Italy-RP trade doubles in 10 years

MANILA, Philippines – Philippine trade with Italy practically doubled in the past 10 years former Ambassador to Italy Philippe J. Lhuillier noted that when he arrived in Italy in 1999, Philippine – Italian trade was around $330 million-in favor of Italy. The Philippines exported $129 million and imported $201 million that year.

By the time he left in January 2010, he said that Philippine-Italian trade was robust at $416 million, in favor of the Philippines, with the country exporting $229 million worth of goods and importing $188 million worth of products in 2009.

By categories, he noted that industrial manufactures remain the country’s biggest export, followed by resource-based products, and then consumer manufactures. Food and food preparations remain small, if not an insignificant export.

On the other hand, the Philippines also imports quite a big amount of industrial manufactures from Italy, which are basically machines, followed by resource-based products, and then consumer manufactures. In spite of the Filipino’s love of pasta, Philippine consumption of Italian food products remain insignificant.

Lhuillier explained that such a ratio seems to be the trend considering the distance between the two countries.

The main export produce of the Philippines to Italy are electronic products while the main imported product by the country are machineries. He said such an export mix might remain the same for the short- to medium-term due to the foreign exchange situation of the both countries.

Electronics, particular components for office equipment, will remain the country’s major export earner in Italy. Garments, especially men’s and boy’s wear, come in a close second.

On the other hand, machine and transport equipment and parts, will remain the country´s biggest import from Italy.

Prospects for food and processed food exports to Italy do not look good, he said. This is due to the distance between the two countries and the high final price food products are retailed.

Lhuillier explained that the Italian consumers are generally conservative and would prefer to eat food familiar to their palate. Philippine food products are generally only bought by the Filipino overseas workers. –(The Philippine Star)