Country Profile: Kingdom of Spain

• OFFICIAL TITLE

Kingdom of Spain

• CAPITAL

Madrid

• POPULATION

40,397,842 (July 2006 est.)

• POPULATION GROWTH

0.13% (2006 est.)

• LANGUAGES

Castilian Spanish 74%, Catalan 17%, Galician 7%, Basque 2%; note - Castilian is the official language nationwide; the other languages are official regionally

• Currency

Euros per US dollar – 1.48185 (29 Nov. 2007)

• NATIONAL DAY

12 October

• GOVERNMENT

Parliamentary

• CHIEF OF STATE

King JUAN CARLOS I

• HEAD OF GOVERNMENT
President of the Government and Prime Minister
Jose Luis RODRIGUEZ ZAPATERO

Background:

Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II, but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986), have given Spain one of the most dynamic economies in Europe and made it a global champion of freedom. Continuing challenges include Basque Fatherland and Liberty (ETA) terrorism and relatively high unemployment.

Location:

Southwestern Europe, bordering the Bay of Biscay, Mediterranean Sea, North Atlantic Ocean, and Pyrenees Mountains, southwest of France

Area:

total: 504,782 sq km
land: 499,542 sq km
water: 5,240 sq km
note: there are 2 autonomous cities - Ceuta and Melilla - and 17 autonomous communities including Balearic Islands and Canary Islands, and three small Spanish possessions off the coast of Morocco - Islas Chafarinas, Penon de Alhucemas, and Penon de Velez de la Gomera.

Land Boundaries:

total: 1,917.8 km
border countries: Andorra 63.7 km, France 623 km, Gibraltar 1.2 km, Portugal 1,214 km, Morocco (Ceuta) 6.3 km, Morocco (Melilla) 9.6 km

Climate:

temperate; clear, hot summers in interior, more moderate and cloudy along coast; cloudy, cold winters in interior, partly cloudy and cool along coast.

Nationality:

noun: Spaniard(s)
adjective: Spanish

Religions:

Roman Catholic 94%, other 6%

Executive branch: Chief of State: King JUAN CARLOS I (since 22 November 1975); Heir Apparent Prince FELIPE, son of the monarch, born 30 January 1968:Head of government: President of the Government and Prime Minister Jose Luis RODRIGUEZ ZAPATERO (since 17 April 2004); First Vice President and Deputy Prime Minister (and Minister of the Presidency) Maria Teresa FERNANDEZ DE LA VEGA (since 18 April 2004) and Second Vice President (and Minister of Economy and Finance) Pedro SOLBES (since 18 April 2004)\

Cabinet: Council of Ministers designated by the president
note: there is also a Council of State that is the supreme consultative organ of the government, but its recommendations are non-binding. Elections: the monarchy is hereditary; following legislative elections, the leader of the majority party or the leader of the majority coalition is usually proposed president by the monarch and elected by the National Assembly; election last held 14 March 2004 (next to be held March 2008); vice presidents appointed by the monarch on the proposal of the president. election results: Jose Luis RODRIGUEZ ZAPATERO (PSOE) elected president; percent of National Assembly vote - 52.29%

Legislative branch: bicameral; General Courts or National Assembly or Las Cortes Generales consists of the Senate or Senado (259 seats - 208 members directly elected by popular vote and the other 51 appointed by the regional legislatures to serve four-year terms) and the Congress of Deputies or Congreso de los Diputados (350 seats; members are elected by popular vote on block lists by proportional representation to serve four-year terms)
elections: Senate - last held 14 March 2004 (next to be held March 2008); Congress of Deputies - last held 14 March 2004 (next to be held March 2008)

Judicial branch: Supreme Court or Tribunal Supremo

International organization participation: AfDB, AsDB, Australia Group, BCIE, BIS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM (observer), IPU, ISO, ITU, LAIA (observer), MIGA, MINUSTAH, MONUC, NAM (guest), NATO, NEA, NSG, OAS (observer), OECD, ONUB, OPCW, OSCE, Paris Club, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIS, UPU, WCL, WCO, WEU, WHO, WIPO, WMO, WToO, WTO, ZC

ECONOMY – OVERVIEW

The Spanish economy boomed from 1986 to 1990, averaging five percent annual growth. After a European-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994. Spain's mixed capitalist economy supports a GDP that on a per capita basis is 80% that of the four leading West European economies. The center-right government of former President AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 10.1%. Growth of 2.5% in 2003, 2.6% in 2004, and 3.4% in 2005 was satisfactory given the background of a faltering European economy. The socialist president, RODRIGUEZ ZAPATERO, has initiated economic and social reforms that are generally popular among the masses of people, but that are anathema to religious and other conservative elements. Adjusting to the monetary and other economic policies of an integrated Europe, reducing unemployment, and absorbing widespread social changes will pose challenges to Spain over the next few years.

GDP growth rate 3.4% (2005 est.)

GDP - per capita (PPP) $25,500 (2005 est.)

Inflation rate
(consumer prices) 3.4% (2005 est.)

Exports $194.3 billion f.o.b. (2005 est.)

Exports - commodities machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods

Imports $271.8 billion f.o.b. (2005 est.)

Imports - commodities machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments

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Overview of Philippines - Spain Bilateral Relations

Their shared history makes the Philippines and Spain natural partners. As is the case of countries with colonial relations, Spain has a deep and pervasive presence in the fabric of Filipino life. Present not only in the structure and the history of families and society, Spanish heritage is pervasive in architecture, the visual and lyrical arts, literature, and cuisine; the tangible and intangible heritage of the Philippines bear the footprint of Spain. This heritage has become for the Philippines a cultural and tourism asset; for Spain, as their only colony in the Far East, the Philippines has the potential to be both their showroom and their entry point into the huge market of Asia.

The Philippines is the largest recipient of Spanish Overseas Development Assistance in Asia. Strategic Spanish interventions in areas like heritage conservation, renewable energy and basic services have had a transformative effect on the country. Contrary to the trend in most European countries which are legislating to focus development assistance only on the lowest income countries in Africa, Spain has consistently maintained the Philippines in its priority list. As a result, the Philippines is given special focus by Spanish “non-reimbursable” grant funds allotted to cooperation activities.

Economic relations between the two countries are fairly healthy, although there is vast room for growth yet. The Spanish economy is expanding, making it now the second fastest growing economy in the EU, next to that of Ireland. The trade balance between the two countries has consistently been in Spain’s favour, although agricultural trade with Spain has consistently been in the Philippines’ favour. No new big investments from Spain has entered the Philippines in the past two years; for the moment, the most productive Spanish investment in the country is MAPFRE Asian Insurance Corporation, which has found its niche market in non-life insurance. There is room for investment growth, since Spain has a competitive advantage in areas where new industries in the Philippines are growing: alternative and renewable energy, urban regeneration, and tourism infrastructure. The BPO industry in the Philippines can service growing Spanish companies, especially those in the hospitality sector.

The Philippines and Spain are both active players in their respective regional organizations. Both countries should take their special relationship into the bigger ASEAN and EU fora. As stated in the 1995 Declaration on Political Cooperation signed by both countries,

“Having in mind the significant developments in their respective regions, the two Governments agree to expand their political and economic cooperation, and to interpret each other’s interests in the European Union and in the ASEAN.”

Political Relations

Ties between the Philippines and Spain have been very cordial since the establishment of diplomatic relations in 27 September 1947. These relations have been reinforced through the signing of a new comprehensive Treaty of Friendship and Cooperation in June 2000 by former President Joseph Ejercito Estrada and former Prime Minister Jose Maria Aznar. This agreement particularly provided a renewed sense of Philippines-Spain relations in the new millennium marked by developments in information and communications technology, increasing environmental and humanitarian concerns and the move towards globalization.

