The United States and the Philippines have had a very close trade relationship for more than a hundred years. We meet regularly with the Philippines under the auspices of the 1989 bilateral Trade and Investment Framework Agreement (TIFA) to address outstanding bilateral issues and coordinate on bilateral, regional, and multilateral issues. Under the TIFA, the United States and the Philippines also have signed agreements on customs administration and trade facilitation (2010), cooperation on stopping illegal transshipments of textiles and apparel (2006), and implementation of minimum access commitments by the Philippines (1998). The latest information regarding significant trade barriers can be found in the 2021 National Trade Estimate Report, see here.
Economic and Trade Statistics
In 2020, Philippines GDP was an estimated $367.4 billion (current market exchange rates); real GDP was down by an estimated 8.3 percent; and the population was 109 million. (Source: IMF)
U.S. goods and services trade with Philippines totaled an estimated $25.3 billion in 2020. Exports were $10.0 billion; imports were $15.3 billion. The U.S. goods and services trade deficit with Philippines was $5.3 billion in 2020.
Philippines is currently our 31st largest goods trading partner with $18.9 billion in total (two way) goods trade during 2020. Goods exports totaled $7.7 billion; goods imports totaled $11.1 billion. The U.S. goods trade deficit with Philippines was $3.4 billion in 2020.
Trade in services with Philippines (exports and imports) totaled an estimated $6.4 billion in 2020. Services exports were $2.3 billion; services imports were $4.1 billion. The U.S. services trade deficit with Philippines was $1.9 billion in 2020.
According to the Department of Commerce, U.S. exports of goods and services to Philippines supported an estimated 162 thousand jobs in 2019 (latest data available) (44 thousand supported by goods exports and 119 thousand supported by services exports).
Exports
• Philippines was the United States' 30th largest goods export market in 2020.
• U.S. goods exports to Philippines in 2020 were $7.7 billion, down 10.4 percent ($902 million) from 2019 but up 5 percent from 2010.
• The top export categories (2-digit HS) in 2020 were: electrical machinery ($2.2 billion), cereals (wheat) ($850 million), oilseeds and oleaginous fruits (soybean flour and meal) ($830 million), machinery ($733 million), and dairy, eggs, honey ($387 million).
• U.S. total exports of agricultural products to Philippines totaled $3.2 billion in 2020, our 9th largest agricultural export market. Leading domestic export categories include: soybean meal ($900 million), wheat ($827 million), dairy products ($409 million), pork and pork products ($114 million), and food preparations ($109 million).
• U.S. exports of services to Philippines were an estimated $2.3 billion in 2020, 34.9 percent ($1.2 billion) less than 2019, but 1 percent less than 2010 levels. Leading services exports from the U.S. to Philippines were in the professional and management services, intellectual property (franchises and trademarks), and financial services sectors.
Imports
• Philippines was the United States' 30th largest supplier of goods imports in 2020.
• U.S. goods imports from Philippines totaled $11.1 billion in 2020, down 12.0 percent ($1.5 billion) from 2019, but up 40 percent from 2010.
• The top import categories (2-digit HS) in 2020 were: electrical machinery ($4.4 billion), machinery ($2.8 billion), optical and medical instruments ($367 million), leather products ($359 million), and animal or vegetable fats and oils (coconut oil) ($348 million).
• U.S. total imports of agricultural products from Philippines totaled $973 million in 2020. Leading categories include: vegetable oils ($348 million), processed fruit and vegetables ($185 million), fruit and vegetable juices ($102 million), tree nuts ($82 million), and raw beet and cane sugar ($59 million).
• U.S. imports of services from Philippines were an estimated $4.1 billion in 2020, 26.2 percent ($1.5 billion) less than 2019, but 53 percent greater than 2010 levels. Leading services imports from Philippines to the U.S. were in the professional and management services, telecommunications, computer, and information services, and travel sectors.
Trade Balance
• The U.S. goods trade deficit with Philippines was $3.4 billion in 2020, a 15.5 percent decrease ($622 million) over 2019.
• The United States has a services trade deficit of an estimated $1.9 billion with Philippines in 2020, down 12.3 percent from 2019.
Investment
• U.S. foreign direct investment (FDI) in Philippines (stock) was $5.2 billion in 2020, a 7.4 percent decrease from 2019. U.S. direct investment in Philippines is led by manufacturing, professional, scientific, and technical services, and wholesale trade.
• Philippines's FDI in the United States (stock) was $382 million in 2020, down 3.0 percent from 2019. There is no information on the distribution of Philippines FDI in the U.S.
• Sales of services in Philippines by majority U.S.-owned affiliates were $3.8 billion in 2018 (latest data available), while sales of services in the United States by majority Philippines-owned firms were $34 million.
