The Philippine trade, which for the past 20 years focused on itstraditional markets – US, Europe, Japan and China – has now shifted toASEAN, making it a must for Filipino enterprises to take advantage ofthe ASEAN trading regime by 2015.
According to theManila Bulletin, Philippine Trade and Industry Undersecretary PoncianoC. Manalo pointed this out at the recent National Exporters’ CongressWeek, which gathered the country’s largest exporters and small andmedium enterprises.
“With the recent developments,we have seen a significant shift from the traditional markets to ourneighboring countries in ASEAN,” Manalo said.
Forthe last 20 years, the Philippine export market focused on UnitedStates , Europe, Japan and China , but ASEAN is fast catching up.
In 2012, Manalo said, total trade between thePhilippines and ASEAN amounted to 24 billion USD or 21 percent of thecountry’s total trade. In the same year, the ASEAN bloc accounts for 7.3percent of total approved investments in the Philippines amountingto P21 billion, a significant seven-fold increase from P3 billion in2011.
In contrast, Japan ’s share of the country’stotal trade accounted for 19 percent, the US with 14.2 percent,China with 11.8 percent and EU with 11.4 percent.
“ASEAN is an important economic partner of the Philippines , both on the trade and investment fronts,” Manalo said.
Despite the growth in share of Philippine trade with ASEAN, thecountry, however, Philippines has been incurring huge trade deficitswith ASEAN for the past five years.
Data showedthat the original ASEAN member incurred its highest trade deficit in2008 with 7.543 billion USD, followed by 5.601 billion USD in 2011 and5,124 billion USD in 2009. Lower trade deficits were incurred in 2012with 4.307 billion USD and in 2010 with 3.947 billion USD.
It can be gleaned from the DTI data that the oil imports account forthe bulk of the Philippines imports from her fellow ASEAN countries.Other huge imports from ASEAN include rice, petrochemicals, andautomotives.
With the Philippines nearly becomingself-sufficient in rice production, the country is expected to incurlower volume of rice imports from Thailand and Vietnam .
The country’s top ten imports from ASEAN include electrical,electronic equipment with 20 percent share of total followed by mineralfuels, oils and distillation product group to account for 14.8 percent.
Importation of machinery, nuclear reactors, boilersaccount for 11.4 percent while motor vehicles account for 8.9 percent oftotal imports from ASEAN. Other imports include plastics and articlesthereof; miscellaneous edible preparations; animal, vegetable fasts andoils, cleavage products; cereals; essential oils, perfumes, cosmetics,toiletries; and optical, photo, technical, medical.
Electrical and electronic equipment is the single largest export productof the Philippines to ASEAN with a whopping 59.5 percent of itstotal exports to the region.
Other exports aremachinery, nuclear reactors, boilers account for 8.4 percent while motorvehicles contributed 5.1 percent.
Other exportsinclude mineral fuels, oils and distillation products; optical, photo,technical, medical apparatus; copper and articles thereof; tobacco andmanufactured tobacco cereal, flour, starch, milk preparations andproducts and fertilizers.
But such huge tradedeficit presents opportunities for Filipino exporters. As Manalo said,ASEAN represents one of the biggest markets in the world with its morethan 600 million young and dynamic population. It has a total aggregategross domestic product (GDP) of 2.3 billion USD and an average percapita of 3,751 USD.
Manalo further reminded the private sector that business, more than government, will drive regional integration.
He noted that it is business that will take advantage of theopportunities offered by a single market as well as the wide and variedcomplementation networks of a regional supply chain within ASEAN and itssix free trade agreement (FTA) partners, namely, China , Japan , theRepublic of Korea , Australia , New Zealand , and India .