The passage of Republic Act 9187 on 05 February 2003 further intensified bilateral links. Authored by Senator Edgardo Angara, the Act declares 30 June of each year as Philippine-Spanish Friendship day. It symbolizes the Filipino people’s gratitude and appreciation for Spain’s inestimable legacy of faith, culture and values to our nation, including the beginnings of the country’s political solidarity as one people despite the geographic divisions and linguistic differences.

The exchange of high level visits, notably the Official Visit of former President Ramos to Spain in September 1994 and the State Visit of former Prime Minister Aznar to the Philippines on July 2000, opened new vistas for concrete mutual cooperation in the political and security arena, economic and trade spheres, cultural promotion, and social development. These areas correspond to President Gloria Macapagal Arroyo’s programs to alleviate poverty, enhance good governance, extend assistance to Muslim Mindanao, promote health and overall domestic development.

2004 further enhanced both countries’ political cooperation with the holding of bilateral meetings between the Secretary of Foreign Affairs, Alberto G. Romulo and his Spanish counterpart, Minister Miguel Angel Moratinos at the fringes of the 59th United Nations General Assembly (UNGA) held in New York on 22 September 2004 and at the Asia-Europe Meeting (ASEM) in Hanoi, Vietnam in October 2004.

At the fringes of the 7th ASEM-Foreign Ministers Meeting in Kyoto, Japan in May 2005, bilateral meetings were held once again between Secretary Alberto Romulo and Spanish Foreign Minister Miguel Angel Moratinos and Foreign Affairs. As well, Undersecretary Sonia Cataumber-Brady met with Spanish Director-General for Asia and the Pacific, D. Jose Eugenio Salarich. The two held another round of bilateral meeting on 20 October 2005 in Manila

Defense Minister Jose Bono visited the Philippines on 19-21 November 2005 during which time he exchanged views on defense and security issues with Secretary of Defense Avelino Cruz, Jr. On 24 March 2006, Secretary of State Bernardo Leon paid a one-day visit to the Philippines, calling on President Gloria Macapagal Arroyo and meeting with then Acting Secretary of Foreign Affairs Franklin Ebdalin. His call on the President focused on the GRP-CPP/NPA/NDF Talks, the case of Francisco Larrañaga and a reiteration of the invitation of the Spanish Government to the President to visit Spain. He also met with other key government officials such as the Presidential Adviser on the Peace Process, the National Security Adviser and the Presidential Chief of Staff.

On 20-21 April 2006, Speaker Jose de Venecia, Jr. visited Catalonia upon the invitation of Hon. Ernest Benach, President of the Parliament of Catalonia. The Speaker spoke in general terms about the relations of the Philippines and Spain and the consideration extended to the Filipino community in Spain.

Spanish Secretary of State for Cooperation, Leire Pajin, visited the Philippines on 13 - 15 June 2006 to attend the inauguration of the “Centro Oftalmológico Jose Rizal”, a project undertaken by the Spanish Cooperation Agency and the Philippine General Hospital.

President Gloria Macapagal Arroyo made an official visit to Spain on 29-30 June 2006. She met with the King and Queen, President Jose Luis Rodriguez Zapatero, members of the Parliament, business sector and the Filipino Community. During the visit, two agreements and two letters of intent were signed.

The 2nd Tribuna España-Filipinas was held in Manila on 27-28 November 2006. The second Tribune emphasized trade and investment, infrastructure, energy, tourism, culture and history, role of the local government, education, development and diplomatic cooperation.

The President of the Catalonian Parliament Hon. Ernest Benach I Pascual visited the Philippines on 28-31 August 2007 in reciprocity to the hosted visit to Catalunya of the Honorable Speaker Jose de Venecia, Jr. in April 2006

At the fringes of the 62nd UN General Assembly on 27 September 2007, Secretary of Foreign Affairs Alberto G. Romulo and Spanish Foreign Minister Miguel Ángel Moratinos had occasion to meet on bilateral and multilateral relations.

AGREEMENTS
Type of Agreement	Status
· Treaty of Friendship	Signing: Manila, 27 September 1947 Entry into force: 25 July 1948
· Agreement relating to the Establishment of a Court of Arbitration and Permanent Conciliation Commission	Signing: Manila, 22 December 1948 Entry into force: 22 December 1948
· Agreement on Civil Rights and Consular Prerogatives	Signing: Manila, 20 May 1948 Entry into force: 22 December 1948
· Treaty on Academic Degrees and the Exercise of Professions	Signing: Manila, 04 March 1949 Entry into force: 05 January 1951
· Cultural Treaty · Additional Protocol to the Cultural Treat	Signing: Manila, 04 March 1949 Ratification: 05 January 1951 Entry into force: 05 January 1951 Signing: Madrid, 04 May 1971 Entry into force: 11 March 1975
· Air Services Agreement · Agreement Modifying the Schedule of Routes Annex to the Air Services Agreement	Signing: Madrid, 06 October 1951 Signing: Madrid, 03 June 1953 Entry into force: 24 July 1953
· Postal Convention	Signing: Madrid, 06 October 1951 Entry into force: 4 December 1953
· Agreement on Technical Cooperation concerning Tourism	Signing: Manila, 4 May 1971 Ratification: 15 December 1971 Entry into force: 11 March 1975
· Basic Technical Cooperation	Signing: Manila, 20 February 1974 Entry into force: 18 March 1974
· Economic and Industrial Cooperation Agreement	Signing: 20 July 1990 Ratification: 30 July 1991 Awaiting entry into force
· Agreement for the Reciprocal Abolition of Visa Requirements	Signing: 12 March 1968 Entry into Force: 15 April 1969
· Agreement on the Reciprocal Promotion and Protection of Investments	Signing:19 October 1993 Ratification: 24 August 1994 Entry into force: 21 September 1994
· Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital	Signing: Manila, 14 March 1989 Ratification: 08 September 1989 Entry into force: 12 September 1994
· Memorandum of Understanding on Financial Cooperation between the Philippines and Spain	Signing: Madrid, 12 September 1994
· Declaration on Political Cooperation	Signing: Manila, on 3 April 1995
· Social Security Convention	Signing: Manila, 12 May 1998
· General Treaty of Friendship and Cooperation	Signing: Manila, 29 June 2000 Ratification : 04 October 2000
· Protocol on Inter-Country Adoption	Signing: Manila, 12 November 2002 Ratification: 09 June 2003 Entry into force: 14 October 2003
· Amended Social Security Convention	Signing: Manila, 12 November 2002 Ratification: 04 July 2003 Awaiting for Senate concurrence
· Extradition Treaty	Signing: Manila, 02 March 2004 Awaiting Senate’s concurrence
· Treaty on Mutual Legal Assistance on Criminal Matters	Signing: Manila, 02 March 2004 Awaiting Senate’s concurrence
· LOI on the Cooperation on the Management of Migratory Flows	Signing: 29 June 2006
· LOI on Defense Cooperation	Signing: 29 June 2006
· Transfer of Sentenced Persons Agreement	Signing: 18 May 2007, Madrid Ratification: 23 October 2007 Senate Concurrence: 26 November 2007

Official Development Assistance (ODA)

The Philippines has remained as a priority country and will, therefore, be given special focus of the Spanish “non-reimbursable” grant funds allotted to cooperation activities. Funding commitments under the 5^th Joint Commission would translate to a higher annual level of € 9.5 Million for the next three years compared to the previous levels of commitments, making the total funding level for the next three years approximately € 28.5 Million.

