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).

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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.

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PEDP 2011-2013 for LIMITED CIRCULATION only

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

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

B. Consultations on Export Targets and Strategies
The consultations started in February 2010 and continued until December. The scope was nationwide involving the entire network of the EDC and all sector representative groups. Consultations in February began with the Export Development Council Visioning Workshop where directions were set for the PEDP and indicative strategies formulated. A strategic outcome of the workshop is the decision of stakeholders to update the EDA making it relevant to changes in the global environment fifteen years since the law was enacted. The goal is to establish lasting solutions to recurring export problems. While the EDA review is on-going, measures that can be taken immediately to remedy urgent export development issues are being done through the EDC. Another strategic outcome is the EDC’s 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.

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A few examples are: 1. 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. implementation of a coconut tree replanting program 4. Automotives. strategies and policy agenda were finalized and incorporated in the plan. The plan contains solutions to both policy and public-private governance issues. not one of competency but continuity. if not all. A number of these concerns have been resolved at some point but resurfaced subsequently. these targets.implementation of the Mining Act 5.S. strategies and policy concerns were discussed with the DTI Secretary.PEDP 2011-2013 for LIMITED CIRCULATION only There are also sector-specific concerns that continue to persist. Food and Organic Products. the export targets. establishing a Food Safety Law 2. The President encourages cooperation between government and private enterprise to identify individuals. “Save Our Industries Act” 7. Homestyle Products.assistance on geotextiles machines and technology. Coconut Products. motivation and cooperation from the private sector. the view that many. 5 .implementing the Agriculture and Fisheries Modernization Act. What may be needed are sustained encouragement.issues on pertinent Executive Orders and the Motor Vehicle Industry Development Plan 6.support for the U. Others were taken through an earnest process for resolution but stalled along the way. and the President. the issue does not seem to be one of neglect but sustainability. It defines strategic guideposts designed to exploit export market opportunities and improve in-country capacities. increasing investments in agriculture. Importantly. As such. Mining. IT/BPO. Strategies and Policy Initiatives From these consultations. the Cabinet Economic Managers. This is especially with reference to corruption in public and private governance.international advertising promoting the Philippines 3. 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.implementation of a resource-based export development program Equally. 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. Garments. D. Outcome: PEDP Targets. efficiency and effectiveness in business and in government. 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.

SHARE % 9 9 9 9 9 10 12 16 13 17 22 20 20 6 .498 138. 2008-2010 MERCHANDISE EXPORTS US$ Million 105.620 43. GRWTH % 40 10 3 10 6 4 14 7 25 -2 -22 34 0 SERVICES EXPORTS US$ Million 9.428 3.) PEDP 2008-2010 2008 2009 2010 Total (vs.172 38.636 39. Table 1: EXPORT PERFORMANCE ACCORDING TO PEDP PERIODS PEDP PERIOD: PEDP 1999-2001 PEDP 2002-2004 2002 2003 2004 Total (vs.043 10. Prior 3-Yrs. Merchandise exports are targeted to grow by thirty-five percent (+35%) while total services by sixty percent (+60%) for 2011-2013.974 11.436 51. % 40 12 3 10 6 5 17 12 31 -2 -16 31 9 MER.PEDP 2011-2013 for LIMITED CIRCULATION only III.389 4.231 39. Prior 3-Yrs.276 138.042 159. EXPORT REVENUES: 2011-2013 Targets & 2014-2016 Forecasts vs.027 50. By 2016.735 9.) PEDP 2005-07 2005 2006 2007 Total (vs.243 33.023 38.766 20.208 36.325 SERV.119 41.444 9.860 4.014 13.741 172.300 35. Prior 3-Yrs. merchandise exports are forecasted to grow by another thirty-four percent (+34%) and services by forty percent (+40%).740 49. % NA 12 -1 19 10 12 42 52 91 -1 13 20 64 TOTAL EXPORTS US$ Million 115.957 46.644 TOTAL GRWTH.872 3.931 57. 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. total exports will double versus the 2008-2010 average exceeding one hundred twenty billion US dollars (US$ 120B). It will double in the next three years (2014-2016) through an export development program anchored on our agro-industrial resource-base.723 121.979 45.292 58.) Ave.254 47.557 49.525 6.680 111.319 MER.779 53. 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. In the following three-year PEDP cycle (2014-2016). GRWTH.471 60. SHARE % 91 91 91 91 91 90 88 84 87 83 78 80 80 SERV. Exports will grow in the coming three-years (2011-2013) by building on our current business.450 64.717 11.

594 83. % 11 11 11 40 10 10 10 35 208 MER. SHARE % 79 78 77 78 77 77 77 77 SERV.490 108.) PEDP PERIOD: PEDP 2011-13 TARGETS 2011 2012 2013 Total (vs. Prior 3-Yrs. SHARE % 21 22 23 22 23 23 23 23 Sources: BETP for Merchandise Exports.) % 2016 VS.884 76.229 89.619 62.240 MER.285 TOTAL GRWTH. BSP for Services Exports 7 .480 187.735 54. MERCHANDISE EXPORTS US$ Million 56. % 17 16 15 60 10 10 10 40 TOTAL EXPORTS US$ Million 72.503 17.205 22.045 SERV.266 27. (cont. 2008-10 AVG.215 241.362 75. GRWTH % 10 10 10 35 10 10 10 34 199 SERVICES EXPORTS US$ Million 15. Prior 3-Yrs.466 92.967 20.262 68.567 98.895 25. GRWTH.732 120.123 80.179 251.) PEDP 2014-16 FORECAST 2014 2015 2016 Total (vs.063 327.PEDP 2011-2013 for LIMITED CIRCULATION only Table 1.

679 1.775 50.937 13.005 8.615 586 5.804 -8 5.014 22. Also. 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. 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. local value-added and total employment.450 11.041 2.4 5 3 1 1 64.098 3.871 427 599 13 53 6 16 53 3 27 -23 554 16 24 11 -19 26 49.974 1. % 2009 EXPORTS 2010 GRWTH vs.642 30. They have reasonable probability of continued success based on current volumes.671 324 441 31 20 34 33 20 41 14 16 163 30 41 12 32 36 HIGH POTENTIAL GROWTH SECTORS: OTHER SECTORS 7. current volumes refer to having attained the critical mass to allow re-investment for growth. AVE. Local value-added pertains to the ability and potential of these sectors to cultivate indigenous innovation.661 2.682 528 477 100 15 85 87 15 53 5 4 0.605 1.191 1.498 57.870 1. From a business perspective.243 51.576 3.437 236 5. These sectors belong to large categories in growing markets. BSP for Services NOTE: Benchmark Average 3 years cover 2006-2008 "normal" market conditions. AVE 3 YRS.543 6.856 2. these sectors are consistent with the priorities of the Philippine Development Plan (PDP) 2011-2016.173 2. Total employment is the capability to contribute to economic and human development essential for businesses to prosper in the long-term.436 43.PEDP 2011-2013 for LIMITED CIRCULATION only IV. 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.014 38.741 13.545 11.080 3. 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. supply chain attributes.905 15 Raw Data Sources: BETP for Merchandise Exports.413 13 6. 8 .625 1.418 8.642 48.243 31. 3 YRS. % 2010 ACTUAL EXPORTS 2010 GRWTH vs.

000 150.000 7.625 2.31 8 5 65 30 2.800 1.000 427 599 -19 26 469. at 2010 ACTUAL EXPORTS US$ Million ESTIMATED NO. distribution channels and disposable income levels of their current and potential consumers. From a public governance perspective.870 1.500 12.900 1.000 180. This “natural positioning” comes from their merchandise-mix and product-market combination relative to supply chains.000 400.000 1 0.000 30.693 1.324 2. Additionally.28 20 0.900.041 2.000 140.982 9.000 1. because of changes in the global trading environment. ONPs and related services have a wide range of business applications embracing virtually every product and service category.116 1.S.09 0.000 10.26 0.496 308 526. In fact.679 1. because of 9 .764.391 561 70. Table 3: KEY SECTOR ANALYSIS ACCORDING TO BUSINESS SIZE & GROWTH. ONPs are still a priority considering the growing size of this business around the world.000 33. Organic and Natural Products (ONP) were included among the Revenue Streams. food to textile products.100. these export sectors engender inclusive growth.650. and green cell-phones to hybrid cars.000 520. From tourism to medical services.15 7 10 80 70 342 419 2.080 3. EMPLOYMENT 2010 ACTUAL EXPORTS US$ Million 2010 GROWTH vs.369.PEDP 2011-2013 for LIMITED CIRCULATION only More importantly.131. AVE 3 YRS 2006-2008 % INDIC. 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 11.000 18 7 2 0. LVA. these export sectors are in a natural position to grow. MARKET SIZE US$ Million MARKET SHARE % MARKET GROWTH % LVA % LVA AMT.508 1. For purposes of this Plan. BSP for Services NOTE: Benchmark Average 3 years cover 2006-2008 "normal" market conditions.543 6.000 600.433 1. One estimate is that the global revenue stream of ONP-related businesses is more than one trillion U. 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.000 83.583 3.000 Raw Data Sources: BETP for Merchandise Exports. leisure sports to health and wellness.000 769.576 3.937 1.000 75.400.871 21 42 3 27 35 93 -23 554 16 24 11 62.000 0.01 2 30 8 5 10 10 10 15 16 90 90 30 80 80 95 80 20 9.045 420. In prior PEDPs. there is an expanding sector in the Philippine exporting community engaged in ONP and related enterprises successfully promoting Filipino talent and natural resources.202 31. these products are called Value-enhanced Categories. dollars. These products compete in rapidly growing export markets where the Philippines is capturing shares meaningfully.000 1.

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. 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. 10 . there are indicators that NOPs and related services can be the biggest export enterprise in the future.PEDP 2011-2013 for LIMITED CIRCULATION only climate change and global warming. The objective is to achieve this within the current PEDP cycle (2011-2013). 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. Halal and Kosher products deserve equal attention considering the size and growth of this category and the wide application of its performance attributes. Similarly. To this end. 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. 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.

on the other hand. conventional benchmarks to ascertain achievability.000 15 30 18 15. Table 4 shows the PEDP growth targets for 2011 according to Key Export Sectors in the context of historical sales and market growth indicators.541 56.627 31.962 2. MARKET SHARE % EST.1 10 10 10 10 10 10 3.900. are a function of the roadmaps and business strategies of the firms comprising the sector.964 SHIPBUILDING 1.498 57.188 3.870 16 -23 12.734 34 34 6 16 10 12 13.1 0. among others. Table 4: KEY SECTOR TARGETS 2011 IN CONTEXT OF HISTORICAL SALES AND MARKET GROWTH INDICATORS 2010 ACTUAL EXPORTS 2010 GROWTH vs.3 0. 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: 64.123 15.508 14 15 -7 5 54 27 -7 32 -11 93 1. 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. targets were assessed and agreed utilizing. 20062008 AVE % ESTIMATED MARKET SIZE 2010 EST.000 2 16 12 1. The sector targets.000 0.080 41 3 1.659 769.243 11.1 7.650.741 13.619 64.000 0.000 2 5 10 34. Based on extensive consultations earlier described.01 15 5 1.625 930 648 538 1.000 0.503 12.041 2.023 713 592 1.728 11 .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 72.543 163 554 83.243 20 53 62.369.202 51.987 1. 2009 % 2010 GROWTH vs.PEDP 2011-2013 for LIMITED CIRCULATION only V.500 20 MINERALS EXPORT SECTOR TRANSPORT EXPORT SECTOR 1.

