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PEDP 2011-2013 for LIMITED CIRCULATION only

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).

PEDP 2011-2013 for LIMITED CIRCULATION only


These products and services belong to large categories in growing markets. Importantly, they
have a 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 2011-2016 and significantly contribute to inclusive
growth.
Organic and natural products, as well as green exports, shall be managed as a continuing
product strategy. It will be linked with tourism, trade and investment promotions to expand its
application on a wide product and service spectrum according to opportunities presented by a
rapidly growing consumer base worldwide.
Based on these global market opportunities and the capabilities of the Philippine exporting
community, the PEDP formulated core strategies designed to achieve target revenues. These
core strategies are applicable to all export sectors. Sector-specific strategies are defined in their
individual roadmaps.
The core product strategies are:
1. Move up the value chain.
2. Capture higher-value processes in the global supply chain.
3. Develop product linkages for natural, organic and certification-enabled products.
The core market strategies are:
1. Maximize benefits of Free Trade Agreements.
2. Target high-growth emerging markets.
3. Attract the migration of supply chain nodes to the Philippines.
The key export promotion strategy is integrating tourism, services and merchandise trade not
only to maximize returns on promotional spending but also to achieve market share growth and
the capacity to sustain it. Furthermore, export promotions shall focus on precision (quality)
rather than profusion (quantity).
To be able to implement the PEDP strategies, the Export Development Council shall be
strengthened and the Export Development Act revised to conform to changing realities.
Through these renewals, a legislative agenda will be pursued to arrive at a more cohesive
domestic and international policy environment.
A National Export Development and Competitiveness Fund (NEDAC Fund) shall finance
integrated promotional efforts, SME assistance in finished goods marketing and continuous
training for workers in the exporting community.
The source of the fund will initially come from the Office of the President (OP) amounting to
P100 million per year starting 2011 until it is subsequently included in the budget of the DTI.
The DBM will facilitate transfer of the initial funds from the OP to a DTI line budget item.
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 grow exports through 2013 and double it by 2016.

PEDP 2011-2013 for LIMITED CIRCULATION only

II. THE PLANNING PROCESS


The Philippine Export Development Plan (PEDP) 2011-2013 builds on the achievements attained
and lessons learned in the implementation of previous PEDPs.
As stated in the Export Development Act (EDA), the role of the private sector in export
development is driving business to achieve export targets. The role of the public sector is
creating an enabling environment by formulating and implementing policies based on operating
realities and the imperatives of public governance.
The mechanism for developing achievable export targets and formulating enabling policies is
the Export Development Council (EDC). The method is consultations. Based on these
consultations, what the private sector needs to do to drive exports and what the public sector
needs to do to enable it, are fused in a three-year strategic plan - the PEDP.

A. Objective of the Plan


The objective of the PEDP is specified in the Export Development Act:
ARTICLE 2
INSTITUTIONAL STRUCTURES AND STRATEGIES
SEC. 5. Philippine Export Development Plan (PEDP). - The President of the Republic of
the Philippines shall approve a rolling three-year Philippine Export Development Plan
prepared by the Department of Trade and Industry (DTI) which shall form part of the
Medium-Term Philippine Development Plan (MTPDP). It shall be formulated in
consultation with the private sector, validated and updated semestrally.
The PEDP shall define the country's annual and medium-term export thrusts, strategies,
programs and projects and shall be jointly implemented by the government, export and other
concerned sectors.

B. Consultations on Export Targets and Strategies


The consultations started in February 2010 and continued until December. The scope was
nationwide involving the entire network of the EDC and all sector representative groups.
Consultations in February began with the Export Development Council Visioning Workshop
where directions were set for the PEDP and indicative strategies formulated. A strategic
outcome of the workshop is the decision of stakeholders to update the EDA making it relevant
to changes in the global environment fifteen years since the law was enacted. The goal is to
establish lasting solutions to recurring export problems. While the EDA review is on-going,
measures that can be taken immediately to remedy urgent export development issues are being
done through the EDC.
Another strategic outcome is the EDCs Legislative Agenda designed to enshrine in the law
lasting solutions to chronic difficulties in export development. These are in the areas of Fiscal
Incentives, the Tariff and Customs Code, the Philippine Marine Act, the National Internal
Revenue Code and the Anti-Trust Law.
Also during the workshop, an expert economist (Dr. Cayetano Paderanga) presented a global
economic outlook with emphasis on the impact of the recent global financial crisis. His diagnosis
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PEDP 2011-2013 for LIMITED CIRCULATION only


and prognosis became part of the basis of the strategies in the PEDP and the industry
roadmaps. Sector representatives likewise presented market and export performance updates
to form part of the strategy basis. A key activity in the workshop was a needs-assessment by
the private and public sectors to determine what needs to be done to achieve export goals. One
of the outcomes of this activity is the agreement to revise the vision and mission of the EDC
making innovation, transformation and continuous improvement a focal point of export
development.
After the EDC Strategic workshop, more consultations were conducted with the Council, its
Executive Committee, sector groups and government agencies. More than thirty consultation
meetings took place including regional conferences involving broad-base representation from
the exporting community in the National Capital Region, Luzon, Visayas and Mindanao.
Strategies were discussed, revised and finalized. Targets by sector were agreed.

C. Consultations on Export Policies


As stated, a needs-assessment was conducted during the consultations to identify targets and
strategies, issues on the export policy environment and priorities in policy requirements. It
became apparent from the discussions that many of the policy needs and challenges in export
development appear to be either recurring difficulties, persistent hurdles or both. These multisectoral and cross-cutting concerns for example are:
1. Harmonizing local, national and international trade policies to support exports.
2. Aligning policies, promotional initiatives and market intelligence consistent with
export strategies among government agencies (DA, DTI, DFA, DOT) and among
organizations within the agency.
3. Reducing costs of doing business through simplified approval of permits and
improved infrastructure.
4. Simplifying application and enabling exporters to have a more meaningful access to
credit.
5. Re-tooling of the labor force through human capital interventions such as education
and skills training compatible with business needs to increase their productivity.
6. Providing access to raw materials, updated technology and innovation.
7. Formulating foreign exchange policies supportive of exports.
8. Reforming labor laws on legislated wages, apprenticeships and unions.
9. Involving the exporting community in conducting international trade negotiations.
10. Maximizing benefits from trade agreements through knowledge and implementation
services.
Crucially, there are two other serious concerns which consistently surfaced in all the meetings:
1. Persistent corruption in some national government agencies and local government
units.
2. The need for funding support for export promotions and other export development
initiatives especially for SMEs.

PEDP 2011-2013 for LIMITED CIRCULATION only


There are also sector-specific concerns that continue to persist. A few examples are:
1. Food and Organic Products- implementing the Agriculture and Fisheries
Modernization Act, increasing investments in agriculture, establishing a Food Safety
Law
2. IT/BPO- international advertising promoting the Philippines
3. Coconut Products- assistance on geotextiles machines and technology,
implementation of a coconut tree replanting program
4. Mining- implementation of the Mining Act
5. Automotives- issues on pertinent Executive Orders and the Motor Vehicle Industry
Development Plan
6. Garments- support for the U.S. Save Our Industries Act
7. Homestyle Products- implementation of a resource-based export development
program
Equally, the view that many, if not all, of these concerns are continuously being addressed by
government with an appreciable level of success has to be considered to be able to identify
measures necessary to sustain the effort effectively. A number of these concerns have been
resolved at some point but resurfaced subsequently. Others were taken through an earnest
process for resolution but stalled along the way. As such, the issue does not seem to be one of
neglect but sustainability, not one of competency but continuity.
The effort to maintain policy cohesion in an environment of constant change and the endeavor
to incessantly improve the bureaucracy through progressive reforms do not seem to suffer from
any lack of dedication from the majority of professionals in the government sector. What may
be needed are sustained encouragement, motivation and cooperation from the private sector.
This is especially with reference to corruption in public and private governance. The President
encourages cooperation between government and private enterprise to identify individuals,
groups and structural environments engaged in corruption so that these elements are
corrected accordingly while ensuring continued protection of the citizenry and promulgation of
good values, efficiency and effectiveness in business and in government.

D. Outcome: PEDP Targets, Strategies and Policy Initiatives


From these consultations, the export targets, strategies and policy agenda were finalized and
incorporated in the plan. The plan contains solutions to both policy and public-private
governance issues. It defines strategic guideposts designed to exploit export market
opportunities and improve in-country capacities.
Importantly, these targets, strategies and policy concerns were discussed with the DTI
Secretary, the Chairperson of the EDC. His advice and perspective were solicited to ensure the
PEDP is aligned with the priorities of the Philippine Development Plan (PDP) 2011-2016, the
Cabinet Economic Managers, and the President.

