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PHILIPPINE TRADE POLICY

Republic of the Philippines

LYCEUM OF THE PHILIPPINES UNIVERSITY

MANILA CAMPUS

ECONOMIC PROTECTIONIM: EVALUATING OPTIONS FOR A

SUCCESSFUL PHILIPPINE TRADE POLICY

Submitted by:

Allana Ysabelle C. Aquino

Miguel Carlo B. Gonzales

Arden Mae A. Oreto

Kent Celine D. Puertollano

Submitted to:

Ms. Joanna Rojo

February 2019
PHILIPPINE TRADE POLICY

TABLE OF CONTENTS

Abstract

List of Figures

CHAPTER 1: BACKGROUND OF THE STUDY

1.1 Introduction

1.2 Statement of the problem

1.3 Significance of the study

1.4 Scope and limitations

1.5 Objectives of the study

1.6 Definition of terms

CHAPTER 2: REVIEW OF THE LITERATURE

2.1 Protectionism

2.2 Types of Protectionism

2.3 Filipino first Policy

CHAPTER 3: METHODOLOGY

3.1Subject and Respondent, including sampling Method and

Technique

3.2 Research Method(s)

3.3 Research Instrument

3.4 Operational Definition of the Variables

3.5 Conceptual Framework

CHAPTER 4: RESULTS AND DISCUSSION


PHILIPPINE TRADE POLICY

4.1 The Interview Settings

4.2 Analysis of Findings

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary of Research

5.2 Conclusion

5.3 Recommendation

BIBLIOGRAPHY

APPENDICES

A. Interview Questions

B. Profile of Respondents

C. Letter of invitation for Interview

D. Informed Consent
PHILIPPINE TRADE POLICY

Abstract

This research aimed to determine the economic situation of the Philippines in terms of

imports and exports, to be able to distinguish whether the protectionist policy a failure

or a success and to identify the effects of protectionism in the trade policy of the

Philippines. This is important to a lot of states especially if they are in favor of

Protectionist Policy with regards to Trade. This research will provide the information

if the protectionist policy helps the economic stability of Philippines.

To gather the data needed, different references were used such as books, articles,

PDFs and website. This reviews the interview with ten respondents which include

students, professors, Ambassadors, Executive Directors and some other government

officials that are knowledgeable in terms of Protectionist Policy.

Keywords: Imports and exports, Protectionist policy, Economy and Trade.


PHILIPPINE TRADE POLICY

LIST OF FIGURES

FIGURE

1.1 Figure 1. Represents the impact of a Tariff

1.2 Figure 2. Represents the impact of a Quota

1.3 Figure 3. Represents the impact of a Subsidy

1.4 Figure 4. Represents the highest number of protectionist measures


PHILIPPINE TRADE POLICY

CHAPTER 1

Background and Rationale

1.1 Introduction

"Protectionism is a monetary arrangement of limiting exchange between countries,

through strategies, for example, levies on imported products, prohibitive standards,

and an assortment of other prohibitive government directions is intended to

demoralize imports and counteract remote assume control of nearby markets and

organizations." (Fouda. R, 2012).

An example of a protectionist policy is The Filipino First Policy which was initiated

by President Carlos García, favoring Philippine financial interests. In addition, under

the flag of the Filipino first strategy by Garcia Filipino representatives and

industrialist energized under the standard of the fleeting arrangement made by

President Garcia (R. Constantino, 1970). In the expressions of Rodriguez in 1967 the

Filipino first arrangement leads Filipinos to put resources into new ventures with an

aggregate of 1.4 billion pesos. In addition, the ventures brought about monetary

development. Be that as it may, the resistance has contended that the said financial

development was a consequence of the War Harm installments (Pelorina, 2013).

In 2017, Philippine imports are greater than exports making the Philippines

protectionism not that effective. If it is found that there are unequal opportunities with

the export and imports of the Philippines, then it will result in heightened

protectionism. Dr. Steinbock noticed


PHILIPPINE TRADE POLICY

that "With global economic integration at a halt, the world economy is adapting to

reduced development prospects." at a seminar conducted by the Philippine Institute

for Development Studies entitled “Global Uncertainty: Regional Headwinds and the

Philippine Economic Promise.” This was a seminar that tackled about Protectionism

and the Philippine economy.

Having said the Filipino first policy of the former president Carlos P. Garcia there are

several countries which currently imposes protectionist policies for example is the

United States in which according to Lucinda Shen in one of her articles in Business

insider on September 30, 2015 (See Chapter 2) the United States has the most trade

restrictions followed by India,Russia, Brazil, China, the European Union, and Japan.

