Readers reflect on fair trade, tourism slogans

In the area of global trade, quantitative restrictions (QR) are widely used by countries to leverage their own interests, and presumably, economic well-being. This is the politics of trade diplomacy that can taste bitter, but cannot be ignored.

A government, as a simple example, may choose to restrict importation of an agricultural produce even if their citizens will benefit outright from cheaper prices because it needs to protect its domestic farm producers. But it can get complex when the bargaining chips involve more than one product.

One of our regular reader-contributors would want to share his thoughts on one such current negotiation that involves, not surprisingly, rice. Here is what Manuel Bondad says.

Biting the bullet

“If the well-being of Filipino farmers is foremost, then we bite the bullet.

“More than six years ago, the WTO [World Trade Organization] approved another QR on rice importation, and yet for years we earned the distinction as the world’s biggest rice importer. Promised reforms and modernization did not take off. Billions were allocated for irrigation and fertilizers!

“For the third time, [the Philippines] is pleading the trade body for an extension, the approval of which is an uphill climb as always. Are we bound to fail this time due to ‘stumbling blocks,’ and just surrender?

“According to trade practitioners, there’s a price to pay. Does the USA want concessions on more pork access for their exporters? If we want the USA to withdraw its objection, we should consider a just compromise. Business is business even among century-old allies.

““FilAm” rhymes but not on other USA allies. China is supportive and yet bananas were banned and left rotting due to “Panatag.” If QR extension is indispensable to farmers, some other sectors may have to be ‘sacrificed.’

“Unfortunately, the pork industry is another sensitive sector. Increased competition from USA and Canada pork perhaps is the price to pay for the extension of the rice QR.

Dilemma

“Can we get away without payment?

“1. The first question is “Do we pay?” If yes, we go to number two. If negative, we prepare for retaliation. But this business of retaliation may take time and we could play the Justice Serafin Cuevas technique of procedural tactics to delay retaliation and buy time.

“2. In what form should compensation take? Pork in terms of product coverage? Implement local rules on sanitary measures, [being the] basis of USA opposition?

“3. Can government make an offer in terms of volume or quantity instead of changes in local rules on sanitation or a combination thereof?

“4. If the three-year QR extension [on rice] is approved, what happens next? If upon expiration, Phl lifts the QR and replaces the QR with price-based measures like tariffs, the concessions on pork and/or other sectors would also lapse if the concessions are quantitative.

“The payment is not permanent, and as such should be coterminous with the lifting of the QR after three years. But if the concessions are in terms of rules, they are likely to be permanent. Can government negotiate a trial period with periodic reviews and terminate changes in rules coterminous with the lapse of the extended QR period?

“On this score, what was committed to by government to obtain extension in June 2005?

Least pain

“A progressive assessment of positions of the nine countries(Australia, Canada, China, El Salvador, India, Pakistan, Thailand, USA, Vietnam) until negotiations are concluded or deadlocked presumably is being adopted by government.

“The nine will focus on a sector or sectors of export interest to them – GM cars, fish, textiles, dairy products, vegetables, fruits, etc. – also sensitive to our country.

“Negotiators listen to pain but should lighten heartaches. But government should drive a hard bargain. At the end of the day, negotiators will be judged on how least painful the sacrifices and payments are. Let’s go for the QR!”

Tourism basics

The current Philippine tourism slogan may be catching interest from potential tourists, but let’s remind our government officials to mind the basics. And I totally agree with what our next reader, who introduced himself as just “David,” says.

“I am an American married to a Filipina. Fifty years ago while on my way to Viet Nam but passing through the Philippines, my beloved next door neighbor, Mrs. Garcia, a Filipino who was a nurse in Minneapolis, gave me a small bar of soap to stick in my pocket. She told me to carry it when I went sightseeing or any place in the Philippines because the bathrooms were stinking filthy and without soap no matter where I went.

“The same is true today throughout the nation – government buildings, shopping malls, restaurants, hospitals and doctor’s offices with filthy bathrooms and no soap; doctors and nurses treating patients in facilities with no soap at hand. 

“Quit kidding ourselves. The Western world will not come here (period) knowing what is at hand with CRs. No one with any self-respect from anywhere in the world wants to be trapped in a situation whereby bathrooms are stinking filthy and without soap and water that is in abundance. It will not happen no matter what the slogan is.”

FilOil Flying V pre-season tournament

National University Bulldogs lived up to its billing as the top favorite in this tournament. The Bulldogs went undefeated on the way to the title beating DLSU Green Archers for the championship. What the Bulldogs of Coach Altamirano achieved is to serve notice that they are seriously eyeing the UAAP championship this year.

The other top teams in the successful pre-season tournament organized by FilOil Flying V are: DLSU Green Archers – Runner-up; Ateneo Blue Eagles – third place and San Beda Red Lions – fourth place.

As expected, Ray Parks of NU Bulldogs was named the MVP of the competitions.

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.