PH-Japan trade slowed in April
The impact of the March 11 Japan earthquake on Philippines-Japan trade started to surface in April, with the country’s exports to Japan growing by only 11.5 percent in the first four months, after expanding by between 20 and 30 percent in the previous months.
According to data from the Japan External Trade Organization, the value of goods shipped from the Philippines to Japan rose to more than $2.6 billion as of end-April, up 11.5 percent from the previous year’s $2.3 billion.
Imports from Japan, on the other hand, fell by 3.1 percent to almost $3.4 billion in the January-April period, from the $3.5 billion registered in the same period last year.
The four-month figure was pulled down by April results, with the country’s exports to Japan declining to $610 million, 2.5 percent lower than April 2010’s $618.5 million.
Japan’s exports to the Philippines slowed by 12 percent in April to $846.4 million, from the $961.5 million posted in the same month last year.
March trade figures already showed some slowing, with the March 11 earthquake causing damage to airports, effectively disrupting the supply chain of products being assembled in the Philippines that had Japan-made components.
Some plants producing crucial parts and components, particularly for the automotive sector, were also damaged by the earthquake and the ensuing tsunami in northern Japan.
At the end of the first quarter, the country’s exports to Japan rose by 17 percent, while imports increased by a modest 0.3 percent.
Despite these setbacks, both the Semiconductor and Electronics Industries of the Philippines Inc. and the Export Development Council are keeping their export targets for the year.—Abigail L. Ho