Majority of this countries are top performing in terms of their economic situation.

A case study of Philippine Economic Protectionism, this study will further expound

the knowledge of both International Relations’ students and Lyceans. It will affect the

perspectives of the society especially since it is an in-demand issue.

This study might be a significant contribution that could give important insights in the

field of International Relations. Although the meaning of the term Philippine

Economic Protectionism has not been specified sufficiently. Thus, some important

differences from Philippine Economic Protectionism has not been examined or

recognized. This article uses self-determined framework to distinguish the possible

effects of protectionism in the Trade policy of the Philippines.


PHILIPPINE TRADE POLICY

During the course of olden times, protectionist arguments have been through by

unlike productions appears like protection share the same pleas of themes. Thorough

research for this is that there is an argument about protectionism and that it can save a

lot of jobs. Let’s put it this way, one of the examples here is when Americans

purchase imported Toyotas, on the other hand, US-produced cars that can lead to be

unsold and discharges the domestic automobile industry also follow. On top of that, if

Americans bargain chucks or textiles from South Korea or Taiwan, the millworkers in

Maine and Massachusetts might find themselves jobless as well.

On the other hand, even if it’s accurate when a domestic sellers purchase goods from

international manufacturers, domestic producers still suffers. Nevertheless, reasons to

not believe that workers lay off their contracting sectors will not surely be reemployed

just because of expanding its sector. On top of that, public and private complications

carried nearby in trade, specifically the unemployment, outdated skills and economic

failure due to distant competition it might be important that these complications could

truly be spoke in two ways.

The first one is the way to simply prohibit imports then afterwards gave up the gains

from free trade. By doing so, a country acknowledges that it is willing to pay

premium prices to save domestic jobs in industries that could produce more efficient

overseas workers. The second one is the way to practically support the victims of free

trade by assisting the rehabilitation for occupations with a future. “More or less

platforms to relocate individuals in escalating areas


PHILIPPINE TRADE POLICY

May perhaps be in order so that some programs deal directly with the transition

without foregoing the gains from trade” (Watch, 2017).

In this paper, the researchers will look further to the conditions of Philippine

Protectionist Policy and how it will challenge the trading system locally. Generally

speaking, the researchers chose this topic to recommend what is the best way to

understand the importance of Protectionist Policy in the Philippines. The correlation

of this study to International Relations is to widen the knowledge of IR students in

determining the policies and regulations in Philippine Trade, and also to help people

better appreciate the conflicts in supporting imported goods.

Research Problem

In the course of this study, this research will answer specifically the questions

stated below:

1. What will be the implications that bring about the possible establishment of a

Protectionist Policy in the Philippine Economic strategy?

2. What are the advantages and disadvantages of imported goods on the Philippine

Economy?

3. What will be the effects of Protectionism when it is applied to the Domestic

Enterprises, Job creation and Industry security of the Philippine Economy?


PHILIPPINE TRADE POLICY

Significance of the Study

This research paper contributes knowledge to the Filipino people that the Philippine

Protectionist Policy should not be ignored. When domestic consumers purchase

foreign goods rather than domestic goods, the domestic producers suffer, making the

country’s economy suffer as well.

The policy protects domestic businesses from foreign competition through restriction

of international trade. There are effects that pose threats to the country’s economy,

such as the Philippines’ import of rice from countries like Vietnam and Thailand

which are ASEAN countries like the Philippines. The Philippines was known to be an

agricultural country yet the country imports agricultural goods from others rather that

produce more itself.

This goes to show how the Philippine economy is failing. The country should not only

focus of technological advancement and on the services department, the country

should make use of what it has and improve it to help the country’s economy thrive.

The Philippines should have a balance in trade and gain trade surplus or a positive

balance by exporting more and importing less and not have trade deficit or a negative

balance by exporting less and importing more, which is currently happening to the

country. This does not mean that trade is prohibited by the country; countries should

not continue to raise trade barriers to allow a good flow in trade.


PHILIPPINE TRADE POLICY

Objectives of the Study

 To inform the public about the situation of Philippine Trade Policy by

developing better expectation regarding the range of impacts likely to result a

success or failure option

 To know the most effective way in determining Philippine Trade Policy with

regards to Economic Protectionism

 To validate analysis methods by determining the accuracy and relevance of the

study to the current analysis methods used to predict costs and or benefits to

enable improvement in future prediction method

Scope and limitation of the Study

This study was conducted to analyze the possibility of imposing Protectionist

Policy with regards to Philippine Trade policy.

