Question

how would you describe the global trade of the philippines?

Answer 1

Answer:

Foreign trade represented 76.1% of the country's GDP in 2018 (WTO). Main exports include electronic and electrical equipment, electrical machines and apparatus, automatic data processing machines, diodes, transistors, electrical transformers, business services computer and travel. Imports are focused on electronics and electrical equipment, petrochemicals, motors and other vehicles, machinery, travel, business services and transportation.

Main export destinations include Japan, the U.S., Hong Kong, Japan, China and Singapore while main imports arrive from China, South Korea, Japan, the US and Thailand. The main risk factor to foreign trade in the Philippines and countries in the region is the trade dispute between the U.S. and China, which slows exchanges in the world. According to public spending forecasts in 2019 and 2020, imports of construction-related raw materials and imports of energy are expected to increase. Given the decline in world exports of raw materials for electronic products, exports will have difficulty in reviving in the near future.

Traditionally, the country's trade balance has been in deficit due to high imports of raw materials and intermediate goods. The 2018 trade balance (including services) closed at USD -39.35 billion while the trade deficit without services was even higher at USD almost -60 billion. Deficit increases are expected due to a slower rise of exports and the need for imported infrastructure goods to fulfill the ambitious 2017-2022 Development Plan. Membership to ASEAN has also played a key role in the Philippines' expanding commerce overseas (the Association of Southeast Asian Nations). According to WTO data, in 2018, the Philippines exported 67,48 billion USD worth of goods and imported goods for nearly the double value of 119,33 billion USD. As with regards to services, the country's exports value exceedeed the imports value by reaching 37,45 billion USD and 26,45 billion USD, respectively.

Main International Economic Cooperation

Asia-Pacific Economic Council (APEC), Asia Free Trade Agreement (AFTA, free trade zone of the ASEAN), Asia Europe Meeting (ASEM)), Japan Philippines Economic Partnership Agreement (JPEPA), ASEAN-Australia-New Zealand Free Trade Agreement; and the ASEAN - China Free Trade Area.

Assessment of Commercial Policy

WTO, Philippines

Average Customs Duty (Excluding Agricultural Products)

6.7%