The main objective of the Spanish cooperation in the Philippines under the current 5^th RP-Spain Joint Commission for Cooperation 2006-2008 is to contribute to the achievement of the Millennium Development Goals (MDGs) with due consideration given to the Philippine goals and priorities indicated in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010, and the horizontal and sectoral priorities of the Spanish Master Plan.

The Spanish Government has constantly supported the Philippine Government’s development priorities through its ODA, which it implements through the Agencia Española de Cooperacion Internacional (AECI):

Geographic Focus: Region V (Bicol Region) – Provinces of Camarines Norte, Camarines Sur, Albay, Sorsogon, Catanduanes and Surigao del Norte.

Region XIII (Caraga Region) – Provinces of Agusan del Sur, Agusan del Norte, Surigao del Sur, Surigao del Norte.

Bilateral cooperation shall also be extended to Region III namely in the provinces of Pampanga, Nueva Ecija, Tarlac, Bulacan and Aurora particularly to assist the local government in enhancing its agribusiness.

Horizontal Priorities: Fight against poverty, protection of human rights, gender equality, environmental sustainability, and respect for cultural diversity.

Sector Priorities: (i) democratic governance, citizens participation and institutional development, (ii) basic social needs, (iii) promotion of the economic and business climate, (iv) environment, (v) culture and development, (vi) gender and development, and (vii) prevention of conflict and peace-building.

Spanish assistance comes in the form of concessional loan and grants for identified priority sectors. The mixed credit facility, which is administered by the Ministry of Industry, Tourism and Commerce through its Economic and Commercial Office in Manila, was previously governed by Memorandum of Understanding (MOU) on Financial Cooperation. With the expiration of the 2001 RP-Spain MOU in June 2005, the Spanish Government will consider projects and programs eligible for both the mixed credit facility and the feasibility study grant facility on a case to case basis.

The Spanish loan facility is tied to the procurement of Spanish goods and services through a blend of soft loans and commercial credits. Based on previous projects, the soft loan component usually carries an interest rate of 1% per annum payable in 30 years with a grace period of 10 years while the commercial loan component bears an Organization for Economic Cooperation and Development (OECD) consensus interest rate between 4-8%, payable in 10 years, with ho grace period. This mixed credit consists of at least a 35% grant element, making it a concessional source of funding for Philippine government projects.

Meanwhile, the Spanish grant managed by the Spanish Ministry of Foreign Affairs through the Agencia Española de Cooperacion Internacional (AECI), is being governed by the Joint Commission for Cooperation, which comes every 3-4 years. Unlike the mixed credit facility, resources from the Spanish grant may be used for local procurement of goods and services.

To further intensify the bilateral cooperation relations as well as improve the effectiveness and quality of future engagements, new instruments and modes of assistance such as the sectoral approach and budgetary assistance, in addition to the traditional instruments that have been used by Spanish cooperation (programs, projects and technical assistance), will likewise be pursued in the course of implementing the present Joint Commission.

Filipinos In Spain

The vast majority of approximately 50,000 Filipinos in Spain are holders of Spanish permanent resident cards or are already Spanish citizens. In Spain, Filipinos who have established legal residence for 2 years and above, may apply for Spanish nationality, a process which can take another 2-3 years. Since the passage in September 2003 of R.A. 9225 ( the CITIZENSHIP RETENTION AND RE-ACQUISITION ACT), until September 2007, 1110 former Filipino citizens have since reacquired Philippine citizenship.

Most Filipinos arrive in Spain either through family petitions or by way of pre-approved working permits, also known as oferta de trabajo. The latter can only be secured in Manila prior to arriving in Spain.

Most Filipinos in Spain work in the service sector, i.e. private domestic helpers; hotel and restaurant workers; caregivers; and drivers among others. Because of the type of work they are engaged in, the majority of Filipinos in Spain are female. Most Filipinos live in the big cities such as Barcelona, Madrid, Valencia and Bilbao, and around the tourist areas such as Marbella, Malaga, the Balearic and the Canary Islands, where they find work in holiday villas, hotels and restaurants. A small section of the community is self-employed, with established businesses in catering, money remittance, shipping and freight, and modest import-export ventures, while some are full-time English language professors or teachers in the several language academies in Spain. Approximately 80 % reside between the Madrid region Cataluña regions, with the rest distributed in the other autonomous regions particularly in Andalucia, Valencia and in the the Balearic and Canary Islands.

At the moment there are 64 Filipino associations (including Church based) in the entire Spain. The Philippine Chaplaincy in Madrid is always headed by a Filipino SVD priest from the Philippines while the Philippine Parish in Barcelona is always headed by a Filipino priest sent by the Cavite Archdiosease. Aside from the Catholic Church, other active religious groups include the Evangelical and Charismatic Filipino Churches and the Iglesia ni Cristo.

Labor and Working Conditions

Filipinos are very sought after are well-liked by their employers because of their dedication, honesty, industry and the good quality of their work. Spanish labor and social security laws provide more than adequate protection to Filipino workers. Under Spanish labor laws, all foreigners legally employed have the same benefits and protection under the law as any Spanish citizen. Given these conditions, migrant Filipino workers are able to maximize earning and employment potential and, at the same time, are able to receive other benefits such as full Social Security benefits, travel with their employers within or outside Spain, acquisition of other skills and expertise on the job, and from the more generous employers, additional income for extra work. By and large, Filipino workers in Spain are in the upper bracket of the salary scale.

The following benefits are being enjoyed by Filipinos working in Spain:

Average monthly salary is about €750, higher than the minimum wage of €500, which other unskilled migrant workers receive;
Filipino workers receive two mandated bonuses (July and December), each equivalent to one month’s basic wage;
14^th month pay
30 days paid vacation leave (convertible to cash);
Eight – nine hours workday. 1½ day off;
Free housing / accommodation and meals for stay-in;
Social security coverage to include medical and hospital benefits; and
Overtime pay and additional compensation for night work.

Problems and Issues

1. There are still isolated cases of Filipinos either entering Spain as tourists with the intention to work or with false identities, who in both cases pay exorbitant fees to illegal recruiters mostly based in the Philippines or outside Spain.

2. There is also a noted increase in cases of Filipinos being victimized by illegal recruiters through the internet.

2. The Philippine Embassy and the Philippine Overseas Labor Office strongly advises against accepting employment offers that are not cleared with the POLO Madrid and by the POEA in the Philippines. Once the individual oferta de trabajo have been processed by both offices, the Filipino is always guaranteed of protection under both Philippine and Spanish laws.

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Philippines-Spain Trade Relations

I. SPAIN IN BRIEF

A.  GENERAL INFORMATION
Capital : MADRID

Area : 504,750 sq. km.                                                                                                                                      .
Population : 42.3 million

Language : Castilian Spanish (74%); Catalan (17%);
Galician (7%), and Basque (2%)

Religion : Roman Catholic (94%), others (6%)

Government : Parliamentary Monarchy

Head of State : King JUAN CARLOS I

Head of Government : President JOSE LUIS RODRIGUEZ ZAPATERO

Regional/International Affiliations:

European Union (EU),, Food and Agriculture Organization (FAO), International Labor Organization (ILO), International Maritime Organization (IMO), United Nations Industrial Development Organization (UNIDO), Organization for Economic Cooperation and Development (OECD), United Nations Industrial Development Organization (UNIDO), United Nations Conference on Trade and Development (UNCTAD), United Nations Educational, Scientific and Cultural Organization( UNESCO), United Nations( UN), World Health Organization (WHO), & World Intellectual Property Organization (WIPO).

B. ECONOMY

MAJOR ECONOMIC INDICATORS: ( 2006 )

GDP (US$trillion) : $1.216
GDP Per Capita (US$): $29,266
GDP Growth Rate (%) : 3.4
Inflation Rate (%) : 3.8
Currency : Euro
Exchange Rate : 1 US Dollar = 0.74583 Euro
1 Euro (EUR) = 1.34078 US Dollar (USD)
1 Euro = 64.33556 Philippine Peso
1 Philippine Peso (PHP) = 0.01554 Euro (EUR)
Source: Currency Converter.Oanda.com 04/11/07

C.  SITUATIONER

·   The government has avoided politically painful economic reform and, with the economy still apparently performing well, is not going to change course before the election in May 2008
·  Budgetary policy will be mildly expansionary in the next two years, which is expected to lead to a small deficit in 2008.
·  GDP growth is expected to slow to around 2% over 2009-11, from 3.5% in 2006. While domestic demand growth will remain solid, it will be lower than in recent years; and net exports will continue to exert a drag, albeit a diminishing one, on overall economic growth.
·   The current account will remain deep in deficit. High property prices are causing concern, and there is a risk that a downturn in the property market could cause a negative shock to the economy.

II.      PHILIPPINES- SPAIN TRADE RELATIONS

A. BILATERAL MERCHANDISE TRADE
Value in US$

YEAR	TOTAL TRADE	EXPORTS	IMPORTS	MERCHANDISE BALANCE OF TRADE
2002	157,100,868	63,632,363	93,468,505	- 29,836,142
2003	210,258,049	101,439,202	108,818,847	- 7,379,645
2004	257,257,657	105,589,838	151,667,819	- 46,077,981
2005	158,616,082	68,281,118	92,144,461	- 23,863,343
2006	192,942,463	86,881,375	106,061,088	- 19,179,713
Growth Rate (2002-2006)	9.87%	13.85%	7.91%

In 2006, Spain was the Philippines’ 31st trading partner, accounting for 0.20% of the total Philippine trade with the world of US$98.5 billion; ranked 25th as export market accounting for 0.18% of the total Philippine exports to the world of US$ 47 billion ; 34th as an import source accounting for 0.21% of the total Philippine imports from the world of US$ 51.5 billion.

For the period 2002-2006, balance of trade has always been in favor of Spain. The highest deficit of US$ 46 million was registered in 2004 while the lowest was at US$ 7 million in 2003.

In 2006, Philippine exports to Spain increased by 27% to US$87 million from US$68 million in 2005. Major gainers in exports are portland cement, cement clinkers and coconut oil.

Top export products in 2006 were crude coconut oil; imitation jewelry; portland cement; cement clinker; and parts & accessories of machines.

Likewise, imports increased by 15% from US$92 million in 2005 to US$106 million in 2006. This can be attributed to substantial increase in the purchases of parts & accessories of transmission and radio receivers.

The top import products in 2006 were spirits ; sausage & ham casings other material; consigned accessories & supplies for the manufacture of products; parts & accessories of transmission and radio receivers; and medicament w/ other medicinal & pharmaceutical products.

Top 10 Philippine Merchandise Exports to Spain
FOB Value in US Dollars
January - December 2006 /2005

		2006			2005			2006-2005
Product		Quantity	Value	%Share	Quantity	Value	%Share	Value Difference	YOY %Change
	TOTAL EXPORTS TO Spain (545 products)		86,881,375	100.00		68,307,435	100.00	18,573,940	27.19
	Top 10		37,853,894	43.57		16,505,320	24.16	21,348,574	129.34
	Others		49,027,481	56.43		51,802,115	75.84	-2,774,634	-5.36
1	PSCC: 4223100 coconut(copra)oil, crude (GK)	15,060,000	7,905,875	9.10	6,000,000	3,384,984	4.96	4,520,891	133.56
2	PSCC: 8972909 imitation jewellery, of other non- precious materials, n.e.s. (NO)	7,088,385	5,859,836	6.74	5,915,135	4,086,335	5.98	1,773,501	43.40
3	PSCC: 6612209 oth portland cement (NK)	167,072,000	5,012,160	5.77	0	0	.00	5,012,160
4	PSCC: 6612109 oth cement clinkers (NK)	126,500,000	3,795,000	4.37	0	0	.00	3,795,000
5	PSCC: 7599300 parts & accessories of machines of 7519 (GK)	67,919	3,390,531	3.90	5,031	142,636	.21	3,247,895	2,277.05
6	PSCC: 7513100 electrostatic photo-copying apparatus operating by repro. Directly onto copy (NO)	6,518	3,106,733	3.58	2,317	1,760,682	2.58	1,346,051	76.45
7	PSCC: 8944500 oth articles for christmas festivities excldg lighting fittings & bulbs (GK)	326,939	2,267,700	2.61	233,421	1,981,175	2.90	286,525	14.46
8	PSCC: 7649332 parts & accesrs of apparatus & equipment of subgr 7643&7648 excldg tv camera p/a) (GK)	50,254	2,198,060	2.53	15,030	1,338,291	1.96	859,769	64.24
9	PSCC: 2929603 carrageenan (NK)	531,921	2,181,074	2.51	448,050	2,067,225	3.03	113,849	5.51
10	PSCC: 8841700 spectacle lenses of oth materials (NK)	45,417	2,136,925	2.46	39,578	1,743,992	2.55	392,933	22.53

Primary Source of Data: National Statistics Office (NSO)
Processed by: Bureau of Export Trade Promotion (BETP)

Top 10 Philippine Merchandise Imports from Spain
FOB Value in US Dollars
January - December 2006 /2005

		2006			2005			2006-2005
Product		Quantity	Value	%Share	Quantity	Value	%Share	Value Difference	YOY %Change
	TOTAL IMPORTS FROM Spain (1262 products)		106,061,088	100.00		92,144,461	100.00	13,916,627	15.10
	Top 10		49,262,056	46.45		31,896,504	34.62	17,365,552	54.44
	Others		56,799,032	53.55		60,247,957	65.38	-3,448,925	-5.72
1	PSCC: 1124200 spirits obtained by distilling grape wine/grape marc (LITER)	6,572,577	16,815,711	15.85	5,882,265	14,440,019	15.67	2,375,692	16.45
2	PSCC: 5811003 sausage & ham casings, of oth cellulosic mat'l, seamless (NK)	462,831	5,825,276	5.49	277,419	3,293,026	3.57	2,532,250	76.90
3	PSCC: 9310199 oth mat'l, accesrs & supplies, consign basis for manuf of products, nes (GK)	264,359	5,407,803	5.10	121,068	2,027,764	2.20	3,380,039	166.69
4	PSCC: 7649332 parts & accesrs of apparatus & equipment of transmission and radio receivers p/a) (GK)	92,432	4,977,101	4.69	49	4,183	.00	4,972,918	118,884.01
5	PSCC: 5429319 oth medicmnt w/ oth medicinal & pharmaceutical prodct, nes, for retail sale (NK)	43,811	4,599,183	4.34	54,902	4,018,352	4.36	580,831	14.45
6	PSCC: 0989300 food preparations for infant use, put up for retail sale, of flour, meal, starch or malt extract (no (NK)	569,565	3,086,678	2.91	591,733	2,909,491	3.16	177,187	6.09
7	PSCC: 7843919 oth parts & accessories, nes, of motor vehicles (GK)	269,940	2,396,389	2.26	383,377	2,023,857	2.20	372,532	18.41
8	PSCC: 8421109 overcoat, capes & simlr art, women's/girls' oth textl mat'l, not knitted/crocheted (NO)	89,673	2,312,066	2.18	0	0	.00	2,312,066
9	PSCC: 5148101 choline & its salts (NK)	1,260	1,997,825	1.88	1,050	1,596,000	1.73	401,825	25.18
10	PSCC: 9310505 bobbins temporarily imported/exported (NO)	107,014	1,844,024	1.74	127,970	1,583,812	1.72	260,212	16.43

