Last year, the Philippines was able to export (CDN) $981 million worth of goods to Canada compared to only (CDN) $350 million worth of imports from Canada, thus, resulting in a positive trade balance in favor of the Philippines worth $631 million.
The positive trade balance has been going on for the past five years. In the year 2000, the favorable trade balance reached a peak of (CDN) $1.015 billion from only (CDN) $752 million in 1999.
In 1998, the trade balance was a positive (CDN) $694 million, more than double the trade figures for 1997 amounting to (CDN) $299 million.
The bulk of the Philippines’ export to Canada was in the information and communications sector, followed by machinery and base metals. The Philippines also supplied Canada with agri-food, plastics and rubber and textiles.
However, the favorable trade balance enjoyed by the Philippines was helped along by the Canadian government which has been providing export financing for Philippine exporters to Canada.
According to the Export Development Canada (EDC), Canada’s official export credit agency, it has facilitated (CDN) $500 million of Canadian export contracts with Philippine companies.
The export assistance has contributed roughly (CDN) $576 million to the Philippine economy and an estimated (CDN) $291 million to the Canadian economy.
The EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets.