PH to lose $27Billion Goods Services Trade & End of $342M US Aid&other assistance in removal U.S.VFA

The United States is one of the largest foreign investors in the Philippines, and is the Philippines’ third-largest trading partner.

U.S. Relations With the Philippines

U.S. Assistance to Philippines

The U.S. government’s goals in the Philippines are to strengthen democratic governance and support Philippine government efforts to promote inclusive development and contribute to security and development cooperation in the Indo-Pacific. U.S. assistance to the Philippines fosters broad-based economic growth; improves the health and education of Filipinos; promotes peace and security; advances democratic values, good governance, and human rights; and strengthens regional and global partnerships Department of State, Department of Defense, and the U.S. Agency for International Development (USAID) programs in conflict-affected areas of Mindanao aim to create a sustainable foundation for peace and stability in areas at risk from terrorism and violent extremism. U.S. assistance seeks to intensify cooperation through a whole-of-government approach that supports a free and open Indo-Pacific. The United States has had a Peace Corps program in the Philippines for over 50 years.

Over the last decade, disaster relief and recovery has also become an increasingly important area of assistance to the Philippines.  The United States has provided over $143 million in assistance to date to the people of the Philippines in relief and recovery efforts after Typhoon Haiyan/Yolanda devastated the country in 2013.  The United States continues to support long-term reconstruction and rebuilding efforts, and has allocated over $60 million to support ongoing humanitarian assistance and stabilization funding in response to the Marawi seige.

Bilateral Economic Relations

The United States and the Philippines have a strong trade and investment relationship, with over $27 billion in goods and services traded (2086). The United States is one of the largest foreign investors in the Philippines, and is the Philippines’ third-largest trading partner.

Key imports from the Philippines are semiconductor devices and computer peripherals, automobile parts, electric machinery, textiles and garments, wheat and animal feeds, coconut oil, and information technology/business process outsourcing services. Key U.S. exports to the Philippines are agriculture goods, machinery, cereals, raw and semi-processed materials for the manufacture of semiconductors, electronics, and transport equipment. The two countries have a bilateral Trade and Investment Framework Agreement, signed in 1989, and a tax treaty.  There are over 600 members in the Philippines chapter of the American Chamber of Commerce, which has national reach.

Philippines’s Membership in International Organizations

The Philippines and the United States belong to a many of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC) forum, International Monetary Fund, World Bank, and World Trade Organization. The Philippines is also an observer to the Organization of American States.  The Philippines served as chair and host of ASEAN for 2017.


United States of America Aid and Assistance to the Philippines



In May 2017, conflict broke out between armed groups and the government of the Philippines in Marawi, displacing nearly 360,000 people. The U.S. government, through USAID has committed more than $63.6 million (Php3.4 billion) for humanitarian and recovery work in and around Marawi.

In collaboration with the Philippine government and development organizations, USAID is delivering life-saving humanitarian assistance that is improving conditions in evacuation centers and host communities. For example, USAID is installing water and sanitation facilities, promoting good hygiene practices and distributing emergency shelter materials, benefitting over 33,000 internally displaced persons. USAID is also providing health clinics with supplies and services to address tuberculosis (TB) and support maternal, newborn and child health needs. In addition, USAID is establishing women- and child-friendly spaces to protect them from exploitation and violence, as well as support their psychosocial needs. In partnership with the World Food Programme, USAID will offer supplementary nutrition for 5,000 children and 6,000 pregnant women and lactating mothers.

See also:

Economic Development and Governance




Humanitarian Assistance


U.S. Troops in Besieged City of Marawi, Philippine Military Says

American troops are on the ground in the embattled southern Philippine city of Marawi, where the Philippine military is battling Islamic State-linked militants for control, a Philippine military spokesman said on Wednesday.

The spokesman, Brig. Gen. Restituto Padilla, said that the American forces were not engaged in combat, but his statement was the first official confirmation of the American military presence in Marawi.

Philippine and American officials have previously said that United States Special Operations forces were providing military assistance in the battle for the city, but American officials have not said from where, and Philippine officials had said there were no American military “boots on the ground” in Marawi.

American officials have framed the assistance as part of a long-term counterterrorism project, noting in a statement on Monday that the Special Forces troops had been “providing support and assistance in the southern Philippines for many years.”


The economic impact of a break in U.S.-Philippines ties

The economic impact: What does breaking up really mean?

The separation could have implications for the Philippine’s and U.S. economies especially in terms of labor and trade movements.

Remittances are vital to the Philippine economy, accounting for approximately 9.8% of GDP in 2015. They are an important source of income for many Filipino families and thus one of the main drivers of private consumption. One of the main sources of Philippine remittances comes from, of course, the U.S.

Business process outsourcing (BPO) is also very important to the Philippines economy, something U.S. firms have invested heavily in the Philippines. According to CNBC, it accounts for roughly 6 percent of GDP.


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