) 2011 TARGETS BY KEY EXPORT SECTORS REVENUE STREAM/ PRODUCT GROUP 2010 ACTUAL EXPORTS 2010 GROWTH vs.973 2.661 1.000 1 0.576 3.152 427 32 -19 469. (Cont.512 1.289 12 .PEDP 2011-2013 for LIMITED CIRCULATION only Table 4. 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 6.15 10 10 10 10 10 659 7.000 600.31 8 5 8 15 7.000 0. 20062008 AVE % ESTIMATED MARKET SIZE 2010 EST.172 36 6 26 51 26 -8 10 45 400.804 1.871 17 41 12 -3 24 11 420.241 3.000 0.510 1.09 7 7 457 599 6.679 1. 2009 % 2010 GROWTH vs. MARKET SHARE % EST.

607 4.062 1.541 56. 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.622 68.112 3.512 2013 VALUE in US$ Million 80.619 64.503 12.735 17.165 2.188 3. The U.123 15.987 1.023 713 592 1.168 8. advanced economies will grow by only two percent YOY (+2%).825 2.293 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 89.964 1. 2010).009 62.967 37.155 Global Environment: Six-Year View During the consultations.979 4.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.229 17.634 2. Table 5 shows the PEDP targets for the period 2011-2013.241 3.936 17.215 20.611 15.735 41. 13 .291 2.238 863 716 2.659 1.846 523 797 9. This is with respect to both private business and government.936 7. Feb.958 3.480 80.367 4.060 20.S.503 34.386 1. While the global economy is forecasted to grow by three percent (+3%) year-on-year (YOY) in the next three years.800 4.126 785 651 1.152 457 659 7.007 2. 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.825 1. 2011–2013 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. 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. Table 5: EXPORT TARGETS OF KEY EXPORT SECTORS.728 7.262 71.973 2.967 14.474 489 725 8.962 2. The idea is to continue to identify high-success probability export sectors where public-private-partnership involvement will yield the highest export revenues.

natural & organic industrial and finished goods) given the local value-added of these categories.5%). 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.5%) and ASEAN by four percent (+4%). the Three-Mile Island and Chernobyl nuclear plant accidents. Importantly. the assessment is higher and sustainable export growth will come from agricultural (food) and resource-based products (homestyle. For the private sector. Given the scope of this activity. market development investments. 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). This is especially true for multinational corporations which are driving Philippine exports. consumer market size. demonstrate that economic growth inevitably follows these changes. Moreover. are profound examples of how nations and governments find effective solutions to problems that appear insurmountable at the onset. the experience of many countries transitioning from centrally-controlled economies to market-based democracies. Re-setting the plans and operations of these companies will take more than three years to complete. its expected massive disaster-recovery efforts will generate opportunities considering its global financial resources. While the immediate outlook is one of dramatic contraction in Japan’s 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. tsunami and nuclear-reactor disasters in Japan last March 11. everyone in general recognizes that the welfare of people is the priority in responding to natural calamities or armed conflicts. and a host of other strategic business determinants are profound. In fact. the implications of this situation on export sales.PEDP 2011-2013 for LIMITED CIRCULATION only Importantly. It is precisely these priorities that create international trade and investment opportunities. and securing the future are the priorities in Japan and the MENA Region. The world’s experience with natural calamities and man-made crises illustrate this point. 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. whether or not these political transformations result to replacements in leaders and personalities. In the case of the MENA region. and the recent 2008 global financial crisis. In the case of Japan. restoring and improving quality of life. construction materials. the Kobe earthquake. On the other hand. technological capabilities. supply chain model and export market shares. supply chain dynamics. 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. 14 . the earthquake. 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. Crucially. the global market size where they compete and the product differentiation features of Philippine design and functionality. The world is united in emphasizing that human development. emerging economies are expected to grow YOY by six percent (+6%) in the next three years. the British Petroleum oil-rig explosion in the Gulf of Mexico and other oil-spills. Hurricane Katrina. India by seven-and-a-half percent (+7. Equally.

191 3.272 575 893 9.706 4.000 10. This is especially considering the requirements of an agro-industrial resource-base export development program.387 967 802 2.594 88.266 20.824 4.179 108.072 75.212 1. Table 6: EXPORT FORECASTS OF REVENUE STREAMS.490 22.006 2.328 696 1.525 2. assuming that the private sector can harness the opportunities these changes bring and the public sector is able to actualize reforms.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 120.078 45.560 83.518 2.624 28.924 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 108.884 22. the total package of government reforms and support needed to enable sustained export growth is viewed to take more than three years to accomplish.895 18.493 9.655 6.778 1.PEDP 2011-2013 for LIMITED CIRCULATION only For the public sector.297 12.732 25. while there is optimism and trust in the newly-elected leadership.466 98.820 2.467 50.813 3.662 10 10 10 12 10 11 10 10 12 12 12 12 12 8 15 13 12 15 10 12 8 15 .553 1.504 5. Table 6 shows how Philippine exports might unfold beyond 2011-2013 into 2014-2016.060 6.511 4.727 3.083 898 2.776 5.748 23.763 633 1.338 2. 2014–2016 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 98.404 1.176 25.052 1.055 6.867 11.248 2.107 92.210 5.106 55.740 1.120 11.931 5.063 27.

063 Average Share % 77 23 100 Growth % 10 10 10 Growth % 10 10 10 16 .735 89.480 20.262 17.215 Average Share % 78 22 100 Table 7-B: SUMMARY OF EXPORT FORECASTS.243 64.732 2016 EXPORT Value in US$ M 92. 2011.266 108.179 27.967 80.123 2012 Growth % 10 16 11 EXPORT Value in US$ M 62.229 Growth % 10 15 11 2013 EXPORT Value in US$ M 68.741 Growth % 10 17 11 2011 EXPORT Value in US$ M 56.594 22.490 2015 EXPORT Value in US$ M 83.2013 2010 SECTOR: ACTUAL EXPORTS in US$ M MERCHANDISE SERVICES TOTAL 51. PEDP 2014 – 2016 2014 SECTOR: Growth % MERCHANDISE SERVICES TOTAL 10 10 10 EXPORT Value in US$ M 75.884 120.PEDP 2011-2013 for LIMITED CIRCULATION only SUMMARY OF EXPORT TARGETS & FORECASTS Table 7-A: SUMMARY OF EXPORT TARGETS.466 25.498 13.503 72.895 98.619 15.

The pie-chart below further illustrates the characteristics of Philippine exports productmix by comparing 2001 and 2010. services being largely contact centers of foreign companies. Table 2 shows that from the 2006-2008 average. This also means that the main driver of Philippine exports is direct investments. it is important to understand the following:  Where the business is coming from (products and services). In the case of mineral products they are to a certain extent utilized to fuel exports of the country of destination. Additionally. Chart 1: COMPARATIVE PRODUCT MIX. form part of the overall global value chain and are investment driven.PEDP 2011-2013 for LIMITED CIRCULATION only VI. 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. coconut products and wearables are also intermediate goods. garments and textile. OVERVIEW OF PRODUCT & MARKET BEHAVIOR Given the strategic direction to build on current business in the next three years. 2010 17 . 2001 vs. 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. It is less because portions of food. 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. Seventy-five percent (75%) of merchandise exports are for re-export to consumer markets. For finished goods exports. 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. Less than twenty-five percent (25%) of merchandise exports go directly to consumers or end-users.

161.644. where fifty percent (50%) of PHL exports went to the US and EU and forty-eight (48%) to North and Southeast Asia.345.9 16.335.373 133.04 0. Table 8 shows the regional distribution of Philippine Exports from 2006-2010.490.243 8.978.296.622. BTN) CENTRAL ASIA (10) INDIAN OCEAN ISLANDS (5) RUSSIA Source: Tradeline Philippines. majority of Philippine merchandise exports go to North and Southeast Asia (60%) of which.881 4. WESTERN. 18 . BDESH.838 505. BETP This is in contrast to ten years ago (2001).003 0.817 7. 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.938.751.4 1. followed by Europe with eighteen percent (18%).845. a significant portion of Philippine exports is still in intermediate goods.669 9.3 1.343 1. HK. NEPAL.8%) goes to Central-South Asia and Russia. However.044. twenty-three percent (23%) go to China and twenty percent (20%) to Japan and Korea.7 0.658.826.574 474.480.4 0. one percent (1%) each goes to Middle East-Africa and to ANZ-Oceania. And less than one percent (0.638 SHARE % 100 60 23. PAK. Table 8: MARKETS OF PHILIPPINE EXPORTS AVE.868 686.408.287 675.4 1.661 373.0 18 17.1 TOTAL PHL MERCHANDISE EXPORTS NORTH & SE ASIA TOTAL CHINA (MAINLAND.259. SL.384. 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).174 326.025 17.518.1 0.7 0.  Where the business is going (markets).638.457.060.400 188.751.621 8.660 8.784 320.9 0.363.4 1.107 10.135.7 19 17.421. MACAU) TOTAL NORTH ASIA (JAPAN & KOREA) TOTAL ASEAN (9 MEMBER STATES) AMERICAS TOTAL NORTH AMERICA (USA & CANADA) BRAZIL.940.8 0. The second major market is the Americas with nineteen percent (19%).398 27.696.797 8.559 30.PEDP 2011-2013 for LIMITED CIRCULATION only From 2001 to 2010. 2006-2010 FOB Value 46.755. PAST 5 YRS.0 19.796.338 663. CENTRAL & SOUTH AMERICA (21) CARIBBEAN (23) GREENLAND & BERMUDA EUROPE TOTAL EU (27) BAL. TAIWAN. The pie-chart below shows the shift in the market for Philippine exports.304.8 0.003.500 169. From 2006-2010. For the remainder of market.0 0.01 0.

On the part of Asian economies. 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. predictable and reliable supply of inventories to developed markets. similar changes are taking place in similarly situated countries and regions around the world explaining the growth of our 19 .PEDP 2011-2013 for LIMITED CIRCULATION only Chart 2: MARKETS OF PHILIPPINE EXPORTS. At the same time. 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. Most notable are the ASEAN Free Trade Agreements (FTAs) and the regionalbilateral trade agreement initiatives being phased-in by the US and the EU. 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. Central to this unfolding reality is China. while at the same time ensuring a steady. This explains the shift of our exports to Asia. On the part of the US and the EU. Countries like the Philippines. As it does. professional managers and knowledge employees. 2001 vs. This is resulting to a shift in the global chains characterized by the remigration of certain manufacturing facilities to alternative locations in Asia. China as a major manufacturing base and consumer market is moving up the value chain. 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. This is further enhanced by emerging distribution channels being established among Asian countries. it sustains its rapid economic growth creating large numbers of Chinese consumers with high disposable incomes and rapid consumption behavior for quality branded products. 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. Key considerations to the re-migration are speed-to-market and cost-effectiveness rather than manufacturing costs alone. Countries that at the same time possess a deep pool of skilled and trainable workers. 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.

PEDP 2011-2013 for LIMITED CIRCULATION only exports to the Middle East and the ANZ region. b) international trade negotiations. Brazil is viewed to become like China in relation to the Americas and Europe. And this suggests expectations in the near future. South America and even Africa. be it bilateral or multilateral. Given Japan’s inherent capabilities and current international business model. And Russia is anticipated to influence supply chains and global consumer marketing following the same pattern when its time comes. the key elements defining opportunities in this new world order are: a) supply and value chain management. 20 . The Middle East appears to have begun behaving like China in relation to Africa and Central Asia. Japan can only be a contributing factor to the re-balancing of resources and supply chains resulting to export opportunities. This also partly explains the sense of urgency among many countries to engage in free trade agreements. Australia and New Zealand have likewise begun to behave like China in relation to China. and c) innovations in finished goods marketing. its recovery efforts can lead to an expansion of export markets. India and Brazil. Brazil. India is expected to become like China in relation to the rest of the world. In terms of international trade and investments. Therefore. and the spawning of our business in greater India.

