Trade, Investment and Financial Links
In 2011, EU-Philippines trade in goods was worth over € 9 billion, with over € 5 billion in exports from the Philippines to the EU, resulting in a € 1.1 billion trade surplus to the Philippines' advantage. The Philippines has been consistently enjoying a trade surplus vis-a-vis the EU.
The Philippines' key exports to the EU include electronics, coconut oil, transport equipment, clothing and textiles, fishery products, metal products, industrial equipment, and fruit products, while the EU's main exports are electronics, chemical products, industrial equipment, transport equipment, metal products, paper products, cereals, meat, dairy, and animal feeds.
The EU is also a major investment partner of the Philippines with an FDI stock of €7.9 billion (2010), or about 40% of total FDI stock in the Philippines. Total EU FDI flows into the Philippines have remained positive despite the economic crisis, and have been standing at €430 million in 2010 (last year of available data). On the other hand, Philippine investors have cumulatively invested some €1.7 billion in the EU as of 2010 indicating that about one third of Philippine overseas direct investment is based in the EU.
The recent purchase of Airbus planes by Philippine Airlines (PAL) is expected to have a significant impact on EU-Philippine trade figures.
The recently signed EU-Philippines Partnership and Cooperation Agreement [228 KB] is an important step that further strengthens economic ties. Both sides have also agreed to undertake preparatory work with a view to starting negotiations on a bilateral free trade agreement (FTA).
updated November 2012