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Policies

To ensure the stability and to attract investors, the Philippine trade policy focuses on trade liberalisation such as tariff reduction, adherence to international standards and liberalising some business activities; and the formulation of the Philippine Export DevelopmentPlan(PEDP). PEDP aims to boost exports to US$ 27.7 billion by 1998 at an average growth rate of 19%.


Investment and industry policies are listed in the Philippines' Omnibus Investment Code of 1987 administered by the Department of Trade and Industry. Among these policies are 100% foreign ownership in selected sectors and suspension of nationality requirements for ASEAN projects.


Qualified enterprises may register with the Board of Investment (BOI) under the Omnibus Investment Code or with Philippine Export Zones Authority (PEZA) to avail of incentives. The Omnibus Investment Code gives local and foreign investors complete information on the available incentives, the alternative incentives schemes and requirements for registration of their investments.

Philippine taxes are imposed by both the national and local government units. These are tax treaties and national taxes. The Philippines has tax traties with selected countries, among them Indonesia, Malaysia, SIngapore and Thailand. Certain taxes are imposed on business transactions. These are value added tax, excise tax, percentage taxes, and documentary stamp taxes.


Opportunities

There are 12 product groups and 2 services considered as priority export sectors. The priority sectors for investment are classified into 9 areas i.e. export activities; agriculture, food and forestry-based industries; basic industries; engineering industries; infrastructure and services; health products and services; modernization and rehabilitation programs; environment conservation and protection and, research and development activities which are Science and Technology oriented.

The Center for International Trade Expositions and Missions (CITEM) is the principlal organiser of trade fairs and missions. These include Manila F.A.M.E. Market Weeks, International Trade Fairs, Outgoing Selling Missions, Incoming Trade Missions and Special Export Promotion projects.On the other hand, the Board of Investments (BOI) organizes investment missions and handle joint venture agreements.


Statistics

The total Philippine trade with ASEAN Member Countries amounted to US$ 3.4 billion with export accounting for 4.8%. Eighty percent of the exports went to Singapore and Thailand while fity percent of the imports weres sourced from Singapore. The major products exported to ASEAN include electronics, resource-based products (coconut, mineral products) while major imports were electronics, chemicals, machinery and transport equipment and petroleum products.

The total Philippine export to non-ASEAN as of August 1995 amounted to US$ 9.75 billion while the total Philippine import toalled to US$ 14.89 billion for the same period. The main export market include United States, Japan and United Kingdom while the main source of import come from Japan, United States,Saudi Arabia and Taiwan. The major export products are electronics, garments, fresh food and coconuts while the major imports were electronics, machinery and transport equipment, petroleum products and chemicals.


Directories

There are two major trade associations in the Philippines namely the Philippine Chamber of Commerce and Industry and the Philippine Exporters Foundation. Both associations maintained their own directories of their respective members. In addition, there are around 20 industry and product associations.

The Department of Trade and Industry (DTI) which is headed by an Undersecretary are tasked with trade and investment policies and promotion. DTI has developed an online computerised trade information system named "PhilTINS". It covers three major information modules on trade statistics, market matching and product-market and investment information.


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