Pedp 2011-2013

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.
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 3
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.
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 35,208 36,231 39,680 111,119 41,254 47,027 50,276 138,557 49,023 38,436 51,498 138,957 46,319 MER. GRWTH % 40 10 3 10 6 4 14 7 25 -2 -22 34 0 SERVICES EXPORTS US$ Million 9,872 3,428 3,389 4,043 10,860 4,525 6,444 9,766 20,735 9,717 11,014 13,243 33,974 11,325 SERV. GRWTH. % NA 12 -1 19 10 12 42 52 91 -1 13 20 64 TOTAL EXPORTS US$ Million 115,172 38,636 39,620 43,723 121,979 45,779 53,471 60,042 159,292 58,740 49,450 64,741 172,931 57,644 TOTAL GRWTH. % 40 12 3 10 6 5 17 12 31 -2 -16 31 9 MER. SHARE % 91 91 91 91 91 90 88 84 87 83 78 80 80 SERV. SHARE % 9 9 9 9 9 10 12 16 13 17 22 20 20
PEDP 2011-2013 for LIMITED CIRCULATION only Table 1. (cont.)

PEDP PERIOD: PEDP 2011-13 TARGETS 2011 2012 2013 Total (vs. Prior 3-Yrs.) PEDP 2014-16 FORECAST 2014 2015 2016 Total (vs. Prior 3-Yrs.)
% 2016 VS. 2008-10 AVG.
MERCHANDISE EXPORTS US$ Million 56,619 62,262 68,480 187,362 75,594 83,466 92,179 251,240
MER. GRWTH % 10 10 10 35 10 10 10 34
199
SERVICES EXPORTS US$ Million 15,503 17,967 20,735 54,205 22,895 25,266 27,884 76,045
SERV. GRWTH. % 17 16 15 60 10 10 10 40
TOTAL EXPORTS US$ Million 72,123 80,229 89,215 241,567 98,490 108,732 120,063 327,285
TOTAL GRWTH. % 11 11 11 40 10 10 10 35
208
MER. SHARE % 79 78 77 78 77 77 77 77
SERV. SHARE % 21 22 23 22 23 23 23 23
Sources: BETP for Merchandise Exports; BSP for Services Exports
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
AVE PAST 3 YRS EXPORTS 2006-2008 US$ Million SHARE OF BUSINESS vs. AVE. 3 YRS. % 2010 ACTUAL EXPORTS 2010 GRWTH vs. AVE 3 YRS. % 2009 EXPORTS 2010 GRWTH vs. 2009
PDP Key Export Sector
PEDP Revenue Streams
US$ Million
US$ Million
TOTAL EXPORTS TOTAL SERVICES TOTAL MERCHANDISE TOTAL KEY SECTORS: SERVICES IT-BPO & Other Services ELECTRONICS AGRIBUSINESS MINERALS TRANSPORT Electronics Food & Other ResourceBased Products Minerals Shipbuilding Motor Vehicle Parts Garments /Textile Homestyle: Furniture / Decors/Giftware Wearables: Fashion Accessories/ Bags/ Shoes/Jewelry Others
57,418 8,642 48,775 50,005 8,642 30,173 2,856 2,437 236 5,661 2,974 1,682 528 477
100 15 85 87 15 53 5 4 0.4 5 3 1 1
64,741 13,243 51,498 57,937 13,243 31,080 3,625 1,870 1,543 6,576 3,679 1,871 427 599
13 53 6 16 53 3 27 -23 554 16 24 11 -19 26
49,450 11,014 38,436 43,545 11,014 22,098 3,191 1,615 586 5,041 2,605 1,671 324 441
31 20 34 33 20 41 14 16 163 30 41 12 32 36
HIGH POTENTIAL GROWTH SECTORS:
OTHER SECTORS
7,413
13
6,804
-8
5,905
15
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
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
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
11,041 2,202 31,080 3,625 2,116 1,508 1,870 1,543 6,576 3,679 1,871
21 42 3 27 35 93 -23 554 16 24 11
62,000 30,800 1,900,000 1,369,000 769,000 7,500 12,650,000 83,000
18 7 2 0.26 0.28 20 0.01 2
30 8 5 10 10 10 15 16
90 90 30 80 80 95 80 20
9,937 1,982 9,324 2,900 1,693 1,433 1,496 308
526,000 1,131,000 520,000 10,764,000 75,583 3,400,000 180,000 33,045
420,000 600,000
1 0.31
8 5
65 30
2,391 561
70,000 150,000
427 599
-19 26
469,000 400,000
0.09 0.15
7 10
80 70
342 419
2,100,000 140,000
Raw Data Sources: BETP for Merchandise Exports; BSP for Services NOTE: Benchmark Average 3 years cover 2006-2008 "normal" market conditions.
Value-Enhanced Categories There are certain products in the Philippine export portfolio whose features are different from the common characteristics of the Key Export Sectors. These products compete in rapidly growing export markets where the Philippines is capturing shares meaningfully. For purposes of this Plan, these products are called Value-enhanced Categories. In prior PEDPs, Organic and Natural Products (ONP) were included among the Revenue Streams. ONPs are still a priority considering the growing size of this business around the world. One estimate is that the global revenue stream of ONP-related businesses is more than one trillion U.S. dollars. Additionally, there is an expanding sector in the Philippine exporting community engaged in ONP and related enterprises successfully promoting Filipino talent and natural resources. ONPs and related services have a wide range of business applications embracing virtually every product and service category. From tourism to medical services; leisure sports to health and wellness; food to textile products; and green cell-phones to hybrid cars. In fact, because of 9
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).
10
V. SECTOR TARGETS
The PEDP total export targets are the sum of the targets of the Key Export Sectors plus forecasts for the rest of the export product categories. The sector targets, on the other hand, are a function of the roadmaps and business strategies of the firms comprising the sector. Based on extensive consultations earlier described, targets were assessed and agreed utilizing, among others, conventional benchmarks to ascertain achievability. Table 4 shows the PEDP growth targets for 2011 according to Key Export Sectors in the context of historical sales and market growth indicators. Table 4: KEY SECTOR TARGETS 2011
IN CONTEXT OF HISTORICAL SALES AND MARKET GROWTH INDICATORS
2010 ACTUAL EXPORTS 2010 GROWTH vs. 2009 % 2010 GROWTH vs. 20062008 AVE % ESTIMATED MARKET SIZE 2010 EST. MARKET SHARE % EST. ANNUAL MARKET GROWTH % 2011 GROWTH TARGET % 2011 TARGET EXPORTS
2011 TARGETS BY KEY EXPORT SECTORS
REVENUE STREAM/ PRODUCT GROUP
TOTAL EXPORTS TOTAL SERVICES IT-BPO SERVICES TOURISM & OTHERS TOTAL MERCHANDISE TOTAL KEY SECTORS: SERVICES EXPORT SECTOR ELECTRONICS EXPORT SECTOR: AGRIBUSINESS EXPORT SECTOR:
64,741 13,243 11,041 2,202 51,498 57,937 IT-BPO AND OTHER SERVICES TOTAL ELECTRONICS TOTAL AGRIBUSINESS FOOD: Processed & Beverages FOOD: Fresh FOOD: Marine & Aquaculture COCONUT PRODUCTS MINERALS: Metallic/NonMetallic & Others
31 20
13 53
11 17 17 15
72,123 15,503 12,962 2,541 56,619 64,734
34 34
6 16
10 12
13,243
20
53
62,000
15
30
18
15,627
31,080
41
1,900,000
10
34,188
3,625 930 648 538 1,508
14 15 -7 5 54
27 -7 32 -11 93
1,369,000
0.3 0.1
10
10 10 10 10 10
3,987 1,023 713 592 1,659
769,000
0.1 0.1
7,500
20
MINERALS EXPORT SECTOR TRANSPORT EXPORT SECTOR
1,870
16
-23
12,650,000
0.01
15
1,964
SHIPBUILDING
1,543
163
554
83,000
16
12
1,728
11
Table 4. (Cont.)
2011 TARGETS BY KEY EXPORT SECTORS REVENUE STREAM/ PRODUCT GROUP 2010 ACTUAL EXPORTS 2010 GROWTH vs. 2009 % 2010 GROWTH vs. 20062008 AVE % ESTIMATED MARKET SIZE 2010 EST. MARKET SHARE % EST. ANNUAL MARKET GROWTH % 2011 GROWTH TARGET % 2011 TARGET EXPORTS
HIGH POTENTIAL GROWTH SECTORS: MOTOR VEHICLE PARTS GARMENTS / TEXTILE HOMESTYLE: Furniture/Decors/ Giftware WEARABLES: Bags/Shoes/ Accessories/ Jewelry OTHER PRODUCTS New Sectors for Assessment: TOTAL OTHERS ELECTRICALS CHEMICALS
6,576 3,679 1,871
17 41 12
-3 24 11 420,000 600,000 1 0.31 8 5 8 15
7,241 3,973 2,152
427
32
-19
469,000
0.09
457
599 6,804 1,510 1,172
36 6 26 51
26 -8 10 45
400,000
0.15
10
10 10 10 10
659 7,512 1,661 1,289
12
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 REVENUE STREAM
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
2012 VALUE in US$ Million