PEDP 2011-2013 for LIMITED CIRCULATION only

III. EXPORT REVENUES: 2011-2013 Targets


& 2014-2016 Forecasts vs. Prior PEDP Periods
Given unfolding global market conditions, the Philippines will grow exports of merchandise and
services by forty percent (+40%) in 2011-2013 versus 2008-2010.
By 2016, total exports will double versus the 2008-2010 average exceeding one hundred twenty
billion US dollars (US$ 120B).
Exports will grow in the coming three-years (2011-2013) by building on our current business. It
will double in the next three years (2014-2016) through an export development program
anchored on our agro-industrial resource-base.
Merchandise exports are targeted to grow by thirty-five percent (+35%) while total services by
sixty percent (+60%) for 2011-2013. In the following three-year PEDP cycle (2014-2016),
merchandise exports are forecasted to grow by another thirty-four percent (+34%) and services
by forty percent (+40%). In US dollar values, merchandise exports will continue to be the primary
revenue stream at seventy-seven percent (77%) of total Philippine exports by 2016.
Table 1: EXPORT PERFORMANCE ACCORDING TO PEDP PERIODS
PEDP PERIOD:
PEDP 1999-2001
PEDP 2002-2004
2002
2003
2004
Total (vs. Prior 3-Yrs.)
PEDP 2005-07
2005
2006
2007
Total (vs. Prior 3-Yrs.)
PEDP 2008-2010
2008
2009
2010
Total (vs. Prior 3-Yrs.)
Ave. 2008-2010

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

PEDP 2011-2013 for LIMITED CIRCULATION only


Table 1. (cont.)
MERCHANDISE
EXPORTS
US$ Million

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

Total (vs. Prior 3-Yrs.)

251,240

34

76,045

40

327,285

35

77

23

PEDP PERIOD:
PEDP 2011-13 TARGETS

Total (vs. Prior 3-Yrs.)


PEDP 2014-16 FORECAST

% 2016 VS. 2008-10


AVG.

199

208

Sources: BETP for Merchandise Exports; BSP for Services Exports

PEDP 2011-2013 for LIMITED CIRCULATION only

IV. KEY EXPORT SECTORS AND REVENUE STREAMS


The business in the first three years will come from Key Export Sectors controlling eighty-seven
percent (87%) of Philippine exports.

Table 2: EXPORT PERFORMANCE OF KEY SECTOR GROUPINGS: PEDP ALIGNED WITH PDP

PDP Key Export


Sector

PEDP Revenue Streams

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

TOTAL KEY SECTORS:


SERVICES
IT-BPO & Other Services

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

Food & Other ResourceBased Products


Minerals

2,437

1,870

-23

1,615

16

TRANSPORT

Shipbuilding

0.4

1,543

554

586

163

6,576

16

5,041

30

HIGH POTENTIAL GROWTH SECTORS:

OTHER SECTORS

236
5,661

Motor Vehicle Parts

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.

PEDP 2011-2013 for LIMITED CIRCULATION only


More importantly, because of changes in the global trading environment, these export sectors
are in a natural position to grow. This natural positioning comes from their merchandise-mix
and product-market combination relative to supply chains, distribution channels and disposable
income levels of their current and potential consumers.
From a public governance perspective, these export sectors engender inclusive growth.
Table 3: KEY SECTOR ANALYSIS
ACCORDING TO BUSINESS SIZE & GROWTH, LVA, EMPLOYMENT

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
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PEDP 2011-2013 for LIMITED CIRCULATION only


climate change and global warming, there are indicators that NOPs and related services can be
the biggest export enterprise in the future.
Moreover, Green Exports (or the greening of exports) is a strategy to achieve incremental
growth on top of the mainstream key export sectors while boosting the growth and
diversification of generic 0NPs.
The EDC and the BETP will continue to work with the ONP sector in achieving broad application
of this strategy and in developing metrics to measure progress.
Similarly, Halal and Kosher products deserve equal attention considering the size and growth of
this category and the wide application of its performance attributes. BETP reports that the
market for Halal and Kosher food is over six hundred billion dollars (US$ 600B) around the
world growing by at least ten percent yearly. Expanding the scope of the support and
accreditation services of DTI for Halal and Kosher products will help increase Philippine market
shares in these growing market segments.
To this end, the PEDP shall prioritize on accelerating the on-going initiative of establishing the
Philippine Halal Certification Body through the efforts of the DA and the DTI. The objective is to
achieve this within the current PEDP cycle (2011-2013).

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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

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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

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PEDP 2011-2013 for LIMITED CIRCULATION only


The New Sectors for Assessment are product groups that will be examined closely based on
the size of their business and progress through the performance period. The idea is to continue
to identify high-success probability export sectors where public-private-partnership
involvement will yield the highest export revenues. Table 5 shows the PEDP targets for the
period 2011-2013.
Table 5: EXPORT TARGETS OF KEY EXPORT SECTORS, 20112013
2011

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

Global Environment: Six-Year View


During the consultations, stakeholders recognized that many of the things needed to be done to
restart sustainable export growth in the aftermath of the global financial crisis will take more
than three years to accomplish. This is with respect to both private business and government.
The global export market is changing radically compared to the past three years because of the
varying degrees of the crisis-impact between developed and developing economies. While the
global economy is forecasted to grow by three percent (+3%) year-on-year (YOY) in the next
three years, advanced economies will grow by only two percent YOY (+2%). The U.S. will have
a YOY growth of two percent (+2%) and EU will grow by only one percent (+1%) given
continuing challenges with what appears to be a delayed impact of the crisis on some EU
countries (Source: Paderanga Global Outlook, Feb. 2010).
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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).

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PEDP 2011-2013 for LIMITED CIRCULATION only


For the public sector, while there is optimism and trust in the newly-elected leadership, the total
package of government reforms and support needed to enable sustained export growth is
viewed to take more than three years to accomplish. This is especially considering the
requirements of an agro-industrial resource-base export development program.
Table 6 shows how Philippine exports might unfold beyond 2011-2013 into 2014-2016,
assuming that the private sector can harness the opportunities these changes bring and the
public sector is able to actualize reforms.

Table 6: EXPORT FORECASTS OF REVENUE STREAMS, 20142016


2014
REVENUE STREAM/ PRODUCT GROUP

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

Forecasts based on PEDP consultations

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PEDP 2011-2013 for LIMITED CIRCULATION only


SUMMARY OF EXPORT TARGETS & FORECASTS
Table 7-A: SUMMARY OF EXPORT TARGETS, 2011- 2013
2010

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:

Table 7-B: SUMMARY OF EXPORT FORECASTS, PEDP 2014 2016


2014
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

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PEDP 2011-2013 for LIMITED CIRCULATION only

VI. OVERVIEW OF PRODUCT & MARKET BEHAVIOR


Given the strategic direction to build on current business in the next three years, it is important
to understand the following:

Where the business is coming from (products and services).


Table 2 shows that from the 2006-2008 average, fifty-three percent (53%) of total
exports and sixty-two percent (62%) of merchandise exports come from electronics.
Nine percent (9%) of total exports come from motor vehicle parts and mineral
products. These exports are largely intermediate goods and raw materials going to
export destinations where they are assembled as finished goods for re-export to
consumer markets or partly sold to domestic consumers. In the case of mineral
products they are to a certain extent utilized to fuel exports of the country of
destination. Seventy-five percent (75%) of merchandise exports are for re-export to
consumer markets.
Less than twenty-five percent (25%) of merchandise exports go directly to consumers
or end-users. It is less because portions of food, garments and textile, coconut products
and wearables are also intermediate goods. This means that the greater majority of our
exports today are influenced by the dynamics of the global supply chain of their
respective consumer product categories. This also means that the main driver of
Philippine exports is direct investments. Additionally, services being largely contact
centers of foreign companies, form part of the overall global value chain and are
investment driven.
For finished goods exports, relating their marginal shares versus total sales and their
equally marginal market shares in their growing markets suggest that finished goods
exports need consumer research-based advertising and promotions to capture
share-of-mind and share-of-pocket in their competitive operating environment.
The pie-chart below further illustrates the characteristics of Philippine exports productmix by comparing 2001 and 2010.