Primary Source of Data: National Statistics Office (NSO)
Processed by: Bureau of Export Trade Promotion (BETP)

F. SPAIN’S FOREIGN TRADE

Value in US$ MILLION

YEAR	TOTAL TRADE	EXPORTS TO THE WORLD	IMPORTS FROM THE WORLD	BALANCE OF TRADE
2001	251,575	108,951	142,624	33,673 -
2002	291,792	125,872	165,919	40,047 -
2003	369,073	158,213	210,860	52,647 -
2004	399,070	164,715	234,355	45,640 -
2005	365,849	140,848	225,001	84,153 -

SOURCE: Direction of Trade Yearbook, 2002/Trademap 2005

2005 TOP EXPORTS OF SPAIN TO THE WORLD

(Value in US$ Thousand)

PRODUCT	Value	%SHARE
TOTAL	140,848,430	100.00
1. Automobiles with diesel engine displacing more than 1500 cc to 2500 cc	8,020,936	5.65
2. Automobiles w reciprocating piston engine displacing > 1500 cc to 3000 cc	5,822,104	4.13
3. Automobiles w reciprocating piston engine displacing > 1000 cc to 1500 cc	5,591,164	3.97
4. Medicaments nes, in dosage	4,554,709	3.23
5. Motor vehicle parts nes	2,934,787	2.08

2005 TOP IMPORTS OF SPAIN FROM THE RLD

(Value in US $ Thousand)

PRODUCT	Value	%SHARE
TOTAL	225,001,149	100.00
1.Automobiles with diesel engine displacing more than 1500 cc to 2500 cc	12,701,670	5.65
2.Transmission apparatus, for radiotelephony incorporating reception apparatus	5,801,556	2.58
3.Petroleum oils and oils obtained from bituminous minerals, crude	5,513,383	2.45
4.Medicaments nes, in dosage	5,093,145	2.26
5.Automobiles w reciprocating piston engine displacing > 1500 cc to 3000 cc	4,934,568	2.19

Source: ITC Calculations based on COMTRADE Statistics (Trademap) 2006

2005 SPAIN MAJOR MARKETS

(Value in US$ thousand)

PRODUCT	Value	%SHARE
TOTAL	164,714,801	100.00
1. France	33,848,066	20.55
2. Germany	22,253,948	13.51
3. United Kingdom	17,051,805	10.35
4. Italy	15,751,741	9.56
5.United States	9,127,800	5.54

2005 SPAIN MAJOR SUPPLIERS

(Value in US thousand)

	Value	%SHARE
TOTAL	225,001,149	100.00
1. Germany	49,211,411	21.87
2. France	44,267,388	19.67
3. Italy	27,020,854	12.01
4. United Kingdom	18,444,530	8.19

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Government of Spain

Chief of State -  Juan Carlos I, King

President of the Government   -   Jose Luis Rodriguez Zapatero

First Vice President -  Maria Teresa Fernandez de la Vega

Second Vice President - Pedro Solbes

Minister of Agriculture, Fisheries & Food - Elena Espinosa

Minister of Culture - Cesar Antonio Molina

Minister of Defense - Jose Antonio Alonso

Minister of Development - Magdalena Alvarez

Minister of Economy & Finance - Pedro Solbes

Minister of Education & Science - Mercedes Cabrera

Minister of Environment - Cristina Narbona

Minister of Foreign Affairs & Cooperation - Miguel Angel Moratinos

Ministry of Health & Consumer Affairs - Bernat Soria

Minister of Housing - Carme Chacon

Minister of Industry, Tourism & Commerce - Joan Clos

Minister of the Interior - Alfredo Perez

Minister of Justice - Mariano Fernandez

Minister of Labor & Social Affairs - Jesus Caldera

Minister of the Presidency - Maria Teresa Fernandez de la Vega

Minister of Public Administration - Elena Salgado

Governor, Bank of Spain - Miguel Fernandez

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Profile of His Royal Highness Juan Carlos Primera, King of Spain

Juan Carlos I (Juan Carlos Alfonso Víctor María de Borbón y Borbón-Dos Sicilias was born January 5, 1938 in Rome. He claims the title of King of Jerusalem, as the successor to the royal family of Naples. He is also a direct descendant of the United Kingdom's Queen Victoria through his grandmother Victoria Eugenie, and Louis XIV of France through the House of Bourbon. He speaks fluent Catalan, English, French, Italian, Portuguese and Spanish.

The King's early life was dictated largely by the political concerns of his father, Juan de Borbón, and Franco. He moved to Spain in 1948 to be educated there after his father persuaded Franco to allow this. He began his studies in San Sebastián and finished them in 1954 at the San Isidro Institute in Madrid. He then joined the army, doing his officer training, 1955-1957, in Zaragoza. From 1957 he spent a year in the naval school at Pontevedra and another in the Air Force school in San Javier in Murcia. In 1961 he graduated from the Complutense University. He then went to live in the Palace of Zarzuela, and began carrying out official engagements.

In 1969 Juan Carlos was officially designated heir, and was given the new title of Prince of Spain (not the traditional Prince of Asturias).

During periods of Franco's temporary incapacity in 1974 and 1975 Juan Carlos was acting Head of State. Near death, on October 30, 1975, Franco gave control to Juan Carlos. On November 22, 1975, two days after the death of Francisco Franco, Juan Carlos was designated King of Spain according to the law of succession promulgated by Franco. He successfully oversaw the transition of Spain to a democratic constitutional monarchy.

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The Spanish Senate

The Senate, headed by a Senate President, currently has a total of 259 Senators, elected by a dual procedure:

• a) Most of them (208) are elected by provinces; each province elects four Senators, by universal suffrage in a free, equal, direct and secret vote. In the insular provinces, each island or group of islands with a "Cabildo" or insular Council constitutes an electoral district for the purpose of election of Senators. Each of the larger islands (Gran Canaria, Mallorca and Tenerife) elects three Senators and each of the smaller islands or groups of islands (Ibiza-Formentera, Menorca, Fuerteventura, Gomera, Hierro, Lanzarote and La Palma) elects one Senator. Ceuta and Melilla elect two Senators each. Electors may cast their votes to a maximum of three candidates in the peninsula provinces, to two in Gran Canaria, Mallorca, Tenerife, Ceuta and Melilla, and to one in the smaller islands. Those obtaining more votes are elected.

• b) Furthermore, each Self-governing Community appoints one Senator, and an additional Senator for every million inhabitants in their respective territories. This appointment is made by the legislative Assembly or, failing this, by the supreme body of government of the Self-governing Community, in accordance with the provisions of the respective Statutes which shall ensure, in all cases, appropriate proportional representation. The official population census in effect when the last elections to the Senate were held shall serve as the basis for determination of the specific number of Senators that correspond to each Self-governing Community. Today, 51 Senators are appointed by the Self-governing Communities.

Appointment of these Senators is contemplated as a secondary degree election, in which the only requisite established in the Constitution is that appropriate proportional representation be guaranteed. Each Self-governing Community regulates the electoral procedure in its Statute, Self-governing Act of Standing Orders of the House. The following requisites -that are not required in all Self-governing Communities- may be highlighted:

1. Membership of the regional Parliament making the appointment.
2. Membership of the Self-governing Community.
3. Proposal as candidate.
4. Declaration of acceptance of the position.

Source: http://www.senado.es/legis8/senadores/index_i.htmlhttp://www.senado.es/legis8/senadores/index_i.html retrieved on 27 November 2007

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Country Profile: The United Kingdom of Great Britain and Northern Ireland

LOCATION

Western Europe, islands including the northern one-sixth of the island of Ireland between the North Atlantic Ocean and the North Sea, northwest of France.

