by: Sarah Joson
Wednesday, June 17, 2015 |
2014 witnessed the highest trade flows between the European Union and the Philippines. This puts the union of 28 member-states in the same position with the US as Southeast Asia’s third trading partner.
A 16-percent increase in trade in goods was seen between the Philippines and the EU last year where it grew from €10.8 billion in 2013 to €12.5 billion. It also produced a surplus of €1.1 billion in goods as stated in the data collected by the EU Delegation.
The Philippines’ second biggest source of imports is the EU. Consequently, EU’s exports of goods to the country increased by 70 percent over the past three years.
Trade in services also rose by 17 percent to €3.1 billion in 2014, producing a surplus worth €300 million for the Philippines. Transport, business process outsourcing, and finance sectors dominated the services trade.
According to the EU Delegation, the strong trade flows are partially triggered by the growth of the Philippines which can be attributed to concrete macro-economic policies - proven by the ratings indices upgrades, growth within the middle class, increased government spending, and economic reforms loosening the financial and other sectors of the country.
The Delegation added that the ongoing economic recovery in the EU also signals an increased demand for products from the Philippines and more investment opportunities. EU was the Philippines’ largest investment partner in 2014 for foreign direct investments. The union contributed €800 million or 26 percent of overall flows into the country, and added to the 450,000 current jobs produced by investors.
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