Chart 1: COMPARATIVE PRODUCT MIX, 2001 vs. 2010

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PEDP 2011-2013 for LIMITED CIRCULATION only


From 2001 to 2010, a significant portion of Philippine exports is still in intermediate
goods. However, finished goods have shrunk in terms of share in the product-mix which
indicate loss of competitiveness in the marketplace (see Chart 2: Markets of Philippine
Exports).

Where the business is going (markets).


From 2006-2010, majority of Philippine merchandise exports go to North and Southeast
Asia (60%) of which, twenty-three percent (23%) go to China and twenty percent
(20%) to Japan and Korea.
The second major market is the Americas with nineteen percent (19%), followed by
Europe with eighteen percent (18%). For the remainder of market, one percent (1%)
each goes to Middle East-Africa and to ANZ-Oceania. And less than one percent (0.8%)
goes to Central-South Asia and Russia.

Table 8 shows the regional distribution of Philippine Exports from 2006-2010.


Table 8: MARKETS OF PHILIPPINE EXPORTS

TOTAL PHL MERCHANDISE EXPORTS


NORTH & SE ASIA
TOTAL CHINA (MAINLAND, HK, TAIWAN, MACAU)
TOTAL NORTH ASIA (JAPAN & KOREA)
TOTAL ASEAN (9 MEMBER STATES)
AMERICAS
TOTAL NORTH AMERICA (USA & CANADA)
BRAZIL, CENTRAL & SOUTH AMERICA (21)
CARIBBEAN (23)
GREENLAND & BERMUDA
EUROPE
TOTAL EU (27)
BAL. WESTERN, EASTERN & CENTRAL EUROPE (17)
MENA
MIDDLE EAST (14)
AFRICA (51)
OCEANIA & SOUTH PACIFIC
AUSTRALIA & NEW ZEALAND
SOUTH PACIFIC ISLANDS (23)
CENTRAL & SOUTH ASIA
GREATER INDIA (INDIA, PAK, SL, BDESH, NEPAL, BTN)
CENTRAL ASIA (10)
INDIAN OCEAN ISLANDS (5)
RUSSIA

AVE. PAST 5 YRS.


2006-2010
FOB Value
46,755,135,398
27,845,060,107
10,751,480,669
9,296,638,817
7,796,940,621
8,696,490,797
8,304,457,661
373,938,025
17,408,868
686,243
8,518,622,660
8,384,644,373
133,978,287
675,161,838
505,335,500
169,826,338
663,003,574
474,658,400
188,345,174
326,044,784
320,259,881
4,363,343
1,421,559
30,751,638

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

Source: Tradeline Philippines, BETP

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

PEDP 2011-2013 for LIMITED CIRCULATION only

Chart 2: MARKETS OF PHILIPPINE EXPORTS, 2001 vs. 2006-2010 (Average)


2001

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

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PEDP 2011-2013 for LIMITED CIRCULATION only


exports to the Middle East and the ANZ region; and the spawning of our business in greater
India, Brazil, South America and even Africa.
This also partly explains the sense of urgency among many countries to engage in free trade
agreements, be it bilateral or multilateral.
And this suggests expectations in the near future.
In terms of international trade and investments, India is expected to become like China in
relation to the rest of the world. Brazil is viewed to become like China in relation to the
Americas and Europe. The Middle East appears to have begun behaving like China in relation to
Africa and Central Asia. Australia and New Zealand have likewise begun to behave like China in
relation to China, India and Brazil. And Russia is anticipated to influence supply chains and
global consumer marketing following the same pattern when its time comes.
Japan can only be a contributing factor to the re-balancing of resources and supply chains
resulting to export opportunities. Given Japans inherent capabilities and current international
business model, its recovery efforts can lead to an expansion of export markets.
Therefore, 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.

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PEDP 2011-2013 for LIMITED CIRCULATION only

VII. CORE STRATEGIES


In the context of new realities where global supply chain management, international
negotiations and innovation in finished goods marketing are the strategic opportunities, the
PEDP defines its core strategies applicable to all sectors.
A. Product Strategies:
1. Move up the Value Chain
Move up the value chain according to the status of the sector. Building value-added
by moving up the value chain will bring immediate incremental revenues while new
sectors are being cultivated. The key is to secure foreign and local investments to
enable sectors to move up the value chain considering that many of the supply chain
attributes of our export products and services are already present in-country.
Additionally, the strategic location of the Philippines makes it an ideal site to access
large consumer markets like China, Japan, Korea, Indonesia and the rest of ASEAN.
2. Capture Higher-value Processes in the Global Supply Chain
Sell Filipino supply and value chain participation as a quality and cost-effective
component to finished goods and services. This is in particular reference to export
sectors whose global supply chain is characterized by multi-country manufacturing
such as electronics, garments, automotives, and shipbuilding.
Participation in value chain endeavors to capture as many of the chain components
possible. Moving up the value chain develops chain components that derive the
highest value. The idea is for the Philippines to achieve both through foreign and
local investments and innovation.
3. Develop Product Linkages for Organic, Natural and Certification-enabled
Products
Develop organic and natural product linkages in tourism services and expand
product applications. The abundant natural resources and human capital in the
Philippines make it ideal for ONPs to prosper given what is arguably the largest
rapidly growing product and service category in the world. The first step is to
leverage tourism as a natural distribution channel for existing products and services.
Subsequently, establish research centers to expand ONP applications and set up
manufacturing facilities through local and foreign investments motivated by the
growth in Philippine NOP in-country capabilities.
B. Market Strategies:
1. Maximize Benefits of Free-Trade-Agreements (FTAs)
Maximize FTA gains and engage the US and EU according to mutually acceptable
modalities. Maximizing existing FTAs means launching information campaigns that
are broad-based and meaningful. A broad-based campaign means a nationwide
effort covering as many business sectors possible, especially SMEs. Meaningfulness
does not only refer to informing the exporting community about tariff schedules and
other FTA features. It also refers to establishing and improving mechanisms that will
21

PEDP 2011-2013 for LIMITED CIRCULATION only


motivate the private sector to utilize FTAs in their business. These are Information
Help-Desks, Document Facilitation, Interactive Websites and similar others.
2. Target High-Growth Emerging Markets
Emerging markets with high economic growth for finished goods exports include
China, India and ASEAN for direct exports. The faster growth of developing
economies is creating large consumer segments with high disposable incomes.
Philippine export products and services should focus on these consumer groups not
only because of their new-found capability to purchase, but more importantly,
because it is at this emerging stage that consumers develop product and brand
loyalty through trial usage. Reaching these consumers ahead of other brands as they
explore their purchasing power establishes a strong franchise for the Philippines.
Philippine exports of intermediate goods will realize incremental sales as the brands
these sectors supply will promote themselves aggressively in these emerging
markets. The indicated action is to have our finished goods export sector move in
this direction as well through promotions and selling missions.
Brazil and Russia are viable target markets for Philippine finished goods through
distribution channels in strategic locations including those in the Middle East and EU.
The Philippines must also engage in pre-emptive market intelligence activities to
identify opportunities and establish presence in other big emerging markets like
South Africa and Turkey and in pre-emerging markets, specifically those highgrowth areas and cities in China (CHAMPS*).
3. Attract the Migration of Supply Chain Nodes to the Philippines
Capture export-oriented FDIs from China, Malaysia and Singapore, as these
economies move up the value chain. Also, target Japan, Korea, ANZ, US, and EU as
these industrialized nations continue to re-balance the supply chains of their
products and services to pursue opportunities in emerging markets and respond to
recovering mature markets.
Equally, the recovery of mature markets and the rapid growth of emerging markets
with large consumer populations are compelling developed exporting nations (Japan,
Korea, ANZ, US, EU) to activate more multi-platform supply chains to address the
different consumption needs of emerging and mature markets. The result is a remigration of supply-chain components from these locations to strategic points in the
chain.
*as identified by the Economic Intelligence Unit (EIU): Chongqing, Hefei, Anshan, Maanshan, Pingdingshan and Shenyang

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
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PEDP 2011-2013 for LIMITED CIRCULATION only


research and development and in-country capacity for merchandise and services
exports.
Tourism is a cost-effective awareness and trial-usage channel for Philippine exports
while generating significant revenues. Integrating these elements in out-bound trade
events maximizes results. Market selection should also be consistent with product
and market strategies. An additional consideration in selecting geographical markets
is the presence of existing or unfolding free trade agreements.
2. Launch More High-Impact and High-Level In-Bound Fairs and Missions
Linked with Tourism Opportunities
Strengthen existing Philippine trade events and develop new and innovative ones
focusing on the total Philippine experience. Philippine Experience refers to the
emotional aspect of the encounter with target consumers. The tactile elements of
consumer-contact, like features and benefits of products and services, are available
to consumers virtually anywhere around the world. But an experience, the emotional
high achieved through consumer contact, can be made unique and worth reexperiencing again and again. Similar to out-bound missions, in-country events must
integrate investment, tourism and merchandise trade missions.
Frequency and timing of these integrated activities can be aligned with key tourism
occasions year-round. In the case of in-country events, the more of these integrated
promotions are launched, the broader the base for Philippine exposure and the
higher the probability of investments-capture and merchandise/services exports.
3. Embark on a Comprehensive and Unified Country Branding
It is time to brand the Philippines and launch thematic sectoral events and abovethe-line promotions. Consultations must be started immediately to arrive at the
brand essence, brand values and brand features necessary to define the Philippines
brand name and promise. From there, an international campaign will immediately
follow. Sectoral generic branding, or The Philippines must continue to be
promoted attaching the strong positive attributes of each sector as the case may
apply in the event or promotion channel.
A key feature in the branding process is to include a brand device (or sub-label) from
a government export-standards agency certifying product integrity and performance.

