Philippines showing growth in Agriculture

Considering that the Philippines are still a developing country, argiculture is a primary source of capital for the country as an entirity. Like most developing countries, it is extremely important to have a strong foundation in the global agricultural market to further the overall prosperity of the citizens. A recent article reports that the agriculture sector in the Philippines has shown a 3.88% percent growth in 2006. The market has grossed an estimated $18.2 billion in U.S. dollars, which is a 9% increase from 2005.

Although this growth of 9% from the previous year may seem miniscule, in reality for a developing economy it represents growth, considering that the Philippines encountered 5 typoons in the last year. The increase in agriculture is primarily due to the fishing market as well as some contributions from the poultry market. With increase in agriculture a country can continue to develop in education and information technology sectors. Throughout history developing countries have primarily relied on agriculture then used the capital and knowledge gained from it to gain and expand to further markets, usually ending in future development and prosperity. With intelligent farming and fishing technology hopefully the Philippines can continue to grow, not only in the Agriculture market, but in more stable and rewarding markets.

U.S. proposed FTA with Philippines

The United States is proposing FTAs with the Philippines to allow for freer trading between the countries. An article stated, that it would not only be beneficial for the United States but also greatly beneficial for Philipino exporters. In the U.S. viewpoint, it would strengthen ties with an ally during the current war on terror and give the Bush administration much needed international support. In terms of the Philipino producers, looser tariffs on primary goods such as steel, textiles, and sugar would allow them to sell their products for the same price but make more producer surplus.
For the Philippines opening up trade between a highly-developed country such as the U.S., a leader in the global trading market, will allow for products to be sold at a much more rapid pace meaning more capital. For a developing country to open trade with one of the world's largest markets it boost their economy and aid in their development. In conclusion, this proposed FTA would be beneficial for U.S. consumers, as well as, Philipino consumers and producers.

Zero Tariff on Electronic Imports in Philippines

The Philippines is pushing for zero tariffs on all electronic and semi-conductor products among ASEAN, Association of Southeastern Asian Nations, in this article. According to ASEAN statistics nearly 70% of all exports in the Philippines are accounted for by electronic products. By abolishing any tariffs on these goods throughout the member countries of the ASEAN, it would be extremely beneficial for all of the members and especially for Philippine electronic exporters. Zero tariffs would create an open free-trade market between these countries and make them much more competitive in the international electronics market.
While increasing trade between ASEAN countries production costs could possibly also be decreased and would allow for ASEAN electronic products prices to decrease in response to lowered production costs. Assuming that the electronics produced in ASEAN countries are somewhat homogenous with the global market, lowering good prices will only be beneficial. Primarily in the case for the Philippines, where electronics account for 70% of exports, it would only mean good news for the Philippine economy and its population.