72,123 15,503 12,962 2,541 56,619 64,611 15,503 34,188 3,987 1,023 713 592 1,659 1,964 1,728 7,241 3,973 2,152 457 659 7,512
2013 VALUE in US$ Million

80,229 17,967 14,958 3,009 62,262 71,936 17,967 37,607 4,386 1,126 785 651 1,825 2,062 1,936 7,979 4,291 2,474 489 725 8,293
GROWTH %
11 17 17 15 10 12 17 10 10 10 10 10 10 5 12 7 8 15 7 10 10
GROWTH %
11 16 15 18 10 11 16 10 10 10 10 10 10 5 12 10 8 15 7 10 10
GROWTH %
11 15 14 20 10 11 15 10 10 10 10 10 10 5 12 10 8 15 7 10 10
VALUE in US$ Million

89,215 20,735 17,112 3,622 68,480 80,060 20,735 41,367 4,825 1,238 863 716 2,007 2,165 2,168 8,800 4,634 2,846 523 797 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). 13
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 GROWTH % 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
Forecasts based on PEDP consultations
2015 VALUE 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 3,272 575 893 9,924 GROWTH % 10 10 10 12 10 11 10 10 12 12 12 12 12 8 15 13 12 15 10 12 8 VALUE 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 1,000 10,758 GROWTH % 10 10 10 12 10 11 10 10 12 12 12 12 12 8 15 13 12 15 10 12 8
2016 VALUE 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 1,120 11,662
10 10 10 12 10 11 10 10 12 12 12 12 12 8 15 13 12 15 10 12 8
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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 SECTOR: ACTUAL EXPORTS in US$ M MERCHANDISE SERVICES TOTAL 51,498 13,243 64,741 Growth % 10 17 11 2011 EXPORT Value in US$ M 56,619 15,503 72,123 2012 Growth % 10 16 11 EXPORT Value in US$ M 62,262 17,967 80,229 Growth % 10 15 11 2013 EXPORT Value in US$ M 68,480 20,735 89,215 Average Share % 78 22 100
Table 7-B: SUMMARY OF EXPORT FORECASTS, PEDP 2014 2016

2014 SECTOR: Growth % MERCHANDISE SERVICES TOTAL 10 10 10 EXPORT Value in US$ M 75,594 22,895 98,490 2015 EXPORT Value in US$ M 83,466 25,266 108,732 2016 EXPORT Value in US$ M 92,179 27,884 120,063 Average Share % 77 23 100
Growth % 10 10 10
Growth % 10 10 10
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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
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
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
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.
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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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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 22
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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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
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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ANNEX 1: Sectoral Strategies and Activities
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PEDP 2011-2013 for LIMITED CIRCULATION only 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 % 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
Major Policy Concerns/ Policy Support Needed
Export Strategies and Activities
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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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
2011 15% 2012 15% 2013 15% Baseline US$ 599 M More than 15% if Save Our Industry Act is passed by the US Congress
Lack of technology support Inadequate basic skills training on international standards Lack of raw materials due to demise of the textile industry
Promotion Campaign for the approval of the SAVE ACT in US Congress Expand and improve market access Work for preferential regimes (EU-GSP) Intensify market access (re-negotiate ROO for PJEPA) Maximize benefits of existing free trade agreements (FTAs) Develop brands for emerging markets Conduct strategic selling missions for SMEs to target EU countries Create new markets in ASEAN and China Capacity Building Implement industry accreditation and tracking of social compliance program Investment promotion to revive the textile industry Industry mapping, accreditation and tracking program Synchronize (CHED, TESDA) efforts in skills training Upgrade technology Disseminate incentives for investors
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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)
2011 10% 2012 10% 2013 10% Baseline US$ 599 M.
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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PEDP 2011-2013 for LIMITED CIRCULATION only D. HOMESTYLE PRODUCTS
Priority Products
Furniture mixed media furniture, wood/plastic/stone furniture, outdoor furniture Furnishings Holiday Decors
Priority Markets
Europe US Asia (China & India)
2011 7% 2012 7% 2013 7% Baseline US$ 427M
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
USA/ North America Europe ( UK ) Asia-Pacific (APAC)
Priority Markets
2011 18% 2012 16% 2013 14% 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
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
2011 10% 2012 10% 2013 10% Baseline: 2010 US$ 31.080B
High cost and availability of power Philippine Technology Roadmap Development of quality allied and support industries
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
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)
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PEDP 2011-2013 for LIMITED CIRCULATION only H. MINERALS
Priority Products Priority Markets
Metallic Gold, Copper, Nickel Non Metallic Minerals - marble Asia-Pacific: China, Korea, Australia, Japan
2011 5% 2012 5% 2013 5% Baseline: 2010 US$1.87B Policy inconsistencies or disjoint between the national government and local government units in terms of land use, taxation, environment (including mining moratorium, ban on open-pit mining) Push for responsible mining especially for small scale mining / proliferation of small scale mining permits granted by LGUs (sans environmental , safety, and health issues) Unwarranted interventions by environmentalist groups and other organizations in the interpretation / implementation of the Rules of Procedures on Environmental Cases (Writ of Kalikasan) Lukewarm response / lack of support by the LGUs
Major Policy Concerns / Policy Support Needed
Information campaign for mining companies to adopt and implement Corporate Social Responsibility commitments / Promote CSR Guidebook Aggressive support through BOI investment roadshow / investment missions abroad BOI and MGB to identify and promote investment-ready mining projects with prepared feasibility studies / facilitate business registration and issuance of permits Build-up database on small scale producers of minerals
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PEDP 2011-2013 for LIMITED CIRCULATION only I. MOTOR VEHICLE PARTS
Priority Products
Original Equipment Manufactures (OEMs): Wiring harness, transmissions/gears, sensors, alternators, brake systems and servo brakes Replacement parts: radiators, leaf springs, filters, batteries, alloy wheels, exhaust system
Priority Markets
OEMs: Developed Economies USA, Japan and Korea Emerging Economies China and India Regional Australia, New Zealand and ASEAN Replacement Parts: USA, China/Japan, Western Europe (Germany and Netherlands
2011 8% 2012 8% 2013 8% Baseline: 2010 US$ 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
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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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42
A. PHILIPPINES ASEAN TRADE RELATIONS

