The Impact of ASEAN-China FTA Early Harvest Program: the Case of the Philippines with Focus on Short-run Effects on the Agriculture Sector

This paper aims to provide some information on the implications for the Philippine agriculture sector of the ASEAN-China Free Trade Agreement. In particular, the paper explores the possible impact of the agreement, with emphasis on the Early Harvest Program (EHP). It also provides a brief background on the state of the Philippine agriculture system, the liberalization initiatives undertaken, as well as some policy gaps and interventions done to address these. The paper also revisits a simulation exercise conducted on the possible short-run impact of an EHP to identify the vulnerable sectors.agriculture sector, China, agricultural liberalization, ASEAN-China Free Trade Agreement, Early Harvest Program (EHP)

Corruption and development, revisited

Graft and corruption is considered to be one of the biggest threats to development. Several studies had shown the tremendous impact of corruption in the economy. For a number of developing countries, a huge portion of government resources is lost and wasted due to corrupt activities, further plunging the country to poverty and underdevelopment. Various efforts to combat this social ill have been explored. However, the problem continues to persist. This short paper revisits the issue and aims to contribute to the growing literature of understanding corruption in developing economies and creating the necessary policy response. It answers the following questions: What are the different forms of corruption? What drives corruption? What has been done to address the issue? The Philippine case is also briefly discussed

Deliberating a Philippine-US Free Trade Agreement: Issues, Challenges and Prospects

As a result of changing conditions in the world market and increasing global competition, trade and integration arrangements have become a part of economic and development strategies of countries. Bilateral economic partnerships or Free Trade Agreements are seen as an option in creating a stable economy and in creating an environment attractive for investment. However, while there are benefits to gain from an FTA, it should be recognized that FTAs are not a panacea to cure the sluggish economy. It is a strategy that should be carefully crafted, negotiated and implemented. It comes with both benefits and costs. The question then is how to make an FTA work for the country. This paper integrates the findings of the studies which explore the various issues concerning the potential Free Trade Agreement between the Philippines and the United States. It examines the gains, the challenges as well as the opportunities for the Philippines in entering into a bilateral economic partnership with the United States

ASEAN Rules of Origin: Lessons and Recommendations for Best Practice

Rules of origin (ROO) set the criteria in determining the nationality of a product and where a product was made. The importance of ROO has increased in the past years as more countries engage in free trade agreements (FTAs) and begun treating goods differently according to where the product was made, along with trade-specific preferences or restrictions to the imported good once its origin is determined. This study is done to cull the lessons from ASEAN's experience in determining and implementing the rules of origin. It draws the important lessons and makes recommendations for best practice that would contribute to the cooperation and integration efforts in the region. The paper examines the various design and implementation practice in ROO regimes, focusing on RTAs where the ASEAN is involved. The paper presents findings from recent studies on the cost of ROO compliance and the FTA utilization rates. It concludes with recommendations on simplification of ROO and some reforms on administrative procedures, bringing in the development country dimension, and some general guidelines to follow to improve ROOs

The Impact of the Global Financial Crisis on the Labor Market: The Case of the Philippines

The Global Financial Crisis of 2007 was one of the worst crises that hit the world economy since the Depression era. For the next two years, the crisis created waves of economic contraction that affected developed and developing economies. The Philippines was not spared from this crisis. As an export-oriented economy, the global financial crisis created serious strains in the domestic economy when its top export destination for both goods and services suffered a downturn. Inflow of foreign direct investment also slowed down, further creating a slack in economic growth, and consequently leading to less employment opportunities in the country. Several studies analyzed how the global economic crisis was transmitted to the domestic economy. This paper culled the results of these studies with the end goal of understanding the impact of the global financial crisis on the Philippines' human resources. It also tackled the government's response to mitigate the impact of the crisis in the labor market and the lessons learned from these interventions. This paper is part of the APEC project on Human Resource Impacts of the Global Economic Crisis, which aims to assess the human resource impacts of the global economic crisis