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PEDP 2011-2013 for LIMITED CIRCULATION only

VIII. GOVERNANCE: KEY TO IMPLEMENTATION


To be able to implement the strategies of the PEDP and consequently achieve its targets,
government policies and promotional assistance enabling exports are necessary.
A. Immediate: Executive Action
1. The President, as Chair of the EDC, should preside over the Quarterly EDC meetings.
This would also ensure Cabinet-level participation in the Council so that immediate policy
action is taken on export development issues.
2. The DTI shall utilize Honorary Trade Representatives in target export markets as soon
as may be appropriate. The necessary deployment plan in context of the FTSC
operations shall be designed and implemented accordingly by the DTI.
B. Mid-Term: Legislative Agenda
1. Prioritize amendment of the Export Development Act with emphasis on provisions
pertaining to export financial assistance, privatization of promotional agencies, and the
enforcement authority of the Council.
2. Passage of the Customs Modernization and Tariff Bill to address the issue of
simplification of procedures and the cost of doing business.
C. Institutionalize a Funding Source for Export Development and Promotion
1. To be able to execute the strategies of the PEDP, financial resources must continuously
be made available to fund promotional activities. On the part of government agencies,
the plan is to consolidate the promotion budgets of the DOT, DA, DTI, BOI, and the
economic zones through inter-agency coordination of out-bound missions and in-bound
activities
2. Establish a National Export Development and Competitiveness Fund (NEDAC Fund) to be
used in launching integrated promotional efforts, SME financial assistance and
continuous training for workers in the exporting community. The fund shall initially come
from the Office of the President and subsequently included in the annual DTI Budget
from the General Appropriations Act.
D. Build on the Strengths of the Export Development Council
The solution to all the challenges in the implementation of this Plan is in the mechanism
established in the Export Development Act. That mechanism is the Export Development Council.
The Council is designed to resolve export development issues through the representation of
export sectors and the involvement of Cabinet Secretaries and The President.
Policy issues requiring extensive study and consultation are addressed through the networking
committees while situations requiring immediate actions are managed by the Council itself.
1. Revitalize the networking committees to strengthen presence in the countryside and so
that relevant issues are thoroughly evaluated and recommendations carefully assessed
before being presented for resolution to the Council. Activate new committees as
appropriate to address all Key Export Sectors.
24

PEDP 2011-2013 for LIMITED CIRCULATION only

2. Link with other business councils to strengthen and unify advocacies.


3. Develop and implement an anti-corruption mechanism in the EDC and its networking
committees. Utilizing appropriate measures to protect the citizenry, this mechanism shall
enable sources to identify individuals, groups and structural environments engaged in
corruption to enable government to correct situations and prosecute where necessary.
4. Ensure appropriate representation of the service sector in the EDC particularly BPO to
enable this rapidly growing sector to contribute to continuous development of
comprehensive export policies. This is particularly in reference to worker welfare which
is a key factor to export competitiveness in services.
5. Strengthen the EDC Secretariat by increasing the number of technical staff necessary to
fulfill all secretariat functions. Engage the staff in Continuous Education and Training
(CET) on convener management.

The President as Export Champion

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-

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26

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ANNEX 1:
Sectoral Strategies and
Activities

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SECTORAL STRATEGIES AND ACTIVITIES

A. FOOD

Priority Products

Fresh Fruits/Vegetables: mango, banana, papaya, okra


Processed Food
Marine Products

Priority Markets

Korea, Hong Kong, China (Fresh Fruits/Vegetables)


USA, China, Hong Kong, EU, Japan (Processed Food)
o Emerging markets: ASEAN, ME, India, Australia
USA, EU, Hong Kong (Marine Products)

Export Growth Targets

2011 10%
2012 10%
2013 10 %

Major Policy Concerns/


Policy Support Needed

Export Strategies and


Activities

Baseline US$ 2.11B


Tedious documentation procedures (e.g. certificate of origin,
phytosanitary requirements and product registration, etc.)
Lack of government assistance/support re: organic
certification of raw material sources and compliance for Good
Manufacturing Practice (GMP) and Hazard Analysis Critical
Control Point (HACCP) implementation
Review of the existing Free Trade Agreements (FTAs) with
partner countries and renegotiate the inclusion of products
excluded from the agreements such as the high duties of
marine products, dried fruits, and purees which is now 3040% in Korea

Promotion

Strengthen and synchronize the export and investment


promotion programs/projects such as inbound and outbound
missions and trade fair participations of DA, DTI and DFA and
link the promotional initiatives with the tourism programs of
DOT.
Identify other niche Blue Ocean markets for Philippine food
products by foreign Posts.

Capacity Building

Strengthen the market intelligence initiatives of Foreign Posts


Establish standards for product processes and quality and
develop packaging and design at par with international
standards
Strengthen and upgrade existing laboratory equipment of
DOST and DA focusing on the product/s inherent per region
such as the analysis for pesticide residue of tropical fruits and
vegetables and other technical requirements
Government support/ incentives for capital expenditures and
tax credits for the importation of equipment for MSMEs and
non-pioneer industries

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PEDP 2011-2013 for LIMITED CIRCULATION only

Strengthen the certification system for HACCP, ISO 2200,


and GMP and provision of government support in the
compliance and implementation of these systems.
DA to establish programs to ensure the sustainability of the
production of agricultural raw materials such as tropical fruits
(calamansi, jackfruit etc.); coconut and palm fruit (Kaong);
vegetables and rootcrops.
Provide MSMEs access to low interest/long term financing to
improve facilities and business capital
Implement the Halal Development Project

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PEDP 2011-2013 for LIMITED CIRCULATION only


B. GARMENTS/ TEXTILE

Priority Products

High-end Gowns/Dresses
Ethnic Natural Fiber
Barong
Lingerie/ Night Wear

Priority Markets

USA
EU
Japan

Export Growth Targets

2011 15%
2012 15%
2013 15%
Baseline US$ 599 M
More than 15% if Save Our Industry Act is passed by the
US Congress

Major Policy Concerns/


Policy Support Needed

Export Strategies and


Activities

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

Lack of technology support


Inadequate basic skills training on international standards
Lack of raw materials due to demise of the textile industry

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

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PEDP 2011-2013 for LIMITED CIRCULATION only


C. WEARABLES

Priority Products

Costume/Fine Jewelry
Bags
Footwear/Slippers/Shoes

Priority Markets

Asia (Hong Kong, China, Japan)


Europe (France, Germany, Italy)
Australia/ USA (Indirect Export)

Export Growth Targets

2011 10%
2012 10%
2013 10%
Baseline US$ 599 M.