A. ECONOMIC INDICATORS GDP (US$ Billion) GDP Per Capita (US$) GDP Growth Rate (%)
Source: World Factbook 2011
(2010) : : : 351.4 3,500 7.3
B. GENERAL TRADE INDICATORS ASEAN Imports from the World (2010) in US$ Thousand 957,104,556 ASEAN Share in World Imports (2010) 6.4% Growth of ASEAN Imports (20092010) -3.77% ASEAN Imports from PH (2010) in US$ Thousand 11,557,639 Share of PH to Total ASEAN Imports (2010) 1.21% Growth of PH Exports to ASEAN (20092010) -7.18% Share of ASEAN to Total PH Exports (2010) 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)
Total bilateral trade with the ASEAN for 2010 amounted to PhP 27.82 billion, a 58.86% increase from the previous year. Moreover, the balance of trade has been in the negative for the period 2006-2010. However, the trade deficit has decreased by 19.13% from PhP 5.82 billion in 2009 to PhP4.72 billion in 2010. Philippine exports to the ASEAN in 2010 represent 22.47% of total PH exports to the world of $51.43 billion. ASEAN imports account for 27.94% of PH imports from the world of $58.22 billion.
43
PEDP 2011-2013 for LIMITED CIRCULATION only Top ASEAN export markets are Singapore, accounting for 63.43% of total Philippine exports for 2010, followed by Thailand with 15.44% and Malaysia with 12.08%. Top ASEAN import suppliers are Singapore with 33.43%, Thailand with 25.19%, Malaysia with 15.75%, Indonesia with 14.75% and Vietnam with 10.75%.
PHILIPPINE EXPORTS TO ASEAN MEMBER-STATES January December 2010 Value in US$ Thousand Rank 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 51,431,703 11,557,639 7,331,225 1,784,167 1,396,496 570,550 449,217 11,233 8,495 5,955 301 % Share 100.00 22.47 63.43 15.44 12.08 4.94 3.89 0.10 0.07 0.05 0.0
1 2 3 4 5 6 7 8 9
PHILIPPINE IMPORTS FROM ASEAN MEMBER-STATES January December 2010 Value in US$ Thousand RANK SUPPLIERS TOTAL PH IMPORTS TOTAL PH IMPORTS FROM ASEAN Singapore Thailand Malaysia Indonesia Viet Nam Myanmar Brunei Darussalam Cambodia Lao People's Democratic Republic FOB 58,228,624 16,269,812 5,439,478 4,098,377 2,562,475 2,399,713 1,750,771 13,378 2,912 2,696 38 % Share 100.00 27.94 33.43 25.19 15.75 14.75 10.76 0.08 0.02 0.02 0.0
1 2 3 4 5 6 7 8 9
44
2010 TOP PHILIPPINE EXPORTS TO ASEAN Products TOTAL 1 2 3 4 5 6 7 8 9 10 Electrical, electronic equipment Machinery, nuclear reactors, boilers, etc Vehicles other than railway, tramway Copper and articles thereof Mineral fuels, oils, distillation products, etc Tobacco and manufactured tobacco substitutes Optical, photo, technical, medical, etc apparatus Plastics and articles thereof Dairy products, eggs, honey, edible animal product nes Fertilizers Exports (US$ 000) 11,557,639 7,274,710 1,212,346 782,985 490,795 338,221 111,621 106,942 101,459 98,448 93,178 % Share 100.00 62.94 10.49 6.77 4.25 2.93 0.97 0.93 0.88 0.85 0.81
2010 TOP PHILIPPINE IMPORTS FROM ASEAN Products TOTAL 1 2 3 4 5 6 7 8 9 10 Mineral fuels, oils, distillation products, etc Electrical, electronic equipment Machinery, nuclear reactors, boilers, etc Cereals Vehicles other than railway, tramway Plastics and articles thereof Miscellaneous edible preparations Ores, slag and ash Organic chemicals Essential oils, perfumes, cosmetics, toiletries Imports (US$ 000) 16,269,812 3,591,609 3,175,996 1,834,560 1,567,224 1,566,662 640,808 280,604 263,646 247,549 238,402 % Share 100.00 22.08 19.52 11.28 9.63 9.63 3.94 1.72 1.62 1.52 1.47
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PEDP 2011-2013 for LIMITED CIRCULATION only B. PHILIPPINES - BRAZIL TRADE RELATIONS
A. ECONOMIC INDICATORS GDP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%)
Source: The World Factbook 2011
(2010) : : : 2.194 10,900 7.5
B. GENERAL TRADE INDICATORS Brazils World Ranking as Importer (2010) 22 Brazils Imports from the World (2010) in US$ Thousand 181,648,672 Brazils Share in World Imports (2010) 1.2% Growth of Brazils Imports (20062010) 15% Brazils Imports from PHL (2010) in US$ Thousand 131,467 Share of PHL to Brazil's Total Imports (2010) 0.07% Growth of PHL Exports to Brazil (20062010) 13 Share of Brazil to Total PHL Exports (2010) 0.3%
At the moment, Brazil is one of the worlds darling economies. After all, Brazil is the B in BRIC (Brazil, Russia, India & China) , the acronym that represents the worlds biggest emerging markets. In 2010, Brazil ranked 22nd biggest importer in the world. Its total imports amounted to US$ 181.65 billion, accounting for 1.2% of total world imports. From 2006 to 2010, Brazils imports increased by 15%. In 2010, Philippines exports to Brazil were valued at US$ 131.47 million, representing only 0.2% of Brazils total imports from the world and only 0.3% of the Philippines total exports. From 2006-2010, Philippine exports to Brazil have grown by 13%.
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 (2.79)
Exports to Brazil 76.41 75.74 69.02 83.30 131.47 12.53
Imports from Brazil 249.13 363.98 359.72 221.81 207.77 (8.23)
Balance of Trade (172.72) (288.24) (290.70) (138.51) (76.30)
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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) 131.47 27.84 25.41 11.37 10.96 5.66 5.20 4.88 3.81 % Share 100.00 21.18 19.33 8.65 7.95 4.31 3.95 3.71 2.90
3.35 3.02
2.55 2.30
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) 207.77 35.76 32.61 20.44 18.25 17.88 10.99 9.09 7.77 6.84 3.29 % Share 100.00 17.21 15.69 9.84 8.78 8.61 5.29 4.37 3.74 3.29 1.58
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PEDP 2011-2013 for LIMITED CIRCULATION only C. PHILIPPINES CHINA TRADE RELATIONS
A. ECONOMIC INDICATORS GDP PPP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 10.09 7,600 10.3
B. GENERAL TRADE RELATIONS Chinas World Ranking as Importer (2010) 2 Chinas Imports from the World (2010) in US$ 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) 1.2% Growth of PHL Exports (20062010) -3 Share of China to Total PHL Exports (2010) 11.1%
China is one of the fastest-growing economies in the world, ranking as the 2nd biggest importer in 2010. Its total imports amounts to US$ 1.4 trillion, accounting for 9.3% of the worlds total imports. From 2006-2010, imports of China have grown by 13%. In contract, Philippines exports to China have fallen by -3% from 2006-2010. Philippine exports to China were valued at US$ 5.70 billion, accounting for only 1.2% of Chinas total imports from the world for 2010. But China remains as an important Philippine market as exports to China represent 11.1% of the countrys total exports.
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