This will include (a) the government agency that is responsible for

Protectionist policy in the Philippines (b) the possible impacts of Philippine

Protectionism in the domestic and international market (c) the advantage and

disadvantage of imported goods in Philippine Economy and (d) the role of the

Philippine Protectionism in its economy and how it will help generate economic

growth for the Philippines.


PHILIPPINE TRADE POLICY

CHAPTER 2

Review of the Literature

This section summarizes the project’s literature review, state of the art survey, or the

work done by other scholars in relation to the research problem. The variables in the

central question of Economic Protectionism: evaluating option for a successful

Philippine trade policy answers the current distresses of Philippine economy in

otherwise, Philippines exports more goods. In this chapter Protectionism, the types of

protectionist measures, the Filipino First Policy, and the countries which imposes

protectionist policies.

Protectionism

Protectionist policy protects domestic businesses from foreign competition

through restriction of international trade. When domestic consumers purchase foreign

goods rather than domestic goods, the domestic producers suffer, making the

country’s economy suffer, it is the reason why some countries opt for protectionism to

save the country’s domestic businesses and to help promote the local goods and

services that increases the level of nationalism of the people.

By implementing protectionist policies, countries also provide more jobs for

the people and boost the country’s economy by having a good amount of man power.

Countries who implements protectionism also have advantages when other countries

import goods and services due to trade barriers such as tariffs and quotas. Focusing
PHILIPPINE TRADE POLICY

more on the domestic market helps the people in the local industries and also

helps promote the local goods in the country and outside, it helps the people by

having more jobs and getting the job done easier and faster and help partnership

within domestic industries. By having protectionist policies, some countries prosper

by implementing it with the right strategy. With the policy, the country can utilize its

natural resources to help the country physically and economically without having the

worry of another country trying to exploit it. Countries who are implementing

protectionism can focus on the country more than having the trouble of maintaining

complicated trade relationships with other countries. Limiting imports benefits local

producers because foreign competition is hard to handle especially to those local

infant industries that are not that experienced when it comes to maintaining pressure

from the competition and may have a hard time trying to level against strong foreign

competitors. It is also stated in an article about Japan by adviser Ian Fletcher and

research director Jeff Ferry that, “The Japanese themselves certainly believe their

economic success has been due to protectionism. No one in Japan of any standing in

business, government, or academe believes that Japan’s success has been due to free

trade.” In the words of Japanese economic historian, Kozo Yamamura: “Protection

from foreign competition was probably the most important incentive to domestic

development that the Japanese government provided. The stronger the home market

cushion...the smaller the risk and the more likely the Japanese competitor was to

increase capacity boldly in anticipation of demand growth. This can give the firm a

strategic as well as a cost advantage over a foreign competitor operating in a

different environment who must be more cautious.”

Protectionism refers to government actions and policies that restrict or restrain

international trade, it also has its disadvantages, a reason why some countries are
PHILIPPINE TRADE POLICY

against protectionism is because the trend nowadays is globalization, the

integration of nations. By implementing protectionism, countries will have trouble

exporting products to other countries who might also have implemented protectionist

policies to protect the local industries. It might damage the partnership and

relationship of one country to another and may even cause trade wars or trade conflict

that some international organizations like WTO or World Trade Organization is

preventing from happening. World Trade Organization exists to settle trade disputes

and avoid trade wars, with the growing protectionism, the number of trade disputes

increase every passing day. According to an article dated back in July 09, 2018 by a

news site called, Down To Earth, WTO fears that the organization will die due to

protectionism and members will lose faith in WTO; member states of the organization

will isolate themselves and introduce new trade restrictions.

Types of Protectionism

In terms of Protectionism against imports has increased in numerous practices. The

following are included:

Tariff

Tariff is one of the boundaries in exchange and burdening on imports is its job. Tariff

can likewise be exact or advertisement valorem. It additionally lessens supply and

increment the estimation of imports.


PHILIPPINE TRADE POLICY

It tends to be contrasted with a near preferred standpoint that gives residential

comparability. As per David Ricardo, relative preferred standpoint suggests an open

door cost related with the creation of one great contrasted with another.

Numerous nations are probably going to amass underway of specific items and this

thought is named worldwide division of work. On the off chance that a state or

individual is similarly more capable in the creation of a decent than another state, at

that point say that it has a near preferred standpoint underway of that great. Similar

preferred standpoint estimates the adequacy in relations of qualified sums. Over that,

nations have confined methods for assets and level of aptitude in innovation they lean

towards to deliver products or administrations in which they have a near favorable

position. Additionally, taxes are curving the market powers and it might keep

purchasers from
PHILIPPINE TRADE POLICY

picking up the benefit of the considerable number of favorable circumstances of

universal specialization and exchange. A sample of the impact of a Tariff is shown in

Figure 1 below.