Major Policy Concerns/


Policy Support Needed

Export Strategies and


Activities

Unsustainable financial assistance to export promotion


Tedious procedures / requirements for imported raw materials
High power/ electricity cost
Unclear policies on duties / taxation for raw materials,
returned shipments
Lack of skilled labor force

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)

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D. HOMESTYLE PRODUCTS

Priority Products

Priority Markets

Furniture mixed media furniture, wood/plastic/stone


furniture, outdoor furniture
Furnishings
Holiday Decors

Europe
US
Asia (China & India)

Export Growth Targets

2011 7%
2012 7%
2013 7%
Baseline US$ 427M

Major Policy Concerns/


Policy Support Needed

Export Strategies and


Activities

Conflicting policies of national and local agencies on raw


materials and taxation
Lack of access to financing (special program for distressed
companies)
Overlapping of projects
Unscrupulous customs officers
High cost of doing business

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

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PEDP 2011-2013 for LIMITED CIRCULATION only


E. IT BPO

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

Export Growth Targets

2011 18%
2012 16%
2013 14%

Major Policy Concerns/


Policy Support Needed

Baseline: 2010 US$ 11.041B

Talent scalability, particularly to meet sizeable voice demand


Mismatch of educational system and language with global
standard
Limited growth capital for scale-up of small-to-medium firms
Lack of distinguishing branding against India and near-shore
geographies
Fine-tune labor laws and practices to meet industry
requirements (e.g., issues related to absenteeism,
termination)
Legislation on data privacy and cyber-crime to improve risk
perception

Export Strategies and


Activities

USA/ North America


Europe ( UK )
Asia-Pacific (APAC)

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

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PEDP 2011-2013 for LIMITED CIRCULATION only


F. ELECTRONICS

Priority Products

Semiconductors
Electronic Data Processing
Automotive Electronics and Solar Power/ Photovoltaic
Cells

Priority Markets

USA
Europe
Japan and China

Export Growth Targets

2011 10%
2012 10%
2013 10%
Baseline: 2010 US$ 31.080B

Major Policy
Concerns/ Policy
Support Needed

High cost and availability of power


Philippine Technology Roadmap
Development of quality allied and support industries

Export Strategies and


Activities

Pursue aggressive export sales and investments


promotion of parts and components manufacturers
Conduct international communication / marketing
campaign
Develop and expand linkages with allied support
industries: metal, plastics and chemicals industries
Generate up-to-date market intelligence on target
markets
Identify and define future technology needs, and
forecast future product attributes

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PEDP 2011-2013 for LIMITED CIRCULATION only


G. COCONUT (NON-FOOD)

Priority Products

Priority Markets

Export Growth Targets

Coconut fiber, coir


Coconut peat/dust
Geotextiles
Coconut oil
Coconut fiber China
Coconut peat/dust China, Korea and Japan
Geotextiles China
Coconut oil Netherlands, USA, China, Italy, Malaysia,
Spain and Japan
For Coir and Geotextiles:

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:

Major Policy and Other


Concerns/Support Needed

Funding support from the Export Support Fund, the


Coconut Industry Investment Fund (CIIF), and DA/PCA
The Philippine Coconut Coir Exporters Association, Inc.
(PHILCOIR) proposes the creation of Coir Board similar to
India
Philippine Coconut Authority (PCA) to regulate
establishment of processing plants
DILG/LGUs to construct farm-to-market roads
DOF to levy VAT-less or less VAT on freight for exports
DTI to develop standards and manual for coco geotextiles
and biologs
BOI to extend tax incentives and tax credit to coco coir
and coco peat exporters
Technical support for the development of various
applications of coco peat
PCA to undertake projects to improve/increase access of
processors to supply of coconut husk
Review and rationalize the present cabotage system in
shipping to afford competitive and affordable shipping cost
Coconut oil:

Philippine Coconut Authority (PCA) to undertake planting


and replanting programs to increase and improve coconut
yield

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PEDP 2011-2013 for LIMITED CIRCULATION only


Coco coir products:
Export Strategies/Action
Plans

Conduct research and review/assess feasibility of


exporting coco coir products in target markets
Identify markets where coco coir products have
preferential tariffs due to bilateral/multilateral Free Trade
Agreements (FTAs)
Assess and improve competitiveness vis--vis leading
world suppliers
Promote coco peat as animal bedding material
Promote geotextile as soil erosion and desert control
material
Promote coco peat as soil conditioner
Conduct out-bound and In-bound business missions
(OBM and IBM)
Develop promo collaterals/materials and website for coco
coir products
Monitor export performance of coco coir industry
Coconut oil:

For priority markets, , United Coconut Associations of the


Philippines U(UCAP), Foreign Trade Service Corps
(FTSC), and Bureau of Export Trade Promotion (BETP) to
promote the various benefits of using coconut oil to
counter negative
publicities by competitors, and to
highlight its advantages over palm oil
FTSC to research on competing products --- Malaysia and
Thailands on palm oil production
Develop promo collaterals/materials and website for coco
oil products
Identify markets where coco oil products have preferential
tariffs due to bilateral/multilateral Free Trade Agreements
(FTAs)

37

PEDP 2011-2013 for LIMITED CIRCULATION only


H. MINERALS

Priority Products

Metallic Gold, Copper, Nickel


Non Metallic Minerals - marble

Asia-Pacific: China, Korea, Australia, Japan

Priority Markets

Export Growth
Targets

Major Policy
Concerns / Policy
Support Needed

2011 5%
2012 5%
2013 5%

Baseline: 2010 US$1.87B

Policy inconsistencies or disjoint between the national


government and local government units in terms of land use,
taxation, environment (including mining moratorium, ban on
open-pit mining)
Push for responsible mining especially for small scale mining /
proliferation of small scale mining permits granted by LGUs
(sans environmental , safety, and health issues)
Unwarranted interventions by environmentalist groups and other
organizations in the interpretation / implementation of the Rules
of Procedures on Environmental Cases (Writ of Kalikasan)
Lukewarm response / lack of support by the LGUs

Export Strategies and


Activities

Information campaign for mining companies to adopt and


implement Corporate Social Responsibility commitments /
Promote CSR Guidebook
Aggressive support through BOI investment roadshow /
investment missions abroad
BOI and MGB to identify and promote investment-ready mining
projects with prepared feasibility studies / facilitate business
registration and issuance of permits
Build-up database on small scale producers of minerals

38

PEDP 2011-2013 for LIMITED CIRCULATION only


I. MOTOR VEHICLE PARTS

Priority Products

Priority Markets

Original Equipment Manufactures (OEMs):


Wiring harness, transmissions/gears, sensors,
alternators, brake systems and servo brakes

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

Export Growth Targets

Major Policy
Concerns/ Policy
Support Needed

Export Strategies and


Activities

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.

Position the country as hub for regional clusters to be


the preferred promotion platform for export
Improve and expand the replacement parts market
Promote the sectors subcontracting capabilities for
customized orders of various automotive metal and
plastic fabrications
Pursue aggressive export sales and investment
promotions activities in target markets, highlighting the
Philippines as a supplier of quality and cost-effective
premium parts and components
Implement the Comprehensive Motor Vehicles
Program

39

PEDP 2011-2013 for LIMITED CIRCULATION only

40

PEDP 2011-2013 for LIMITED CIRCULATION only

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.

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PEDP 2011-2013 for LIMITED CIRCULATION only

A. PHILIPPINES ASEAN TRADE RELATIONS


A. ECONOMIC INDICATORS

(2010)

GDP (US$ Billion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

351.4
3,500
7.3

Source: World Factbook 2011

B. GENERAL TRADE INDICATORS


ASEAN
Imports
from the
World
(2010)
in US$
Thousand
957,104,556

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%

Source: ITC Trademap

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.

C. PHILIPPINES ASEAN BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Thousand
Year
2006
2007
2008
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)

Source: ITC Trademap

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.

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PEDP 2011-2013 for LIMITED CIRCULATION only

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%.

PHILIPPINE EXPORTS TO ASEAN MEMBER-STATES


January December 2010
Value in US$ Thousand
Rank

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

Source: ITC Trademap

PHILIPPINE IMPORTS FROM ASEAN MEMBER-STATES


January December 2010
Value in US$ Thousand
RANK

1
2
3
4
5
6
7
8
9

SUPPLIERS
TOTAL PH IMPORTS

FOB
58,228,624

% Share
100.00

TOTAL PH IMPORTS FROM


ASEAN
Singapore
Thailand
Malaysia
Indonesia
Viet Nam
Myanmar
Brunei Darussalam
Cambodia
Lao People's Democratic Republic

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

Source: ITC Trademap

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PEDP 2011-2013 for LIMITED CIRCULATION only

2010 TOP PHILIPPINE EXPORTS TO ASEAN


Products
TOTAL

Exports
(US$ 000)
11,557,639
7,274,710
1,212,346
782,985
490,795

%
Share
100.00

1
2
3
4

Electrical, electronic equipment


Machinery, nuclear reactors, boilers, etc
Vehicles other than railway, tramway
Copper and articles thereof

Mineral fuels, oils, distillation products, etc

338,221

2.93

Tobacco and manufactured tobacco substitutes

111,621

0.97

7
8

Optical, photo, technical, medical, etc apparatus


Plastics and articles thereof
Dairy products, eggs, honey, edible animal
product nes
Fertilizers

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

Source: ITC Trademap

2010 TOP PHILIPPINE IMPORTS FROM ASEAN


Products
TOTAL

Imports
(US$ 000)

%
Share
100.00

1
2

Mineral fuels, oils, distillation products, etc


Electrical, electronic equipment

16,269,812
3,591,609
3,175,996

Machinery, nuclear reactors, boilers, etc

1,834,560

11.28

Cereals

1,567,224

9.63

Vehicles other than railway, tramway

1,566,662

9.63

Plastics and articles thereof

640,808

3.94

Miscellaneous edible preparations

280,604

1.72

8
9

Ores, slag and ash


Organic chemicals

263,646
247,549

1.62
1.52

10

Essential oils, perfumes, cosmetics, toiletries

238,402

1.47

22.08
19.52

Source: ITC Trademap

45

PEDP 2011-2013 for LIMITED CIRCULATION only


B. PHILIPPINES - BRAZIL TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ trillion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

2.194
10,900
7.5

Source: The World Factbook 2011

B. GENERAL TRADE INDICATORS


Brazils
World
Ranking
as
Importer
(2010)
22

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%

Source: ITC Trademap

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%.