-3
Imports from China 3,869.39 4,232.90 4,561.09 4,060.39 4,933.90

4.54
Balance of Trade 758.27 1,516.97 908.10 (1,126.47) 767.60
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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$5.70 billion in 2010 making China as the fourth largest export market. On the other hand, China ranked as the Philippines fourth largest supplier of imports in 2010. Top Philippines exports to China in 2010 consisted of Machinery, nuclear reactors and boilers; Electrical and electronic equipment; Ores, slag and ash; Copper products; and Mineral fuels, oils and distillation products. Major imports consisted of Electrical, electronic equipment; Machinery; Iron and steel products; Mineral fuels, oils, distillation products; and Plastics and articles thereof..
2010 TOP PHILIPPINE EXPORTS TO CHINA Products TOTAL 1 2 3 4 5 6 7 8 9 10 Exports (US$ Million) % Share
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
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
100.00 43.02 32.12 5.65 4.15 3.34 2.21 1.72 1.62 1.13 0.74
2010 TOP PHILIPPINE IMPORTS FROM CHINA Products TOTAL 1 2 3 4 5 6 7 8 9 10 Imports (US$ Million) % Share
4,933.90 1,242.15 912.08 265.01 223.47 158.17 154.17 128.13 114.34 113.87 97.08
100.00 25.18 18.49 5.37 4.53 3.21 3.12 2.60 2.32 2.31 1.97
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
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Philippine Export Development Plan 2011-2013 D. PHILIPPINES EUROPEAN UNION TRADE RELATIONS
A. ECONOMIC INDICATORS GDP(US$ Trillion) GDP Per Capita (US$) GDP Growth Rate (%)
Source: World Factbook 2011
(2010) : : : 16.07 32,700 1.8
B. GENERAL TRADE INDICATORS EU Imports from the World (2010) in US$ Thousand 5,240,732,339 EUs Share in World Imports (2010) 34.9% Growth of EU Imports (20092010) -23.0% EU Imports from PHL (2010) in US$ Thousand 7,412,441 Share of PHL to EU's Total Imports (2010) 0.14% Growth of PHL Exports to EU (20092010) -6.97%
Share of EU to Total PHL Exports (2010) 14.41%
As a trading bloc, EU is the largest importer in the world. In 2010, the EUs imports amounted to US$ 5.24 trillion, accounting for 35% of total world imports. However, in 20092010, total EU imports declined by 23%. Accounting for 0.14% of EUs total imports from the world, Philippine exports to the EU for 2010 were valued at US$ 7.41 billion. This represents 14.41% of the Philippines total exports to the world. Philippine exports to the EU declined 6.97% for the period 2009-2010.
C. PHILIPPINES EU BILATERAL TRADE RELATIONS

BILATERAL MERCHANDISE TRADE Value in US$ Million
YEAR
TOTAL TRADE
PH EXPORTS TO THE EU 8,737 8,592 8,519 7,967 7,412 (3.96)
PH IMPORTS FROM THE EU 4,271 3,493 4,765 5,542 4,271 4.72
BALANCE OF TRADE 4,466 5,099 3,754 2,425 3,141
2006 2007 2008 2009 2010