Japan. automotives. Subsequently. A broad-based campaign means a nationwide effort covering as many business sectors possible. especially SMEs.PEDP 2011-2013 for LIMITED CIRCULATION only VII. Participation in value chain endeavors to capture as many of the chain components possible. Maximizing existing FTAs means launching information campaigns that are broad-based and meaningful. Additionally. 2. CORE STRATEGIES In the context of new realities where global supply chain management. Maximize Benefits of Free-Trade-Agreements (FTAs) Maximize FTA gains and engage the US and EU according to mutually acceptable modalities. Move up the Value Chain Move up the value chain according to the status of the sector. the PEDP defines its core strategies applicable to all sectors. B. A. This is in particular reference to export sectors whose global supply chain is characterized by multi-country manufacturing such as electronics. 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. Develop Product Linkages for Organic. and shipbuilding. Product Strategies: 1. Indonesia and the rest of ASEAN. garments. Moving up the value chain develops chain components that derive the highest value. the strategic location of the Philippines makes it an ideal site to access large consumer markets like China. Market Strategies: 1. international negotiations and innovation in finished goods marketing are the strategic opportunities. Korea. 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. 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. Meaningfulness does not only refer to informing the exporting community about tariff schedules and other FTA features. The first step is to leverage tourism as a natural distribution channel for existing products and services. 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. It also refers to establishing and improving mechanisms that will 21 . 3. Building value-added by moving up the value chain will bring immediate incremental revenues while new sectors are being cultivated. The idea is for the Philippines to achieve both through foreign and local investments and innovation. Natural and Certification-enabled Products Develop organic and natural product linkages in tourism services and expand product applications.

ANZ. US. On-premise traffic of consumers and companies in these events must be consistent with target audience. 2. Reaching these consumers ahead of other brands as they explore their purchasing power establishes a strong franchise for the Philippines. *as identified by the Economic Intelligence Unit (EIU): Chongqing. Identify and participate in select high-impact. Equal emphasis must be given to investments-capture and tourism promotion given the character and needs of the overall export portfolio. but more importantly. high-level trade events. Korea. The faster growth of developing economies is creating large consumer segments with high disposable incomes. Anshan. Also. Korea. US. India and ASEAN for direct exports. target Japan. This will drive investments in 22 . Maanshan. specifically those highgrowth areas and cities in China (CHAMPS*). Target High-Growth Emerging Markets Emerging markets with high economic growth for finished goods exports include China. 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. 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. Attract the Migration of Supply Chain Nodes to the Philippines Capture export-oriented FDI’s from China. Hefei. The result is a remigration of supply-chain components from these locations to strategic points in the chain. ANZ. The indicated action is to have our finished goods export sector move in this direction as well through promotions and selling missions. the recovery of mature markets and the rapid growth of emerging markets with large consumer populations are compelling developed exporting nations (Japan. 3. because it is at this emerging stage that consumers develop product and brand loyalty through trial usage. Malaysia and Singapore. Philippine export products and services should focus on these consumer groups not only because of their new-found capability to purchase. Document Facilitation. Equally. as these economies move up the value chain. Interactive Websites and similar others.PEDP 2011-2013 for LIMITED CIRCULATION only motivate the private sector to utilize FTAs in their business. These are Information Help-Desks. Undertake Focused Promotions with Emphasis on Precision Rather than Profusion Focus on precision (quality) rather than profusion (quantity) in conducting promotions. Philippine exports of intermediate goods will realize incremental sales as the brands these sectors supply will promote themselves aggressively in these emerging markets. Pingdingshan and Shenyang C. 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. EU) to activate more multi-platform supply chains to address the different consumption needs of emerging and mature markets. Promotions Strategies: 1.

like features and benefits of products and services. 3. the more of these integrated promotions are launched. the emotional high achieved through consumer contact. in-country events must integrate investment. 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. brand values and brand features necessary to define the Philippines’ brand name and promise. Integrating these elements in out-bound trade events maximizes results. The tactile elements of consumer-contact. Tourism is a cost-effective awareness and trial-usage channel for Philippine exports while generating significant revenues. 23 . 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. Frequency and timing of these integrated activities can be aligned with key tourism occasions year-round. Similar to out-bound missions. Sectoral generic branding. Consultations must be started immediately to arrive at the brand essence. From there. But an experience. Market selection should also be consistent with product and market strategies. In the case of in-country events. an international campaign will immediately follow. are available to consumers virtually anywhere around the world. 2. can be made unique and worth reexperiencing again and again. An additional consideration in selecting geographical markets is the presence of existing or unfolding free trade agreements. Embark on a Comprehensive and Unified Country Branding It is time to brand the Philippines and launch thematic sectoral events and abovethe-line promotions.PEDP 2011-2013 for LIMITED CIRCULATION only research and development and in-country capacity for merchandise and services exports. “Philippine Experience” refers to the emotional aspect of the encounter with target consumers. tourism and merchandise trade missions. the broader the base for Philippine exposure and the higher the probability of investments-capture and merchandise/services exports. 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.

That mechanism is the Export Development Council. Policy issues requiring extensive study and consultation are addressed through the networking committees while situations requiring immediate actions are managed by the Council itself. Establish a National Export Development and Competitiveness Fund (NEDAC Fund) to be used in launching integrated promotional efforts. A. The President. 2. and the enforcement authority of the Council. 2. 1. Activate new committees as appropriate to address all Key Export Sectors. and the economic zones through inter-agency coordination of out-bound missions and in-bound activities 2. financial resources must continuously be made available to fund promotional activities. C. the plan is to consolidate the promotion budgets of the DOT. should preside over the Quarterly EDC meetings. Prioritize amendment of the Export Development Act with emphasis on provisions pertaining to export financial assistance. DA. 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. Immediate: Executive Action 1. This would also ensure Cabinet-level participation in the Council so that immediate policy action is taken on export development issues. To be able to execute the strategies of the PEDP. government policies and promotional assistance enabling exports are necessary. Passage of the Customs Modernization and Tariff Bill to address the issue of simplification of procedures and the cost of doing business. DTI.PEDP 2011-2013 for LIMITED CIRCULATION only VIII. The Council is designed to resolve export development issues through the representation of export sectors and the involvement of Cabinet Secretaries and The President. On the part of government agencies. B. BOI. The DTI shall utilize Honorary Trade Representatives in target export markets as soon as may be appropriate. The fund shall initially come from the Office of the President and subsequently included in the annual DTI Budget from the General Appropriations Act. 24 . as Chair of the EDC. D. GOVERNANCE: KEY TO IMPLEMENTATION To be able to implement the strategies of the PEDP and consequently achieve its targets. SME financial assistance and continuous training for workers in the exporting community. 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. Institutionalize a Funding Source for Export Development and Promotion 1. The necessary deployment plan in context of the FTSC operations shall be designed and implemented accordingly by the DTI. Mid-Term: Legislative Agenda 1. privatization of promotional agencies.

Engage the staff in Continuous Education and Training (CET) on convener management.PEDP 2011-2013 for LIMITED CIRCULATION only 2. Utilizing appropriate measures to protect the citizenry. groups and structural environments engaged in corruption to enable government to correct situations and prosecute where necessary. motivated and empowered to level-up exports through 2013 and double-up by 2016. the EDC partnership will be strengthened. The PEDP reaffirms The President as the champion of Philippine exports. 4. Through his inspired and inspiring leadership. 5. The President as Export Champion Finally. 3. This is particularly in reference to worker welfare which is a key factor to export competitiveness in services. Develop and implement an anti-corruption mechanism in the EDC and its networking committees. the exporting community believes that the key to the success of Philippine exports is The President of the Philippines. 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. -oOo- 25 . Strengthen the EDC Secretariat by increasing the number of technical staff necessary to fulfill all secretariat functions. this mechanism shall enable sources to identify individuals. Link with other business councils to strengthen and unify advocacies.

PEDP 2011-2013 for LIMITED CIRCULATION only 26 .

PEDP 2011-2013 for LIMITED CIRCULATION only ANNEX 1: Sectoral Strategies and Activities 27 .

PEDP 2011-2013 for LIMITED CIRCULATION only 28 .

okra Processed Food Marine Products Priority Markets    Korea. China (Fresh Fruits/Vegetables) USA. etc. Japan (Processed Food) o Emerging markets: ASEAN. Australia USA. 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. papaya. Hong Kong (Marine Products) Export Growth Targets 2011 – 10% 2012 – 10% 2013 – 10 %  Baseline US$ 2. EU. EU.PEDP 2011-2013 for LIMITED CIRCULATION only SECTORAL STRATEGIES AND ACTIVITIES A.g. dried fruits. Hong Kong.) 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. Hong Kong. banana.  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 MSME’s and non-pioneer industries   29 .11B Tedious documentation procedures (e. 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. FOOD Priority Products    Fresh Fruits/Vegetables: mango. ME. phytosanitary requirements and product registration. India. China. certificate of origin.

ISO 2200. 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    30 . DA to establish programs to ensure the sustainability of the production of agricultural raw materials such as tropical fruits (calamansi.). and GMP and provision of government support in the compliance and implementation of these systems. jackfruit etc.PEDP 2011-2013 for LIMITED CIRCULATION only  Strengthen the certification system for HACCP.

TESDA) efforts in skills training  Upgrade technology  Disseminate incentives for investors 31 . accreditation and tracking program  Synchronize (CHED. GARMENTS/ TEXTILE Priority Products     High-end Gowns/Dresses Ethnic Natural Fiber Barong Lingerie/ Night Wear Priority Markets    USA EU Japan Export Growth Targets 2011 – 15% 2012 – 15% 2013 – 15%  Baseline – US$ 599 M  More than 15% if “Save Our Industry Act” is passed by the US Congress Major Policy Concerns/ Policy Support Needed    Lack of technology support Inadequate basic skills training on international standards Lack of raw materials due to demise of the textile industry Export Strategies and Activities Promotion  Campaign for the approval of the SAVE ACT in US Congress  Expand and improve market access  Work for preferential regimes (EU-GSP)  Intensify market access (re-negotiate ROO for PJEPA)  Maximize benefits of existing free trade agreements (FTAs)  Develop brands for emerging markets  Conduct strategic selling missions for SMEs to target EU countries  Create new markets in ASEAN and China Capacity Building  Implement industry accreditation and tracking of social compliance program  Investment promotion to revive the textile industry  Industry mapping.PEDP 2011-2013 for LIMITED CIRCULATION only B.

returned shipments Lack of skilled labor force Export Strategies and Activities 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.HK and Japan  Provide information on market requirements and trends  Develop/update designs of products  Provide financing assistance (non-collateral loans) 32 .PEDP 2011-2013 for LIMITED CIRCULATION only C. WEARABLES Priority Products    Costume/Fine Jewelry Bags Footwear/Slippers/Shoes Priority Markets    Asia (Hong Kong. Major Policy Concerns/ Policy Support Needed      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. China. Germany. Italy) Australia/ USA (Indirect Export) Export Growth Targets 2011 – 10% 2012 – 10% 2013 – 10%  Baseline – US$ 599 M. Japan) Europe (France. EU.

