Philippines-US Trade Agreements: What You Need to Know

The Philippines and the United States have a long history of economic partnership, stretching back to the American colonial period in the early 20th century. Today, both countries continue to strengthen their trade ties through various agreements and partnerships.

One of the most significant trade agreements between the Philippines and the United States is the United States-Philippines Free Trade Agreement (FTA). Negotiations for the FTA began in 2002, but the agreement was never finalized. In recent years, however, there has been renewed interest in reviving the FTA talks.

The FTA aims to eliminate tariffs and other trade barriers between the two countries, making it easier and cheaper for businesses to trade goods and services. If and when the FTA is signed, it could potentially increase the Philippines` exports to the US, particularly in the agriculture and manufacturing sectors.

In addition to the FTA, the Philippines and the US also have a number of other trade agreements and partnerships in place. These include:

– The Generalized System of Preferences (GSP) – a program that allows developing countries to export certain products to the US duty-free.

– The US-Philippines Trade and Investment Framework Agreement (TIFA) – a platform for the two countries to discuss and address trade issues.

– The US-Philippines Joint Agriculture and Rural Development Program (JARDP) – a collaboration that aims to improve the Philippine agriculture sector through knowledge-sharing and technology transfer.

Aside from these agreements, the Philippines and the US also have thriving bilateral trade relations. The US is one of the Philippines` largest trading partners, with total trade between the two countries reaching $31.9 billion in 2019.

The top exports from the Philippines to the US include electronics, apparel, and agricultural products such as bananas and pineapples. On the other hand, the US exports to the Philippines mainly consist of machinery, aircraft, and soybeans.

However, it`s important to note that trade relations between the two countries have not been without controversy. One issue that has been a point of contention is the US` inclusion of the Philippines in its list of countries with significant human trafficking problems. This has led to calls for the Philippines to improve its efforts in combating human trafficking and forced labor.

Overall, the Philippines-US trade relationship remains a crucial aspect of both countries` economies. As negotiations for the FTA continue, it remains to be seen how this agreement, as well as other partnerships, will affect trade between the two nations in the years to come.