Figure 1. Represents Impact of a tariff

This sample, tariff is affecting the shift in the global supply curve upwards by the total

of the tariff. The level of imports will fall from QaQd to QbQc. The QaQd signifies

Quantity A and Quantity D. The government will also escalate the income, presented

by the blue shaded area. The level of domestic production will increase from 0

Quantity A to 0 Quantity B.

Quotas

Quotas have the impact of limiting the most extreme measure of imports permitted

into an economy. Once again, they diminish the measure of imports entering an

economy and increment the balance cost inside the market. The administration gets no

income from a quota, as it does with a tariff, except if it can set up a system of

licenses. The impact of a quota is shown in Figure 2 below.


PHILIPPINE TRADE POLICY

Figure 2. Represents Impact of a Quota

Without quotas, the market price is P world, the quantity of imports is Q4-Q1 and

world exporters make revenue of areas A+B+C.

Quotas can cut back imports and facilitate domestic suppliers however; they will

cause higher costs for shoppers a decline in economic welfare and will cause revenge

with different countries inserting tariffs on our exports.

Export subsidies

Export subsidies would allow the exporters to supply more product to the market than

the natural equilibrium would allow. International consumers will benefit fully from

the increased economic welfare as their purchase prices fall. This will lead to more

wages and job security for domestic employee, but taxpayers' bill stands. These

Domestic companies could turn trade into exports and ignore the domestic market.

This could lead to higher domestic product prices.


PHILIPPINE TRADE POLICY

The figure shows the impact of a subsidy. The supply curve is shifted vertically

downwards, resulting in lower equilibrium price and higher quantity. This figure

represents the subsidy effect. Such spending-switching policies are normally not

permitted under the WTO and EU membership.

One example is India's country. On 2015, the Indian government, the world's second

largest sugar producer, announced that it would introduce a subsidy for the export of

raw sugar. This will involve offering export incentives for 1.4 million tons of raw

sugar as mills begin selling overseas surplus sugar to pay cane farmers.

Voluntary export restraints (VER's)

A voluntary export restriction is where two countries agree to limit export volumes to

each other over the agreed period. This happens on many occasions, for example with

Japanese companies. Examples of exports are cars, TVs and videos in the 1990s.

Companies agreed voluntarily to this restriction because they thought it would help to

avoid more corrective restrictions, but it is sometimes in the company's own interests.

When Japanese companies had a major cost advantage over domestic producers, these

voluntary quotas meant they could charge significantly higher prices. The higher they

earn, the more limited product will be sold and profitability will be maintained or

improved.
PHILIPPINE TRADE POLICY

Filipino first Policy

The Filipino First Policy was presented by the Nacionalista Presidebt Carlos Garcia,

favoring Philippine monetary interests over American interests. The impacts of the

strategy were found in interest in Philippine industry, the making of new

organizations, and rising nearby interest in neighborhood activities. Be that as it may,

the strategy was firmly restricted by the United States government and was described

as professional socialist. The approach was discontinued by pro-American Diosdado

Macapagal. Presently, the Filipino First strategy is not another thought. Filipino

reason situated associations, over a significant time span, have been supporting

monetary patriotism to free the nation from remote financial stranglehold and crash

mass neediness through a coordinated program of industrialization. This interest by

chance is incorporated into the continuous government-Communist Party of the

Philippines peace talks identified with a proposed "complete concurrence on financial

changes" (Ofreneo. R, 2017).

Moreover, the said policy helped the country gain local investors during the years

1949 up until 1961 Accorcding to Pelorina in 2013 he stated that the Filipinos became

the prime movers of the total investments of the country. During the period from 1949

to 1961, Filipinos invested a total of P1. 4 billion in new enterprises; the Chinese P

435 million; the Americans, despite the effect of parity, accounted for P31 million and

the other nationalities for P28 million. This figure point to the fact that Philippine

economic growth for a decade after independence was largely the result of a policy of

protection (Rodriguez, 1967). However, according to Pelorina in 2013 the opposition

party from the time of Garcia argued that growth during those time were also because

of War Damage Payment by the United States and also economic aid given by the
PHILIPPINE TRADE POLICY

said country. In addition, according to Snow in 1987 the opposition was not only

made up by Filipino politicians from the opposition party but also by foreign business

men namely the Americans and the Chinese. After the elections of which the Vice-

President at that time Diosdado Macapagal won the said elections, he vowed to end

the said policy and instead replace it with a five-year plan which aims to realize the

decontrol program with the end in view of “stabilizing the peso-dollar exchange”

(R.Pelorina, 1987).