CAPITAL

London

AREA

244,820 sq. km.

CLIMATE

Temperate, moderated by prevailing southwest winds over the North Atlantic Current, more than one-half of the days of the days are overcast

POPULATION

60,776,238 (July 2007 est.)

RELIGION

Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%, Muslim 2.7%, Hindu 1% other 1.6%, unspecified or none 23.1% (2001 census)

LANGUAGES

English, Welsh (about 26% of the population of Wales), Scottish form of Gaelic (about 60,000 in Scotland)

NATIONAL HOLIDAY

Celebration of the Birthday of the Queen (second Saturday in June)

GOVERNMENT

Convention long form: United Kingdom of Great Britain and Northern Ireland

Conventional short form: United Kingdom

Abbreviation: UK

Government type: constitutional monarchy

Administrative divisions: 47 countries, 7 metropolitan countries, 26 districts, 9 regions, and 3 island areas

Executive Branch Chief of state: Queen of ELIZABETH II (since 6

February 1952). Heir Apparent Prince CHARLES (son of the queen, born 14 November 1948)

Head of government: Prime Minister Gordon Brown (since 27 June 2007)

Cabinet: Cabinet of Ministers appointed by the prime minister

Election: none; the monarch is hereditary; the prime minister is the leader of the majority party in the House of Commons (assuming there is no majority party, a prime minister would have a majority coalition or at least a coalition that was not rejected by the majority)

Legislative Branch Bicameral Parliament consists of House of Lords has been disbanded, and the new one is still being formed; the most likely plan calls for 500 members, one-fifth elected and the rest appointed) and House of Commons, (659 seats; members are elected by popular vote to serve five-year terms unless the House is dissolved earlier.

Elections: House of Lords - no elections; note- the newly-forming House of Lords may call for some elected seats; House of Commons - last held 1 May 1997 (next to be held by NA May 2002); note - in 1998 elections were held for a Northern Ireland Parliament (because of unresolves disputes among existing parties, the transfer of power from London to Northern Ireland came only at the end of 1999 and was rescinded in February 2000), in 1999 there were elections for a new Scottish Parliament and a new Welsh assembly.

Judicial Branch House of Lords of Appeal in Ordinary are appointed by the monarch for life

EXPORTS

Exports - commodities: manufactures goods, fuels, chemicals, food, beverages, tobacco

Exports - partners: US 13.9%, Germany 10.9%, France 10.4%, Ireland 7.1% Netherlands 6.3% Belgium 5.2% Spain 4.5% (2006)

IMPORTS

Imports - commodities: manufactured goods, machinery, fuels, foodstuffs

Imports - partners: Germany 12.8%, US 8.9%, France 6.9%, Netherlands 6.6.%, China 3.3%, Norway 4.9%, Belgium 4.5% (2006)

CURRENCY

1 British pound = 100 pence

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Overview of RP-UK Bilateral Relations

Overview

Diplomatic relations between the Philippines and the United Kingdom of Great Britain and Northern Ireland wee established on 4 July 1946. The Philippine Ambassador to the United Kingdom is H.E. Edgardo B. Espiritu while the Ambassador of the United Kingdom to the Philippines is H.E. Peter Beckingham.

Relations between the Philippines and the United Kingdom have been marked in the last seven years by keener British interest in the economic and political developments in the country. This is well demonstrated by a sharp rise in development assistance, the number and frequency of high level visits to Manila, and the significant level in the volume of trade and investments.

The UK has always been a major bilateral partner in Europe, and positive developments in the Philippines brought about by the administrations policies in fostering political stability, economic growth and social security have attracted serious interest in the country throughout Europe.

Historic Linkages

Linkages between the UK and the Philippines go as way back as early as the 17th century. In 1686, British adventurers like Captain Swan and the chronicler William Dampier reached the island of Mindanao with trade opportunities in mind. In 1760, Alexander Dalrymple was sent by the East India Company from Madras to Sulu to open trade relations with the Sultan and conclude a provisional treaty of friendship and commerce. In 1762, the East India Company sent Rear Admiral Cornish with several ships and a land force led by General Draper to attack the Spaniards occupying Manila, an offshoot of the war between two colonial world powers. Britain established a foothold in the county’s political center two years, even forging an alliance with Filipino rebel leader Diego Silang whose forces were fighting the British regime. The British-Spanish conflict ended in 1764, and before the British withdrawal, Dalrymple held the post of Deputy Governeor of Manila for several months.

The more lasting foundation for an enduring British-Philippine relationship were laid down in the first half of the 19th century by outstanding men of commerce and enterprise like John Farren, the first British consul in Manila, whose mandate was “to secure free labor sugar to replace the loss of West Indian sugar after the passage of a bill in Parliament emancipating slaves in those British colonies”; and Nicholas Loney of Plymouth, who helped spur the economic development of the Philippines through his involvement in the sugar industry.

Iloilo on the Visayas was opened to foreign commerce. In 1876, surveys were commissioned by the Spanish colonial government for the construction of a railway line from Manila to Dagupan. The plan was approved in 1884, and the bidding to construct it was won in 1885 by the British firm Manila Railway Company Ltd., incorporated in London. In December 1887, the first railway spikes were driven in Tondo, and in late 1893, the railway line was finished. More than a century later, a similar major infrastructure project agreed upon by the Philippine and British governments would portend economic benefits especially for the Philippines rural areas: the construction of steel bridges linking underdeveloped communities in Mindanao to centers of commerce and education, with the potential to help reduce poverty, raise the overall quality of life and thus make a vital contribution to the peace process in the region.

RP-UK Diplomatic Relations

Formal Diplomatic relations were established between the Philippines and UK on 4 July 1946, but earlier political alliances were already evident in the course of two world wars in which both countries fought on the same side.

During the last decade, relations between the two countries have been marked by a keener British interest in the Philippine economic and political developments as shown by a sharp rise in development assistance, the number and frequency of high-level visits to Manila, and the significant increase in the volume of trade and investments. Increasingly, too, the UK has been relying on the professional expertise of thousands of Filipino workers to fill up critical gaps in the delivery of services exemplified by the influx of Filipino nurse whose skills and professional dedication have made them a welcome addition to the National Health Service.

The new era in RP-UK relations was inaugurated in 1986 with the visit of the British Parliament Foreign Affairs Committee to manila to express support for the newly installed government of then P{resident Corazon C. Aquino. In 1988, Sir Geoffrey Howe, then Secretary of State for Foreign and Commonwealth Affairs, visited Manila to conduct a review of bilateral relations with the Philippines. In 1989, then RP Foreign Secretary Raul Manglapus visited the UJ, the first Philippine Minsterial-level official to do so, and met with Sire Geoffrey Howe. In 1990, HRH the Duke of Gloucester visited Manila accompanied by 17 members of the British Consultants Bureau, and conferred with then President Aquino. In 1995, then President Fidel V. Ramos made the first official trip of a Philippine Chief Executive to the UK. His visit resulted in the signing of nine private sector agreements. This was followed by a working visit to London and Edinburgh in 1997, during which further agreements were signed, and the level of political and economic cooperation between the two countries raised anew.

In the last two years, the diplomatic relations between the Philippines and the UK further blossomed with the visit of President Macapagal Arroyo to the UK in January 2002. This was followed by a series of high level visits in 2003 – Energy Secretary Vicente Perez in February and October 2003; Gen. Victor Mayo of the National Security Council in February 2004; Sec. Roberto Romulo in May 2004; Chairman and members of the House Committee on Economic Affairs in June 2004; Rep. Imee Marcos in August 2004; Senate President Franklin Drilon, Sen, Robert Jaworski, Rep. Teodoro Locsin, former Usec. for Foreign Agffairs Delia Domingo-Albert and former Finance Sec. Isidro Camacho in September 2004; and Trade and Industry Secretary Gregory Domingo and Energy Undersecretary Eduardo Manalac in October.