Ave Growth Rate% 2006-2010 Source: ITC Trademap.
13,008 12,085 13,284 13,509 11,683 (1.03)
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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 TOTAL PH EXPORTS TO THE WORLD TOTAL PH EXPORTS TO THE EU 1 2 3 4 5 6 GERMANY NETHERLANDS FRANCE UK ITALY BELGIUM Value 51,431,703 7,412,441 2,505,597 2,428,878 413,323 394,962 349,382 347,043 % Share 100.00 14.41 35.85 32.77 5.58 5.33 4.71 4.68
51
Philippine Export Development Plan 2011-2013 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 SPAIN HUNGARY CZECH REPUBLIC FINLAND AUSTRIA POLAND SWEDEN GREECE DENMARK IRELAND MALTA PORTUGAL ROMANIA SLOVAKIA BULGARIA CYPRUS LITHUANIA LUXEMBOURG SLOVENIA ESTONIA LATVIA
Source: ITC Trademap.
158,189 128,556 112,175 84,673 77,067 67,834 38,539 37,985 31,380 19,241 13,506 12,757 10,403 8,558 6,150 4,492 2,517 2,362 2,156 1,577 1,422
2.13 1.73 1.51 1.14 1.04 0.92 0.52 0.51 0.42 0.26 0.18 0.17 0.14 0.12 0.08 0.06 0.03 0.03 0.03 0.02 0.02
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Philippine Export Development Plan 2011-2013 PHILIPPINE IMPORTS FROM INDIVIDUAL EU MEMBER-STATES January December 2010 Value in US$ Thousand
RANK
SUPPLIERS TOTAL PH IMPORTS FROM THE WORLD TOTAL PH IMPORTS FROM THE EU
Value 58,228,624 4,270,634 1,182,262 692,433 321,729 303,212 298,716 271,521 225,608 188,161 177,885 145,903 128,503 115,497 105,344 43,047 26,011 13,317 9,526 4,826 4,588 4,550 2,562 2,318 1,284 1,281 410 163 27
% Share 100.00 7.61 27.68 16.21 7.53 7.10 6.99 6,36 5.28 4.41 4.17 3.42 3.01 2.70 2.47 1.01 0.61 0.31 0.22 0.11 0.11 0.11 0.06 0.05 0.03 0.03 0.01 0.00 0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
GERMANY FRANCE IRELAND UK NETHERLANDS BELGIUM ITALY AUSTRIA SPAIN FINLAND SWEDEN CZECH REPUBLIC DENMARK ROMANIA HUNGARY BULGARIA POLAND LITHUANIA SLOVENIA PORTUGAL GREECE LUXEMBOURG CYPRUS SLOVAKIA ESTONIA MALTA LATVIA
53
Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE EXPORTS TO THE EU
Products TOTAL 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
2010 EXPORTS (US$ Million) 7,412 2,238 894 614 438 319 313 264 226 179 122
%Share 100.00 30.19 12.06 8.28 5.91 4.30 4.22 3.56 3.05 2.42 1.65
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) 4,271 1,119 344 259 131 103 86 83 68 68 62
%Share 100.00 26.20 8.05 6.06 3.07 2.41 2.01 1.94 1.59 1.59 1.45
54
Philippine Export Development Plan 2011-2013 E. PHILIPPINES INDIA TRADE RELATIONS
A. ECONOMIC INDICATORS GDP (US$Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 4.046 3,400 8.3
Source: The World Factbook ,2011
B. GENERAL TRADE INDICATORS Indias World Ranking as Importer (2010 17 Indias Imports from the World (2010) in US$ Thousand 220,290,676 Growth of Indias Imports (20062010) 15% Total Imports from PHL to India (2010) in US$ Thousand 409,845 Share of PHL to India's Total Imports (2010) 0.2% Growth of PHL Exports to India (20062010) 25%
Indias Share in World Imports (2010) 1.5%
Share of India to Total PHL Exports (2010) 0.8%
India, one of the worlds emerging economies, ranks as the 17th biggest importer in the world for 2010. Total imports amount to US$ 220.29 billion, accounting for1.5% of total world imports. From 2006 to 2010, Indias imports have increased by15%. Valued at US$ 409.84 million, Philippine exports account for just 0.2% of Indias total imports from the world in 2010. While India currently represents only 0.8% of the countrys total exports, exports to India have grown by 25% from 2006-2010.
C. PHILIPPINES INDIA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 20062010 Total Trade 519.68 735.58 808.50 702.69 975.59 11.82% Exports to India 120.13 243.97 193.35 200.31 409.84 25.32% Imports from India 425.01 514.52 654.29 523.32 565.75 6.07% Balance of Trade (304.88) (270.55) (460.77) (365.45) (155.91)
In 2010, India ranked 15th among the top trading partners of the Philippines. Total bilateral trade was registered at US 975.60 million, representing 0.8% of total Philippine trade to the world. Exports increased by 25.32% from US$ 120.13 million in 2006 to 55
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 Exports (US$ 000) % Share
TOTAL 1 2 3 4 5 6 7 8 9 10 Monolithic integrated circuits, digital Motor vehicle parts nes Computer data storage units Transmissions for motor vehicles Sanitary articles of paper Newsprint, in rolls or sheets Fertilizers containing nitrogen, phosphorus & potassium in packs Coal , whether or not pulverised but not agglomerated Flat rolled , coated alum-zinc alloy Ammonium sulphate
409,845 142,083 34,023 21,013 20,601 18,920 16,696 11,481 8,759 7,761 7,650
100.00 34.67 8.30 5.13 5.03 4.62 4.07 2.80 2.14 1.89 1.87
56
Philippine Export Development Plan 2011-2013
2010 TOP PHILIPPINE IMPORTS FROM INDIA Products Imports (US$000) % Share
Total 1 2 3 4 5 Bovine cuts boneless, frozen Motorcycles with other than a reciprocating piston engine Medicaments nes, in dosage Motorcycle parts nes Transmission apparatus,for radio telephony incorporating reception apparatus Soya-bean oil-cake & other solid residues, whether or not ground or pellet Tobacco, unmanufactured, partly or wholly stemmed or stripped Automobiles w reciprocating piston engine displacing not more than 1000 cc Semi-finished products of iron/non-alloy steel Soya bean flour and meals Source: ITC Trademap
565,756 106,475 39,382 28,126 18,409 16,969
100.00 18.82 6.96 4.97 3.25 3.00
6 7 8 9 10
13,404 12,999 9,694 8,134 7,380
2.37 2.30 1.71 1.44 1.30
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Philippine Export Development Plan 2011-2013 F. PHILIPPINES - JAPAN TRADE RELATIONS
A. ECONOMIC INDICATORS GDP(US$Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 5.46 34,000 3.9
Source: The World Factbook July 5, 2011
B. GENERAL TRADE INDICATORS Japans World Ranking as Importer (2010) 4 Japans Total Japans Growth Imports Imports Share of from the from PHL in Japans World to Japan World Imports (2010) (2010) Imports (2006in US$ 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%
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 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Total Trade 15.60 14.52 14.83 11.97 15.13 -2.50 Exports to Japan 7.92 7.30 7.71 6.21 7.83 -1.84 Imports from Japan 7.68 7.22 7.12 5.76 7.30 -3.19 Balance of Trade 0.24 0.09 0.59 0.44 0.53
58
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$530 million was achieved in 2010. 2010 TOP PHILIPPINE EXPORTS TO JAPAN
Rank Products TOTAL Computer input/outputs, with/without storage Builder's joinery and carpentry of wood nes Ignition wiring sets & other wiring sets used in vehicles/,aircraft etc Parts & accessories of automatic data processing machines & units thereof Sulphides of metals nes; polysulphides of metals Static converters, nes Motor vehicle parts nes Indicator panels incorporating liquid crystal device/light emitting diode Bananas including plantains, fresh or dried Precious metal ores and concentrates nes Exports (US$ Million) 7,827.49 1,350.37 962.64 452.09 423.43 289.56 237.91 183.16 172.58 167.80 165.63 % Share 100.00 17.25 12.30 5.78 5.41 3.70 3.04 2.34 2.20 2.14 2.12
1 2 3 4 5 6 7 8 9 10
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2010 TOP PHILIPPINE IMPORTS FROM JAPAN

