Impact of ASEAN-China FTA [free trade agreement] early harvest program: the case of the Philippines with focus on short-run effect on the agriculture sector
2007
Medalla, E.M. | Balboa, J.D., Philippine Inst for Development Studies, NEDA sa Makati Bldg. 106 Amorsolo St. Legaspi Village, 1229 Makati City (Philippines)
Agricultural Liberalization remains to be the most sensitive issue in trade negotiations not only because it is tied to the food security policies of a country but also because the transformations it brings have social implications, mainly in terms of adjustment costs. Patterns of rural and urban poverty can largely be traced to the agricultural policies of a country. This paper aims to provide some information on the implications for the Philippine agriculture sector of 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 similation exercise conducted on the possible short-run impact of an EHP to identify the vulnerable sectors. To meet the China challenges, as well as the other broader challenges of globalization, the Philippine agriculture system should hasten the pace of domestic reforms and restructuring to maintain international competitiveness, and provide the foundation for sustained growth. The paper further recommends for the country to build its own strength and competitiveness to create a mutually beneficial relationship with China.
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