Transcript National Economic Policies and Reforms

TAG meeting
7 June 2010
10am to 3 pm
Fair
Trade
Alliance
Published in 2006
 Dealt with three (3) industrialization
regimes and the three (3) tariff
liberalization programs
 Economic liberalization scorecard
 Global, bilateral and regional trade
agreements
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Nationalist
Development Agenda
Five point
Looking back
Three (3) industrialization regimes
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1st two centuries – transshipment
1800s – export crop producing economy – sugar, indigo, tobacco, abaca;
hacienda system; internal economy
Turn of 20th century – reinforced ‘free trade’ – Treaty of Paris (1898);
Payne Aldrich Act (1909); Underwood-Simmons Tariff Act (1938)
469T hectares (1902) to 1.6 M hectares (1939) – area planted to export
crops
Late 20s to early 30s – world depression
Social and economic unrest – rise of nationalist industrialists
After the war – no savings, devastated
Bell Trade Agreement
1935 Constitution – Parity Rights
Massive importation of consumption goods; failure to rehabilitate extractive
export industries and restore pre-war productivity
Fair
Trade
BOP and BT crises – 1949
Alliance
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Imposed import and foreign exchange controls – rationed dollars to import
substituting industries based on light manufacturing
Emergence of Filipino industrializing class
GDP 1949 – 1953 – 14.5%; 1953 – 57 – 11%
Go export oriented – address payment and trade deficits
Deepen industrialization – less dependence on imports and increase
industrial capacity
Macapagal borrowed $300M from IMF WB – lifted import and foreign
exchange controls; erected high tariff walls (not performance based nor
time bound)
1970s $1 – P 6.50 from 50s $1 – P 2 and 60s $1 – P 3.50
1970s – LIEO – development financing (WB, IMF, ODA, Paris Club, etc);
transnational corporations which outsources
1980s – WB offered SAL/SAP (Washington Consensus)
Trade and investment liberalization; privatization and deregulation
Aquino – institutionalized privatization – Proc. 50 (creation of the Asset
Privatization Trust)
Ramos – unilateral tariff reduction program and opening up of energy Fair
and
Trade
financial sectors
Alliance
Estrada – continued tariff reduction
Looking back
Three (3) liberalization regimes
WTO Trade Menu
July Framework
Urgent Philippine Concerns
 Special and Differential Treatment (SDT)
 Non-Agricultural Market Access (NAMA)
 General Agreement on Trade in Services (GATS)
 Agreement on Agriculture (AoA)
 Safety Nets
 Trade Facilitation
 AFTA and Bilaterals
 Bilaterals with Japan, China and United States
 RP under AFTA
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Fair
Trade
Alliance
5 Point Agenda
1. Adopt a coherent, balanced and
pro-Filipino trade development
framework
Junk the neo-liberal paradigm
 Foster coherence on development and trade
policies and define national interest in each
trade agreement
 Create PTRO to bring about transparency
and accountability
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Fair
Trade
Alliance
5 Point Agenda
2. Rebuild the nation’s fences
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Effective Tariff System
Stop smuggling and corruption
Strengthen safety net laws and rules
against unfair trade practices
Promote genuine, not ruinous,
competition
Fair
Trade
Alliance
5 Point Agenda
3. Build up the nation’s
productive capacity
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Resolve the fiscal and debt crisis
Mobilize domestic investments for recovery,
jobs and incomes
Rebuild the nation’s industrial base
Rebuild the nation’s agriculture base
Strategize the development of our service
sector
Scale the chain
Fair
Trade
Alliance
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5 Point Agenda
4. Unleash the people’s
productive capacity
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Re-building the nation’s fences, building up the nation’s
productive capacity and re-calibration of trade and
development policies
Access quality but continuing system of education and
technical-vocational training,
Completion of programs and decisive measures to address old
as well as new issues related to farm productivity, rural
employment and countryside development
Assisting the informal sector micro enterprises in upgrading
their operations and in gaining access to affordable credit, Fair
Trade
new markets, technology, and business skills development.Alliance
5 Point Agenda
5. Develop a culture of industrialism, tangkilikan,
excellence and economic nationalism
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That the national flag law be enforced in all agencies. Products of displaced
workers such as garments and shoe producers be given primary attention
(an appropriate Executive Order should be released NOW),
That Government and the Fair Trade Alliance work out a system of national
labeling for fair trade products,
That big enterprise-small enterprise business linkaging program should be
strengthened
That the Tangkilikan philosophy and programs promoting buy-Philippinemade products should be taught in all schools and in all levels
That LGUs support tangkilikan among barangay-based enterprises,
The documentation of good tangkilikan practices, and
The enforcement of product standards and link up with the Philippine
Product Safety and Quality Foundation (PPSQF) for future collaboration
Fair
efforts
Trade
Alliance
The Challenge
Fearlessly make bold
economic and trade policies!
Fair
Trade
Alliance
Maraming Salamat Po!
Fair
Trade
Alliance