EU says trade with PHL reached record highs in 2014

Trade flows between the European Union and the Philippines reached historic highs in 2014, positioning the union of 28 member-states at par with the US as the Southeast Asian country's third trading partner.

Trade in goods between the EU and the Philippines increased 16 percent last year to €12.5 billion from €10.8 billion year in 2013 and yielded the former a surplus of €1.1 billion in goods, based on data from the EU Delegation.

The EU was the second biggest source of imports to the Philippines, as the union's exports of goods to the country grew 70 percent over the last three years.

The Philippines imported electronics, chemical products, industrial equipment, transport equipment, metal products, paper products, cereals, meat, dairy as well as animal feeds while the EU mainly bought electronics, coconut oil, transport equipment, clothing and textiles, fishery products, metal products, industrial equipment and fruit products.

The latest data also show trade in services expanding 17 percent to €3.1 billion in 2014, giving the Philippines a surplus of more than €300 million in services. The trade in services was dominated by transport as well as business processing outsourcing and finance.

“The impressive trade flows are partly thanks to a strong growth of the Philippines' economy [as] supported by sound macro-economic policies as evidenced by ratings and indices upgrades, population and middle class growth, economic reforms [in] liberalising financial and other sectors and government spending on infrastructure,” the EU Delagation said.

The gross domestic product of the Philippines expanded 6.1 percent in 2014, posting the second fastest growth in Asia.

“The stronger economic recovery in the EU likewise meant an increased demand for products from the Philippines as well as a new surge of reported foreign direct investment to the Philippines,” the EU Delegation said.

The EU was the largest investment partner of the Philippines last year, in terms of foreign direct investments. The union accounted for over €800 million or 26 percent of overall flows into the country and added to the 450,000 jobs already provided by current investors.

The EU was also the fourth largest host of land-based migrant Filipinos and the largest employer of Filipino seafarers, providing the country $3.35 billion in remittances last year.

Last year further saw the EU overtake China as the fourth largest source of tourists to the Philippines, when a record number of 400,000 tourists from the union visited the country.

The European Chamber of Commerce of the Philippines has been pushing for a free trade agreement between the Philippines and the EU. The agreement will supposedly allow more European investments, trade in goods and services and tourist arrivals. —KBK, GMA News