In September 2006, President Gloria Macapagal-Arroyo visited the United Kingdom, during which she met with CEOs and senior officials of major UK-based companies, two members of the Royal family, and UK-based NGOs and discussed ways of advancing cooperation between the Philippines and the UK.

High-level British visitors to Manila during the last several years included Foreign Minister Douglas Hurd, the Rt. Hon. Baroness Chalker of Overseas Development, the Rt. Hon. Lord Fraser for the Department of Trade and Industry, Secretary of State for Defence Michael Portillo, the Rt. Hon. Jeremy Hanley, Minister of Foreign Affairs, His Royal Higness the Duke of york, His Royal Higness the Prince of Wales, Her Royal Higness the Princess Royal, former Foreign Secretary robin Cook, Minister for London and construction Nick Raynsford, the Rt. Hon. John Battle, State Secretary of the FCO, Parliamentary Undersecretary of State for foreign Affairs Ben Bradshaw, Deputy Head of Southeast Asia of FCO Richard Powell, and several others.

Commonalities

Bilateral relations between the Philippines and the United Kingdom are very strong . Politically, both are strong democracies, with a very active and engaged civil society keen on participative and transparent governance. Both are also committed to upholding a rules-based international order. This strong commitment and adherence of both countries to human rights, individual initiative, and to the role played by civil society in political and development issues have also made dialogue between both countries smooth and with no major irritants.

Their most distinctive commmonality is the fact that both are island economies. Like the British, the Filipinos are learning to view the bodies of water around them not as barriers but as waterways to the world. Development of this aspect of relations is being pursued: both countries have launched several maritime cooperation programmes. The leading role of the UK as a trading nation, and the importance of the Philippines to the UK arising from its geographic location and its sea lanes, means that the UK's eco nomic, political and security interests are constant in the Philippines. The Philippines accounts for 20% of the world's seafarers and has one of the biggest capacities of bottoms. Conference convened in the Philippines, such as the "ASEAN-EU" Maritime Security Conference to tackle the problem of archipelagic sealanes and other maritime security concerns are actually supported by the UK.
The strong commitment for democracy of both countries in times of crisis reveals their convergent values: the Philippines was the last defense of the allies in WWll, without which their common enemy would have reached Australia. Nationals of both countries fought side by side in the Korean War and both sides suffered some of the highest number of casualties.

The present fight against terrorism makes the Philippines and the UK natural partners in political cooperation, with the UK, playing a central role in building and maintaining the global coalition, and the Philippines, as the most prominent stakeholder in Asia in this coalition, and the Philippines, as the most prominent stakeholder in Asia in this fight against terrorism, have again perfectly convergent interests. Moreover, because both countries clearly perceive the need to address the deep-rooted grievances that give rise to extremism, like poverty, the sense of deprivation, whether economic, cultural or social, they are natural partners in bringing the coalition forward towards achieving a more sustainable peace.

Partnerships with non-governmental organizations constitute an important part of this relationship, especially for development assistance. Three UK NGOs have active presence in the Philippines: Opportunity International, Coral Cay Conservation, and thewPrince of Wales Business Leaders' Forum.

Opportunity International, an NGO specializing in micro-finance, established the first micro-finance bank in the Philippines. Its biggest operations are in the Philippines, accounting for 40% of its portfolio, aspiring to reach about 1,000,000 families by 2005.

Coral Cay Conservation, specializing in environmental protection (coral reeefs and rainforest conservation), runs on volunteer work. Its biggest operations are in Palawan and Negros. It is also currently executing work for the World Wildlife Fund (WWF) in Anilao.

The Prince of Wales Business Leaders' Forum, an organization that promotes corporate social responsibility and addresses socio-economic needs in developing countries, currently undertakes projects in the Philippines provide business assistance to Muslim companies and provide corporate mentoring for young Muslims.

The Philippines and the UK are natural partners, by their common belief in free market principles. The UK has had a long economic presence in the Philippines, dating back to the 17th century.

RP-UK AGREEMENTS

SIGNED AGREEMENTS

* Air Services Agreement
signed, 31 January 1955
entered into force upon signature
registered with ICAO, 05 October 1994

* Agreement on the Avoidance of Double taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains
signed, 10 June 1976
ratified , 16 Kjanuary 1981
entered into force, 23 January 1978

* Social Security Agreement
signed, 27 February 1985
ratified 08 June 1989 (UK); 09 August 1989 (RP)
entered into force, 01 December 1989

* Agreement on the Promotion and Protection of Investments
signed, 03 1980
entered into force, 02 January 1981

* Reciprocal Radio Licensing Agreement
exchange of notes and entered into force, 22 October 1982

* Debt Agreement of RP to UK
signed, 24 March 1988

* Agreement on Certain Commercial Debts
signed, 04 February 1986
entered into force, 04 February 1986

* Memorandum of Understanding on Defense Cooperation
signed, 03 January 1996

* 50 Million Euro Concessional Financing Arrangement
signed, 01 September 1995

* Memorandum of Understanding on Combating Child Abuse
signed, 30 August 1997

* MOU on Womens's and Children's Protection Course
signed, 30 August 1997

* RP-UK Action Agenda
signed, 26 June 2000

* RP-UK National Roads Bridge Replacement Project (ATC) Grant 2001
signed, 12 November 2001
extended on 31 July 2004

* RP-UK Agreement on the Hiring of Filipino Nurses
signed, 08 January 2002

* RP-UK Agreement on the Recognition of Certificates under Regulation 1/10 of the STCW Convention
under negotiation

* MOU on Collaboration in Power Sector Development and Sustainable Energy Research and development and Technology Transfer
signed on 13 January 2003
originals is still with DOE for issuance of full powers
for ratification

* RP-UK MOU opn Healthcare Cooperation
signed, 30 July 2003
ratified on 09 March 2004

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Profile of the Filipino Community in the United Kingdom

There is a significant Filipino population in the United Kingdom. Over the past twenty years, the number of Filipinos living and working in the UK has increased by more than 833% from roughly 18,000 in 1986 to more than 150,000 in 2006. Of this number, about 70% live in Central London.

The Filipino community works in a variety of sectors, ranging from IT, aviation, education, hospitality sector (hotels, restaurants and casinos), healthcare, food industry (as chefs), and house manager. Increasingly, Filipino engineers and information technology experts have been recruited to the UK in significant numbers. Over the past five years, about a hundred of these engineers have been working in the aeronautical and avionics companies in the servicing and maintenance departments while others have been working for railway companies.

Since 2001, several dozen IT experts have been working with British telecommunication companies such as Vodafone, T-Mobile, and Orange in software development, as well as with computer companies working on e-commerce solutions.

Perhaps the Filipino community is best known for the contribution it makes to the healthcare sector. Filipino nurses are consistently recognized for their high standards of professionalism. In the past six years, more than 20,000 Filipinos were recruited into the health service, most of whom are nurses serving in the National Health Service (NHS) while the others are working in the independent healthcare sector – mostly private nursing homes.

To date, there are 108 Filipino community associations/charities in the UK that are registered with the Philippine Embassy, with about 11 being inactive. There are five London-based community newspapers that are circulated among the community members: Philippine Express International, Philippine Observer, Planet Philippines, Euro Philippines, Euro Filipino Journal, and One Philippines.

Royal Recognition of the Achievements of some Members of the Filipino Community

Outside the medical and healthcare sectors, Filipinos have also made some headway in gaining recognition in their respective fields of endeavors as exemplified by a non-governmental organization and two members of the Filipino community who received recognition from Her Majesty Queen Elizabeth II.