HOMESTYLE PRODUCTS Priority Products    Furniture – mixed media furniture. 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 33 . wood/plastic/stone furniture. outdoor furniture Furnishings Holiday Decors Priority Markets    Europe US Asia (China & India) Export Growth Targets 2011 – 7% 2012 – 7% 2013 – 7%  Baseline – US$ 427M Major Policy Concerns/ Policy Support Needed      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 Export Strategies and Activities Promotion  Integrate promotional efforts (Manila FAME.PEDP 2011-2013 for LIMITED CIRCULATION only D.

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..041B Talent scalability. with a focus on high-growth segments for the future  Accelerate scale-up of talent. IT – BPO Priority Services   Voice Services: Contact center Non Voice Services : Back-office/KPO IT (software development. termination) Legislation on data privacy and cyber-crime to improve risk perception Major Policy Concerns/ Policy Support Needed       Export Strategies and Activities 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. issues related to absenteeism. regulatory environment. capital availability and risk perceptions  Retain momentum in developing Next Wave Cities 34 . 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    Export Growth Targets 2011 – 18% 2012 – 16% 2013 – 14%  Baseline: 2010 – US$ 11. while sustaining or improving cost competitiveness.PEDP 2011-2013 for LIMITED CIRCULATION only E.g. application.

and forecast future product attributes 35 . plastics and chemicals industries Generate up-to-date market intelligence on target markets Identify and define future technology needs.PEDP 2011-2013 for LIMITED CIRCULATION only F. ELECTRONICS Priority Products    Semiconductors Electronic Data Processing Automotive Electronics and Solar Power/ Photovoltaic Cells Priority Markets    USA Europe Japan and China Export Growth Targets 2011 – 10% 2012 – 10% 2013 – 10%  Baseline: 2010 – US$ 31.080B Major Policy Concerns/ Policy Support Needed    High cost and availability of power Philippine Technology Roadmap Development of quality allied and support industries Export Strategies and Activities      Pursue aggressive export sales and investments promotion of parts and components manufacturers Conduct international communication / marketing campaign Develop and expand linkages with allied support industries: metal.

Inc.71M For coconut oil: 2011. (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 36 . coir Coconut peat/dust Geotextiles Coconut oil Coconut fiber – China Coconut peat/dust – China. Korea and Japan Geotextiles – China Coconut oil – Netherlands.10%  Baseline: 2010 – US$ 1. Italy. Malaysia. the Coconut Industry Investment Fund (CIIF). USA. COCONUT (NON-FOOD) Priority Products Priority Markets Coconut fiber. Spain and Japan For Coir and Geotextiles:         2011-10% 2012-10% 2013-10%  Baseline: 2010 – US$ 1.10% 2013.PEDP 2011-2013 for LIMITED CIRCULATION only G. and DA/PCA The Philippine Coconut Coir Exporters Association. China.10% 2012.506B Coco coir products: Export Growth Targets Major Policy and Other Concerns/Support Needed           Funding support from the Export Support Fund.

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-à-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 Thailand’s on palm oil production Develop promo collaterals/materials and website for coco oil products Identify markets where coco oil products have preferential tariffs due to bilateral/multilateral Free Trade Agreements (FTAs)

      

  

37

PEDP 2011-2013 for LIMITED CIRCULATION only H. MINERALS

Priority Products Priority Markets

  

Metallic – Gold, Copper, Nickel Non –Metallic Minerals - marble Asia-Pacific: China, Korea, Australia, Japan

Export Growth Targets

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 LGU’s (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

 Export Strategies and Activities

 

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

38

PEDP 2011-2013 for LIMITED CIRCULATION only I. MOTOR VEHICLE PARTS

Priority Products

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

Export Growth Targets

2011 – 8% 2012 – 8% 2013 – 8%  Baseline: 2010 – US$ 3.679B

Major Policy Concerns/ Policy Support Needed

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.

Export Strategies and Activities

  

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 sector’s subcontracting capabilities for customized orders of various automotive metal and plastic fabrications Pursue aggressive export sales and investment promotions activities in target markets, highlighting the Philippines as a supplier of quality and cost-effective premium parts and components Implement the Comprehensive Motor Vehicles Program

39

PEDP 2011-2013 for LIMITED CIRCULATION only

40

PEDP 2011-2013 for LIMITED CIRCULATION only ANNEX 2: Market Briefs Data for General Trade Indicators were taken from ITC Trademap to allow for global comparison (e. 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). 41 .. country market shares vs.g. the world market). the official Philippine data source which provides more recent Philippine trade data.

PEDP 2011-2013 for LIMITED CIRCULATION only 42 .

516.91% Source: ITC Trademap  For 2010. But from 2009-2010.  C.493 17.4% of total world imports.540) (4.21% of ASEAN’s total imports from the world.4 3.3 B.43 billion.77%.671.556 ASEAN Share in World Imports (2010) 6.PEDP 2011-2013 for LIMITED CIRCULATION only A.310 11. PHILIPPINES – ASEAN BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Thousand Year 2006 2007 2008 2009 2010 Source: ITC Trademap Total Trade 18.557.844.712. This represents 4.47% of total PH exports to the world of $51.22 billion.269.55 billion.  43 . a 58. Philippine exports to the ASEAN in 2010 represent 22.21% Growth of PH Exports to ASEAN (20092010) -7. ECONOMIC INDICATORS GDP (US$ Billion) GDP Per Capita (US$) GDP Growth Rate (%) Source: World Factbook 2011 (2010) : : : 351.482.044 13.157) (8.639 Share of PH to Total ASEAN Imports (2010) 1.971 22.500 7.582 11.91% of the country’s total exports but only 1.907 7. ASEAN imports account for 27.4% Growth of ASEAN Imports (20092010) -3.72 billion in 2010. Philippine exports to ASEAN for 2010 were valued at US$ 11.379. ASEAN’s imports amounted to US$ 957.639 PH Imports from ASEAN 10.289.82 billion in 2009 to PhP4.202 8.86% increase from the previous year.850 16.18% from 2009-2010.064 15.192.521.246 21. Moreover. Philippine exports to ASEAN have declined by 7.557.827.451 PH Exports to ASEAN 8.812 Balance of Trade (2.160 27. However.173)  Total bilateral trade with the ASEAN for 2010 amounted to PhP 27.82 billion.199.419. Moreover.451.906.827.104. this accounts for 6. the trade deficit has decreased by 19. the balance of trade has been in the negative for the period 2006-2010.94% of PH imports from the world of $58.714. PHILIPPINES – ASEAN TRADE RELATIONS A.10 billion.18% Share of ASEAN to Total PH Exports (2010) 4.13% from PhP 5.911 5.842) (5.089. GENERAL TRADE INDICATORS ASEAN Imports from the World (2010) in US$ Thousand 957. ASEAN imports have declined by 3.77% ASEAN Imports from PH (2010) in US$ Thousand 11.671) (5.031.

44 12. Thailand with 25. Indonesia with 14.713 1. 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 51.399.696 38 % Share 100.43 15.75%.0 1 2 3 4 5 6 7 8 9 Source: ITC Trademap 44 .228.750.44% and Malaysia with 12.955 301 % Share 100. Malaysia with 15. accounting for 63.233 8.00 27.75 10.431.08 0.43%.08%.496 570.098.94 3.02 0.89 0.19 15.784. Top ASEAN import suppliers are Singapore with 33.377 2.378 2.703 11.43 25.19%.0 1 2 3 4 5 6 7 8 9 Source: ITC Trademap 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 58.639 7.478 4.495 5.812 5.217 11.07 0.75% and Vietnam with 10.75%.94 33.225 1.550 449.439.912 2.557.47 63.10 0.396.43% of total Philippine exports for 2010.08 4.269.05 0.02 0.75 14.76 0.475 2. followed by Thailand with 15.00 22.331.167 1.PEDP 2011-2013 for LIMITED CIRCULATION only  Top ASEAN export markets are Singapore.771 13.624 16.562.

25 2. nuclear reactors.662 640. oils.646 247.942 101.175.834.62 1. edible animal product nes Fertilizers Exports (US$ ‘000) 11.28 9. etc apparatus Plastics and articles thereof Dairy products.00 22.52 1.996 1.795 338. oils.47 Source: ITC Trademap 45 . boilers.PEDP 2011-2013 for LIMITED CIRCULATION only 2010 TOP PHILIPPINE EXPORTS TO ASEAN Products TOTAL 1 2 3 4 5 6 7 8 9 10 Electrical.812 3.549 238. etc Vehicles other than railway. distillation products.567.63 9.72 1. electronic equipment Machinery. honey. photo.85 0.94 10. electronic equipment Machinery.77 4.97 0.49 6.985 490.557.639 7.808 280.274.710 1. etc Electrical. technical.212.448 93.402 % Share 100.566.93 0.346 782.178 % Share 100.621 106.63 3.81 Source: ITC Trademap 2010 TOP PHILIPPINE IMPORTS FROM ASEAN Products TOTAL 1 2 3 4 5 6 7 8 9 10 Mineral fuels. etc Cereals Vehicles other than railway. eggs.604 263. distillation products. medical.591. slag and ash Organic chemicals Essential oils.93 0.94 1. etc Tobacco and manufactured tobacco substitutes Optical.269. boilers.560 1.459 98. tramway Copper and articles thereof Mineral fuels.224 1. nuclear reactors.08 19. toiletries Imports (US$ ‘000) 16.00 62.221 111. tramway Plastics and articles thereof Miscellaneous edible preparations Ores.88 0. cosmetics. perfumes.52 11.609 3.

07% Growth of PHL Exports to Brazil (20062010) 13 Share of Brazil to Total PHL Exports (2010) 0.467 Share of PHL to Brazil's Total Imports (2010) 0.2% Growth of Brazil’s Imports (20062010) 15% Brazil’s Imports from PHL (2010) in US$ Thousand 131.72 428. Brazil’s imports increased by 15%.PEDP 2011-2013 for LIMITED CIRCULATION only B.2% of Brazil’s total imports from the world and only 0.900 7. In 2010.30 131.30) 46 .47 12.13 363.194 10.23) Balance of Trade (172.79) Exports to Brazil 76.74 305. After all.  C.3% of the Philippines’ total exports.70) (138. Russia.54 439.81 207. Its total imports amounted to US$ 181. Brazil is one of the world’s darling economies.672 Brazil’s Share in World Imports (2010) 1. representing only 0.51) (76. Philippines exports to Brazil were valued at US$ 131.72) (288. PHILIPPINES . Brazil is the B in BRIC (Brazil. From 2006-2010.47 million. ECONOMIC INDICATORS GDP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%) Source: The World Factbook 2011 (2010) : : : 2.2% of total world imports. the acronym that represents the world’s biggest emerging markets.24 (2. accounting for 1. PHILIPPINES – BRAZIL BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 325. GENERAL TRADE INDICATORS Brazil’s World Ranking as Importer (2010) 22 Brazil’s Imports from the World (2010) in US$ Thousand 181. Brazil ranked 22nd biggest importer in the world.74 69.24) (290.98 359.02 83. In 2010. From 2006 to 2010.65 billion.3% Source: ITC Trademap  At the moment. Philippine exports to Brazil have grown by 13%.5 B.72 221.77 (8.53 Imports from Brazil 249.41 75.BRAZIL TRADE RELATIONS A.648.11 339. India & China) .

