Speak out: Trade deals
Sun Star Cebu (Philippines) | Tuesday, March 18, 2008
Speak Out: Trade deals
By Victoria Celestina Moran
University of San Carlos, Cebu City
THE Philippines is one of the fast growing countries in Southeast Asia. It is, as President Arroyo has emphasized, ripe for investments and trade. We get lots of deals from China, Japan and other countries. But with all of these bilateral deals, the more relevant issue may not be our readiness for more trade and investment, but whether opening our doors to all these would actually benefit the country.
Who doesn’t know about the ZTE-national broadband network (NBN) deal, the railway and computerization program for the education department? Are these deals meant to help our economy or the other way around?
It was said that the reason the Philippines got these sweet deals with China is because of the Spratlys Island. The Philippine Government has signed an agreement with the Chinese Government, allowing China to explore for oil reserves in the Spratlys. In return, China will help us, and the ZTE-NBN deal was part of that.
We all know that China is a big country and has experienced remarkable growth in recent years. To sustain this growth, China needs a lot of energy, hence, its search for more oil reserves.
And then there’s the Japan-Philippines Economic Partnership Agreement (JPEPA).
The signing of the JPEPA between Japanese Prime Minister Junichiro Koizumi and Philippine President Arroyo was considered a “milestone in the continuing cooperation and collaboration, setting a new chapter of strategic partnership for mutual opportunity and growth (for both countries).”
JPEPA, which has been referred to as a “mega treaty,” is a comprehensive plan for opening up of markets, as well as removing restrictions on investments. The agreement is expected to increase exports, investments and even overseas employment. These goals are impressive but what if JPEPA is just like the ZTE deal? Environmental groups and trade activists claim the country is being turned into Japan’s toxic waste basket.
This is not just an issue concerning trade and economic relations with Japan. It touches broader national development concerns and cast doubts on whether the deal would really be beneficial to Filipinos.
Whatever economic gains that would be achieved from increased labor exports to Japan carry social costs, including strains on the Philippine health care system. The issue of toxic wastes dumping is something that must not be ignored given Japan’s reputation as an exporter of waste to developing countries and the institutional weaknesses of the Philippines in implementing environmental laws and safeguard measures.
We should use what we learned from the ZTE deal to analyze JPEPA. We should demand accountability and transparency in all the deals and contracts that our government enters into because all these would affect us and our economy. We don’t need a new leader who will do the same as the past administration, but a new system that will encourage people to participate in governance, lessens inequality, establishes accountability and transparency.
