Introduction

Overview on Philippine Trade

Protectionism
Goals and Objectives
Theoretical Effects
Empirical Effects (Evidence)
Role of Rice
Rice deficit in the Philippines
Trade of Rice
Conclusion
Plot The video aims to capture the topic of protectionism its objectives! theoretical and
empirical effects in the econom"! as well as its effects on societ"# In order to meet the interest
of $a %allalians! the topic is depicted throu&h conversations and scenarios which can be
common in the campus# 'll shots are to be made within the universit"! while additional
videos from "outube would also be used#

Introduction
(oice)over *arration (+ac,&round video of time lapse featurin& Philippines resources)
The Philippines! comprisin& of -!./- islands has been blessed with the abundance of natural
resources throu&hout the archipela&o# The countr"0s biodiversit" have also continuousl"
&raced the econom"# 1ith a population of more than 23!///!///! human resources have made
the Philippines a landmar, for outsourcin& and labor)intensive firms#
*arrator . 4owever! in spite of its &lorious resources! the pace of industriali5ation in the
Philippines has been considered slow as compared to its nei&hbor countries# The pursuit for
industriali5ation can also be evidenced b" the numerous trade policies implemented in the
countr"#
*arrator . voice)over (6eature statistics as bac,&round)
+ased from the 1orld +an, statistics in 7/./! the Philippine econom" holds the 89
th
lar&est
in the world! with an estimated &ross domestic product of :3;2#; billion#
(6eature top Philippine e<ports)
The Philippines +ureau of '&ricultural %tatistics had released the top Philippine a&ricultural
e<ports for 7//8)7/./# The" had identified the followin& as such coconut! banana! tuna!
pineapple and tobacco# Other products such as semiconductors! electronics and transport
e=uipment have also been identified in the CI' 6actboo, to be primar" e<ports#

*arrator 7 1hile the Philippines has been proven to be capable of competin& in the forei&n
mar,et! liberali5ed trade and investment have pushed the trend to &o &lobal#
Trade and investment policies have also been &enerall" considered to be ,e" tools which
shape the econom"# 's earl" as .23/s! the countr" has under&one a number of reforms on the
trade policies#
>urin& the .2?/0s! the Philippines had emplo"ed a hi&hl" restrictive trade re&ime which can
be considered as a protectionist act#
Protectionism is defined b" 6rederic, and Gereffi (7//2) as a &overnment polic" which
implements @various trade)related measures to &uard or favour domestic industries over
forei&n commercial interestsA#
The trade restriction is mainl" intended to promote import)substitutin& industries# In addition!
limitin& the imports of &oods and services also avoids total forei&n influence over own
countr"# Protectionism0s concept of restrictin& trade with forei&n nations thereb" contradicts
free trade wherein &overnment barriers to trade are minimi5ed#
*arrator 3 In order to achieve the &oals of protectionism! different policies or trade barriers
have been implemented# 'ccordin& to %amuelson and *ordhaus (7//.)! such are applied in
order to raise revenues and influence the development of individual industries# 'lthou&h
there are several t"pes! the most commonl" implemented are tariffs! =uotas! and subsidies#
Tariffs refer to the ta<es imposed on certain products or &oods that are imported into a
countr"# %uch ta< tends to raise price hence inducin& consumers to reduce purchases on
imports#
Buotas have similar =ualitative effect as tariffs! and are used to limit and lessen the =uantit"
of products or &oods that can be imported into the countr"0s econom"#
1hile as subsidies refer to pa"ment made to firms and consumers devised to persuade them
for an increase in output#
'uthorities insist there is no shorta&e of suppl"# The" sa" there is not much more the" can do
to control the prices# 'ccordin& to 'rthur Cap! we0re in middle of summer harvest so suppl"
has stabili5ed and prices have corrected# +ut to pe& a price is difficult because we ,now the
pricin& is tric,"# It is not just the cost of production! but also international prices affect us#
The Philippines! once a rice e<portin& nation is now one of world0s lar&est importer# The
subsidi5ed imports have been said to cause the nation losses of more than D%: . billion this
"ear# 'lmost double of losses last "ear# The Philippine demand is onl" causes to push
international prices hi&her# Officials now as, the world ban, to step in# In an attempt to
control distribution! Philippine authorities issue rice access cards to families those onl"
earnin& :.// a month at most# Ean" anal"st sa" that the problem has been e<asperated b"
"ears of &overnment ne&lect of the local rice industr"! choosin& to spend more mone" on
cheap imports instead of developin& a&riculture#
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