Countries that impose protectionism

There’s another country that would likely inflicts more protectionist measures to some

extent and that is the United States.

In accordance to Credit Suisse on globalization reported the group dragged amounts

of data from the Global Trade Alert to show which country has presented the great

number of protectionist measures. Restricted Trade is a policy that often takes

courage to help local and national businesses by blocking foreign competition.

The report said:

"Both tariff and non-tariff barriers have been accentuated to the regional focus of

trade by careful preference of limited trade openness, either in the midst of countries

or in specific goods types.

Goods and services that restrict the flow of tariffs directly by making the price less

competitive and were more predominant prior to the World Trade Organization's

(WTO) regime that began in 1995.


PHILIPPINE TRADE POLICY

"Tariff rates in Eurasia are the lowest, thanks to freer cross-border trade promoted by

the European Union. For non-tariff barriers the preference brought a dawn of the

millennium as the WTO aggressively depressed the duty of tariffs. Non-tariff barriers

to trade have the 'charm' of not distorting price dynamics, but restricting trade

volumes through more qualitative routes.

Although the number of countries imposing nontariff barriers declined during the

period of 1990-2013 (peaked in 2005), the total number of nontariff barriers imposed

on trade in fact, rose significantly (Figures 18 and 19)—the USA leads here—making

global trade not-so free after all."


PHILIPPINE TRADE POLICY

CHAPTER 3

Methodology

This chapter discusses the methods to be used in the qualitative analysis on the

Economic Protectionism: Evaluating options for a successful Philippine trade policy,

ensures enough information about the Philippine imports and exports of goods and

services while considering whether or not the protectionist policy has been a failure or

a success which plays a big role in society and market as well. Thoroughly, semi-

structured interviews will be conduct with at least 2 people, particularly; ambassador

in an embassy and a professor who are knowledgeable in terms of import and export

procedures in Trading. Moreover, this paper includes interviews that will be

audiotaped, transcribed and analyzed. In addition, the researchers deliberate the

approaches used to examine the data.

Subject and respondents

In this study, 2 professionals in the Protectionist Policy of the Philippines has been

selected to participate in the process. The researchers applied a semi-structured

interview of data collection with respondents from the officials of different

professionals which consists of an Ambassador and a Professor in Trade. The

participants are chosen based on their expertise on the topic. The professionals chosen

will be the participants of the study and shall provide responses that will determine

whether the Philippine Protectionist policy is a failure or a success.


PHILIPPINE TRADE POLICY

Sampling Method and techniques

The researchers applied a semi-structured interview of data collection with

respondents from the Lyceum of the Philippines University professor and

Ambassador.

To further understand this topic, the researchers conducted an interview type of

collection mainly because interviews are useful for getting the story behind the

participants’ experiences. The interview can pursue in-depth information around the

topic.

Research Method(s)

This study utilizes qualitative approach which used applied qualitative research

design. According to Kothari, applied research design aims at finding a solution for an

immediate problem facing a society, or an industrial/business organization, whereas

fundamental research is mainly concerned with generalizations and with the

formulation of a theory. Applied research is considered to be non-systematic inquiry

and it is usually launched by a company, agency or an individual in order to address a

specific problem as well (Bajpai, 2015). Policies such as concept mapping (Kane &

Trochim, Chapter 14) offer a designed instrument for locating input that can benefit in

designing a study.
PHILIPPINE TRADE POLICY

Conceptual Framework

Protectionist Protectionist
Policy Policy

Balance in import Dependent


and export Economy

Success Failure

Possibility of a better Consumers will have


balance of trade and limited choice and
the protection of pay more for goods
emerging domestic and services
industries.
PHILIPPINE TRADE POLICY

Operational Definition of the Variables

For clearer understanding of the terms used in this study, below were their meanings:

ASEAN Integration – this refers to the 5 Southeast Asian leaders forming a union to

raise the tie within their countries.

Protectionism – refers to the actions and policies of the government to restrict trade,

it is often with the intention of protecting local businesses and jobs from foreign

competition.

Trade – refers to the transferring of goods and services in one country to another

Free trade – refers to a policy eliminating discrimination against imports and exports.