State of Trade and Investments in the Philippines

The last two decades have witnessed a tremendous increase in global trade and investments. This has been followed by a shift in the pattern of FDI inflow, which had gradually become more favorable to the developing countries. Consequently, this resulted in an increase in competition among developing countries to attract FDI, resulting in further liberalization of economies, removal or loosening of restrictions on operations of foreign firms in host countries and higher investment incentives. This also prompted economies to form or join regional trade agreements and bilateral investment treaties. Like most developing countries, the Philippines positioned itself for this transition. Investment policies had been revised to create a more favorable investment environment. Incentive packages to foreign investors are also improved. Yet despite these efforts, the Philippines continue to lag behind, especially relative to other countries in Southeast Asia, in capturing a sizeable portion of trade and investment flows. The Philippine experience in the past twenty years show that trade and investment policies are not sufficient to pump up inflows. As important are the internal processes that accompany these policies, infrastructure and government support that will sustain the transition

Regional Economic Integration in East Asia: Progress and Pathways

The East Asian region is a major global economic player, given its economic size and potential. As such, Regional Economic Integration in East Asia could be considered as an important building bloc toward integration of the Asia-Pacific region. East Asia has made significant progress in creating institutions for closer cooperation and integration. The next step would be how to strengthen support to these mechanisms such that they would effectively deliver the regional goals, as well as help the region overcome pressing issues. This short paper will discuss the state of economic integration in East Asia. It will also discuss the challenges in economic cooperation and integration in the region, as well as some policy strategies to overcome the challenge

Shaping APEC: Perspectives from the Philippines

APECs vision of integrating the APEC has remained, for the most part, intangible. Cultural differences, socioeconomic disparity, and lack of a defined structure and leadership have been cited by many as major obstacles. Lately, there has been a proliferation of regional groups in Asia, creating an impression that APEC is no longer a priority for its members. Thus, various inquests into APECs role and relevance in the Pacific region have come to fore. Several options and strategies has been presented to reshape APEC and transform it into a much more relevant, responsive, viable, and cohesive regional group. These options range from a reevaluation of the APEC agenda, to administrative improvements and more radical changes. What kind of role has APEC played that has particularly benefited developing countries like the Philippines? What else could be done to make APEC more effective as a key player in the global economy and a vehicle for countries in the Pacific Region to maximize economic gains in a multilateral trading environment? This short paper provides a perspective on how APEC should be shaped from the point of view of a developing economy member, particularly the Philippines

Japan-Philippines Economic Partnership Agreement (JPEPA): Toward a Framework for Regional Economic Integration

With less than two years after its ratification, many of the economic gains expected under JPEPA have yet to be realized. But while critics may be quick to judge its failure due to this seeming lack of progress, neither have there been costs and dislocations that should have been more immediately evident. Moreover, the recent trends in trade and investments appear encouraging. Nonetheless, the implementation of JPEPA is wrought with challenges particularly those that involve undertaking internal reforms needed to realize its rich potential and achieve the vision upon which it was established. Being the first bilateral free trade agreement entered into by the Philippines, the performance of and experience with JPEPA are crucial in determining the prospects for negotiated trade agreements with the country. The Philippines cannot afford to slow down with the pace of reform and needs to march aggressively alongside its neighbors in East Asia, which is leading the move toward regional integration. This paper will revisit the seminal studies that examined the desirability of JPEPA with the aim of bringing to the fore the pending actions to generate the expected benefits from JPEPA

Closer Trade and Financial Cooperation in ASEAN: Issues at the Regional and National Level with Focus on the Philippines

Trade and financial policies in ASEAN-member countries have contributed to the goal of economic integration. One important feature of this process is the need to narrow the development gap in the region in order to make economic integration more effective and meaningful. This paper examines the Philippine experience with economic reform, particularly in its attempt to integrate with ASEAN. The Philippines simplified its tariff structure and reduced tariffs in accordance with the CEPT Scheme. Monetary and financial reformparticularly adopting the inflation targeting frameworkand fiscal consolidation were undertaken to strengthen the financial system and address the fiscal deficit. These efforts also facilitate regional monetary cooperation and integration. However, the Philippines continues to lag behind the larger ASEAN economies particularly with respect to reducing poverty incidence. The Philippine experience has shown the importance of having economic reform supported by strategies to enhance good governance and strengthen institutions