Rank 1 2 3 4 5 6 7 8 9 10 Products TOTAL Parts & accessories of automatic data processing machines & units thereof Parts of electronic integrated circuits and micro assemblies Electronic integrated circuits, monolithic, analogue or analogue and d Gold in other semi-manufactured form nmonetary(inc gold plated w platinum) Parts of machines & mechanical appliances nes having individual functions 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
Exports (US$ Million) 7,304.75 1,270.33
% Share 100.00 17.39 7.67
560.54 5.41 395.29 3.56 259.80 2.63 192.39 2.14 156.40 152.90 149.92 147.65 131.69 2.09 2.05 2.02 1.80
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Philippine Export Development Plan 2011-2013 G. PHILIPPINES RUSSIA TRADE RELATIONS
A. ECONOMIC INDICATORS GDP (US$ TRILLION) GDP Per Capital (US$) GDP Growth Rates (%) : : :
(2010) 2.229 15,900 3.8
Source : The World Factbook 2011
B. GENERAL TRADE INDICATORS Russias World Ranking as Importer (2010) 18 Russias Import from the World (2010) in US$ 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%
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 2006 2007 2008 2009 2010 Ave. Growth Rate 2006-2010 Total Trade 241.94 141.43 178.2 302.35 501.04 24.80 Exports to Russia 23.53 25.88 33.92 39.09 34.53 12.51 Imports from Russia 218.41 115.55 144.28 263.27 466.51 26.38 Balance of Trade (194.88) (89.67) (110.36) (224.18) (431.98)
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Philippine Export Development Plan 2011-2013 Trade with Russia continues to be sharply skewed in Russias favor, with the trade balance ballooning to negative $432 million in 2010 . Exports posted a positive average 12.51% growth in the last five years (2006-2010), likewise imports posted a positive average 26.38 growth in the same period. Top PH exports for 2010 were desiccated coconut, carrageenan, garments, tobacco, lighters, activated carbon, personal care products, electric accumulator, and banana chips. Top imports are crude petroleum oils, products of iron and non-alloy steel, bars and rods, wheat and meslin, fertilizers, mineral fuels, iron and steel, cereals, fertilizers, organic chemicals, wheat flour, articles of rubber, inorganic chemical, copper and printed materials. 2010 TOP PHILIPPINE EXPORTS TO RUSSIA
2010 Exports Products (US$ Million) TOTAL PH EXPORTS TO RUSSIA 1 2 3 4 5 Vegetable saps & extracts Brazil nuts, cashew nuts & coconuts Tobacco unmanufactured; tobacco refuse Women's blouses & shirts, knitted or crocheted Cigarette lighters & other lighters Activated carbon; activated natural mineral products; animal black Coconut (copra),palm kernel/babassu oil & their fractions Preserved fruits nes Personal toilet preparations shaving preparations, deodorants etc. 34.53 4.89 4.86 3.12 3.07 2.48 100.00 14.15 14.08 9.04 8.89 7.19 %Share
6 7 8
1.38 1.31 1.27
3.99 3.79 3.67
1.14 1.12
3.30 3.26
10 Electric accumulator Source: ITC Trademap 2011
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Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE IMPORTS FROM RUSSIA
2010 Exports Products (US$ Million) TOTAL PH IMPORTS FROM RUSSIA 1 2 Crude petroleum oils Semi-finished products of iron or non-alloy steel Bars & rods, in irregular wound coils, of iron or non-alloy steel Wheat and meslin Mineral or chemical fertilizers Mineral or chemical fertilizers, nitrogenous Flat-rolled products of iron /non alloy Electronic integrated circuits and microassemblies Synthetic filam yarn, not put up 466.51 342.30 46.72 100.00 73.37 10.02 %Share
3 4 5 6 7 8 9
27.34 26.06 8.31 3.47 2.25 2.24 1.94 1.41
5.86 5.59 1.78 0.74 0.48 0.48 0.42 0.30
10 Copper bars, rods and profiles Source: ITC Trademap 2011
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Philippine Export Development Plan 2011-2013 H. PHILIPPINES UNITED STATES OF AMERICA TRADE RELATIONS
A. ECONOMIC INDICATORS GDP(US$ Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 14.72 47,400 2.8
B. GENERAL TRADE INDICATORS Total US Imports from the World (2010) in US$ Thousand 1,966,496,750 US Share in World Imports (2010) 13.1% Growth of US Import s (20062010) -2% Total Imports from PHL to US (2010) in US$ Thousand 7,568,138 Share of PHL to US Total Imports (2010) 0.4% Growth of PHL Exports to US (20062010) -5%
US World Ranking as Importer (2010) 1
Share of US to Total PHL Exports (2010) 14.7%
As the largest importer in the world for 2010, US total imports amounted to US$ 1.97 trillion. This accounts 13.1% of total world imports. US imports registered a negative growth of 2% from 2006 to 2010. Philippine exports to the US for 2010 were valued at US$ 7.57 billion. This comprises 14.7% of the Philippines total exports but only accounts 0.4% of total US imports from the world. Moreover, Philippine exports to the US have declined by 5% from 2006-2010.
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 (7.34)
Exports to US 8,697.64 8,601.40 8,216.44 6,797.10 7,568.14 (5.01)
Imports from US 8,698.68 8,115.34 7,738.12 5,488.21 6,292.46 (9.87)
Balance of Trade (1.04) 486.06 478.32 1,308.89 1,275.68
In 2010, USA was the second single country export market of Philippine exports next to Japan. Total bilateral trade was valued at $13.86 billion. Exports to USA declined by 5.01% from $8.70 billion in 2006 to $7.57 billion in 2010. Imports also decreased by 9.87% from $8.70 billion in 2006 to $6.29 billion in 2010.
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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 1 2 3 4 5 6 7 8 9 Portable digital computers Computer data storage units Electronic microassemblies made from discrete, active Ignition wiring sets & other sets used in vehicles, aircraft Static converters 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 Exports (US$ Million) 7,568.14 980.11 468.76 404.40 366.01 360.17 308.37 303.69 297.57 260.74 245.17 % Share 100.00 12.95 6.19 5.34 4.84 4.76 4.07 4.01 3.93 3.44 3.23
10 Coconut(copra) oil crude Source: ITC Trademap
2010 TOP PHILIPPINE IMPORTS FROM USA

Products TOTAL 1 2 3 4 5 6 7 8 9 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 Soya-bean oil-cake Monolithic integrated circuits, digital Milk powder not exceeding 1.5 fat Machines and mechanical appliances Imports (US$ Million) 6,292.46 1,683.16 1,284.44 337.47 281.82 213.42 202.10 141.53 115.71 70.26 70.16 % Share 100.00 26.75 20.41 5.36 4.48 3.39 3.21 2.25 1.84 1.12 1.11
Machines and appliances for testing the mechanical 10 properties of metal Source: ITC Trademap
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Philippine Export Development Plan 2011-2013 I. PHILIPPINES - AUSTRALIA TRADE RELATIONS
(2010) : : : 882.4 41,000 2.7
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 348,770 Share of PHL to Australia Total Imports (2010) 0.2% Growth Share of of PHL Australia Exports to Total to PHL Australia Exports (2006(2010) 2010) -12% 0.7%
Australia ranks as the 19th biggest importer in the world for 2010, with total imports amounting to US$188.74 billion. This accounts for 1.3% of total world imports. Imports of Australia have grown by 8% from 2006-2010. In 2010, Philippines exports to Australia were valued at US$ 349 million, representing 0.7% of the countrys total exports. From 2006-2010, Philippine exports to Australia have declined by 12%.
C. PHILIPPINES AUSTRALIA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010
Total Trade 1,153 1,289 1,428 1,081 1,251
Exports to Australia 488 528 471 296 349
Imports from Australia 665 761 957 785 902
Balance of Trade (177) (233) (486) (489) (553)
(0.13)
(11.74)
6.62
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Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE EXPORTS TO AUSTRALIA Products TOTAL 1 2 3 4 5 6 7 8 9 10 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, Carboys, bottles, flasks, jars, pots, phials and other containers Electric conductors, for a voltage not exceeding 80 V, Coconuts, dessicated Light petroleum distillates Games, coin or disc-operated, other than bowling alley equipment Exports (US$ Million) 349 37 26 % Share 100.00 10.60 7.45
21 18 18 16 10 9 9 7
6.01 5.16 5.16 4.58 2.87 2.58 2.58 2.01
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) 902 230 42 35 31 24 24 24 20 20 19 % Share 100.00 25.50 4.66 3.88 3.44 2.66 2.66 2.66 2.22 2.22 2.11
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Philippine Export Development Plan 2011-2013 J. PHILIPPINES NEW ZEALAND TRADE RELATIONS
A. ECONOMIC INDICATORS GDP (US$ billion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 117.8 27,700 1.5
B.GENERAL TRADE INDICATORS New Zealands World Ranking as Importer (2010) 56 New New Zealands New Growth Zealands Imports Zealands of New Imports from the Share in Zealands from PHL World World Imports (2010) (2010) Imports (2006in US$ in US$ (2010) 2010) Thousand Thousand 0.2% 30,157,848 1% 32,701 Share of PHL to New Zealand's Total Imports (2010) 0.11% Growth of PHL Exports to New Zealand (20062010) -21% Share of New Zealand to Total PHL Exports (2010) 0.1%
New Zealand ranks as the 56th importer for 2010, with total imports amounting to US$30.16 billion. This accounts for 0.2% of total world imports. Imports of New Zealand have grown by 1% from 2006-2010. In 2010, Philippines exports to New Zealand were valued at US$ 32.70 million, representing only 0.1% of the countrys total exports. From 2006-2010, Philippine exports to New Zealand have declined by 21%.
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 2.57
Exports to New Zealand 53,171 114,154 49,308 28,714 32,701 (20.96)
Imports from New Zealand 288,604 372,093 427,930 318,326 426,558 6.45
Balance of Trade (235,433) (257,939) (378,622) (289,612) (393,857)
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2010 TOP PHILIPPINE EXPORTS TO NEW ZEALAND Products TOTAL 1 2 Bananas including plantains, fresh or dried Lead-acid electric accumulators of a kind used for starting piston engines Photographic, other than cinematographic cameras Sacks, bags, packing, of strip plastic material Mucilages & thickeners, modified or not, derived from vegetable products Coconuts, dessicated Jams, fruit jellies, fruit/nut pure & paste, prepared ,sugared, sweetened or unsweetened Pineapples, fresh or dried Surface-active preparations, washing and cleaning preparations Pineapples or with prepared or preserved, sugared, sweetened, spirited or not Exports (US$ 000) 32,701 7,325 % Share 100.00 22.40
3,494
10.68
3 4 5 6 7 8 9
2,171 1,344
6.64 4.11
1,341 955
4.10 2.92
894 858
2.73 2.62
772
2.36
10
761
2.33
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2010 TOP PHILIPPINE IMPORTS FROM NEW ZEALAND Products TOTAL Milk powder not exceeding 1.5% fat 1 Milk and cream powder unsweetened exceeding 1.5% fat 2 Fats and oils derived from milk 3 Buttermilk, curdled milk & cream, kephir & fermented or acid milk & cream 4 Milk not concentrated & unsweetened exceeding 1% not exceeding 6% fat 5 Paper, Kraftliner, in rolls, unbleached, uncoated 6 Bovine cuts boneless, frozen 7 Prep of cereals, flour,starch/milk for infant use, put up for retail sale 8 Cheese processed, not grated or powdered 9 Butter 10
Imports (US$ 000) 426,558 121,212
% Share 100.00 28.42
67,857 53,800
15.91 12.61
29,806
6.99
23,901 14,927 11,106
5.60 3.50 2.60
10,388 8,686 8,041
2.44 2.04 1.89
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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 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)
20 185,541,037 Source: ITC Trademap.
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 78,711 73,434 63,174 33,902 61,885 (11.79)
IMPORTS 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.

