Tuesday, December 8, 2015

Thailand – Philippines Bilateral Trade Relationship


Official diplomatic relations between Thailand and the Philippines were established on June 14, 1949 and it has always been characterized by harmony, dynamism, and warmth, strengthened when they became founding members of the Southeast Asian Treaty Organisation i(SEATO) in 1954 and the ASEAN in 1967.

Several bilateral agreements have since been signed on defense, investment, environment, tourism, air services, and scientific, technical, agriculture, and telecommunications exchanges. Thailand and the Philippines signed agreements on taxation, and business cooperation during a high-level Thai delegation’s visit to the Philippines.


Bilateral relations continue to be strengthened through talks and agreements on economic, security and cultural matters through their bilateral mechanisms such as the Joint Commission for Bilateral Cooperation (JCBC), the Joint Commission for Military Cooperation (JCMC), and the Joint Trade Commission (JTC).

On June 24, 1997, the capital cities of Thailand and the Philippines, Bangkok and Manila, further enhanced international friendship when they were declared “sister cities.” The act encouraged cultural and economic exchanges between the two cities in order to promote the welfare of their citizens.

On August 28, 2015, in accordance with the official visit of Thai Prime Minister Prayut Chan-O-Cha, Thailand and the Philippines reaffirmed their commitment to step up their “partnership for prosperity” through stronger cooperation in trade and investments, people-to-people exchanges, and security.  The two countries’ high level of friendship could be seen in their numbers bilateral agreements and enhanced cooperation in areas including air services, defence, agriculture, energy, tourism and culture.


Thailand - the Philippines Bilateral Trade Value Y2011-2014
Year
Total Bilateral Trading ($Million)
Growth Rate (%)
Total
TH Import
TH Export
Total
TH Import
TH Export
2014
8,408.4
2,612.3
5,868.1
9.8%
-0.5%
16.5%
2013
7,661.3
2,627.3
5,033.9
1%
-3.5%
3.5%
2012
7,585.3
2,724.2
4,861.17
3.2%
1.4%
4.7%
2011
7,344.9
2,703.9
4,640.9
N/A
N/A
N/A

Source: Thailand’s Ministry of Commerce

Thailand is one of the Philippines’ major trade partners and one of the Philippines’ source of rice through Thai exports. Bilateral trade between the two counties has reached more than $5.8 billion annually in recently years adding that Thailand was the Philippines’ eight largest trading partner in 2014 while the Philippines is Thailand’s 6th largest trading partner in the Association of Southeast Asian Nations (ASEAN) and the 18th biggest in the world.

In the past year, bilateral trade between the two countries grew at almost 10%. Siam Cement Groud, Charon Pokphand Food Philippines Corp., and the Dusit International are some of the Thai companies that have active operations in the country.


Top 10 Exported Products from Thailand to the Philippines in 2014 (Million USD)

No
Products
Trade Value
Growth
Share
1
Motors, cars and accessories
1,540.7
27.9%
26.26%
2
Electronics integrated services
424.9
16.43%
7.24%
3
Refine fuel
419.4
-11.71%
7.5%
4
Polymers of ethylene, propylene
344.9
58.31
5.88
5
Beauty for make up preparation
217.2
28.86%
3.77%
6
Chemicals products
207.6
20.10%
3.54%
7
Automatic data processing machine and parts thereof
168.9
23.81%
2.88%%
8
Plastic products
161.4
40.55%
2.75%
9
Machinery and parts thereof
153.9
11.08%
2.62%
10
Rice
141.6
363.3%
2.41%

Source: Thailand’s Ministry of Commerce


Top 10 Imported Products from the Philippines to Thailand in 2014 (Million USD)

No
Products
Trade Value
Growth
Share
1
Electronics integrated service
449.9
-1.12%
17.22%
2
Parts & accessories of vehicles
400.6
-14.33%
15.34%
3
Electronically machinery & parts
329.4
-3.57%
12.61%
4
Computers, parts and accessories
282.5
20.72%
10.82%
5
Crude Oil
277.9
257.61%
10.64%
6
Other metal ores, metal waste, scrap and products
110.7
-44.93%
4.24%
7
Tobacco products
86.9
-2.57%
3.33%
8
Stranded wide and cable
85.6
-16.10%
3.28%
9
Scientific, medical, testing appliances and instruments
48.5
-4.42%
1.86%
10
Fresh aquatic animal, chilled frozen, processed and instant
45.4
3.67%
1.74%

Source: Thailand’s Ministry of Commerce


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