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Philippines believes China trade will cushion US blow
The Philippines expects its growing trade with China to cushion the impact of an economic slowdown in the United States, the chief spokesman of President Gloria Macapagal Arroyo said on Tuesday.
- Reuters
- Published: 00:41 January 23, 2008
Manila: The Philippines expects its growing trade with China to cushion the impact of an economic slowdown in the United States, the chief spokesman of President Gloria Macapagal Arroyo said on Tuesday.
"The United States remains a very close ally," Presidential Spokesman Ignacio Bunye said. "It's economy is one of the biggest and if there's a slowdown there's an effect on other countries. Before, we were solely dependent on the West, but there are other markets."
Describing Manila's trade with Beijing as growing "by leaps and bounds", Bunye said: "This will somehow cushion whatever negative impact the slowdown in the US economy would have on the Philippines."
The United States remains the Philippines' biggest trading partner with total trade at about $1.5 billion in October, the latest month for which data is available. China was in third place after Japan with trade of about $977 million.
In October 2006, the United States had about $1.56 billion in two-way trade with the Philippines while China had $809 million.
Philippine imports from the United States are mainly electrical and transport equipment, while it exports mostly electronics and garments.
Trade with China is mostly in agricultural commodities and some electronics.
Apart from China, Bunye said the Philippines was also looking at India, adding it's economy was growing "very, very fast".
Arroyo left on Tuesday for the World Economic Forum at Davos, Switzerland.
"Global engagement and a robust foreign policy are central pillars of our plan for a safe and strong Philippines," she said in a departure speech.
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