Connecting the Spokes: Trade, Investment, and Economic Relations
- Rowan Callick - Griffith Asia Institute
The theme of this conference, Connecting the Spokes, implies a hub. In general terms, both the Philippines and Australia tend to view the US, perhaps also China, as hubs around whose interests and values we in this region revolve – or in multilateral terms, of course ASEAN, although that leaves us in Australia at one step removed. But if we’re talking bilaterally, the hub around which our relationship’s spokes revolve comprises trade, investment and economic relations.
In Australian dollar terms, merchandise trade between the countries fell 15% to $2.7 billion in 2018. That makes the Philippines merely Australia’s 28th largest merchandise trading partner. Trade in services – chiefly tourism and students – has the Philippines in 21st place. Australia, meanwhile, is the Philippines’ 22nd target for exports and the 13th source of imports. Mutual investment is also thin. Australia has invested about $9.6 billion in the Philippines, but only about a tenth of that are directly in operations and assets, while the rest are in shares.