C. PHILIPPINES BRAZIL BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year
2006
2007
2008
2009
2010
Growth Rate (%)
2006-2010

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)

Source: ITC Trademap

46

PEDP 2011-2013 for LIMITED CIRCULATION only


2010 TOP PHILIPPINE EXPORTS TO BRAZIL
Products
TOTAL
1
2
3
4
5
6
7
8
9
10

Computer data storage units


Monolithic integrated circuits, digital (excluding
cards)
Computer input/outputs with/without storage
Static converters: UPS (uninterrupted power
supplies) or no-break equipment
New pneumatic tires, of rubber for motor cars
incl. station wagons & racing cars
Motor vehicles parts, nes
Electronic micro-assemblies made from
discrete, active
Spectacle lenses of other materials other than
glass
Transmission apparatus for radio telephony,
radio telegraphy incorporating reception
apparatus
Coconuts, dessicated

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

Source: ITC Trademap

2010 TOP PHILIPPINE IMPORTS FROM BRAZIL


Products
TOTAL
1
2
3
4
5
6
7
8
9
10

Copper ores & concentrate


Wheat, nes & meslin
Tobacco unmanufactured partly or wholly
stemmed or stripped
Bovine cuts, boneless, frozen
Glutamic acids & its salts
Fowls (gallus domesticus), cuts & offal, frozen
Milk not concentrated & unsweetened
exceeding 1%, not exceeding 6% fat
Bovine, live except pure-bred breeding
Raw sugar, cane
Bulldozers & angledozers, crawler type)

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

Source: ITC Trademap

47

PEDP 2011-2013 for LIMITED CIRCULATION only


C. PHILIPPINES CHINA TRADE RELATIONS

A. ECONOMIC INDICATORS
GDP PPP (US$ trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)

(2010)
:
:
:

10.09
7,600
10.3

Source: The World Factbook 2011

B. GENERAL TRADE RELATIONS


Chinas
World
Ranking
as
Importer
(2010)

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%

Source: ITC Trademap

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.

C. PHILIPPINES - CHINA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year
2006
2007
2008
2009
2010
Growth Rate (%)
2006-2010

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

Source: ITC Trademap

48

PEDP 2011-2013 for LIMITED CIRCULATION only

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

Machinery, nuclear reactors, boilers, etc


Electrical, electronic equipment
Ores, slag and ash
Copper and articles thereof
Mineral fuels, oils, distillation products, etc
Plastics and articles thereof
Animal, vegetable fats and oils, cleavage products,
etc
Organic chemicals
Vehicles other than railway, tramway
Optical, photo, technical, medical, etc apparatus

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

Source: ITC Trademap


2010 TOP PHILIPPINE IMPORTS FROM CHINA
Products
TOTAL
1
2
3
4
5
6
7
8
9
10

Electrical, electronic equipment


Machinery, nuclear reactors, boilers, etc
Iron and steel
Mineral fuels, oils, distillation products, etc
Plastics and articles thereof
Fertilizers
Organic chemicals
Vehicles other than railway, tramway
Articles of iron or steel
Inorganic chemicals, precious metal compound,
isotopes

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

Source: ITC Trademap

49

Philippine Export Development Plan 2011-2013


D. PHILIPPINES EUROPEAN UNION TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP(US$ Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

16.07
32,700
1.8

Source: World Factbook 2011

B. GENERAL TRADE INDICATORS


EU Imports from
the World
(2010)
in US$
Thousand

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%

Source: ITC Trademap

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.

C. PHILIPPINES EU BILATERAL TRADE RELATIONS


BILATERAL MERCHANDISE TRADE
Value in US$ Million

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

Philippine Export Development Plan 2011-2013

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.

PH exports to the EU in 2010 represent 14.41% of total PH exports to the world of


$51.43 billion; EU imports account for 7.33% of PH imports from the world of $58.229
billion.

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 PH exports to EU in 2010 include electronic integrated circuits and


microassemblies, automatic data processing machines, coconut oil (copra),
semiconductor devices, parts and accessories of computers/office machines, motor
vehicle parts and accessories.

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.

PHILIPPINE EXPORTS TO INDIVIDUAL EU MEMBER-STATES


January December 2010
Value in US$ Thousand
RANK

MARKETS

Value

% Share

TOTAL PH EXPORTS TO THE WORLD

51,431,703

100.00

TOTAL PH EXPORTS TO THE EU

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

Philippine Export Development Plan 2011-2013


7

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

Source: ITC Trademap.

52

Philippine Export Development Plan 2011-2013


PHILIPPINE IMPORTS FROM INDIVIDUAL EU MEMBER-STATES
January December 2010
Value in US$ Thousand
Source: ITC Trademap.

RANK

SUPPLIERS

Value

% Share

TOTAL PH IMPORTS FROM THE WORLD

58,228,624

100.00

TOTAL PH IMPORTS FROM THE EU

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

Philippine Export Development Plan 2011-2013


2010 TOP PHILIPPINE EXPORTS TO THE EU

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

1 Electronic integrated circuits and


microassemblies
2 Automatic data processing machines;
optical reader, etc.
3 Coconut (copra) oil
4 Diodes/transistors & semiconductor
devices
5 Parts & accessories of computers & office
machines
6 Parts & accessories of motor vehicles
7 Photographic camera; photograph
flashlight apparatus
8 Electric transformers, static converter (ex.
rectifiers)
9 Aircraft parts
10 Prepared/preserved fish & caviar

100.00

Source: ITC Trademap.

2010 TOP PHILIPPINE IMPORTS FROM THE EU


Products
Source: ITC Trademap.
TOTAL
1 Electronic integrated circuits &
microassemblies
2 Aircraft (helicopter, airplanes), spacecraft
(satellites
3 Medicament mixtures
4 Electric apparatus for line telephony, incl.
current line system
5 Parts & accessories of computers & office
machines
6 Machines & mechanical appliances
7 Structures (rods, angle, plates) of iron &
steel
8 Vaccines, toxins, micro-organism-cultures
9 Food preparations
10 Wheat and meslin

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

Source: ITC Trademap

54

Philippine Export Development Plan 2011-2013


E. PHILIPPINES INDIA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

4.046
3,400
8.3

Source: The World Factbook ,2011

B. GENERAL TRADE INDICATORS


Indias
World
Ranking
as
Importer
(2010

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%

Source: ITC Trademap

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.

C. PHILIPPINES INDIA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year

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)

Source: ITC Trademap

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

Philippine Export Development Plan 2011-2013


US$ 409.84 million in 2010, while imports grew at 6.07% from US$ 425.01 million to
US$ 565.76 million during the same period.

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

Monolithic integrated circuits, digital

Motor vehicle parts nes

34,023

8.30

Computer data storage units

21,013

5.13

Transmissions for motor vehicles

20,601

5.03

Sanitary articles of paper

18,920

4.62

Newsprint, in rolls or sheets

16,696

4.07

11,481

2.80

8,759

2.14

Fertilizers containing nitrogen, phosphorus &


potassium in packs
Coal , whether or not pulverised but not
agglomerated

Flat rolled , coated alum-zinc alloy

7,761

1.89

Ammonium sulphate

7,650

1.87

10

Source: ITC Trademap

56

Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE IMPORTS FROM INDIA


Products

Total
1

Imports
(US$000)

% Share

565,756

100.00

106,475

18.82

39,382

6.96

Bovine cuts boneless, frozen


Motorcycles with other than a reciprocating
piston engine

Medicaments nes, in dosage

28,126

4.97

Motorcycle parts nes


Transmission apparatus,for radio telephony
incorporating reception apparatus

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

Soya-bean oil-cake & other solid residues,


whether or not ground or pellet
Tobacco, unmanufactured, partly or wholly
stemmed or stripped
Automobiles w reciprocating piston engine
displacing not more than 1000 cc

Semi-finished products of iron/non-alloy steel

6
7

10

Soya bean flour and meals


Source: ITC Trademap

57

Philippine Export Development Plan 2011-2013


F. PHILIPPINES - JAPAN TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP(US$Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

5.46
34,000
3.9

Source: The World Factbook July 5, 2011

B. GENERAL TRADE INDICATORS


Japans
World
Ranking
as
Importer
(2010)
4

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%

Source: ITC Trademap

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.