25 17.77 35. frozen Glutamic acids & its salts Fowls (gallus domesticus).20 4. nes & meslin Tobacco unmanufactured partly or wholly stemmed or stripped Bovine cuts. digital (excluding cards) Computer input/outputs with/without storage Static converters: UPS (uninterrupted power supplies) or no-break equipment New pneumatic tires.30 Source: ITC Trademap 2010 TOP PHILIPPINE IMPORTS FROM BRAZIL Products TOTAL 1 2 3 4 5 6 7 8 9 10 Copper ores & concentrate Wheat. live except pure-bred breeding Raw sugar.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.77 6.76 32.95 3.84 3. radio telegraphy incorporating reception apparatus Coconuts.00 21.41 11. crawler type) Imports (US$ Million) 207.61 20.31 3.71 2.29 4.09 7.95 4.69 9. active Spectacle lenses of other materials other than glass Transmission apparatus for radio telephony.37 10.35 3. dessicated Exports (US$ Million) 131. station wagons & racing cars Motor vehicles parts.88 10.02 2. cane Bulldozers & angledozers.00 17.58 Source: ITC Trademap 47 .74 3. not exceeding 6% fat Bovine.88 3. cuts & offal.78 8.55 2.99 9.29 % Share 100.33 8.84 8.65 7.84 25.96 5. boneless.90 3. of rubber for motor cars incl.21 15. nes Electronic micro-assemblies made from discrete.37 3.47 27. frozen Milk not concentrated & unsweetened exceeding 1%.81 % Share 100.66 5.61 5.18 19.29 1.44 18.

3% 13% China’s Imports from PHL (2010) in US$ Thousand 5.54 Balance of Trade 758.3% of the world’s total imports.50 -3 Imports from China 3.394.232.600 10.933.199.09 7.749.39 4.76 10. Philippine exports to China were valued at US$ 5.504 Share of PHL to China's Total Imports (2010) 1.90 4.27 1.701.627. PHILIPPINES . But China remains as an important Philippine market as exports to China represent 11. accounting for only 1.561. PHILIPPINES – CHINA TRADE RELATIONS A.27 6.CHINA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 8. From 2006-2010.94 Exports to China 4.92 5.PEDP 2011-2013 for LIMITED CIRCULATION only C.39 4.1% Source: ITC Trademap  China is one of the fastest-growing economies in the world.2% of China’s total imports from the world for 2010.41 0.060.05 9.479 China’s Growth Share of in China’s World Imports Imports (2006(2010) 2010) 9.10 (1. imports of China have grown by 13%. accounting for 9.47) 767.030.3 Source: The World Factbook 2011 B. GENERAL TRADE RELATIONS China’s World Ranking as Importer (2010) 2 China’s Imports from the World (2010) in US$ Thousand 1.516.60 48 . Philippines exports to China have fallen by -3% from 2006-2010.1% of the country’s total exports.4 trillion.497.982.86 5.469.635.19 2.90 4.66 5.32 10.2% Growth of PHL Exports (20062010) -3 Share of China to Total PHL Exports (2010) 11. Its total imports amounts to US$ 1.994. ECONOMIC INDICATORS GDP PPP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 10. In contract.126.869. ranking as the 2nd biggest importer in 2010.70 billion.  C.97 908.701.933.09 4.

13 322.31 billion (9. oils and distillation products. and Mineral fuels. etc Electrical. Of which.53 3. slag and ash. nuclear reactors.70 billion in 2010 making China as the fourth largest export market.49 5. and Singapore).93 billion in 2009 to US$5. electronic equipment Machinery.79 1. Iron and steel products. tramway Optical.08 92.12 2.02 32.933.91 98.39 190. China moved to fourth slot as the Philippine’s top trading partner (next to Japan.62 64. Major imports consisted of Electrical.15 912.00 25.62 1.33 42.03 236. etc Plastics and articles thereof Animal. On the other hand. Ores.17 128.97 Electrical. and Plastics and articles thereof. electronic equipment Ores.32 2. distillation products. slag and ash Copper and articles thereof Mineral fuels. nuclear reactors.47 158. Bilateral trade between the Philippines and China amounted to US$10.31 1.61 125. boilers. electronic equipment. etc apparatus Source: ITC Trademap 5. oils.08 265. photo.65 4.50 2.34 113.00 43.74 2010 TOP PHILIPPINE IMPORTS FROM CHINA Products TOTAL 1 2 3 4 5 6 7 8 9 10 Imports (US$ Million) % Share 4.61% from US$2.21 1.21 3. the US.13 0. Mineral fuels. 2010 TOP PHILIPPINE EXPORTS TO CHINA Products TOTAL 1 2 3 4 5 6 7 8 9 10 Exports (US$ Million) % Share  Machinery.08 100. isotopes Source: ITC Trademap 49 .242. etc Iron and steel Mineral fuels. nuclear reactors and boilers. boilers.37 4. cleavage products. Copper products. precious metal compound.PEDP 2011-2013 for LIMITED CIRCULATION only  In 2010.452.34 2.90 1.701.17 154. etc Plastics and articles thereof Fertilizers Organic chemicals Vehicles other than railway. distillation products. Electrical and electronic equipment. exports to China went up by 94.72 1. oils.71% of the Philippines total external trade) in 2010.60 2.13 114. vegetable fats and oils. oils. etc Organic chemicals Vehicles other than railway. Machinery.. tramway Articles of iron or steel Inorganic chemicals.831. distillation products. China ranked as the Philippines’ fourth largest supplier of imports in 2010.15 3.18 18.12 5.29 100. Top Philippines exports to China in 2010 consisted of Machinery.87 97.01 223. technical. medical.

271 3.97% Share of EU to Total PHL Exports (2010) 14.412 (3.284 13. EU is the largest importer in the world. Philippine exports to the EU for 2010 were valued at US$ 7.41% Source: ITC Trademap  As a trading bloc.9% Growth of EU Imports (20092010) -23.141 2006 2007 2008 2009 2010 Ave Growth Rate% 2006-2010 Source: ITC Trademap.592 8. However.441 Share of PHL to EU's Total Imports (2010) 0.765 5.754 2. PHILIPPINES – EU BILATERAL TRADE RELATIONS BILATERAL MERCHANDISE TRADE Value in US$ Million YEAR TOTAL TRADE PH EXPORTS TO THE EU 8. total EU imports declined by 23%.  C.466 5.14% Growth of PHL Exports to EU (20092010) -6.967 7.07 32.0% EU Imports from PHL (2010) in US$ Thousand 7.737 8.085 13.493 4.97% for the period 2009-2010.700 1. PHILIPPINES – EUROPEAN UNION TRADE RELATIONS A.271 4. in 20092010. accounting for 35% of total world imports.412. ECONOMIC INDICATORS GDP(US$ Trillion) GDP Per Capita (US$) GDP Growth Rate (%) Source: World Factbook 2011 (2010) : : : 16. Accounting for 0. Philippine exports to the EU declined 6.542 4.008 12.732.03) 50 .41% of the Philippines’ total exports to the world.24 trillion.8 B.425 3.14% of EU’s total imports from the world.96) PH IMPORTS FROM THE EU 4.339 EU’s Share in World Imports (2010) 34. In 2010.509 11.240.099 3. This represents 14. 13.Philippine Export Development Plan 2011-2013 D.72 BALANCE OF TRADE 4.519 7.41 billion. the EU’s imports amounted to US$ 5. GENERAL TRADE INDICATORS EU Imports from the World (2010) in US$ Thousand 5.683 (1.

grew 4.229 billion. and Finland.597 2. electric apparatus for line telephony. Imports.043 % Share 100. Balance of trade continues to be in favor of the Philippines.72%.00 14. caused exports to shrink 3.96% on the average during the same period.428. Top 10 PH exports to EU in 2010 include electronic integrated circuits and microassemblies. in turn.43 billion. Austria.Philippine Export Development Plan 2011-2013  Total bilateral trade with the EU posted a negative average growth of 1.382 347.878 413. and Spain. parts and accessories of computers/office machines. France.323 394.03% in the last five years (2006-2010).     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. the UK. airplanes) and spacecraft (satellites). Top 10 imports from the EU include electronic ICs.41% of total PH exports to the world of $51. the UK.85 32. PH exports to the EU in 2010 represent 14. Belgium. and vaccines/toxins/micro-organism cultures. Worldwide economic slowdown particularly affected majority of eurozone economies beginning 2009 which.703 7. plates) of iron and steel. semiconductor devices.71 4. parts and accessories of computers. EU imports account for 7. the Netherlands. Belgium.77 5.33% of PH imports from the world of $58. the Netherlands. Spain.68 51 . however. aircraft (helicopters.505. Data Source: ITC Trademap. medicament mixtures. angles. structures (rods.58 5. Top EU suppliers are Germany. motor vehicle parts and accessories.412. Ireland. coconut oil (copra).41 35. Italy. Top EU export markets are Germany.431. Italy.441 2. automatic data processing machines. France.962 349.33 4.

08 0.241 13.422 2.14 0.04 0.42 0.14 1.517 2.02 52 .985 31.51 1.757 10.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.26 0.556 112.558 6.506 12.577 1.17 0.12 0.03 0.02 0.156 1.06 0.492 2.362 2.834 38.03 0.13 1.175 84.403 8.92 0.52 0.539 37.73 1.150 4.673 77.51 0.380 19. 158.189 128.03 0.067 67.18 0.

21 7.06 0.885 145.31 0.281 410 163 27 % Share 100.99 6.17 3.497 105.228.11 0.00 7.047 26.11 0.212 298.826 4.318 1. RANK SUPPLIERS TOTAL PH IMPORTS FROM THE WORLD TOTAL PH IMPORTS FROM THE EU Value 58.634 1.03 0.903 128.01 2.344 43.284 1.Philippine Export Development Plan 2011-2013 PHILIPPINE IMPORTS FROM INDIVIDUAL EU MEMBER-STATES January – December 2010 Value in US$ Thousand Source: ITC Trademap.36 5.270.22 0.61 27.68 16.433 321.28 4.588 4.41 4.161 177.00 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 .03 0.624 4.53 7.01 0.05 0.61 0.11 0.42 3.317 9.182.608 188.262 692.550 2.00 0.47 1.011 13.729 303.716 271.70 2.562 2.01 0.10 6.526 4.503 115.521 225.

91 4. TOTAL 1 Electronic integrated circuits & microassemblies 2 Aircraft (helicopter.238 894 614 438 319 313 264 226 179 122 %Share 100.412 2. static converter (ex.00 30. etc. angle.00 26.28 5.42 1. micro-organism-cultures 9 Food preparations 10 Wheat and meslin Source: ITC Trademap 2010 EXPORTS (US$ Million) 4.59 1.19 12.06 3.65 2010 TOP PHILIPPINE IMPORTS FROM THE EU Products Source: ITC Trademap. photograph flashlight apparatus 8 Electric transformers. rectifiers) 9 Aircraft parts 10 Prepared/preserved fish & caviar Source: ITC Trademap.59 1.56 3. incl. plates) of iron & steel 8 Vaccines.119 344 259 131 103 86 83 68 68 62 %Share 100. optical reader.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.22 3.271 1.45 54 . 2010 EXPORTS (US$ Million) 7.41 2.05 6. toxins. spacecraft (satellites 3 Medicament mixtures 4 Electric apparatus for line telephony.07 2. 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. airplanes).06 8.05 2.20 8.94 1.30 4.01 1. current line system 5 Parts & accessories of computers & office machines 6 Machines & mechanical appliances 7 Structures (rods.

