PH-US Trade Relations
The Philippines and the United States have long enjoyed strong and robust trade relations. Total Philippines – U.S. bilateral merchandise trade has steadily increased from 2017 ($17.44B) to 2018 ($18.70B) and to 2019 ($19.64B). While the Philippines benefits from a slight trade surplus with the United States, our bilateral merchandise trade relationship, on the whole, covers a range of products including electronics, industrial materials, processed foods, and agriculture. In 2022, the United States was the Philippines’ 3rd major trading partner (out of 231), top export market (out of 211), and 5th import supplier (out of 216).
Philippines goods and services trade with the United States totaled an estimated $36.1 billion in 2022. Imports were $12.8 billion while exports reached $23.3 billion. The Philippines goods and services trade surplus with the United States was approximately $10 billion in 2022.
Key imports from the Philippines are semiconductor devices and computer peripherals, automobile parts, electric machinery, textiles and garments, wheat and animal feeds, coconut oil, and information technology/business process outsourcing services. Key U.S. exports to the Philippines are agriculture goods, machinery, cereals, raw and semi-processed materials for the manufacture of semiconductors, electronics, and transport equipment.
U.S. exports of services to Philippines were an estimated $3.5 billion in 2022, 48.6 percent ($1.2 billion) more than 2021, and 35 percent greater than 2012 levels. U.S. imports of services from Philippines were an estimated $7.1 billion in 2022, 38.7 percent ($2.0 billion) more than 2021, and 91 percent greater than 2012 levels. Leading services exports from the U.S. to Philippines were in the travel, transportation, and technical and other services sectors.
U.S. foreign direct investment (FDI) in Philippines was $6.2 billion in 2022, a 15.7 percent increase from 2021. U.S. direct investment in Philippines is led by manufacturing, professional, scientific, and technical services, and wholesale trade.
The United States and the Philippines have had a very close trade relationship for more than a hundred years. We meet regularly with the Philippines under the auspices of the 1989 bilateral Trade and Investment Framework Agreement (TIFA) to address outstanding bilateral issues and coordinate on bilateral, regional, and multilateral issues. Under the TIFA, the United States and the Philippines also have signed agreements on customs administration and trade facilitation (2010), cooperation on stopping illegal transshipments of textiles and apparel (2006), and implementation of minimum access commitments by the Philippines (1998). The two countries also have a bilateral tax treaty.
For more information: visit the Department of Trade and Industry webpage on Philippine-US bilateral trade and investment relations. You may also check the Philippine Statistics Authority for infographics on Philippine Trade.