Research Site

Research site was conducted at Lyceum of the Philippines University, located in

Intramuros in the City of Manila, Philippines. It was intentionally selected for the

following reasons: (1) Provide students, teachers, and staff with the enterprise-grade

communication and (2) productivity services they need with the power and flexibility

your institution requires.

Respondents

The respondents of the study are professor, and an Ambassador. The researchers

intentionally selected these respondents for the following reasons: (1) these

respondents work within the divisions concerned in its respective industry and (2)

these respondents are knowledgeable enough for the trade of products in the

Philippines. For purposes of this study, several respondents from the government will

be interviewed.
PHILIPPINE TRADE POLICY

Research Instrument

The researchers used an interview schedule for their qualitative analysis. The

interview schedule consists of a written list of questions, may be open ended or

closed. This instrument was prepared to be used by an interviewer with personal

interaction to the respondent. Qualitative Analysis was used in this study. The

collected data was investigated according to the subjects present in the interview.
PHILIPPINE TRADE POLICY

CHAPTER 4

ANALYSIS OF DATA

In this chapter the outcomes of the data analysis are presented. The data were

gathered and administered in response to the problems posed in Chapter 1 of this

paper.

Contributions of Trade Agreement

SOP 1; Q2 Trade Barriers

“Protectionism can come under two classifications: Tariff and Non-Tariff. Tariff is,

you just increase the levy of the incoming imports, the Non-Tariff would come in in-

terms of loss to favor local production, local factories and local producers and

manufacturers.”

SOP 1; Q3 Educate People

“It is important because you are going to suffer also since the other countries will

retaliate. You cannot do the protectionist measure and enforce it without any

retaliation from the other countries that will be affected negatively.”

SOP 1; Q7 Local Observation

“Now, if you are going to go into globalization, it must be including free trade and it

must be covered specifically by international laws because while there is no one

government that rules the whole globe, there must be the international law that must

be followed by all countries.”

Table 1. Contributions of Trade Agreement. Table no. 1 suggest that the

contributions of Trade Agreement to the Philippine Economy are relating to Trade

Barriers, educating people as well as observing locally.


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Importing goods on Philippine Economy

SOP 2; Q2 Trade between states or cities

“No. It’s not good to have trade barriers because it impedes the interchange of

goods and international trading.”

SOP 2; Q2 Granting one’s privilege by granting all others as well

“Take the trade war between the U.S. and China, the first provision of the World

Trade Organization is if you grant for Most Favored Nation Clause or if you impose

a protectionist policy against one, you must do it with all the others. You can have a

selective Most Favored Nation Clause but you cannot have a selective protectionist

policy, that is the provision of the World Trade Organization. You grant to one, you

grant to all.”

Table 2. Importing goods in Philippine Economy. Table no. 2 put forward the

disadvantage and advantage of importing goods in the Philippines on Trading

between states or cities and propose a Post hoc Fallacy, assuming that if one

should be granted then all other must be considered.


PHILIPPINE TRADE POLICY

In this chapter includes the Permission letter, Informed Consent proof that the

researchers conducted an interview and Interview Questions as well as the

answers of the interviewees.

Interview Questions

Question 1:
How long have you been in the service of government?
Question 2:
What are the types of protectionism that a country can use?
Question 3:
Do you think a country can use a variety of protectionist policy at once?
Question 4:
What was the protectionist policy here in the Philippines?
Question 5:
How effective these protectionist policies here in the Philippines?
Question 6:
Do you think protectionism would be necessary, if Philippines lowered down corporate tax
rate, less wasteful spending?
Question 7:
Do you think protectionism would help, in the long run?
Question 8:
Do you recognize that, by creating the ability to offer special favors to selected industries,
protectionism creates enormous opportunities for corruption?
Question 9:
Can you point out some nations that have prospered with protectionism, particularly when
compared to similar nations with free trade?
Question 10:
How will you see the future of Philippine protectionism?
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Allana Ysabelle C. Aquino


yanaysabelle@yahoo.com
88A Joielane St. Levitown Estate, Brgy. Don Bosco, Parañaque City
Contact: +639053171993

OBJECTIVE:
To learn and to perform the task that will be given in an organized and objective manner. To
be able to serve in the best way they will require.

