Cancun and Its Aftermath: What Does It Mean?

When the WTO talks in Cancun broke down last September, anti-globalization groups and NGOs around the world rejoiced. However, the author of this Policy Notes cautions that the collapse is no reason to celebrate because it only means that every country would suffer, with some having to suffer more than others. In the end, they claim that the real losers are the developing countries, especially the smaller and weaker ones. Why? What are the more telling issues? Read more in this Notes.World Trade Organization, tariff reduction, competition policy, agricultural subsidies

Why Cement Prices Remain High despite Zero Tariffs

Trade reforms, in particular reduction and/or removal of tariffs on imports, are aimed to bring about lower prices of certain goods. In the case of the cement industry, though, despite the government’s imposition of zero tariffs on cement imports, the price(s) of cement continued to rise unabatedly. Why? What explains this? Read on...Philippines, cartel, cement industry, cement prices, zero tariff

EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

EC 1992: Its Impact on Trade and Investment in the Philippines

One of the recent European developments is the plan of creating a single market implying the removal of obstacles to trade in goods, services, capital and labor. Hence, it is worthwhile to examine the impact of such move to a small country like the Philippines, the growth of which depends largely on foreign trade and investment. Analysis indicates the intensification of trade and market competition, which in turn, have positive impact on electronic component of Philippine exports. This move also represents a huge market for the country’s products. To benefit from EC 1992, the Philippines has to take the initiative to diversify and start looking for fresh markets.trade sector, liberalization, investment, European market

Regulatory Policies and Reforms in the Power and Downstream Oil Industries

This paper looks at the regulatory reforms in the electricity and downstream oil industries, two important inputs to the production process that were heavily regulated by the government. While electricity has strong externalities as well as economies of scale and scope, the oil industry does not exhibit natural monopoly characteristics nor does it display economic features that would warrant government regulation. The paper also analyzes the economic theories underlying these reforms: why is regulation necessary, what are the different forms of regulation, and how can these policy reforms bring about competition? It also identifies the emerging issues and problems associated with the regulatory reforms. Given our little experience in the effective use of public regulation in a market-driven setting, research is needed to provide a deeper understanding of these issues within the context of our economic, institutional, and political structure. This is necessary in order to come up with possible approaches to overcome our weaknesses and shore up weak administrative and enforcement capacities.electricity and power, economic regulation, regulatory reform, downstream oil

Regulatory Policies and Reforms in the Power and Downstream Oil Industries

This paper looks at the regulatory reforms in the electricity and downstream oil industries, two important inputs to the production process that were heavily regulated by the government. While electricity has strong externalities as well as economies of scale and scope, the oil industry does not exhibit natural monopoly characteristics nor does it display economic features that would warrant government regulation. The paper also analyzes the economic theories underlying these reforms: why is regulation necessary, what are the different forms of regulation, and how can these policy reforms bring about competition? It also identifies the emerging issues and problems associated with the regulatory reforms. Given our little experience in the effective use of public regulation in a market-driven setting, research is needed to provide a deeper understanding of these issues within the context of our economic, institutional, and political structure. This is necessary in order to come up with possible approaches to overcome our weaknesses and shore up weak administrative and enforcement capacities.electricity and power, economic regulation, regulatory reform, downstream oil

PLDT-Sun Acquisition: Good or Bad?

Will the recent PLDT acquisition of Digitel (Sun) lead to better benefits for the general public in terms of the telecommunications aspect? How will it affect overall competition in the industry? This Policy Note examines the situation more closely.competition, Philippines, climate information, communication, telecommunications sector, telecommunications companies, mergers and acquisitions

The Autobus Is Leaving...Can the Philippines Catch It?

How ready is the Philippines' automotive industry to face the zero tariff environment under the AFTA by 2010? And is the industry prepared for the globalization process? This Policy Notes calls for immediate government action in crafting temporary adjustment measures as well as the formulation of a comprehensive program--in coordination with the industry--to help the industry in this situation.globalization, automotive industry

Toward Competitive and Innovative ASEAN SMEs: Philippine SME Policy Index 2012

The ASEAN SME Policy Index is an analytical tool to review, track, and identify gaps in small and medium enterprise (SME) policy development and implementation. The index covers the following eight policy areas: institutional framework; cheaper and faster start-up and better legislation and regulation for SMEs; access to information and supporting services; access to finance; technology and technology transfer; market access and getting more output of the single market; promotion of entrepreneurial education; and developing stronger, more effective representation for SMEs' interests.Applying the above framework, the paper assesses whether the policies, programs, and institutions in the Philippines are supportive of the development of SMEs in the region. On the average, the overall score for the country is quite modest and to move forward, it is important to simplify and streamline the overall registration process. Existing government programs must be evaluated in terms of scope and delivery with a view to improve and broaden support services for start-ups to include business incubators as well as vouchers, grants and loans on favorable terms especially for the most dynamic enterprises. There is also a need to institutionalize the framework for conducting regulatory impact assessment in the country

ASEAN Economic Community 2015: Capacity-building Imperatives for Services Liberalization

The paper aims to assess and determine the capacity-building needs required to liberalize trade in services in the Philippines. Through the ASEAN Framework on the Trade in Services, the Philippines has committed to liberalize various sectors including air transport, maritime transport, construction, financial services, and telecommunications. The country has also signed seven Mutual Recognition Agreements in engineering, nursing, architecture, land surveying, medical, dental practice, and accountancy.The overall progress of services liberalization has been modest compared to trade in goods. Due mainly to constitutional restrictions, limitations on market access and national treatment are still imposed and foreign service providers continue to be subject to limits on equity participation, participation in the Board of Directors, acquisition of land, and practice of professions. Apart from these constitutional and legal constraints, the other obstacles to services liberalization include high cost of doing business, inadequate infrastructure, and governance issues affecting the competitiveness of industries; inefficient coordination among government agencies involved in trade in services; lack of awareness among key stakeholders of the benefits from services reforms; lack of a comprehensive strategy on services liberalization; and lack of capable staff members in key government agencies.Clear gaps in the capacity of national agencies and regulators to effectively implement the country's services liberalization commitments exist. To address these, the paper suggests capacity-building and technical assistance activities covering the crafting of an overall trade in services strategy as part of a more comprehensive trade strategy covering both goods and services; formulating roadmaps for the various services sectors; and enhancing current coordination mechanisms among government agencies and the private/civil society sectors