II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS

A number of areas offer excellent prospects for U.S. exports, given the
development priorities of the Philippine Government, U.S. firms' present
involvement in many of these areas, and generally high Filipino regard
for the quality and reliability of American products and services.  In
particular, opportunities exist in Philippine infrastructure
development, some areas of which will see growing private sector
involvement and continued Philippine Government emphasis during 1995-98.
U.S. firms should also be aware that financing possibilities exist for
many of these projects under bilateral and multilateral development
assistance programs.  The U.S. Export-Import Bank, the Overseas Private
Investment Corporation, and the U.S. Trade & Development Agency all have
active programs to support U.S. company participation in major projects,
which are likely to expand in 1995 and beyond.

The Philippines also is a fast-growing market for imports of bulk,
intermediate and consumer-oriented agricultural products.  Bulk
commodities such as wheat, cotton, soybeans and unmanufactured tobacco
account for about one-half of total Philippine agricultural imports,
with semi-processed intermediate commodities and consumer-oriented foods
quickly gaining in importance.  In 1993-94, significant growth was
registered in several categories, led by wheat, forest products, and
consumer-oriented foods such as fresh and processed produce, snack foods
and high-quality beef.  Consumer-oriented products are expected to have
the highest growth rate over the next three years.

Best prospect non-agricultural products and services include:

     1.  Telecommunications equipment
     2.  Electrical Power Systems
     3.  Building Products
     4.  Aircraft and Parts
     5.  Industrial Chemicals
     6.  Computers and Peripherals
     7.  Architectural, Construction and Engineering Services
     8.  Medical Equipment
     9.  Pumps, Valves and Compressors
     10. Food Processing and Packaging Equipment
     11. Hotel and Restaurant Equipment
     12. Laboratory and Scientific Instruments
     13. Pollution Control Equipment
     14. Automotive Parts and Service Equipment
     15. Sporting Goods and Recreational Equipment
     16. Safety and Security Equipment
     17. Electronic Industry Production and Test Equipment

Best prospect agricultural products are:

  A. No Quantitative Restrictions
     1. Wheat
     2. Soybean Meal
     3. Cotton
     4. Snack Foods
     5. Fruits (fresh, dried, frozen, or processed)
     6. Forest Products
     7. High-quality Beef

  B. New Market Opportunities in 1995 resulting from GATT Uruguay Round
    1. Pork and Pork Products
    2. Poultry and Poultry Products
    3. Corn and Grain Sorghum
    4. Fresh Potatoes and Other Fresh Vegetables

Please see Appendix B for details.