400 8. Philippine exports account for just 0. accounting for1.68 735.13 243.  C.290.32 565.77) (365.29 billion.676 Growth of India’s Imports (20062010) 15% Total Imports from PHL to India (2010) in US$ Thousand 409.8% of total Philippine trade to the world. India ranked 15th among the top trading partners of the Philippines.2% of India’s total imports from the world in 2010. GENERAL TRADE INDICATORS India’s World Ranking as Importer (2010 17 India’s Imports from the World (2010) in US$ Thousand 220.52 654.91) Source: ITC Trademap  In 2010.Philippine Export Development Plan 2011-2013 E. Valued at US$ 409.2% Growth of PHL Exports to India (20062010) 25% India’s Share in World Imports (2010) 1. ECONOMIC INDICATORS GDP (US$Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 4.58 808. PHILIPPINES – INDIA TRADE RELATIONS A.07% Balance of Trade (304.5% Share of India to Total PHL Exports (2010) 0. PHILIPPINES – INDIA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 20062010 Total Trade 519.35 200.32% from US$ 120. From 2006 to 2010. one of the world’s emerging economies.84 25. representing 0.13 million in 2006 to 55 .45) (155.75 6. Total bilateral trade was registered at US 975.69 975. ranks as the 17th biggest importer in the world for 2010.5% of total world imports.59 11.32% Imports from India 425.60 million.845 Share of PHL to India's Total Imports (2010) 0. While India currently represents only 0. Total imports amount to US$ 220.50 702.82% Exports to India 120.3 Source: The World Factbook .97 193.55) (460. Exports increased by 25. India’s imports have increased by15%.31 409.88) (270.84 million.046 3.2011 B.8% Source: ITC Trademap  India. exports to India have grown by 25% from 2006-2010.8% of the country’s total exports.29 523.01 514.

01 million to US$ 565.07 2.14 1.Philippine Export Development Plan 2011-2013 US$ 409.650 100.13 5. parts and accessories of the motor vehicles and computer data storage units. Major imports included boneless meat of bovine animals. coated alum-zinc alloy Ammonium sulphate Source: ITC Trademap 409.481 8.023 21. in rolls or sheets Fertilizers containing nitrogen.67 8.80 2.920 16.  Top exports included the following products: integrated circuits.87 56 . digital Motor vehicle parts nes Computer data storage units Transmissions for motor vehicles Sanitary articles of paper Newsprint.083 34.30 5.62 4. 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.00 34.89 1.845 142.84 million in 2010.761 7.759 7. while imports grew at 6.013 20. whether or not pulverised but not agglomerated Flat rolled .03 4. motorcycles and cycles fitted with an auxiliary motor.601 18. phosphorus & potassium in packs Coal .07% from US$ 425.76 million during the same period. and medicaments.696 11.

475 39.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.126 18.756 106. whether or not ground or pellet Tobacco.44 1.969 100.30 1. frozen Motorcycles with other than a reciprocating piston engine Medicaments nes.134 7.00 6 7 8 9 10 13.694 8.382 28. unmanufactured. in dosage Motorcycle parts nes Transmission apparatus.999 9.380 2.96 4.30 57 .82 6.37 2.71 1.404 12.409 16.00 18.25 3.97 3. 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.for radio telephony incorporating reception apparatus Soya-bean oil-cake & other solid residues.

44 0. From 2006-2010.50 Exports to Japan 7.12 5.567 4.71 6.21 7.52 14.14% of Japan’s total imports from the world.59 0.22 7. This represents 15.84% from 2006-2010.2% Source: ITC Trademap  As an industrialized country.827. This accounts for 4.6% of total world imports.30 -3. GENERAL TRADE INDICATORS Japan’s World Ranking as Importer (2010) 4 Japan’s Total Japan’s Growth Imports Imports Share of from the from PHL in Japan’s World to Japan World Imports (2010) (2010) Imports (2006in US$ in US$ (2010) 2010) Thousand Thousand 692.84 Imports from Japan 7.84% Share of Japan to Total PHL Exports (2010) 15.30 7.13 -2.76 7.83 billion.2% of the Philippine’s total export and 1. Philippine exports to Japan were valued at US$7.68 7.9 Source: The World Factbook July 5. PHILIPPINES-JAPAN BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Billion Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Total Trade 15. For 2010.Philippine Export Development Plan 2011-2013 F.61% 2% 7.09 0. PHILIPPINES .62 billion.46 34.97 15. 2011 B. Philippine exports to Japan have declined by 1.  C.92 7. imports by Japan have grown by 2%. Japan ranks as the 4th biggest importers in the world for 2010.620.83 -1.498 Share of PHL to Japan's Total Imports (2010) 1.60 14.83 11.000 3.53 Source: ITC Trademap 58 .JAPAN TRADE RELATIONS A.13% Growth of PHL Exports to Japan (20062010) -1. with total imports amounting to US$ 692.24 0.19 Balance of Trade 0. ECONOMIC INDICATORS GDP(US$Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 5.

56 237. Top imports from Japan were parts and accessories parts and accessories of automatic data processing machines and units thereof (17.63%). builder’s joinery and carpentry of wood (12.92 Billion in 2006 to US$7.aircraft etc Parts & accessories of automatic data processing machines & units thereof Sulphides of metals nes.80 165.30Billion in 2010 and imports from Japan in 2010 accounted for 12. with/without storage Builder's joinery and carpentry of wood nes Ignition wiring sets & other wiring sets used in vehicles/. electronic integrated circuits.00 17.78 5.43 289.30 5.41 3. Major exports to Japan in 2010 were computer input/outputs.58 167.83 Billion in 2010.33% share of the total Philippine imports.16 172.70%). analogue (5.56%) and parts of machines and mechanical appliances nes having individual functions (2.14 2.67%).33% of total Philippine imports from the world. parts and accessories of automatic data processing machines and units thereof (5.30 Billion accounting for 12. The highest level of exports was in 2006.41%) and sulphides of metals nes.68 Billion in 2006 to US$7. polysulphides of metals Static converters.84 percent.70 3.78%). with an average growth rate of -1.64 452.63 % Share 100. polysulphides of metals (3.20 2. A positive balance of trade amounting to US$530 million was achieved in 2010. parts of electronic integrated circuits and micro assemblies (7.25 12.22 percent of total Philippine exports to the world.30%).91 183. fresh or dried Precious metal ores and concentrates nes Exports (US$ Million) 7. Philippine exports to Japan in 2010 accounted for 15. with or without storage (17. ignition wiring set and other wiring sets used in vehicles/aircraft (5.Philippine Export Development Plan 2011-2013   Japan was the Philippines’ leading export market and import source in 2010. Imports from Japan decreased from US$7. monolithic.12       1 2 3 4 5 6 7 8 9 10 Source: ITC Trademap 59 .09 423.49 1.350.827. 2010 TOP PHILIPPINE EXPORTS TO JAPAN Rank Products TOTAL Computer input/outputs.04 2. Exports of Philippine products to Japan decreased from US$7. gold in other semi-manufactured form non-monetary including gold plated with platinum (3.41%).25%). Imports from Japan in 2010 amounted to US$7.34 2. nes Motor vehicle parts nes Indicator panels incorporating liquid crystal device/light emitting diode Bananas including plantains.39%).37 962.

39 7.40 152.Philippine Export Development Plan 2011-2013 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.67 560.02 1.63 192.00 17.90 149.56 259.65 131. monolithic.nes Sulphuric acid. 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 1.29 3.75 1. oleum Semiconductor devices.54 5.09 2.80 2.41 395.80 60 .92 147.39 2.69 2.000 V.304.05 2.33 % Share 100.270.14 156. nes Automobiles w reciprocating piston engine displacing > 1500 cc to 3000 cc Motor vehicle parts nes Source: ITC Trademap Exports (US$ Million) 7.

51 26.09 34.38 Balance of Trade (194.80 Exports to Russia 23. In 2010.55 144. ECONOMIC INDICATORS GDP (US$ TRILLION) GDP Per Capital (US$) GDP Growth Rates (%) : : : (2010) 2.41 115. with total imports amounting to US$ 217. representing 0.53 25. This accounts for 1.53 million.36) (224. Philippine exports to Russia have grown by 13%.8 Source : The World Factbook 2011 B.88 33.27 466.41 billion.53 12.Philippine Export Development Plan 2011-2013 G. From 2006-2010.415. Philippine exports to Russia were valued at US$ 34.229 15.07% of the country’s total exports.  C.43 178.2 302.98) 61 .35 501. Growth Rate 2006-2010 Total Trade 241.92 39.51 Imports from Russia 218.527 Share of PHL to Russia’s Total Imports (2009) 0.94 141.67) (110.07% Source: ITC Trademap  Viewed as one of the emerging economies in the world.18) (431. Russia ranks as the 18th biggest importer for 2010.28 263. PHILIPPINES – RUSSIA TRADE RELATIONS A. Imports of Russia have grown by 8% from 2006-2010.900 3. GENERAL TRADE INDICATORS Russia’s World Ranking as Importer (2010) 18 Russia’s Import from the World (2010) in US$ Thousand 217.099 Russia’s Share in world Imports (2010) 1. PHILIPPINES – RUSSIA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Ave.88) (89.4% Growth of Russia’s Imports (20062010) 8% Russia’s Imports from PHL (2010) in US$ Thousand 34.04 24.4% of total world imports.02% Growth of PHL Exports to Russia (20062010) 13% Share of Russia to Total PHL Exports (2010) 0.

Top imports are crude petroleum oils. carrageenan. 34.31 1.99 3. tobacco refuse Women's blouses & shirts. animal black Coconut (copra). likewise imports posted a positive average 26.Philippine Export Development Plan 2011-2013  Trade with Russia continues to be sharply skewed in Russia’s favor. copper and printed materials. iron and steel.38 growth in the same period. cereals. articles of rubber.27 3. products of iron and non-alloy steel.07 2. Exports posted a positive average 12.00 14. inorganic chemical. wheat flour.51% growth in the last five years (2006-2010).67 9 1.08 9.12 3. wheat and meslin.12 3. cashew nuts & coconuts Tobacco unmanufactured. fertilizers. deodorants etc. knitted or crocheted Cigarette lighters & other lighters Activated carbon.14 1.53 4.palm kernel/babassu oil & their fractions Preserved fruits nes Personal toilet preparations shaving preparations.89 7. activated natural mineral products. personal care products. garments.19 %Share 6 7 8 1.89 4.15 14. organic chemicals.79 3.48 100.26 10 Electric accumulator Source: ITC Trademap 2011 62 .04 8.30 3. and banana chips. activated carbon. tobacco. Top PH exports for 2010 were desiccated coconut. bars and rods. electric accumulator.38 1. with the trade balance ballooning to negative $432 million in 2010 . lighters.86 3. 2010 TOP PHILIPPINE EXPORTS TO RUSSIA   2010 Exports Products (US$ Million) TOTAL PH EXPORTS TO RUSSIA 1 2 3 4 5 Vegetable saps & extracts Brazil nuts. mineral fuels. fertilizers.

59 1.47 2.25 2.51 342.30 46.72 100. rods and profiles Source: ITC Trademap 2011 63 .74 0.24 1.42 0.06 8.48 0.00 73. in irregular wound coils.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.31 3. of iron or non-alloy steel Wheat and meslin Mineral or chemical fertilizers Mineral or chemical fertilizers.37 10. nitrogenous Flat-rolled products of iron /non alloy Electronic integrated circuits and microassemblies Synthetic filam yarn.41 5.34 26.86 5.48 0. not put up 466.02 %Share 3 4 5 6 7 8 9 27.30 10 Copper bars.94 1.78 0.