In 2002, Mr. Rene Garcia, a Filipino nurse and president of the Couples for Christ movement was given a MBE (Member of the British Empire) award by the Queen for community service. He is very much involved in Embassy projects.

In 2003, the Centre for Filipinos (CF), an NGO that provides service to the immigrant community, won the prestigious Queen Golden Jubilee Award. CF has been an active partner in the Embassy’s programme of increasing awareness, respect and cooperation for the Philippines and the Filipinos, with its own empowerment and skills-upgrade training seminars, assistance to Filipinos in distress and policy advocacy workshops.

Recognition Given by other UK institutions

Consuelo Farochilen is another Filipino who received a high commendation from the Women into Business Awards, sponsored by the Bank of Scotland in February 2003. A former chambermaid turned millionaire businesswoman, Mrs. Farochilen is the Managing Director of the Farochilen Group of Companies. Her group of companies encompasses freight-forwarding, remittances, travel services, real estate, phone cards, groceries, human resources recruitment and publishing. It is the biggest business of its king servicing mainly the Filipino community in the UK.

Recognition by the Philippine Government of the Work of Some Outstanding Filipinos in the United Kingdom

The Philippine Government has also recognized the achievements of the Filipino community in the UK. To date, there are with (9) individuals/groups within the Filipino community in the UK who are recipients of the Presidential Awards for Outstanding Filipinos Overseas. These include:

1) Ms. Letty Aranilla-former executive director of World Association of Girl Guides;
2) Mr. Greg Medalla – internationally-recognized artist and one of the pioneers of British avant garde art;
3) Mr. Rene Garcia -- first Filipino recipient of the Member of the British Empire (MBE) decoration from Queen Elizabeth II; and a psychiatric nurse cited for his contributions to the British National Health Service;
4) The late Mr. Benjie Tomelden – long-time chairman of the Philippine Centre and hermano mayor of the London Barrio Fiesta;
5) Dr. Gundelina Velasco – internationally recognized child psychologist working for SGM International, a UK NGO working for the welfare of street children in several countries;
6) Ms. Loline Lualhati-Reed-awarded the Presidential Banaag Award at ceremonies in Malacanang organized by the Commission on Filipinos Overseas in December of 2006, in recognition of her work for the Filipino community;
7) Kalayaan – an organization working for the rights of overseas domestic workers in the United Kingdom (2002);
8) Center for Filipinos – an NGO established in 1979 to primarily recognized the needs of migrant workers and provide advice, information and training to migrants, especially women, on a wide range of social issues including employment, health, education and welfare rights (2004);
9) Lahing Kayumanggi – awarded the Presidential Banaag Award at ceremonies in Malacanang organize by the Commission on Filipino Overseas in December 2006, in recognition of its unwavering dedication to artistic excellence, raising the cultural awareness and ethnic pride of the Filipino community in the United Kingdom and supporting cultural and humanitarian activities in the Philippines.

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Profile of Her Majesty Queen Elizabeth II, United Kingdom

The Queen is the fortieth monarch since William the Conqueror, and is also the great-great-granddaughter of Queen Victoria.

The Queen is Head of State of the UK and 15 other Commonwealth realms.

The elder daughter of King George VI and Queen Elizabeth, she was born in 1926. She became Queen at the age of 25, and has reigned through more than five decades of enormous social change and development.
The Queen is married to Prince Philip, Duke of Edinburgh, and has four children and seven grandchildren.

Her Majesty is 38th in direct line of descent from Egbert (c. 775-839), King of Wessex from 802 and of England 827 to 839.
She is the fortieth monarch since William I (William the Conqueror

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Profile of the Rt. Honorable Gordon Brown, Prime Minister

2007 - Present
Born: 20 February 1951
Home and family

Born in 1951, Gordon Brown is the second of three sons. He grew up in the town of Kirkcaldy, an industrial centre famed for its linoleum and mining industries. As Mr Brown was growing up, it was a town undergoing major change, with rising unemployment and desperate poverty.

Both of Gordon Brown's parents, John and Elizabeth, were influential figures in his life. His father was not only a Minister of the Church, but also played a central part in town life. Gordon Brown remembers his father as being more interested in helping people than in theological zeal. He often helped those in desperate circumstances who saw the minister's house as their only refuge for help.
Mr Brown recalls his father quoting the words of Martin Luther King: "everyone can be great because everyone can serve". He has described his parents as "my inspiration, and the reason I am in politics".

Like many other boys in Scotland, football was Mr Brown's passion. A keen Raith Rovers supporter from childhood, he earned pocket money by selling programmes for the team. He also produced a newspaper with his brothers, which they sold for charity.

Mr Brown married his wife Sarah at their home in North Queensferry on 3 August 2000. They have two sons, John and Fraser.

Mrs Brown works with the children's charity PiggyBankKids, which supports the Jennifer Brown Research Laboratory, a project set up in memory of their daughter.

Education and early career

Mr Brown did well at school from an early age. At the age of ten, he joined Kirkcaldy High School, where he excelled at sport and joined in every aspect of school life, quickly becoming popular, and taking an early interest in local political campaigns.

He took his exams a year ahead of his contemporaries - his 'O' Levels at 14, his Highers at 15. When he came top of a bursary competition, he went on to university at age 15 - one of the youngest students to go to Edinburgh University since the war.

Mr Brown enjoyed student politics and the debates in the student newspaper, which he edited in a prize-winning year. He also continued with his passion for sport.

Just before he went to university, Mr Brown injured his eye playing for his school team at rugby. Having been diagnosed with a detached eye retina - later in both eyes - he spent much of his early years at university in hospital or recuperating.

Having gained a First Class honours degree and a number of prizes for his studies, in 1972, Mr Brown became the youngest ever Rector of Edinburgh University.

Mr Brown has also been a university and college lecturer and has written a number of books. His book on James Maxton is about the early Labour MPs and their struggles. 'Values, Visions and Voices' is a study of the idealism and zeal of Labour's early thinkers. And 'The Real Divide', written with Robin Cook, is a study of poverty and inequality. More recently, a collection of his speeches has been published as 'Moving Britain Forward'.

After unsuccessfully fighting Michael Ancram for the Conservative seat of Edinburgh South in 1979, Mr Brown became MP for Dunfermline East in 1983 with a majority of 11,000.

Into Parliament

In 1983, as MP for Dunfermline East and Chair of the Labour Party's Scottish Council, Mr Brown shared his first office in the House of Commons with Tony Blair and the two became friends.

Mr Brown's maiden speech was on the growing problem of unemployment, when he said:

"The chance of a labourer getting a job in my constituency is 150 to 1 against. There is only one vacancy in my local career office for nearly 500 teenagers who have recently left school."

Identified early on by Neil Kinnock as a rising talent, Mr Brown became Shadow Spokesman for Trade and Industry, working with John Smith, and the two formed a close working relationship. When John Smith became leader, he appointed Gordon Brown to be Shadow Chancellor.

After John Smith's sudden death, Mr Brown continued to be Shadow Chancellor and backed Tony Blair for the leadership of the Labour Party. Working together they won a landslide majority in 1997.

Chancellor of the Exchequer

As Chancellor of the Exchequer, Gordon Brown presided over the longest ever period of growth. He also made the Bank of England independent and delivered an agreement at the Gleneagles Summit in 2005, supporting the world's poorest countries and helping to tackle climate change.

Mr Brown sums his own beliefs up as:

"Every child should have the best start in life, that everybody should have the chance of a job, that nobody should be brought up suffering in poverty. I would call them the beliefs that you associate with civilisation and dignity."

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