composition of philippine trade
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composition of philippine trade

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groups of commodities.

groups of commodities.
exports and imports in the philippines

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composition of philippine trade composition of philippine trade Presentation Transcript

  • Composition of Philippine Trade
  • Introduction  Historically, the Philippines have been an important centre for commerce for centuries.  Since 1980s, the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries.
  •  Under the Aquino administration, the government plans to open up the country to more foreign investment in industries such as business processing operations, mining and tourism.
  •  On this view, the paper focuses on gathering data which relates to the composition of Philippine trade specifically the major group of commodities traded, top ten exports and imports, and the balance of trade for the period 1960-2010.
  • Major Group of Commodities Traded  Commodities are grouped as far as practicable according to the generally accepted principles based on the Philippine Standard Commodity Classification (PSCC) which follows: a. The nature of the merchandise and the materials used in its production; The processing stage - whether crude, semi-manufactured or fully manufactured Market practices and the uses of the products; The importance of the commodity in terms of world trade; and Technological changes b. c. d. e.
  • Major Group of Commodities Exported  Agro-based Product  Coconut Products  Copra, coconut oil, desiccated coconut, copra meal/cake, and others.  Sugar and Products  Centrifugal and refined, molasses, and others.  Fruits and Vegetables  Pineapple products (canned, juice, concentrates), bananas, mangoes, and others.  Other Agro-Based Products  Fish (fresh and preserved), shrimp and prawns, coffee (raw or roasted), abaca fibers, tobacco, natural rubber, ramie fibers, dried seaweeds and others.
  •  Manufactures  Electronic products  Components/Devices (Semiconductors), Electronic Data Processing, Office Equipment, Consumer Electronics, Telecommunication, Communication/Radar, Control and Instrumentation, Medical/Industrial Instrumentation, Automotive Electronics  Other Electronics  Garments, Textile Yarns/Fabrics, Footwear, Travel Goods and Handbags, Wood Manufactures, Furniture & Fixtures, Chemicals, Non-Metallic Mineral Manufactures, Machinery & Transport Equipment, Processed food and Beverages, Iron & Steel, Baby Carr., Toys, Games and sporting goods, Basketwork, Wickerwork & Other Articles of Plaiting Material
  •    Forest Product  Logs, lumber, plywood, veneer sheets, and others Mineral Products  Copper concentrates  Copper metal, gold, iron ore agglomerates, chromium ore, nickel, and others. Petroleum Products Sample data from NSO: Philippine Exports by Commodity Groups for November and December 2000 and December 1999
  • Major Group of Commodities Imported   Capital goods  Power generating and specialized machines, telecommunication equipment, aircraft, ships, boats, etc. Raw Materials and Intermediate Goods  Unprocessed raw materials  wheat, corn, rice, cotton, etc.  Semi-processed raw materials  feeding stuffs for animals, chemicals, fertilizers, etc. and  Manufactured goods  paper, textile yarn, metal products, etc.
  •    Mineral Fuel and Lubricant  Petroleum and coal, among others. Consumer Goods  Durable goods  Cars and home appliances  Non-durable goods  Agricultural products like rice, fruits and vegetables, dairy products, etc. Special transactions  Articles temporarily imported and exported, others Sample data from NSO: Philippine Imports by Commodity Groups for October and November 1997 and November 1996
  • Top Ten Exports and Imports
  • Top Ten Exports Figure 1. Top ten principal exports for 1960 (in % share)
  • Figure 2. Top ten principal exports for 1970 (in % share).
  • Figure 3. Top ten principal exports for 1980 (in % share).
  • Figure 4. Top ten principal exports for 1990 (in % share)
  • Figure 5. Top ten principal exports for 2000 (in % share)
  • Figure 6. Top ten principal exports for 2010 (in % share)
  • Top Ten Imports Figure 7. Top ten principal imports for 1960 (in % share)
  • Figure 8. Top ten principal imports for 1970 (in % share)
  • Figure 9. Top ten principal imports for 1980 (in % share)
  • Figure 10. Top ten principal imports for 1990 (in % share)
  • Figure 11. Top ten principal imports for 2000 (in % share)
  • Figure 12. Top ten principal imports for 2010 (in % share)
  • Balance of Trade
  • Table 3. Foreign trade of the Philippines and the corresponding balance of trade, 1960-2011 (value in million US$)
  • Figure 13. Balance of trade of the Philippines, 1960-2010
  •  Balance of trade is the difference between the country’s imports and exports.  In general, as shown in the table above, this means that the Philippines economy is centered more on importing goods than exporting our own products.
  • Analysis and Conclusion  During the early 1960s, imports greatly surpassed the sum of our exports. A significant increased in our imports of machinery and equipment was observed.  In 1970s, our country started to export manufactured commodities, especially garments and electronic components and the prices of some traditional exports declined.
  •  During 1980s, world market for Philippine exports declined.  In 1990, there is a small growth on export due to higher production costs, weaker world prices for Philippine exports and slowdown of the economies major trading partners (US & Japan). While there is a slow growth on the export, imports continue to rise.
  •  For year 2000 there had been an observable development in the country’s balance of trade. This improvement started in 1999 where there is a trade surplus.  Though the country was able to recover from a trade deficit on the year 1999 and 2000, our economy was not able to maintain its condition.
  •  The Philippines should strive hard to encourage more investments and strive harder to keep these investors in the country. Although the trend for some commodity groups are increasing, growth is very slow, especially when you compare it with neighboring countries.
  • References Economy Watch. (2010). Philippines Trade, Exports and Imports. Retrieved from:http://www.economywatch.com/world_economy/philippines/ export-import.html Ellorimo, R. and Cruz, A. (2013). Budget Deficit and Trade Deficit Causality in the Philippines: 1960-2010. Retrieved from: http://paedacon.files.wordpress.com/2013/10/fullpaper_ellorimo_r onl.pdf Mangabat, M. (1998). Effects of trade Liberalization on Agriculture in the Philippines: Institutional and Structural Aspects. Retrieved from: http://ageconsearch.umn.edu/bitstream/32680/1/wp980037.pdf National Statistical Coordination Board. (2013). www.nscb.gov.ph National Statistics Office. (2013). www.nso.gov.ph