C. PHILIPPINES-JAPAN BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Billion
Year

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

Source: ITC Trademap

58

Philippine Export Development Plan 2011-2013

Japan was the Philippines leading export market and import source in 2010.

Exports of Philippine products to Japan decreased from US$7.92 Billion in 2006 to


US$7.83 Billion in 2010, with an average growth rate of -1.84 percent. The highest level
of exports was in 2006.

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%).

A positive balance of trade amounting to US$530 million was achieved in 2010.


2010 TOP PHILIPPINE EXPORTS TO JAPAN
Rank

Products

Exports
(US$ Million)
7,827.49
1,350.37

% Share

TOTAL
Computer input/outputs, with/without storage

Builder's joinery and carpentry of wood nes

962.64

12.30

Ignition wiring sets & other wiring sets used in


vehicles/,aircraft etc

452.09

5.78

Parts & accessories of automatic data


processing machines & units thereof

423.43

5.41

Sulphides of metals nes; polysulphides of


metals
Static converters, nes

289.56

3.70

237.91

3.04

Motor vehicle parts nes


Indicator panels incorporating liquid crystal
device/light emitting diode
Bananas including plantains, fresh or dried
Precious metal ores and concentrates nes

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

Source: ITC Trademap

59

Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE IMPORTS FROM JAPAN


Rank
1
2

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

Electronic integrated circuits, monolithic,


analogue or analogue and d

Gold in other semi-manufactured form nmonetary(inc gold plated w platinum)

259.80

Parts of machines & mechanical appliances nes


having individual functions

192.39

7
8
9
10

Electrical app for switching/ protec elec circuits


not exceed 1,000 V,nes
Sulphuric acid; oleum
Semiconductor devices, nes
Automobiles w reciprocating piston engine
displacing > 1500 cc to 3000 cc
Motor vehicle parts nes

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

Source: ITC Trademap

60

Philippine Export Development Plan 2011-2013


G. PHILIPPINES RUSSIA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ TRILLION)


GDP Per Capital (US$)
GDP Growth Rates (%)

:
:
:

2.229
15,900
3.8

Source : The World Factbook 2011

B. GENERAL TRADE INDICATORS


Russias
World
Ranking
as
Importer
(2010)
18

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%

Source: ITC Trademap

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%.

C. PHILIPPINES RUSSIA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year

Total Trade

Imports from Russia

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

Philippine Export Development Plan 2011-2013

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)

TOTAL PH EXPORTS TO RUSSIA

34.53

100.00

Vegetable saps & extracts

4.89

14.15

Brazil nuts, cashew nuts & coconuts

4.86

14.08

Tobacco unmanufactured; tobacco refuse

3.12

9.04

Women's blouses & shirts, knitted or crocheted

3.07

8.89

Cigarette lighters & other lighters

2.48

7.19

Activated carbon; activated natural mineral products;


animal black

1.38

3.99

Coconut (copra),palm kernel/babassu oil & their fractions

1.31

3.79

Preserved fruits nes

1.27

3.67

Personal toilet preparations shaving preparations,


deodorants etc.

1.14

3.30

1.12

3.26

10 Electric accumulator
Source: ITC Trademap 2011

62

Philippine Export Development Plan 2011-2013


2010 TOP PHILIPPINE IMPORTS FROM RUSSIA

2010 Exports
Products

%Share
(US$ Million)

TOTAL PH IMPORTS FROM RUSSIA

466.51

100.00

Crude petroleum oils

342.30

73.37

Semi-finished products of iron or non-alloy steel

46.72

10.02

Bars & rods, in irregular wound coils, of iron or non-alloy


steel

27.34

5.86

Wheat and meslin

26.06

5.59

Mineral or chemical fertilizers

8.31

1.78

Mineral or chemical fertilizers, nitrogenous

3.47

0.74

Flat-rolled products of iron /non alloy

2.25

0.48

Electronic integrated circuits and microassemblies

2.24

0.48

Synthetic filam yarn, not put up

1.94

0.42

10 Copper bars, rods and profiles

1.41

0.30

Source: ITC Trademap 2011

63

Philippine Export Development Plan 2011-2013


H. PHILIPPINES UNITED STATES OF AMERICA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP(US$ Trillion)
GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

14.72
47,400
2.8

Source: The World Factbook 2011

B. GENERAL TRADE INDICATORS

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%

Source: ITC Trademap

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.

C. PHILIPPINES UNITED STATES BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year
2006
2007
2008
2009
2010
Growth Rate (%)
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

Source: ITC Trademap

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

Philippine Export Development Plan 2011-2013

The negative growth of exports can be attributed to the decrease in PH exports of


electronic products from US$3.43 billion in 2008 to $2.96 billion in 2009 due to the US
financial crisis that started in 2008.

2010 TOP PHILIPPINE EXPORTS TO USA


Products
TOTAL

Exports
(US$ Million)

%
Share

7,568.14

100.00

Portable digital computers

980.11

12.95

Computer data storage units


Electronic microassemblies made from discrete, active

468.76

6.19

404.40

5.34

Ignition wiring sets & other sets used in vehicles, aircraft

366.01

4.84

Static converters

360.17

4.76

308.37

4.07

303.69
297.57

4.01
3.93

Transmission apparatus, for radiotelegraph incorporating


reception apparatus
Computer input/outputs with/without storage
Electrical apparatus for switching electrical circuits, not
exceed 1,000 v

Photographic other than cinematographic cameras

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

10 Coconut(copra) oil crude


Source: ITC Trademap

2010 TOP PHILIPPINE IMPORTS FROM USA


Products
TOTAL
1

Electronic integrated circuits, monolithic, analogue


Parts of electronic integrated circuits and
microassemblies
Parts and accessories of automatic data processing
machines and units
Wheat and meslin

Aircraft of an unladen weight exceeding 15,000kg

213.42

3.39

Soya-bean oil-cake

202.10

3.21

Monolithic integrated circuits, digital

141.53

2.25

Milk powder not exceeding 1.5 fat


Machines and mechanical appliances

115.71
70.26

1.84
1.12

70.16

1.11

2
3

Machines and appliances for testing the mechanical


10 properties of metal
Source: ITC Trademap

65

Philippine Export Development Plan 2011-2013


I. PHILIPPINES - AUSTRALIA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ Billion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

882.4
41,000
2.7

Source: The World Factbook 2011

B. GENERAL TRADE INDICATORS


Australia
World
Ranking
as
Importer
(2010)
19

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%

Source: ITC Trademap

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%.

C. PHILIPPINES AUSTRALIA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year
2006

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

Growth Rate (%)


2006-2010
Source: ITC Trademap

66

Philippine Export Development Plan 2011-2013


2010 TOP PHILIPPINE EXPORTS TO AUSTRALIA
Exports
(US$ Million)

%
Share

349

100.00

Lead-acid electric accumulators of a kind used


for starting piston engines
Radio receiver not capable of operating w/o
extension source of power for motor vehicle
combined
Ignition wiring sets & other wiring sets used in
vehicles, aircraft
Nickel ores and concentrates
Static converters,

37

10.60

26

7.45

21

6.01

18
18

5.16
5.16

Carboys, bottles, flasks, jars, pots, phials and


other containers
Electric conductors, for a voltage not exceeding
80 V,

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

Source: ITC Trademap

2010 TOP PHILIPPINE IMPORTS FROM AUSTRALIA


Products
TOTAL
1
2
3
4
5
6
7
8
9
10

Copper ores and concentrates


Bovine cuts boneless, frozen
Milk powder not exceeding 1.5% fat
Petroleum oils and oils obtained from
bituminous minerals, crude
Wheat and meslin
Anhydrous ammonia
Titanium pigments and preps, >80% titanium
oxide
Salt (including table salt & denatured salt) pure
sodium chloride & sea water
Malt, roasted
Medicaments, in dosage

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

Source: ITC Trademap

67

Philippine Export Development Plan 2011-2013


J. PHILIPPINES NEW ZEALAND TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ billion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

117.8
27,700
1.5

Source: The World Factbook 2011

B.GENERAL TRADE INDICATORS


New
Zealands
World
Ranking
as
Importer
(2010)
56

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%

Source: ITC Trademap

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%.