7% Source: ITC Trademap    As the largest importer in the world for 2010.400 2.275. Exports to USA declined by 5. US imports registered a negative growth of 2% from 2006 to 2010.87) Balance of Trade (1.01% from $8. USA was the second single country export market of Philippine exports next to Japan. PHILIPPINES – UNITED STATES OF AMERICA TRADE RELATIONS A.4% of total US imports from the world.568. Imports also decreased by 9.04) 486.488.32 1.966.46 (9.70 billion in 2006 to $7.1% of total world imports.292.7% of the Philippine’s total exports but only accounts 0. ECONOMIC INDICATORS GDP(US$ Trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 14.738.40 8.57 billion.34 7. PHILIPPINES –UNITED STATES BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 17.954.21 6.74 15.115.86 billion.396.797.34) Exports to US 8.72 47.750 US Share in World Imports (2010) 13.716.56 12.568.12 5.4% Growth of PHL Exports to US (20062010) -5% US World Ranking as Importer (2010) 1 Share of US to Total PHL Exports (2010) 14.496.8 Source: The World Factbook 2011 B. GENERAL TRADE INDICATORS Total US Imports from the World (2010) in US$ Thousand 1. This comprises 14. Philippine exports to the US have declined by 5% from 2006-2010.01) Imports from US 8.138 Share of PHL to US Total Imports (2010) 0.32 16.57 billion in 2010. 64 .1% Growth of US Import s (20062010) -2% Total Imports from PHL to US (2010) in US$ Thousand 7.70 billion in 2006 to $6. C.Philippine Export Development Plan 2011-2013 H.601.216.87% from $8.97 trillion.308.89 1. Moreover.64 8.698. US total imports amounted to US$ 1. Total bilateral trade was valued at $13.31 13.68  In 2010.697.29 billion in 2010.10 7. This accounts 13. Philippine exports to the US for 2010 were valued at US$ 7.60 (7.06 478.860.14 (5.44 6.68 8.285.

34 4.568.76 4.292. monolithic.284.41 5.19 5.43 billion in 2008 to $2.57 260. 2010 TOP PHILIPPINE EXPORTS TO USA Products TOTAL 1 2 3 4 5 6 7 8 9 Portable digital computers Computer data storage units Electronic microassemblies made from discrete.25 1.44 3.12 1. aircraft Static converters Transmission apparatus.36 4.11 468.01 3. digital Milk powder not exceeding 1.71 70.84 4. for radiotelegraph incorporating reception apparatus Computer input/outputs with/without storage Electrical apparatus for switching electrical circuits.95 6.16 % Share 100.00 26.82 213.76 404.48 3.10 141. analogue Parts of electronic integrated circuits and microassemblies Parts and accessories of automatic data processing machines and units Wheat and meslin Aircraft of an unladen weight exceeding 15.21 2.07 4.75 20.000kg Soya-bean oil-cake Monolithic integrated circuits.44 337.01 360.96 billion in 2009 due to the US financial crisis that started in 2008. not exceed 1.14 980.84 1.16 1.683.5 fat Machines and mechanical appliances Imports (US$ Million) 6.74 245.69 297.26 70.46 1.11 Machines and appliances for testing the mechanical 10 properties of metal Source: ITC Trademap 65 .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.42 202.000 v Photographic other than cinematographic cameras Exports (US$ Million) 7.17 308.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$3.37 303.53 115.93 3.00 12.39 3.47 281. active Ignition wiring sets & other sets used in vehicles.40 366.17 % Share 100.

7% of the country’s total exports. 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.AUSTRALIA TRADE RELATIONS A. From 2006-2010.Philippine Export Development Plan 2011-2013 I.153 1.081 1.13) (11.  C. representing 0.7% Source: ITC Trademap Australia ranks as the 19th biggest importer in the world for 2010. PHILIPPINES .2% Growth Share of of PHL Australia Exports to Total to PHL Australia Exports (2006(2010) 2010) -12% 0.660 8% Australia Imports from PHL (2010) in US$ Thousand 348.000 2.428 1.4 41.74 billion. Philippines exports to Australia were valued at US$ 349 million.74) 6.3% 188. PHILIPPINES – AUSTRALIA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Million Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 1.7 B. with total imports amounting to US$188.3% of total world imports. ECONOMIC INDICATORS GDP (US$ Billion) GDP Per Capita (US$) GDP Growth Rate (%) Source: The World Factbook 2011 (2010) : : : 882. Philippine exports to Australia have declined by 12%. This accounts for 1.62 66 .289 1.770 Share of PHL to Australia Total Imports (2010) 0. Imports of Australia have grown by 8% from 2006-2010. In 2010.740.251 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.

50 4. bottles. roasted Medicaments.45 21 18 18 16 10 9 9 7 6.00 25.16 5.5% fat Petroleum oils and oils obtained from bituminous minerals.11 Source: ITC Trademap 67 . crude Wheat and meslin Anhydrous ammonia Titanium pigments and preps. for a voltage not exceeding 80 V.66 2.22 2. jars. >80% titanium oxide Salt (including table salt & denatured salt) pure sodium chloride & sea water Malt. aircraft Nickel ores and concentrates Static converters. Carboys.22 2. in dosage Imports (US$ Million) 902 230 42 35 31 24 24 24 20 20 19 % Share 100.16 4. coin or disc-operated. phials and other containers Electric conductors.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. frozen Milk powder not exceeding 1. dessicated Light petroleum distillates Games. pots.88 3.60 7.66 2.66 2.44 2. Coconuts. other than bowling alley equipment Exports (US$ Million) 349 37 26 % Share 100.01 5.00 10.58 2.66 3.87 2. flasks.01 Source: ITC Trademap 2010 TOP PHILIPPINE IMPORTS FROM AUSTRALIA Products TOTAL 1 2 3 4 5 6 7 8 9 10 Copper ores and concentrates Bovine cuts boneless.58 2.58 2.

In 2010.326 426. From 2006-2010. representing only 0. PHILIPPINES – NEW ZEALAND BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ ‘000 Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 341.Philippine Export Development Plan 2011-2013 J.848 1% 32.16 billion.45 Balance of Trade (235. Philippines exports to New Zealand were valued at US$ 32.701 Share of PHL to New Zealand's Total Imports (2010) 0. PHILIPPINES – NEW ZEALAND TRADE RELATIONS A.308 28. ECONOMIC INDICATORS GDP (US$ billion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 117.093 427.040 459. This accounts for 0.930 318.558 6.2% 30.5 Source: The World Factbook 2011 B.1% of the country’s total exports. with total imports amounting to US$30.433) (257.238 347.70 million.11% Growth of PHL Exports to New Zealand (20062010) -21% Share of New Zealand to Total PHL Exports (2010) 0. Philippine exports to New Zealand have declined by 21%.2% of total world imports.939) (378.57 Exports to New Zealand 53.157.247 477.612) (393. Imports of New Zealand have grown by 1% from 2006-2010.171 114.714 32.96) Imports from New Zealand 288.857) 68 .154 49.700 1.259 2.GENERAL TRADE INDICATORS New Zealand’s World Ranking as Importer (2010) 56 New New Zealand’s New Growth Zealand’s Imports Zealand’s of New Imports from the Share in Zealand’s from PHL World World Imports (2010) (2010) Imports (2006in US$ in US$ (2010) 2010) Thousand Thousand 0.1% Source: ITC Trademap  New Zealand ranks as the 56th importer for 2010.701 (20.775 486.604 372.8 27.  C.622) (289.

33 Source: ITC Trademap 69 .494 10. fresh or dried Surface-active preparations. other than cinematographic cameras Sacks. prepared .68 3 4 5 6 7 8 9 2.92 894 858 2.11 1.701 7. bags.73 2. dessicated Jams. fruit jellies.64 4.325 % Share 100. derived from vegetable products Coconuts. spirited or not Exports (US$ ‘000) 32.00 22.36 10 761 2. sweetened or unsweetened Pineapples.344 6. of strip plastic material Mucilages & thickeners.Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE EXPORTS TO NEW ZEALAND Products TOTAL 1 2 Bananas including plantains. washing and cleaning preparations Pineapples or with prepared or preserved.171 1.sugared. sugared.341 955 4. modified or not.10 2. sweetened. fruit/nut purée & paste.40 3.62 772 2. fresh or dried Lead-acid electric accumulators of a kind used for starting piston engines Photographic. packing.

5% fat 2 Fats and oils derived from milk 3 Buttermilk.800 15. unbleached.44 2.91 12.901 14.60 3.5% fat 1 Milk and cream powder unsweetened exceeding 1. not grated or powdered 9 Butter 10 Source: ITC Trademap Imports (US$ ‘000) 426.04 1.89 70 .927 11.starch/milk for infant use.Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE IMPORTS FROM NEW ZEALAND Products TOTAL Milk powder not exceeding 1.60 10.857 53.61 29.00 28.50 2.106 5. Kraftliner.806 6.041 2. frozen 7 Prep of cereals.558 121. in rolls. put up for retail sale 8 Cheese processed.686 8. curdled milk & cream. flour. uncoated 6 Bovine cuts boneless.99 23. kephir & fermented or acid milk & cream 4 Milk not concentrated & unsweetened exceeding 1% not exceeding 6% fat 5 Paper.42 67.212 % Share 100.388 8.

064 35.174 33. Growth Rate (%) 2006-2010 TOTAL TRADE 101.541.2 Source : The World Factbook 2011.949 26.11 EXPORTS 78.739 58.647 38. Nevertheless. Turkey is emerging from the global crisis in relatively good shape.179 57. Imports and exports are on the rise.03% -12 % 0.100 120.279 55. However.326) 2.03%. 71 .74 BALANCE OF TRADE 55. Turkey continues to rely on the EU as destination of 45% of its exports.  1.885 0.79) IMPORTS 23.   C. GENERAL TRADE INDICATORS Turkey’s World Ranking as Importer (2010) Turkey’s Import from the World (2010) in US$ Thousand Turkey’s Share in world Imports (2010) Growth of Turkey’s Imports (20062010) Turkey’s Imports from PHL (2010) in US$ Thousand Share of PHL to Turkey’s Total Imports (2009) Growth of PHL Exports to Turkey (20062010) Share of Turkey to Total PHL Exports (2010) 20 185.300 8.775 108.Philippine Export Development Plan 2011-2013 K.936 Source: ITC Trademap 2010.834 1. B.2% 4% 61.5 12.713 118. but the Philippines’ share in Turkey’s annual imports is only around 0.12% Turkey’s push to qualify as an EU candidate encouraged the country to undertake major reforms to strengthen its democracy and economy.037 Source: ITC Trademap. ECONOMIC INDICATORS GDP (US$ BILLION) GDP PerCapital (US$) GDP Growth Rates (%) : : : (2010) 960.995 (18.155 7. Turkey is the 20th importer in the world. PHILIPPINES – TURKEY BILATERAL TRADE BILATERAL MECHANDISE TRADE Value in US$’000 YEAR 2006 2007 2008 2009 2010 Ave.902 61. growing domestic consumption contributed to the 4% average growth in imports in the last five years (2006-2010).885 (11. PHILIPPINES – TURKEY TRADE RELATIONS A. which makes it vulnerable to the effects of the euro crisis.711 73.353 86.434 63.

