Trade & Investment

Foreign direct investment in the Philippines hit an all-time high in 2017, bolstered by robust GDP growth, favourable demographics and the manufacturing segment, with inflows from Japan, Europe and China rising steadily in recent years. An ongoing geopolitical shift could have a profound impact on trade and investment in the Philippines, with the government increasingly turning to China as a favoured bilateral partner, and relations with the US, an important historical trade and investment partner, cooling since President Rodrigo Duterte took office in June 2016. The Philippines benefits from a diversified export market, with rising regional trade ties and strong demand from the EU, its second-largest export market, expected to maintain stability even as US investment in the country may ease. This chapter contains a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia; and an interview with Ramon M Lopez, Secretary, Department of Trade and Industry.