TABLE OF CONTENTS

I.  COMMERCIAL OVERVIEW  . . . . . . . . . . . . . . . . . . . . . . . .   1

II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS . . . . . . . . . . . . .   4

III.  ECONOMIC TRENDS AND OUTLOOK. . . . . . . . . . . . . . . . . . . .   6
     A.  Major Trends and Outlook. . . . . . . . . . . . . . . . . . . .   6
     B.  Principal Growth Sectors. . . . . . . . . . . . . . . . . . . .   6
     C.  Government Role in the Economy. . . . . . . . . . . . . . . . .   7
     D.  Balance of Payments Situation . . . . . . . . . . . . . . . . .   7
     E.  Brief Description of Trade and Investment Barriers. . . . . . .   8
     F.  Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . .   9
     G.  Major Local and Third Country Competitors . . . . . . . . . . .   9
     H.  Infrastructure Situation  . . . . . . . . . . . . . . . . . . .  12
     I.  Major Infrastructure Projects Underway. . . . . . . . . . . . .  13

IV.  POLITICAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . .  16

V.  MARKETING U.S. PRODUCTS AND SERVICES . . . . . . . . . . . . . . . .  17
     A.  Distribution and Sales Channels . . . . . . . . . . . . . . . .  17
     B.  Use of Agents/Distributors; Finding a Partner . . . . . . . . .  18
     C.  Franchising . . . . . . . . . . . . . . . . . . . . . . . . . .  19
     D.  Direct Marketing. . . . . . . . . . . . . . . . . . . . . . . .  19
     F.  Steps to Establishing An Office . . . . . . . . . . . . . . . .  21
     G.  Selling Factors/Techniques. . . . . . . . . . . . . . . . . . .  22
     H.  Advertising and Trade Promotion . . . . . . . . . . . . . . . .  22
     I.  Pricing Product . . . . . . . . . . . . . . . . . . . . . . . .  23
     J.  Sales Service/Customer Support. . . . . . . . . . . . . . . . .  23
     K.  Selling to the Government . . . . . . . . . . . . . . . . . . .  23
     L.  Protecting Your Product from IPR Infringement . . . . . . . . .  24
     M.  Need for a Local Attorney . . . . . . . . . . . . . . . . . . .  25

VI.  TRADE REGULATIONS AND STANDARDS . . . . . . . . . . . . . . . . . .  25
     A.  Tariffs and Import Taxes. . . . . . . . . . . . . . . . . . . .  25
     B.  Customs Valuation . . . . . . . . . . . . . . . . . . . . . . .  25
     C.  Import Licenses . . . . . . . . . . . . . . . . . . . . . . . .  26
     D.  Export Controls . . . . . . . . . . . . . . . . . . . . . . . .  26
     E.  Import/Export Documentation . . . . . . . . . . . . . . . . . .  29
     F.  Temporary Entry . . . . . . . . . . . . . . . . . . . . . . . .  31
     G.  Labeling, Marking Requirements. . . . . . . . . . . . . . . . .  31
     H.  Prohibited Imports. . . . . . . . . . . . . . . . . . . . . . .  33
     I.  Standards . . . . . . . . . . . . . . . . . . . . . . . . . . .  34
     J.  Free Trade Zones/Bonded Warehouses. . . . . . . . . . . . . . .  35
     K.  Special Import Provisions . . . . . . . . . . . . . . . . . . .  36
     L.  Membership in Free Trade Arrangements . . . . . . . . . . . . .  36

VII. INVESTMENT CLIMATE. . . . . . . . . . . . . . . . . . . . . . . . .  38
     A.  Openness to Foreign Investment. . . . . . . . . . . . . . . . .  38
     B.  Conversion and Transfer Policies. . . . . . . . . . . . . . . .  41
     C.  Expropriation and Compensation. . . . . . . . . . . . . . . . .  43
     D.  Investment Disputes/Dispute Settlement. . . . . . . . . . . . .  43
     E.  Political Violence. . . . . . . . . . . . . . . . . . . . . . .  43
     F.  Performance Requirements/Incentives . . . . . . . . . . . . . .  44
     G.  Right to Private Ownership and Establishment. . . . . . . . . .  46
     H.  Protection of Property Rights . . . . . . . . . . . . . . . . .  47
     I.  Regulatory System:  Laws and Procedures . . . . . . . . . . . .  49
     J.  Capital Markets and Portfolio Investment. . . . . . . . . . . .  49
     K.  Bilateral Investment Agreements . . . . . . . . . . . . . . . .  51
     L.  OPIC and Other Investment Insurance Programs. . . . . . . . . .  51
     M.  Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
     N.  Foreign Trade Zones/Free Ports. . . . . . . . . . . . . . . . .  52
     O.  Capital Outflow Policy. . . . . . . . . . . . . . . . . . . . .  53
     P.  Major Foreign Investors . . . . . . . . . . . . . . . . . . . .  53

VIII.TRADE AND PROJECT FINANCING . . . . . . . . . . . . . . . . . . . .  56
     A.  The Banking System. . . . . . . . . . . . . . . . . . . . . . .  56
     B.  Foreign Exchange Controls Affecting Trading . . . . . . . . . .  56
     C.  General Financing Availability. . . . . . . . . . . . . . . . .  57
     D.  Exports:  Methods of Payments . . . . . . . . . . . . . . . . .  57
     E.  Export Financing and Insurance. . . . . . . . . . . . . . . . .  57
     F.  Project Financing Available . . . . . . . . . . . . . . . . . .  59
     G.  Banks with Correspondent U.S. Banking . . . . . . . . . . . . .  59

IX.  BUSINESS TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . .  59
     A.  Business Customs. . . . . . . . . . . . . . . . . . . . . . . .  59
     B.  Travel Advisory and Visas . . . . . . . . . . . . . . . . . . .  59
     D.  Business Infrastructure . . . . . . . . . . . . . . . . . . . .  61

APPENDIX A
     COUNTRY DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . .  63

APPENDIX B
     BEST PROSPECTS FOR U.S. EXPORTS . . . . . . . . . . . . . . . . . .  70

APPENDIX C
     U.S. AND PHILIPPINE CONTACTS. . . . . . . . . . . . . . . . . . . .  95

APPENDIX D
     MARKET RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . 114

APPENDIX E
     TRADE EVENT SCHEDULE. . . . . . . . . . . . . . . . . . . . . . . . 115