BILATERAL TRADE INSIDER - BUDDING TRADE RELATIONS BETWEEN THE PHILIPPINES AND JAPAN
The cordial relations between the Philippines and Japan first started in the pre-colonial period, i.e., even before the 16th century. The first trade that was performed between these two nations was in Mishima ware. These are the special kind of pottery items that were exported from the Philippines (produced primarily in Tondo, Manila, and Pangasinan) to Japan in the very beginning.
The trade statistics of both nations
are also very amazing and experiencing positive growth at present due to the
strengthening of bilateral trade ties between the Philippines and Japan. In the
year 2022, the bilateral trade stood at USD 24.17 billion.
The current bilateral trade trends
between the Philippines and Japan are as follows:
BILATERAL
TRADE TRENDS BETWEEN THE PHILIPPINES & JAPAN (2018-2022) |
|||
YEAR |
PH >
JAPAN |
JAPAN >
PH |
TOTAL TRADE |
2018 |
USD 9.47 billion |
USD 11.39 billion |
USD 20.86 billion |
2019 |
USD 10.63 billion |
USD 10.74 billion |
USD 21.37 billion |
2020 |
USD 9.92 billion |
USD 8.71 billion |
USD 18.63 billion |
2021 |
USD 10.72 billion |
USD 11.83 billion |
USD 22.55 billion |
2022 |
USD 11.09 billion |
USD 13.08 billion |
USD 24.17 billion |
As we can observe from the table
above, the Philippines
Export Data consists of lower values than the values present in the Philippines
Import Data report, which means that the Philippines has been in a trade
deficit in the last 5 years except in the year 2020.
In total, bilateral trade has grown
by 15.86% in the last five years, and it is expected that this trade will rise
further in the upcoming years.
TOP 10 IMPORTS OF THE PHILIPPINES
FROM JAPAN IN THE YEAR 2022
As per the Philippines Import Data
report for the year 2022, the nation has imported more than it exported to
Japan. Based on this study, the major products that were imported by the
Philippines from Japan were:
·
Electric machines and gadgets (USD 3.84 billion)
·
Machines and mechanical appliances (USD 2.45 billion)
·
Mineral fuels and crude oil (USD 1.16 billion)
·
Light automobiles (USD 1.01 billion)
·
Iron and steel (USD 747.2 million)
·
Plastic products (USD 644.3 million)
·
Optical and precision tools (USD 329.9 million)
·
Organic chemicals (USD 302.23 million)
·
Copper items (USD 225.86 million)
·
Rubberized products (USD 153.11 million)
More than 60% of total imports made
by the Philippines were from these top 10 products only.
TOP 10 EXPORTS FROM THE PHILIPPINES
TO JAPAN IN THE YEAR 2022
Just like the Philippines imported
numerous products from Japan in the year 2022, it also exported a number of
products to Japan to fulfill the demands of the other nation too. Based on the Philippines
Export Data report, the top 10 items exported by the Philippines to Japan were:
·
Electric machines, tools, and gadgets (USD 5.16 billion)
·
Nickel and Nickel products (USD 654.8 million)
·
Fruits and nuts (USD 627.8 million)
·
Mechanical machines and appliances (USD 600.3 million)
·
Ores, slag, and ashes (USD 507.3 million)
·
Plastic products (USD 461.1 million)
·
Wooden material (USD 457.7 million)
·
Ships and boats (USD 384.9 million)
·
Photographic and medical equipment (USD 286.6 million)
·
Aluminum products (USD 227.3 million)
More than 75% of total exports made
by the Philippines to Japan in the year 2022 were done through these 10
products.
SIGNING OF JAPAN-PHILIPPINES ECONOMIC
PARTNERSHIP AGREEMENT (JPEPA)
To boost the trade relations and
import-export of goods and services, the Philippines and Japan signed a
comprehensive agreement named JPEPA which is a type of Free Trade Agreement
aimed to boost investment opportunities and various other avenues. This
agreement was proposed by the Japanese government in the year 2002 which came
into effect in the year 2004. Just as this agreement was in action, multiple
trade barriers and tariffs were removed from various product categories such as
electronics, apparel, food items, etc.
Since 2006, after the final
proceedings were passed, the trade between both nations is growing due to which
Japan has become the 2nd biggest trade partner of the Philippines.
CONCLUSION – THE FINAL VERDICT
From the above discussion, the
estimates of Tradeimex say that the bilateral trade relations between the
Philippines and Japan would rise several folds but slowly and gradually. The
values mentioned in the Philippines
Trade Data will follow a linear growth trend with Japan. Just like how
FTA gave a boost to the economies of both nations, similarly, more such
agreements would come into play in upcoming years to deliver more smooth and
easy trading experiences to marketers.
For more information about Import
Export Data and bilateral trade trends, contact us today and get your queries
resolved.
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