ACADEMIC DETAILS:
• Bachelor of Arts Foreign Service major in Diplomacy from the Lyceum of the
Philippines University (2015 – present)

• E.P. Ville Integrated Academy, Taguig City (2010 – 2015)


• Sto. Rosario Montessori School, Valenzuela City ( 2005 – 2010 )

WORK EXPERIENCE:
• Worked as the Chairperson of Nihongo to the College of International Relations in
Foreign Languages Association from Jul 2016 to May 2017
• Board of Director for Public Affairs to the International Students Association from
July 2016 to May 2017
• Work as ESL teacher under Young Educators’ Guild from 2015 – present

SKILLS:
• Active at giving new ideas
• Has good communication skills, knows how to handle social situation and/or conflict in
a good manner
• Can work independently or as part of the team
• Knows how to manage time efficiently

ACHIEVEMENTS
• First Honorable Mention Awardee (2014- 2015)

• Best in English (2014-2015)

• Third Honorable Mention Awardee (2013-2014)


PHILIPPINE TRADE POLICY

Miguel Carlo B. Gonzales


miggydergrossen16@gmail.com
17-C Pananalig st. Mandaluyong City
Contact: + 6384038951

OBJECTIVE:

To learn and to perform the task that will be given in an organized and objective manner. To
be able to serve in the best way they will require.

ACADEMIC DETAILS:

• Bachelor of Arts Foreign Service major in Diplomacy from the Lyceum of the
Philippines University (2015 – present)

• San Felipe Neri Parochial School, Secondary education(2012 – 2015)


• Don Bosco Technical College, Primary education ( 2006 – 2012 )

WORK EXPERIENCE:

• Executive Director, LPU Project for Asian and International Relations, 2018-2019

• Director for HPAIR and External affairs, LPU Project for Asian and International
Relations, 2017-2018
• Director for Social Relations, LPU Project for Asian and International Relations,
2016-2017
• Director for Social Relations, LPU Project for Asian and International Relations,
2016-2017
• Associate Director for Logistics and Procurement, LPU Project for Asian and
International Relations, 2016-2017
SKILLS:
• Basic use of Microsoft word, Excel, and Powerpoint
• Basic french
PHILIPPINE TRADE POLICY

Arden Mae A. Oreto


ardenmaeoreto@gmail.com
Blk 6 Lot 11 St. Joseph Richfield, Brgy. Tagapo, Sta. Rosa Laguna
Contact: +639664525650

OBJECTIVE:
To develop excellent skills and to be able to learn the best that I can for future references.

ACADEMIC DETAILS:
• Lyceum of the Philippines University - Bachelor of Arts Foreign Service major in
International Trade (2015 – present)

• Rex Dei Academy (2007 – 2011)


• Dila Elementary School (2001 – 2007)

AFFILIATIONS:
• Adminitstrative Officer – LPU UNESCO 2018-2019
• CIR Representative – LPU Environmental Society (2016-2017)
• Youth Leader – CFC Youth for Christ (2007-2015)

SEMINARS ATTENDED:
• 3rd Asia Pacific Youth Summit "Empowering young humanitarians in a fast-changing
world" – Red Cross (2018)

SKILLS:
• Can easily adapt in new environment
• Can efficiently manage time
• Good communication skills
PHILIPPINE TRADE POLICY

Kent Celine D. Puertollano


kent18puertollano@gmail.com
Blk 37 lot 52 Jade Residence, Malagasang II, Imus City, Cavite
Contact: +639758738432

OBJECTIVE:
To strive towards personal & professional growth by embarking on new and challenging
assignments with an aim to bring about process improvements and provide additional value
to the assigned task.

ACADEMIC DETAILS:
• Bachelor of Arts Foreign Service major in International Trade from the Lyceum of
the Philippines University (2015 – present)

• Las Piñas National High School, Las Piñas City (2010 – 2014)
• Pamplona Elementary School Unit 1, Las Piñas City ( 2005 – 2010 )

WORK EXPERIENCE:
• Work as an Intern for Trade Specialist from Department of Industry and Trade-
Center for International Trade Expositions and Missions

SKILLS:
• Actively participates to group discussions

• Flexible in terms of time management

• Can handle social situation and/or conflict in a good manner

• Has good communication skill, basic Nihongo

ACHIEVEMENTS

• Second Place Award; AcousticDuo (2012-2013)


• First Honorable Mention Awardee (2009-2010)
PHILIPPINE TRADE POLICY


CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

The following chapter will conclude the study about protectionist policy. This will

present the summary of the research. The findings of the study will also be discussed

in this chapter. The scope of the following conclusions is limited to the theoretical

framework set upon by the researchers. Therefore, if these conclusions are applied to

other situations, they may give rise to incorrect assumptions or to different

simulations of this prospect. Nevertheless, these conclusions are relevant to the

analysis of the Philippines ' protectionist policy and how the integration of ASEAN

will affect it.