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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 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
2010 EXPORTS (US$000) 61,885 7,992 7,978 7,320 6,144 5,556 5,269 5,082 2,741 2,460 1,947
%Share 100.00 12.91 12.89 11.83 9.98 8.98 8.51 8.21 4.43 3.98 3.15
1 2 3 4 5 6
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.
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Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE IMPORTS FROM TURKEY
Products 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
1 2 3 4 5 6 7 8 9 10
2010 IMPORTS (US$000) 58,949 25,637 7,398 6,711 2,349 1,541 916 778 762 680 671
%Share 100.00 43.49 12.55 11.38 3.98 2.61 1.55 1.32 1.29 1.15 1.14
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Philippine Export Development Plan 2011-2013 L. PHILIPPINES SOUTH KOREA TRADE RELATIONS
A. ECONOMIC INDICATORS GDP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : :
(2010) 1.467 30,200 6.1
B. GENERAL TRADE INDICATORS South Koreas World Ranking as Importer (2010) 10 South Koreas Imports from the World (2010) in US$ Thousand 425,098,361 South Koreas Share in World Imports (2010) 2.8% Growth of South Koreas Imports (20062010) 6% South Koreas Imports from PHL (2010) in US$ Thousand 2,228,182 Share of PHL to South Koreas Total Imports (2010) 0.52% Growth of PHL Exports to South Korea (20062010) 10 Share of South Korea to Total PHL Exports (2010) 4.3%
South Korea is an export-oriented country, with a total trade volume of US$892.8 billion in 2010. This figure also makes them the 7th largest exporter and 10th largest importer in the world. Its total imports amounted to US$ 425.10 billion, accounting for 2.8% of total world imports. From 2006 to 2010, South Koreas imports increased by 6%. In 2010, Philippines exports to South Korea were valued at US$ 2,228.18 million, representing only 0.52% of South Koreas total imports from the world and only 4.3% of the Philippines total exports. From 2006-2010, Philippine exports to South Korea have grown by 10%.
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 3.13 Balance of Trade (1,909.52) (1,620.17) (606.01) (1,332.66) (1,806.27)
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2010 TOP PHILIPPINE EXPORTS TO SOUTH KOREA Products 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 Refined copper and copper alloys, unwrought Pipe, chewing & snuff tobaccos Exports (US$ Million) 2,228.18 638.10 340.22 290.97 145.84 94.56 74.97 62.21 45.56 42.23 35.60 % Share 100.00 28.64 15.27 13.06 6.55 4.24 3.36 2.79 2.04 1.90 1.60
1 2 3 4 5 6 7 8
9 Oil-cake 10 Petroleum oils, not crude Source: ITC Trademap
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) 4,034.45 1,646.76 472.29 209.43 102.42 95.64 90.79 83.60 73.02 57.97 47.44 % Share 100.00 40.82 11.71 5.19 2.54 2.37 2.25 2.07 1.81 1.44 1.18
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Philippine Export Development Plan 2011-2013 M. PHILIPPINES SOUTH AFRICA TRADE RELATIONS
(2010) : : : 524 10,700 2.8
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) 1% S. Africa Imports from PHL (2010) in US$ Thousand 128,727 Share of PHL to S. Africa's Total Imports (2010) 0.2% Growth of PHL Exports to S. Africa (20062010) 19 Share of S. Africa to Total PHL Exports (2010) 0.3%
IN 2010, South Africa ranks as the 35th biggest importer in the world. Its total imports amounted to US$ 80.13 billion, accounting for .53% of total world imports. From 2006 to 2010, South Africas imports increased by 1%. In 2010, Philippines exports to South Africa were valued at US$ 128.73 million, representing only 0.2% of South Africa total imports from the world and only 0.3% of the Philippines total exports. From 2006-2010, Philippine exports to South Africa have grown by 19%.
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

