Import and Export Imbalance

Introduction

Like most other Southeast Asian regions, the Philippines too has a history of European colonization. It was a colony of Spain and the USA. The country is now home to multiple cultures and traditional ethnicity. It is also looked upon as a perfect example of a 'mixed economy'. Industrialization is a new development in the Philippines. Traditionally, the economy stabilized on the agrarian contributions and the manufacture of garments, pharmaceutical products and semiconductors. In the last decade, electronic exports added to the exports, including various products obtained by mining.

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Historically, the Philippines have been an important center for commerce for centuries for its ethnic minority, namely, the Chinese who were also its first occupants. The archipelago has also been visited by Arabs and Indians for the purpose of trading in the first and second millennium. As of 21st century, the country is a member in several international trade organizations including the APEC, ASEAN and WTO.

Since 1980s the Philippines have opened their economy to foreign markets, and established a network of free trade agreements with several countries. The United States is one of the Philippines top trading partner. In 2010, according to US Department of Commerce, trade between the Philippines and US amounted to US$15.4 billion. US is also the Philippines largest foreign investor, with foreign direct investment close to US$6 billion at the end of 2009. 

Under the Aquino administration, the government plans to opens up the country to more foreign investment in industries such  as business processing operations, mining and tourism. However, this move may be hindered by restrictions such a prohibition of foreign ownership of land and public utilities.

Total value of exports: US$50.72 billion

Primary exports – commodities: semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, fruits

Total value imports: US$59.9 billion

Primary imports – commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, chemicals, plastics

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Economy Watch - Philippines

Realization

Among the many economic problems faced by the Philippines, one is the imbalance of imports and exports. The negative trade is heavy and only counterbalanced by the service account surplus. However, in the midst of the current global economic recession, the exports of electronics, garments and textiles are yet to reach a level of import neutralization. It is said that the influence of the Manila galleon on the nation's economy during the Spanish period, and bilateral trade when the country was a colony of the United States has resulted in the preference of a mixed economy over a centrally planned or market based one. Philippines don't have the capacity to compete with other countries because of its low cost labors and materials. Why is it that we are having this problem if we are or we have rich natural resources that can be exported to other countries and vast water premises, also human resources for foreign employment like Overseas Filipino Workers? Why do we keep on seeking for the help of  other countries? I think it's because of the fact that these resources are wasted by people, for example, illegal logging. We are also influenced by those things made by other countries like clothes and shoes we wear, the accesories that we bought are made from other countries. I think we need to do things and call it our own and it will be not be an offense for our Pinoy Pride. If this imported products will continue, i think we will slowly loose our dignity as a true Filipino and we will be a part of the culture of other countries.

My suggestion will be, we need to focus more on what's lacking in our country and use our resources efficiently and effectively. We need to focus more on those things which we can't see in our country like fuel. We also need more improvement in our economy and the government must use their power in gaining the trust of the people. Let's do our best to gain power and to be one of the best countries in the world.