTIs Garments and Textile Industry Development Office
[GTIDO] under the BOI, following the Administrative Codes provisions on the disposition of residual corporate
funds.
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REFERENCES
APEC Study Center Network and PIDS. (2005). Sustainable Tourism Challenges for the Philippines.
Manila.
ASEAN Merchandise Trade Statistics. (n.d.). Retrieved May 25, 2011, from ASEAN AFTA Website.
BOC-COA Report 2007-2009.
BSP Charter. (n.d.).
BSP Financial Statements 2007-2009.
Department of Trade and Industry, PEDP 2002-2004.
Department of Trade and Industry, PEDP 2005-2007.
Department of Trade and Industry, PEDP 2008-2010.
Executive Order 110 of 1993, Strengthening the Export Development Council (EDC) Amending for
this Purpose Executive Order No. 98 to Increase the Government and Private Sector Members of
the Council. (n.d.).
Executive Order 98 of 1994, Re-organizing the Export Development and Investment Council into the
Export Development Council. (n.d.).
Executove Order No. 180, Strengthening the Export Development Council Amending for this
Purpose Executive Order (E.O.) No. 110, Further Amending E.O. No. 98. (1994, May 24).
Export Development Act of Canada. (n.d.).
Export Development Act of the Philippines (Republic Act 7844). (n.d.).
Export Development Canada (EDC) Export Forecast Overview (2010).
Export Development Council. Summary of Economic Strategies Committee (Singapore) Key
Recommendations. Philippines.
Federal Reserve Bank of Dallas. (n.d.). Globalization and Monetary Policy Institute, Working Paper
No. 21. Retrieved May 25, 2011, from http://www.dallasfed.org/institute/wpapers/2008/0021.pdf
FTSC Country Post Deployment: Preliminary Analysis. (n.d.).
Gonzalez, C. M. Capital flows and financial assets in the Philippines: determinants, consequences
and challenges for the Central Bank.
Hanson, Gordon H. , R. J. Vertical Specialization and International Business Cycle Synchronization.
Hanson, Gordon H., R. J. Vertical Specialization in Multinational Firms.
Hermosa, J. Trade Advocacy Group Presses for Congress for Competition Support. Business World
(2010, November 28).
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