C. PHILIPPINES NEW ZEALAND BILATERAL TRADE

BILATERAL MERCHANDISE TRADE


Value in US$ 000
Year
2006
2007
2008
2009
2010
Growth Rate (%)
2006-2010

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

Imports from New


Zealand
288,604
372,093
427,930
318,326
426,558

2.57

(20.96)

6.45

Balance
of Trade
(235,433)
(257,939)
(378,622)
(289,612)
(393,857)

Source: ITC Trademap

68

Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE EXPORTS TO NEW ZEALAND


Exports
(US$ 000)

%
Share

32,701

100.00

Bananas including plantains, fresh or dried

7,325

22.40

Lead-acid electric accumulators of a kind used


for starting piston engines

3,494

10.68

Photographic, other than cinematographic


cameras

2,171

6.64

Sacks, bags, packing, of strip plastic material

1,344

4.11

Mucilages & thickeners, modified or not, derived


from vegetable products

1,341

4.10

Coconuts, dessicated

955

2.92

Jams, fruit jellies, fruit/nut pure & paste,


prepared ,sugared, sweetened or unsweetened

894

2.73

Pineapples, fresh or dried

858

2.62

Surface-active preparations, washing and


cleaning preparations

772

2.36

10

Pineapples or with prepared or preserved,


sugared, sweetened, spirited or not

761

2.33

Products
TOTAL
1

4
5
6
7
8

Source: ITC Trademap

69

Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE IMPORTS FROM NEW ZEALAND


Imports
(US$ 000)

%
Share

TOTAL
Milk powder not exceeding 1.5% fat

426,558
121,212

100.00
28.42

Milk and cream powder unsweetened exceeding


1.5% fat

67,857

15.91

Fats and oils derived from milk

53,800

12.61

Buttermilk, curdled milk & cream, kephir &


fermented or acid milk & cream

29,806

6.99

Milk not concentrated & unsweetened


exceeding 1% not exceeding 6% fat

23,901

5.60

Paper, Kraftliner, in rolls, unbleached, uncoated

14,927

3.50

Bovine cuts boneless, frozen

11,106

2.60

Prep of cereals, flour,starch/milk for infant use,


put up for retail sale

10,388

2.44

Cheese processed, not grated or powdered

8,686

2.04

Butter

8,041

1.89

Products

2
3

5
6
7

8
9
10
Source: ITC Trademap

70

Philippine Export Development Plan 2011-2013


K. PHILIPPINES TURKEY TRADE RELATIONS

A. ECONOMIC INDICATORS
GDP (US$ BILLION)
GDP PerCapital (US$)
GDP Growth Rates (%)

(2010)
:
:
:

960.5
12,300
8.2

Source : The World Factbook 2011.

B. GENERAL TRADE INDICATORS


Turkeys
World
Ranking as
Importer
(2010)

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%

Turkeys push to qualify as an EU candidate encouraged the country to


undertake major reforms to strengthen its democracy and economy.

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%.

C. PHILIPPINES TURKEY BILATERAL TRADE


BILATERAL MECHANDISE TRADE
Value in US$000

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

Source: ITC Trademap 2010.


71

Philippine Export Development Plan 2011-2013

Total 2010 figures, show marked recovery as exports nearly doubled,


expanding 82.5% over previous years total. However, exports in the last five
years (2006-2010) contracted 11.8% on the average.

Top exports include flat-rolled products of iron, tv cameras/transmission


apparatus, parts and accessories of motor vehicles, processed coconut,
coconut oil (crude), yarn of artificial fiber, electronic integrated circuits, and
rubber pneumatic tires.

Top imports include wheat flour, unmanufactured tobacco, medicament


mixtures, lifting/handling/loading machinery, knitted/crocheted fabrics, electric
transformers/static converters, iron and steel stoves/ranges/grills, and other
firearms and similar devices.
2010 TOP PHILIPPINE EXPORTS TO TURKEY

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

Philippine Export Development Plan 2011-2013


2010 TOP PHILIPPINE IMPORTS FROM TURKEY

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

Source: ITC Trademap.

73

Philippine Export Development Plan 2011-2013


L. PHILIPPINES SOUTH KOREA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ trillion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

1.467
30,200
6.1

Source: The World Factbook 2011

B. GENERAL TRADE INDICATORS


South
Koreas
World
Ranking
as
Importer
(2010)
10

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%

Source: ITC Trademap

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%.

C. PHILIPPINES SOUTH KOREA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Million
Year
2006
2007
2008
2009
2010
Growth Rate (%)
2006-2010
Source: ITC Trademap

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

Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE EXPORTS TO SOUTH KOREA


Products

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

Diodes/transistors & semiconductor devices

74.97

3.36

7
8

Refined copper and copper alloys, unwrought


Pipe, chewing & snuff tobaccos

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

2010 TOP PHILIPPINE IMPORTS FROM SOUTH KOREA


Products
TOTAL
Electronic integrated circuits and micro assemblies
1
Petroleum oils, not crude
2
Electrical capacitors, fixed, variable or adjustable
3
Cars (incl. station wagon)
4
Parts & accessories of computers & office machines
5
Machines & mechanical application having
individual functions
6
Gold unwrought or in semi-manufactured forms
7
Public-transport type passenger motor vehicles
8
Flat-rolled prod of iron or non-alloy/steel, clad
plated or coated
9
10 Ethyl alcohol & other spirits
Source: ITC Trademap

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

Philippine Export Development Plan 2011-2013


M. PHILIPPINES SOUTH AFRICA TRADE RELATIONS

A. ECONOMIC INDICATORS

(2010)

GDP (US$ Billion)


GDP Per Capita (US$)
GDP Growth Rate (%)

:
:
:

524
10,700
2.8

Source: The World Factbook 2011

B. GENERAL TRADE INDICATORS


S. Africa
World
Ranking
as
Importer
(2010)
35

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%

Source: ITC Trademap

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%.

C. PHILIPPINES SOUTH AFRICA BILATERAL TRADE


BILATERAL MERCHANDISE TRADE
Value in US$ Thousand
Year
2006
2007
2008
2009
2010
Growth Rate (%)
2006-2010

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

Source: ITC Trademap

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Philippine Export Development Plan 2011-2013

2010 TOP PHILIPPINE EXPORTS TO SOUTH AFRICA


Products

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

Source: ITC Trademap

2010 TOP PHILIPPINE IMPORTS FROM SOUTH AFRICA


Products

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

Source: ITC Trademap

77

Philippine Export Development Plan 2011-2013

78

Philippine Export Development Plan 2011-2013

ANNEX 3:
The National Export
Development and
Competitiveness Fund

79

Philippine Export Development Plan 2011-2013

80

Philippine Export Development Plan 2011-2013

THE NATIONAL EXPORT DEVELOPMENT AND COMPETITIVENESS FUND

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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Philippine Export Development Plan 2011-2013


2009, a Php 200 million grant was drawn from the Economic Stimulus Fund of the Office of the
President for an Export Support Fund (ESF) initially approved at Php 1 billion.
These funds enabled Philippine exports to grow by thirty-eight percent (+38%) for the 2005-2007
PEDP period vs. the prior three years. More significantly, the funding support arrested export
decline to only two percent (-2%) in 2008 and seventeen percent (-17%) in 2009 when the rest of
the exporting world suffered more than twenty percent reduction (-20%) because of the global
financial crisis. Eventually, use of these support funds enabled Philippine exports to recover with a
thirty-four percent (+34%) growth in merchandise and twenty-one percent (21%) growth in services
in 2010.
FUND SOURCE:
The source of the fund will initially come from the Office of the President (OP) amounting to P100
million per year starting 2011 until it is subsequently included in the budget of the DTI. The DBM
will facilitate transfer of the initial funds from the OP to a DTI line budget item.
MANAGEMENT OF THE FUND:
The EDC and DTI shall manage and deploy the fund for promotional and capacity-building
assistance programs for exporters. Through a strengthened EDC Secretariat, improvements on
earlier utilization mechanism shall be developed and implemented.

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Philippine Export Development Plan 2011-2013

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Philippine Export Development Plan 2011-2013


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Philippine Export Development Plan 2011-2013


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