Commodity flow or domestic trade refers to the flow of commodities through the water, air and rail transport systems in the country. Data on the inflow and outflow of commodities in the different regions of the country are used to construct interregional and inter-industry relation tables. These serve as bases in the formulation and implementation of various regional development programs like countryside development and port planning.

Quantity and value of domestic trade decreases

In the third quarter of 2006, the total quantity of domestic trade transactions decreased by 9.3 percent, resulting to 3.67 million tons from 4.05 million tons reported during the same period of last year. Water was the major mode of transport of commodities traded with shares of 99.7 percent and 99.8 percent in the third quarters of 2005 and 2006, respectively.

Likewise, there was also a decrease in the total value of domestic trade by 14.6 percent from PhP93.65 billion in the third quarter of 2005 to PhP79.95 billion in the same period of 2006. The commodities were traded mostly through water, comprising 99.6 percent in the third quarter of 2005 and 99.7 percent in the third quarter of 2006.

Food and live animals contributes about one-third of total domestic trade value

The bulk of the value of commodities that flowed throughout the country in the third quarter of 2006 came from food and live animals with value amounting to PhP24.04 billion (30.1%). This was followed by mineral fuels, lubricants and related materials with PhP14.58 billion (18.2%). Machinery and transport equipment was next with PhP12.33 billion (15.4%). The least share was contributed by animal and vegetable oils, fats and waxes with value amounting only to PhP451.02 million (See Table 1).

Similarly, in the third quarter of 2005, food and live animals dominated the domestic trade with a share of 29.6 percent (PhP27.68 billion) of the total value. Mineral fuels, lubricants and related materials were next with a 20.5 percent share (PhP19.17 billion). This was followed by machinery and transport equipment with a share of 15.2 percent share (PhP14.22 billion). Animal and vegetable oils, fats and waxes shared the least value of PhP471.75 million among the commodity sections (See Table 1).

National Capital Region (NCR) posts the highest value of domestic trade

In the third quarter of 2006, The National Capital Region (NCR) accounted for 21.3 percent (PhP17.04 billion) of the total value of domestic trade, the largest share among the regions. Central Luzon was next with transactions amounting to PhP12.57 billion (15.7%). Western Visayas was third, contributing PhP11.57 billion (14.5%). CALABARZON followed with PhP7.03 billion (8.8%). Cagayan Valley remained to be the least contributing region with PhP103 thousand.

For the same period in 2005, NCR also reported the highest domestic trade share of 20.4 percent (PhP19.09 billion). Central Luzon followed with a total value of PhP15.17 billion, accounting for 16.2 percent. CALABARZON was third with PhP12.70 billion (13.6%). Western Visayas was next with PhP9.25 billion (9.9%). Eastern Visayas followed with PhP8.19 billion (8.7%). Cagayan Valley contributed the least share among the regions with only PhP246 thousand.

Central Luzon leads in favorable trade balance

Central Luzon recorded the most favorable balance of trade at PhP12.32 billion in the third quarter of 2006. Four other regions registered more than a billion positive trade balance namely: CALABARZON (PhP3.98 billion), Western Visayas (PhP3.71 billion), Eastern Visayas (PhP3.51 billion), and Northern Mindanao (PhP1.44 billion). However, inflows for Central Visayas amounted to PhP12.59 billion resulting to the largest unfavorable balance of trade of -PhP10.28 billion.

Likewise, in the third quarter of 2005, Central Luzon realized the most favorable trade balance at PhP14.78 billion. Other regions which surpassed the billion positive trade balance were CALABARZON, Eastern Visayas, Western Visayas, and SOCCSKSARGEN, amounting to PhP7.83 billion, PhP4.09 billion, PhP2.66 billion and PhP2.60 billion, respectively. Central Visayas recorded the most unfavorable balance of trade at -PhP11.63 billion.

Notes:

DOMSTAT reports from the following provinces/cities were not yet received as of March 15, 2007, and were not included in this special release:

Sulu - Coastwise (July to September 2006)
 

• Manila - Air (July and August 2006) and Rail (July 2006)
• Cebu - Coastwise (July to September 2006)
• Negros Oriental - Air (September 2006)
• Zamboanga del Sur - Coastwise (September 2006)
• Misamis Oriental - Coastwise (July and September 2006)
• Isabela City - Coastwise (August and September 2006)
• Cotabato City - Coastwise (August and September 2006)
• Surigao del Norte - Coastwise (September 2006)
• Basilan - Coastwise (August and September 2006)
• Maguindanao - Coastwise (August and September 2006)

Source:   National Statistics Office 
                Manila, Philippines