082 2. electric transformers/static converters. knitted/crocheted fabrics.144 5. parts and accessories of motor vehicles.269 5. iron and steel stoves/ranges/grills.83 9. not put up for retail 10 Parts of TV reception apparatus Source: ITC Trademap. processed coconut.98 3.21 4.Philippine Export Development Plan 2011-2013  Total 2010 figures.992 7. and rubber pneumatic tires. medicament mixtures.556 5.00 12. electronic integrated circuits. expanding 82.98 8. Top exports include flat-rolled products of iron.91 12.885 7.15 1 2 3 4 5 6 7 Electronic ICs & micro assemblies New pneumatic tires. However. 2010 TOP PHILIPPINE EXPORTS TO TURKEY   Products TOTAL Flat rolled products of iron & steel. and other firearms and similar devices.741 2. Top imports include wheat flour.51 8.460 1. coconut oil (crude). yarn of artificial fiber.320 6. unmanufactured tobacco. of rubber 8 9 Yarn of synthetic fiber.89 11.978 7. lifting/handling/loading machinery. show marked recovery as exports nearly doubled. tv cameras/transmission apparatus. 72 . exports in the last five years (2006-2010) contracted 11.98 8.5% over previous years’ total.947 %Share 100.43 3.8% on the average. transmission apparatus Parts & accessories of motor vehicles Coconuts processed Coconut oil (crude) Yarn of artificial fiber 2010 EXPORTS (US$’000) 61. plated/coated Television cameras.

61 1.49 12. grills.38 3.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.949 25.55 1. unfermented 1 2 3 4 5 6 7 8 9 10 2010 IMPORTS (US$’000) 58.398 6.98 2. Other firearms and similar devices Machines & mechanical appliances Fruit and vegetable juices. etc.541 916 778 762 680 671 %Share 100.637 7.32 1.29 1.14 Source: ITC Trademap.00 43. ranges. 73 .15 1.349 1.55 11.711 2. static converter Iron & steel stoves.

representing only 0.182 Share of PHL to South Korea’s Total Imports (2010) 0.73 2.83 1.989. accounting for 2.06 6.52) (1. From 2006-2010.332.8 billion in 2010. ECONOMIC INDICATORS GDP (US$ trillion) GDP Per Capita (US$) GDP Growth Rate (%) : : : (2010) 1.52% of South Korea’s total imports from the world and only 4.361 South Korea’s Share in World Imports (2010) 2.128.620.10 billion.86 4.806.52 1. Its total imports amounted to US$ 425.35 3.25 Exports to South Korea 1.20 2.160.422.18 5.18 9. 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 4.91 3.228.200 6. with a total trade volume of US$892.18 million.Philippine Export Development Plan 2011-2013 L.1 Source: The World Factbook 2011 B.098.66 Imports from South Korea 3.262.27) 74 .66) (1.8% Growth of South Korea’s Imports (20062010) 6% South Korea’s Imports from PHL (2010) in US$ Thousand 2.17) (606.52% Growth of PHL Exports to South Korea (20062010) 10 Share of South Korea to Total PHL Exports (2010) 4. Philippine exports to South Korea have grown by 10%. From 2006 to 2010. Philippines exports to South Korea were valued at US$ 2.755. PHILIPPINES – SOUTH KOREA TRADE RELATIONS A.3% of the Philippines’ total exports.228.828.228.909.8% of total world imports.187.522.  C.64 5. GENERAL TRADE INDICATORS South Korea’s World Ranking as Importer (2010) 10 South Korea’s Imports from the World (2010) in US$ Thousand 425. This figure also makes them the 7th largest exporter and 10th largest importer in the world.63 5.45 3.52 3.783.034.332.467 30.13 Balance of Trade (1. In 2010.651.04 4.403. South Korea’s imports increased by 6%.01) (1.3% Source: ITC Trademap  South Korea is an export-oriented country.

42 95.22 290.90 1.82 11.43 102.56 42.02 57.56 74.36 2.97 62. unwrought Pipe.76 472. clad plated or coated 9 10 Ethyl alcohol & other spirits Source: ITC Trademap Imports (US$ Million) 4.60 73.97 145.10 340.81 1. variable or adjustable Crude petroleum oils Automatic data processing machines.29 209.18 75 .18 638.71 5.64 90.97 47.19 2.07 1.37 2.27 13.00 40.21 45.Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE EXPORTS TO SOUTH KOREA Products TOTAL Electronic integrated circuits and micro assemblies Electrical capacitors.00 28.54 2.034.646.44 % Share 100.60 1 2 3 4 5 6 7 8 9 Oil-cake 10 Petroleum oils.79 2.84 94. not crude Source: ITC Trademap 2010 TOP PHILIPPINE IMPORTS FROM SOUTH KOREA Products TOTAL Electronic integrated circuits and micro assemblies 1 Petroleum oils.24 3.06 6.45 1.55 4.04 1.64 15.60 % Share 100. 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.79 83. optical reader Parts & accessories of computers & office machines Diodes/transistors & semiconductor devices Refined copper and copper alloys. fixed. not crude 2 Electrical capacitors.228.44 1.23 35. variable or adjustable 3 Cars (incl. chewing & snuff tobaccos Exports (US$ Million) 2. fixed.25 2.

700 2.35 Balance of Trade 10. ECONOMIC INDICATORS GDP (US$ Billion) GDP Per Capita (US$) GDP Growth Rate (%) Source: The World Factbook 2011 (2010) : : : 524 10.157 128.397 154. South Africa ranks as the 35th biggest importer in the world. PHILIPPINES – SOUTH AFRICA TRADE RELATIONS A.352 14.453 58.3% of the Philippines’ total exports.2% of South Africa total imports from the world and only 0. Africa 51. Africa's Total Imports (2010) 0. GENERAL TRADE INDICATORS S. South Africa’s imports increased by 1%. accounting for .677 164.625 8. Africa Imports from PHL (2010) in US$ Thousand 128. PHILIPPINES – SOUTH AFRICA BILATERAL TRADE BILATERAL MERCHANDISE TRADE Value in US$ Thousand Year 2006 2007 2008 2009 2010 Growth Rate (%) 2006-2010 Source: ITC Trademap Total Trade 91. Africa World Ranking as Importer (2010) 35 S.727 Share of PHL to S.998 70.647 92.448 27.53% of total world imports.53% Growth of S. Philippines exports to South Africa were valued at US$ 128.316 187.63 Exports to S.224 106.13 billion.Philippine Export Development Plan 2011-2013 M.  C.556 64.139. Its total imports amounted to US$ 80.750 62. Africa Share in World Imports (2010) 0.897 29.2% Growth of PHL Exports to S. representing only 0.3% Source: ITC Trademap  IN 2010.771 47. Africa 40. Africa Imports from the World (2010) in US$ Thousand 80.73 million.102 76 . Africa Imports (20062010) 1% S. From 2006-2010. Africa to Total PHL Exports (2010) 0. Africa (20062010) 19 Share of S. Philippine exports to South Africa have grown by 19%.8 B.560 157.004 92.282 S.159 58. In 2010.727 19 Imports from S. From 2006 to 2010.

08 1.232 1.014 14.404 5.540 1. tannins & their salts Semi-finished products of iron or nonalloy steel Ethyl alcohol & other spirits Cotton.78 13.70 2.671 9.516 2.00 34.625 20. not carded or combed Electronic integrated circuits and micro assemblies Unsaturated acyclic & cyclic monocarboxylic acid & anhydrides.optical reader Exports (US$ ‘000) 128. halides Mechnical wood pulp Imports (US$ ‘000) 58.390 7. washing & clean preparations Medicament mixtures.73 3.50 1 2 3 4 5 6 7 8 9 10 Source: ITC Trademap 2010 TOP PHILIPPINE IMPORTS FROM SOUTH AFRICA Products TOTAL Maize (corn) Flat-rolled prod of iron or non-alloy /steel.00 42. table/parlour games & auto bowling alley equipment Optical fibre.40 7. plated or coated Chemical wood pulp. of rubber Automatic data processing machines.35 4.462 4. soda or sulphate.787 2.674 2.71 5.03 1 2 3 4 5 6 7 8 9 10 Source: ITC Trademap 77 .929 % Share 100.71 2.75 4. sheets & plate of polarising materials New pneumatic tires. other than dissolving grades Vegetable tanning extracts.727 55.176 1. put in dosage Breakfast cereals & cereal bars Electric transformer. cables.806 4.29 3.31 2.26 4.350 3. clad.643 3.24 3.73 1.63 2.597 5.356 1.Philippine Export Development Plan 2011-2013 2010 TOP PHILIPPINE EXPORTS TO SOUTH AFRICA Products TOTAL Parts & access of motor vehicles Tobacco unmanufactured Organic surface-active agents.188 % Share 100.04 5.766 2.31 4. static converter Articles for funfair.085 2.74 11.

Philippine Export Development Plan 2011-2013 78 .

Philippine Export Development Plan 2011-2013 ANNEX 3: The National Export Development and Competitiveness Fund 79 .

Philippine Export Development Plan 2011-2013 80 .

the Garments and Textile Export Board (GTEB). Generally. In 2007. following the Administrative Code’s provisions on the disposition of residual corporate funds. the Philippine International Trading Corporation (PITC) and the Board of Investments (BOI. In 1 The GTEB was deactivated at the end of the sector’s quota regime in 2004. 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. The amounts necessary to promote. export manufacturing facilities of intermediate goods are largely a component of multinational. 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. the Philippine Trade Training Center (PTTC). an Export Promotion Fund managed by the EDC and DTI was established. While this arrangement was helpful at the time. the Product Development and Design Center of the Philippines (PDDCP).from supply chain components to finished goods and services of varying gross profit margins constantly affected by foreign exchange fluctuations and competitive action. implementation of this program was stalled. the BSP granted the EDC a Php 10. multi-country supply chains where Philippine participation is pre-determined by longterm supply chain strategies. the Foreign Trade Service Corps (FTSC). As contained in Section 14 of the Act. NEDA and PHILEXPORT pooled together a Php 280 million Export Promotion Fund (EPF). DBM. These are the fundamental reasons why the Export Development Act provided for promotion funding for exports. most businesses need to invest even more in order to increase their share of the market. Its residual funds were remitted to the National Treasury for draw-down by the DTI’s Garments and Textile Industry Development Office [GTIDO] under the BOI.for investment promotion). 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. “the national government shall appropriate such sums as may be necessary to the Council for export promotion and information. from 1999 to 2004 (a period covering two PEDP three-year cycles). Section 14 further provides that until funding is secured from the export promotion privatization program.Philippine Export Development Plan 2011-2013 THE NATIONAL EXPORT DEVELOPMENT AND COMPETITIVENESS FUND BACKGROUND: Funding assistance for export development is premised on business realities. DTI. The reason is that Philippine exports consist of a wide range of business activities. export promotion assistance was mainly drawn from the activities of the Bureau of Export Trade Promotion (BETP).” Because of differences with Congress pertaining to appropriations for government promotional functions affected by the EDA’s export promotion privatization program. the BSP. 81 .5 million fund. national export development is configured differently and needs government assistance in addition to private-sector market investments.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. In 2005. the EDC through the DTI shall develop an export promotion privatization program. Furthermore. the Center for International Trade Exhibitions and Missions (CITEM). Although companies that have attained critical mass can maintain and grow profits while spending significant amounts on market promotions. Every type of business has to invest in the marketplace to be able to capture shares. Meanwhile.

82 . More significantly.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. 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. Through a strengthened EDC Secretariat. the prior three years. improvements on earlier utilization mechanism shall be developed and implemented. These funds enabled Philippine exports to grow by thirty-eight percent (+38%) for the 2005-2007 PEDP period vs. 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. MANAGEMENT OF THE FUND: The EDC and DTI shall manage and deploy the fund for promotional and capacity-building assistance programs for exporters. The DBM will facilitate transfer of the initial funds from the OP to a DTI line budget item. 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.

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