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The Philippines at a Glance

A newly industrialized emerging market economy, with exports as its key driver of growth Countrys y GDP, , the fifth largest g in Southeast Asia, , is accounted for by: Services sector (50%) Industry (33%) Agriculture (17%) Endowed with rich and diverse natural resources that provide opportunities for tourism, mining, agriculture, biofuels and renewable energy. Key economic activities include business process outsourcing (BPO), food processing, textiles and garments, and assembly operations in the manufacturing of electronics and other high-tech components.

Reference: http://www.philexport.ph/philippines-economy

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Prof.Lorelie S.Astrera

Philippines GDP and GNP Growth Rate %, 20052005-2010

8 7 6 5 4 3 2 1 0 Real GNP Real GDP Real GNP Real GDP

2005 5.4 5

2006 5.4 5.3

2007 7.5 7.1

2008 6.4 3.7

2009 4 1.1

2010 7.2 7.3

Data Source: National Statistical Coordination Board (NSCB) Website

Source: NSCB Website

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World Trade Organization

TRADE POLICY REVIEW Report by the Secretariat on THE PHILIPPINES
30 January 2012

TRADE POLICY REVIEW : THE PHILIPPINES

30 January 2012 SOME HIGHLIGHTS

Trade policy has not undergone major changes since the 3rd TPR in 2005 Tariff remains the main policy instrument Import licensing system remains complex Noteworthy accomplishments to facilitate trade: automation of customs procedures establishment of a national single window to expedite intra- and extra-ASEAN trade further simplification of tariff Reduction of its simple average MFN applied rate to 6.4%. The Philippine economy has performed well since its 3rd TPR in 2005, based on a relatively open trade regime.

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Basic indicators

TRADE POLICY WTO accession date Trade Policy Review date 1 January 1995 30 January 2012

MFN tariffs Simple average of import duties All goods Agricultural goods (AOA) Non-agricultural goods Services sectors with GATS commitments

Applied 2008 6.4 9.7 5.7 51

Source: WTO TPR of the Philippines 2012

Top 5 Export T C Commodities

Electronic products Articles of apparel and clothing accessories Coconut oil Woodcrafts and furniture Ignition wiring sets and other wiring sets used in vehicles aircrafts and ships vehicles, Japan USA China Singapore Hong Kong South Korea Taiwan Thailand Netherlands Germany
In 2010, the Philippines was the world's 37th largest exporter.

Major Export Partners (2011)

Source: Department of Trade and Industry Website

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Top 5 Import T C Commodities

Prof.Lorelie S.Astrera

Electronic products Mineral fuels lubricants and related materials Transport equipment Industrial machinery and equipment Cereals and cereal preparations USA Japan China Singapore South Korea Taiwan Thailand Saudi Arabia Malaysia Indonesia
In 2010, the Philippines was the world's 29th largest importer of goods.

Major Impor rt Partners (2011)

Source: Department of Trade and Industry Website

Basic indicators

Value of Phil Exports and Imports in US$ million, 2005-2010

70,000.00 60,000.00 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 2005 2006 2007 2008 2009 2010

Total exports (US$ million)

Source: TPR 2012

Total imports (US$ million)

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Basic indicators

Total imports, exports and trade balance

(Bln US$ by year)

Source: UN Comtrade

TRADE POLICY REVIEW : THE PHILIPPINES

30 January 2012

Outward-orientation Outward orientation makes country vulnerable to external shocks but has also contributed to the resilience of the economy. Greater trade diversification would help the Philippines, since it relies heavily on manufactured products (85% of exports and p ) 67% of imports).

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Prof.Lorelie S.Astrera

TRADE POLICY REVIEW : THE PHILIPPINES

30 January 2012

The Philippines' agriculture sector is dominated by y small farms with low mechanization, , largely g y resulting from a major on-going land distribution programme, and poses a significant barrier to competitiveness. The country de-industrialised in the 1980s and relied on the services sector. Instead of continuing industrial upgrading process, transformed into a service-based economy, and recent boom in the BPO sector has accelerated this.

