IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2014-21.html
   My bibliography  Save this paper

Implications of an EU FTA to the Philippine Labor Market

Author

Listed:
  • Lanzona, Leonardo Jr. A.

Abstract

The Philippines is currently negotiating a free trade agreement (FTA) with the European Union (EU). This paper is expected to shed light on these negotiations in terms of the possible effects of the FTA on the employment in particular. Conceptually, the effects of FTA on the labor market may come from two sources. The first is the intensification of free trade which can either be an opportunity or a threat to the workers, depending on whether the trading of goods and services are complementary or substitutable to the goods and services produced in the country. The second source is the proposed set of core labor standards which the EU can impose given the previous FTAs it has forged with other countries. These standards can result in making the country less competitive. Analyzing the experience of the country with its previous FTAs with the ASEAN and Japan, the paper found that FTAs as a whole have a positive impact on employment. While there may be unemployment caused by the entry of more imports from other countries, the effect of the trade commitments found in FTAs is essentially to mitigate such negative effects. It is then proposed that the country should negotiate within the same rules and standards that are set in their previous FTAs and that appropriate taxes and subsidies should be imposed in order to counteract the negative effects of further trade and labor standards.

Suggested Citation

  • Lanzona, Leonardo Jr. A., 2014. "Implications of an EU FTA to the Philippine Labor Market," Discussion Papers DP 2014-21, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2014-21
    as

    Download full text from publisher

    File URL: https://serp-p.pids.gov.ph/serp-p/download.php?d=5367&s=3
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    2. Larry N. Digal, 2007. "Agricultural Contracts in Mindanao : the Case of Banana and Pineapple," Development Economics Working Papers 22629, East Asian Bureau of Economic Research.
    3. Hayami, Yujiro, 2010. "Plantations Agriculture," Handbook of Agricultural Economics, Elsevier.
    4. Nava Ashraf & Xavier Giné & Dean Karlan, 2009. "Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 973-990.
    5. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    6. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    7. Freguin-Gresh, Sandrine & Anseeuw, Ward & D'Haese, Marijke F.C., 2012. "Demythifying Contract Farming: Evidence from Rural South Africa," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126567, International Association of Agricultural Economists.
    8. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    9. Michelson, Hope & Reardon, Thomas & Perez, Francisco, 2012. "Small Farmers and Big Retail: Trade-offs of Supplying Supermarkets in Nicaragua," World Development, Elsevier, vol. 40(2), pages 342-354.
    10. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    11. Sukhpal Singh, 2002. "Multi-national corporations and agricultural development: a study of contract farming in the Indian Punjab," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 181-194.
    12. Costales, Achilles & Delgado, Christopher L. & Catelo, Maria Angeles & Lapar, Ma. Lucila & Tiongco, Marites & Ehui, Simeon K. & Bautista, Anne Zillah, 2007. "Scale and access issues affecting smallholder hog producers in an expanding peri-urban market: Southern Luzon, Philippines," Research reports 151, International Food Policy Research Institute (IFPRI).
    13. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    14. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    15. Key, Nigel & McBride, William D., 2008. "Do Production Contracts Raise Farm Productivity? An Instrumental Variables Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(02), pages 176-187, October.
    16. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
    17. Katsumi Nozawa, 2012. "Banana Production and Cooperatives in the Philippines," UP School of Economics Discussion Papers 201207, University of the Philippines School of Economics.
    18. H. Holly Wang & Yanbing Wang & Michael S. Delgado, 2014. "The Transition to Modern Agriculture: Contract Farming in Developing Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1257-1271.
    19. Phil Simmons & Paul Winters & Ian Patrick, 2005. "An analysis of contract farming in East Java, Bali, and Lombok, Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 513-525, November.
    20. Bharat Ramaswami & Pratap Singh Birthal & P.K. Joshi, 2009. "Grower heterogeneity and the gains from contract farming: The case of Indian poultry," Indian Growth and Development Review, Emerald Group Publishing, vol. 2(1), pages 56-74, April.
    21. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    22. Sununtar Setboonsarng & PingSun Leung & Junning Cai, 2006. "Contract Farming and Poverty Reduction: The Case of Organic Rice Contract Farming in Thailand," Chapters,in: Poverty Strategies in Asia, chapter 10 Edward Elgar Publishing.
    23. Digal, Larry N., 2007. "Agricultural Contracts in Mindanao: the Case of Banana and Pineapple," Discussion Papers DP 2007-24, Philippine Institute for Development Studies.
    24. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
    25. H. Holly Wang & Yanping Zhang & Laping Wu, 2011. "Is contract farming a risk management instrument for Chinese farmers?: Evidence from a survey of vegetable farmers in Shandong," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(4), pages 489-505, November.
    26. Ashraf, Nava & Giné, Xavier & Karlan, Dean S., 2009. "AJAE appendix for “Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenyaâ€," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 91(4), November.
    27. S. Freguin-Gresh & M. d'Haese & W. Anseeuw, 2012. "Demythifying contract farming: Evidence from rural South Africa," Agrekon, Taylor & Francis Journals, vol. 51(3), pages 24-51, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Philippines; employment; ASEAN Free Trade Agreement (AFTA); Philippines-Japan Economic Partnership Agreement (PJEPA); Philippine labor market; core labor standards;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2014-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta). General contact details of provider: http://edirc.repec.org/data/pidgvph.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.