This is the opinion of Trade and Industry Secretary Manuel Roxas II who admitted that while globalization and liberalization are necessary for trade, development and investment, "we are not ready for it."
As far as Roxas is concerned, "we need to respond to it at our own pace and own way."
Roxas acknowledged that free trade has its advantages and disadvantages.
Consumers will benefit through cheaper prices as certain products will be produced in mass quantities in countries like the US.
On the manufacturers’ side, Roxas said, "those using raw materials that come from the United States will benefit."On the hand, exporting to the US will become more difficult because competition will become more intense, he added.
Roxas said there is a need to examine the issue very closely. The Philippines, together with other members of the Association of Southeast Asian Nations (ASEAN), is set to implement a free-trade arrangement initially under the ASEAN Free Trade Agreement (AFTA) by the year 2040.
One of the objectives of AFTA is to create a 500-million strong market that could attract more foreign investment inflows.
However, other bigger trade organizations such as the World Trade Organization (WTO) and the General Agreement on Tariff and Trade (GATT) are pushing for more trade liberalization.
Except for the US, which stands to benefit most from trade liberalization, more and more countries are beginning to take the view that such a process should be undertaken more slowly and its impact analyzed more carefully especially for smaller economies.