TRADE POLICY REVIEW : THE PHILIPPINES

30 January 2012 SOME HIGHLIGHTS

The economy is operating below potential due to the slow pace of reform while some of the key constraints on overall growth remain: Low investment Inadequate infrastructure Governance issues

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Prof.Lorelie S.Astrera

TRADE POLICY REVIEW : THE PHILIPPINES

30 January 2012 SOME HIGHLIGHTS

Improved productivity is essential for the Philippines to compete with low-cost neighbouring economies, and additional steps are needed to promote more competition: improve i human h capital it l eliminate limitations on foreign investment reform state-owned institutions

Global competitiveness index, Philippines (2011-2012)

Source: Global Competitiveness Report 2011-2012

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Philippine Competitiveness Landscape (2011)
ECONOMIC PERFORMANCE GOVERNMENT EFFICIENCY BUSINESS EFFICIENCY

Prof.Lorelie S.Astrera
INFRASTRUCTURE

Source: 2011 World Competitiveness Yearbook

The P Philippine Develo opment Plan (2011-2016)

guided by PNoys Social Contract with the Filipino People Highlights good governance and anti-corruption as its theme Aims to address poverty, create massive employment opportunities, and achieve inclusive growth. g
Reference: NEDA (2011)

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The P Philippine Develo opment Plan (2011-2016)

Prof.Lorelie S.Astrera

improve the business environment promote a consistent, predictable, and responsive policy environment; streamlining bureaucratic procedures and fostering transparency; promoting e-commerce and ICT-enabled automation; and encouraging partnerships with the private sector to improve p ease of doing g business in the country.
Reference: NEDA (2011)

The P Philippine Develo opment Plan (2011-2016)

raise productivity and efficiency focus interventions on priority areas with highest growth potentials (e.g., tourism; BPO; mining; agri agribusiness, etc.); provide firm-level support to MSME; increase market access; and intensify the culture of competitiveness; encourage entrepreneurial culture among Filipinos

Reference: NEDA (2011)

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The P Philippine Develo opment Plan (2011-2016)

Prof.Lorelie S.Astrera

inculcate quality consciousness among manufacturers and producers to offer quality goods and services comparable with global brand promote consumer education and consumer advocacy; intensify consumer protection and trade regulation; develop product and service standards; reduce production and distribution cost particularly on basic and prime commodities
Reference: NEDA (2011)

IMD Business School. 2011 World competitiveness yearbook. Retrieved from www.imd.org/research/publications/wcy/index.cfm on on 26 February 2012. Mendoza, M. F.V., & Ambat, G.H.S. (2010). Economic reforms for Philippine competitiveness, Philippines: University of the Philippines Open University. National Economic and Development Authority. (2007), Philippines mid-term millennium development goals progress report, UNDP: Philippines. Philippines National Economic Development Authority. (2011). The Philippine development plan 2011-2016. Manila: NEDA. World Economic Forum. Global competitiveness yearbook 2011-2012. Retrieved from http://www.weforum.org/issues/global-competitiveness on 26 February 2012. World Bank-International Finance Corporation. Ease of doing business indicators. Retrieved from http://www.doingbusiness.org/data/exploreeconomies/philippines on on 26 February 2012. World Trade Organization. (2012). Trade policy review: Philippines. Retrieved from the WTO Website http://www.wto.org/english/tratop_e/tpr_e/tp361_e.htm on 27 February 2012. 2012 Virtual Library: Bureau of Investment at http://www.boi.gov.ph. Department of Trade and Industry at http://www.dti.gov.ph National Statistical Coordination Board at http://www.nscb.gov.ph. Philippine Export Confederation at http://www.philexport.ph/philippines-economy World Trade Organization at http://www.wto.org.

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