Fair Trade Alliance

1. Fair Trade Alliance TAG meeting 7 June 2010 10am to 3 pm

2. 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 • Five point Nationalist Development Agenda

3. Fair Trade Alliance Looking back Three (3) industrialization regimes • 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 • BOP and BT crises – 1949

4. Fair Trade Alliance • 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 and financial sectors • Estrada – continued tariff reduction

5. Fair Trade Alliance 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

6. 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

7. Fair Trade Alliance 5 Point Agenda 2. Rebuild the nation’s fences • Effective Tariff System • Stop smuggling and corruption • Strengthen safety net laws and rules against unfair trade practices • Promote genuine, not ruinous, competition

8. Fair Trade Alliance 5 Point Agenda 3. Build up the nation’s productive capacity • 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

9. Fair Trade Alliance 5 Point Agenda 4. Unleash the people’s productive capacity • 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, new markets, technology, and business skills development.

10. Fair Trade Alliance 5 Point Agenda 5. Develop a culture of industrialism, tangkilikan, excellence and economic nationalism • 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-Philippine-made 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 efforts

11. Fair Trade Alliance The Challenge Fearlessly make bold economic and trade policies!

12. Fair Trade Alliance Maraming Salamat Po!