14.63
Exports to S. Africa 51,224 106,004 92,647 92,157 128,727

19
Imports from S. Africa 40,453 58,556 64,750 62,159 58,625

8.35
Balance of Trade 10,771 47,448 27,897 29,998 70,102
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2010 TOP PHILIPPINE EXPORTS TO SOUTH AFRICA Products 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) 128,727 55,014 14,671 9,404 5,597 5,462 4,806 4,766 2,674 2,232 1,929 % Share 100.00 42.74 11.40 7.31 4.35 4.24 3.73 3.70 2.08 1.73 1.50
1 2 3 4 5 6 7 8 9 10
2010 TOP PHILIPPINE IMPORTS FROM SOUTH AFRICA Products 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) 58,625 20,390 7,643 3,350 3,085 2,787 2,516 2,176 1,540 1,356 1,188 % Share 100.00 34.78 13.04 5.71 5.26 4.75 4.29 3.71 2.63 2.31 2.03
1 2 3 4 5 6 7 8 9 10
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ANNEX 3: The National Export Development and Competitiveness Fund
79
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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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REFERENCES
APEC Study Center Network and PIDS. (2005). Sustainable Tourism Challenges for the Philippines. Manila. ASEAN Merchandise Trade Statistics. (n.d.). Retrieved May 25, 2011, from ASEAN AFTA Website. BOC-COA Report 2007-2009. BSP Charter. (n.d.). BSP Financial Statements 2007-2009. Department of Trade and Industry, PEDP 2002-2004. Department of Trade and Industry, PEDP 2005-2007. Department of Trade and Industry, PEDP 2008-2010. Executive Order 110 of 1993, Strengthening the Export Development Council (EDC) Amending for this Purpose Executive Order No. 98 to Increase the Government and Private Sector Members of the Council. (n.d.). Executive Order 98 of 1994, Re-organizing the Export Development and Investment Council into the Export Development Council. (n.d.). Executove Order No. 180, Strengthening the Export Development Council Amending for this Purpose Executive Order (E.O.) No. 110, Further Amending E.O. No. 98. (1994, May 24). Export Development Act of Canada. (n.d.). Export Development Act of the Philippines (Republic Act 7844). (n.d.). Export Development Canada (EDC) Export Forecast Overview (2010). Export Development Council. Summary of Economic Strategies Committee (Singapore) Key Recommendations. Philippines. Federal Reserve Bank of Dallas. (n.d.). Globalization and Monetary Policy Institute, Working Paper No. 21. Retrieved May 25, 2011, from http://www.dallasfed.org/institute/wpapers/2008/0021.pdf FTSC Country Post Deployment: Preliminary Analysis. (n.d.). Gonzalez, C. M. Capital flows and financial assets in the Philippines: determinants, consequences and challenges for the Central Bank. Hanson, Gordon H. , R. J. Vertical Specialization and International Business Cycle Synchronization. Hanson, Gordon H., R. J. Vertical Specialization in Multinational Firms. Hermosa, J. Trade Advocacy Group Presses for Congress for Competition Support. Business World (2010, November 28). 83
Philippine Export Development Plan 2011-2013 International Trade Center (UNCTAD/WTO) World Economic Development Forum. Adapting to PostCrisis World Trade Patterns and Lessons for Export Dedvelopment. International Trade Statistics Yearbook Volume I Trade by Country Part 1. (2009). Retrieved from World Trade Tables. Joint Advisory Group on the International Trade Centre, Forty-third session. (December 2009). International Trade Center Strategic Plan 2010-2013. Geneva. Kabigting, R. V. A Target for FTA Utilization, Practical Next Steps to Follow-up The Doing Business in Free Trade Areas Awareness Campaign. Ketels, C. (October 2010). Export Competitiveness: Reversing the Logic. Harvard Business School Working Knowledge. Lewinski, A. S. (September 2006). China: Moving Up the Value Chain. Outlook Journal . Mattar, Jorge I., Export Promotion in Mexico. Micro, Small and Medium Enterprise Development Plan for 2010 to 2016. (n.d.). Nestle. Nestle Global Sales Report 2008-2009. OECD. (2007). Moving Up the Value Chain: Staying Competitive in the Global Economy (Main Finding). Office, N. S. (n.d.). Employment Statistics . Retrieved May 25, 2011, from NSO Website. Ortiz-Luis, S. R. Presidents Report . PEZA COA Report 2007-2009. PHILEXPORT. (2010, August 20). CFIP eyes partnership with DOT for furniture exports promotion. PHILEXPORT. (2010, August 20). Economic team unveils poverty-reducing, inclusive growth strategies. PHILEXPORT. (2010, August 20). Entrepreneurs needed to achieve job-creating economic growth. PHILEXPORT. (2010, August 20). Investments in power, agriculture seen as gaps in gov't. PHILEXPORT. (2010, August 20). P-Noy gov't bets on tourism as fourth leg on which RP. PHILEXPORT. (2010, August 20). Six Cabinet members to catalyze 7-8% growth rate by end-2010. PHILEXPORT. (2010, August 20). What can RP sell to world's 2nd biggest economy? Philippine Development Plan draft (total plan). (n.d.). Philippine House of Representatives. (2010). House of Representatives Policy Advisory No. 2008-02 Weighing the Impact of Peso Appreciation. PITC COA Report 2007-2009. 84
Philippine Export Development Plan 2011-2013 Procter & Gamble. (2010). P&G Annual Report. Ramanarayanan, C. A. (September 2009). Federal Reserve Bank of Dallas. Rein, S. (2010, August 24). Three Big Trends Changing China for Multinationals. Retrieved May 25, 2011, from http://www.forbes.com/ Target Chinas High-end Market, Exporters Told. (2010, November 28). Business World . UNESCO Country Groupings. (n.d.). World Trade Organization. (2010). World Trade Report: Trade in natural resources. WTO. (2009). Export Promotion and the WTO: A Brief Guide. Retrieved May 25, 2011
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PEDP 2011-2013 for LIMITED CIRCULATION only

PEDP 2011-2013 for LIMITED CIRCULATION only

II. THE PLANNING PROCESS

A. Objective of the Plan

B. Consultations on Export Targets and Strategies

C. Consultations on Export Policies

D. Outcome: PEDP Targets, Strategies and Policy Initiatives

PEDP 2011-2013 for LIMITED CIRCULATION only

PEDP 2011-2013 for LIMITED CIRCULATION only Table 1. (cont.)

Sources: BETP for Merchandise Exports; BSP for Services Exports

PEDP 2011-2013 for LIMITED CIRCULATION only

IV. KEY EXPORT SECTORS AND REVENUE STREAMS

PDP Key Export Sector

PEDP Revenue Streams

13 53 6 16 53 3 27 -23 554 16 24 11 -19 26

HIGH POTENTIAL GROWTH SECTORS:

62,000 30,800 1,900,000 1,369,000 769,000 7,500 12,650,000 83,000

18 7 2 0.26 0.28 20 0.01 2

9,937 1,982 9,324 2,900 1,693 1,433 1,496 308

526,000 1,131,000 520,000 10,764,000 75,583 3,400,000 180,000 33,045

PEDP 2011-2013 for LIMITED CIRCULATION only

2011 TARGETS BY KEY EXPORT SECTORS

REVENUE STREAM/ PRODUCT GROUP

72,123 15,503 12,962 2,541 56,619 64,734

3,625 930 648 538 1,508

3,987 1,023 713 592 1,659

MINERALS EXPORT SECTOR TRANSPORT EXPORT SECTOR

PEDP 2011-2013 for LIMITED CIRCULATION only

6,576 3,679 1,871

-3 24 11 420,000 600,000 1 0.31 8 5 8 15

7,241 3,973 2,152

599 6,804 1,510 1,172

659 7,512 1,661 1,289

2012 VALUE in US$ Million

2013 VALUE in US$ Million

VALUE in US$ Million

PEDP 2011-2013 for LIMITED CIRCULATION only

Table 6: EXPORT FORECASTS OF REVENUE STREAMS, 20142016

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

PEDP 2011-2013 for LIMITED CIRCULATION only

VI. OVERVIEW OF PRODUCT & MARKET BEHAVIOR

Chart 1: COMPARATIVE PRODUCT MIX, 2001 vs. 2010

PEDP 2011-2013 for LIMITED CIRCULATION only

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

PEDP 2011-2013 for LIMITED CIRCULATION only

VII. CORE STRATEGIES

PEDP 2011-2013 for LIMITED CIRCULATION only

VIII. GOVERNANCE: KEY TO IMPLEMENTATION

PEDP 2011-2013 for LIMITED CIRCULATION only

The President as Export Champion

PEDP 2011-2013 for LIMITED CIRCULATION only

PEDP 2011-2013 for LIMITED CIRCULATION only

ANNEX 1: Sectoral Strategies and Activities

PEDP 2011-2013 for LIMITED CIRCULATION only

Export Growth Targets

Major Policy Concerns/ Policy Support Needed

Export Strategies and Activities

PEDP 2011-2013 for LIMITED CIRCULATION only

PEDP 2011-2013 for LIMITED CIRCULATION only B. GARMENTS/ TEXTILE

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

Export Growth Targets

Major Policy Concerns/ Policy Support Needed