By 2015, the ASEAN Economic Community (AEC) will transform the 10member-states of ASEAN into a single market and production base. The AECintegration aims to achieve five main pillars – free trade in goods,free trade in services, free flow of skilled labor, free flow ofinvestments and free flow of capital enabling the region to minimisetransaction costs and maximise trade gains.-VNA
According to theManila Bulletin, Philippine Trade and Industry Undersecretary PoncianoC. Manalo pointed this out at the recent National Exporters’ CongressWeek, which gathered the country’s largest exporters and small andmedium enterprises.
“With the recent developments,we have seen a significant shift from the traditional markets to ourneighboring countries in ASEAN,” Manalo said.
Forthe last 20 years, the Philippine export market focused on UnitedStates , Europe, Japan and China , but ASEAN is fast catching up.
In 2012, Manalo said, total trade between thePhilippines and ASEAN amounted to 24 billion USD or 21 percent of thecountry’s total trade. In the same year, the ASEAN bloc accounts for 7.3percent of total approved investments in the Philippines amountingto P21 billion, a significant seven-fold increase from P3 billion in2011.
In contrast, Japan ’s share of the country’stotal trade accounted for 19 percent, the US with 14.2 percent,China with 11.8 percent and EU with 11.4 percent.
“ASEAN is an important economic partner of the Philippines , both on the trade and investment fronts,” Manalo said.
Despite the growth in share of Philippine trade with ASEAN, thecountry, however, Philippines has been incurring huge trade deficitswith ASEAN for the past five years.
Data showedthat the original ASEAN member incurred its highest trade deficit in2008 with 7.543 billion USD, followed by 5.601 billion USD in 2011 and5,124 billion USD in 2009. Lower trade deficits were incurred in 2012with 4.307 billion USD and in 2010 with 3.947 billion USD.
It can be gleaned from the DTI data that the oil imports account forthe bulk of the Philippines imports from her fellow ASEAN countries.Other huge imports from ASEAN include rice, petrochemicals, andautomotives.
With the Philippines nearly becomingself-sufficient in rice production, the country is expected to incurlower volume of rice imports from Thailand and Vietnam .
The country’s top ten imports from ASEAN include electrical,electronic equipment with 20 percent share of total followed by mineralfuels, oils and distillation product group to account for 14.8 percent.
Importation of machinery, nuclear reactors, boilersaccount for 11.4 percent while motor vehicles account for 8.9 percent oftotal imports from ASEAN. Other imports include plastics and articlesthereof; miscellaneous edible preparations; animal, vegetable fasts andoils, cleavage products; cereals; essential oils, perfumes, cosmetics,toiletries; and optical, photo, technical, medical.
Electrical and electronic equipment is the single largest export productof the Philippines to ASEAN with a whopping 59.5 percent of itstotal exports to the region.
Other exports aremachinery, nuclear reactors, boilers account for 8.4 percent while motorvehicles contributed 5.1 percent.
Other exportsinclude mineral fuels, oils and distillation products; optical, photo,technical, medical apparatus; copper and articles thereof; tobacco andmanufactured tobacco cereal, flour, starch, milk preparations andproducts and fertilizers.
But such huge tradedeficit presents opportunities for Filipino exporters. As Manalo said,ASEAN represents one of the biggest markets in the world with its morethan 600 million young and dynamic population. It has a total aggregategross domestic product (GDP) of 2.3 billion USD and an average percapita of 3,751 USD.
Manalo further reminded the private sector that business, more than government, will drive regional integration.
He noted that it is business that will take advantage of theopportunities offered by a single market as well as the wide and variedcomplementation networks of a regional supply chain within ASEAN and itssix free trade agreement (FTA) partners, namely, China , Japan , theRepublic of Korea , Australia , New Zealand , and India .
By 2015, the ASEAN Economic Community (AEC) will transform the 10member-states of ASEAN into a single market and production base. The AECintegration aims to achieve five main pillars – free trade in goods,free trade in services, free flow of skilled labor, free flow ofinvestments and free flow of capital enabling the region to minimisetransaction costs and maximise trade gains.-VNA