Summary of the study

The objective of this study is, first, to determine the situation of the Imports

and Exports situation of the Philippines. Second, the study aims to identify the factors

of the imposition of a Protectionist Policy in the Philippines. Lastly, the study aims to

distinguish if the Philippine Protectionist Policy will be a failure or a success.

These objectives have led to the following statement of the problems such as, what

will be the implications that bring about the possible establishment of a Protectionist

Policy in the Philippine Economic strategy? Second, what are the advantages and

disadvantages of imported goods in the Philippines? Lastly what will be the effects of

Protectionism when it is applied to the Domestic Enterprises, Job creation and

Industry security of the Philippine Economy?


PHILIPPINE TRADE POLICY

Having said this, the researchers interviewed individuals from government agencies

concerning trade and economic decisions in the Philippines specifically from the

National Economic Development Agency (NEDA), Philippine Exports Zone

Authority (PEZA), Philippine Trade Training Center (PPTC). Moreover, the

researchers also interviewed individuals from the College of International Relations.

In addition to this, Qualitative method of research was utilized by the

researchers in processing the data collated from the interviews with the respondents.

Lastly, the researchers were able to come up with a conclusion in relation to the study.

Conclusion

According to the data presented, Protectionism itself is deemed obsolete in the

present era of international relations. The respondents emphasized that protectionist

policies such as trade barriers is not good mainly because it impedes the interchange

of goods and international trading. Moreover, the respondent states that if countries

are to enter into globalization it must include free trade and it must be specifically

covered by international law. In addition, the respondents stressed that protectionism

will never help in the long run due to the reason that other countries will retaliate and

respondents argue that the essence of globalization is the existence of World Trade

Organizations (WTO).

The respondents also took note that protectionism might create a huge

opportunity for corruption. In addition, the respondents have stated that there are no

countries in the present era who have prospered because of protectionism and that

protectionism became obsolete due to Globalization.


PHILIPPINE TRADE POLICY

The respondents also said that the Philippines has protectionist policy in many ways

due to ruling oligarchs. Although monopoly is non-existent duopoly however exists

stating San Miguel and Ayala as examples of duopoly.

Recommendations

The researchers would like to recommend to the decision-making bodies that

concerns trade and economics that Protectionism should not be taken into

consideration due to the datum collected from the interviews. Moreover, the

researchers recommend creating more competitions in terms of businesses and

reducing the favoritism in operating businesses due to the reason that it is not

protectionism that encourages growth but competitive firms that can produce goods

efficiently.
PHILIPPINE TRADE POLICY

Reference

Acacia, B. (2015, April 02). Published online: The miseducation of the Filipino

Renato Constantino. Retrieved from http://www.researchersworld.com/

Bajpai, N. (2015) “Business Research Methods” Pearson Education India. Pittsburgh,

USA.

Bickman, L., & Rog, D. (July, 7, 2017). A Practical Approach: Applied Research

Design. New York: Oxford University Press.

Fletcher, I., & Ferry, J. (2011). Japan, the Forgotten Protectionist Threat. Retrieved

from https://www.huffingtonpost.com/ian-fletcher/japan-the-forgotten-

prote_b_850269.html

Watch, E. (2017, March 9). Protectionism and the Philippine economy. Retrieved

from https://businessmirror.com.ph/

Kenton, W. (2017). Protectionism. Retrieved from

https://www.investopedia.com/terms/p/protectionism.asp.Kothari, C.R. (2008)

“Research Methodology: Methods and Techniques” New Age International.

Pittsburgh, USA.

Londt, N. (2016). Types of Protectionism. Retrieved from

http://www.sanandres.esc.edu.ar/

Pelorina, R. (2013). DECONTROL AND ITS EFFECTS ON PHILIPPINE

ECONOMY (1962-1966). Retrieved February 4, 2019, from

http://www.researchersworld.com/vol4/vol4_issue1_2/Paper_04.pdf
PHILIPPINE TRADE POLICY
Rehim, K. (2002). Absolute and Comparative Advantage: Ricardian Model.

Department of Economics, Marshall Hall. Retreived from

https://msu.edu/course/ec/340/Kilic/lecture3.pdf

Staff, D. (2018). Not all is well with WTO: Growing protectionism, trade wars

threaten its existence. Retrieved from

https://www.downtoearth.org.in/news/economy/not-all-is-well-with-wto-growing-

protectionism-trade-wars-threaten-its-existence-61064.

Shen, L. (30 September, 2015). The country that imposes the most restrictions on

trade might surprise you. Retrieved from https://www.businessinsider.com/the-us-

is-the-most-protectionist-nation-

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