WTO, FTAs: Instruments of imperialist domination Launching Forum of NO DEAL! MOVEMENT AGAINST UNEQUAL AGREEMENTS Quezon City November 9, 2007 IBONFoundation

Philippine poverty and backwardness Widespread poverty Worsening inequality Agricultural and industrial backwardness Overly reliant on cheap labor export, foreign capital- and debt

Filipinos aspire and struggle for development For: –true agrarian reform –genuine national industrialization Against: –imperialist domination of the economy exploiting cheap labor, plundering natural resources and dominating our markets –exploitative international economic deals multilateral WTO agreements bilateral free trade agreements (FTAs), regional trade agreements (RTAs), economic partnership agreements (EPAs) Go far beyond just “trade”Go far beyond just “trade”  also investment, services, competition policy, intellectual property rights, labor, govt procurement, dispute settlement…

(1) FTAs deny us essential policies for development To build domestic economy we need: Trade protection against imports  to give local producers the opportunity to develop –Tariff/non-tariff barriers… Foreign investment controls  to ensure benefits from FDI –Equity requirements, domestic content, local hiring, technology transfer…

(1) FTAs deny us essential policies for development Policies affirmed by historical experience: Used by all First World countries when they were developing –Britain, France, Germany, US, Japan… (19 th century-1950s) Used by handful of Third World countries which made any sort of economic progress –South Korea, Taiwan, Malaysia… (1960s-1980/90s) Used by Socialist countries –Russia (1917+), China (1949+)

(2) FTAs impose policies that have already severely damaged the economy Philippines has been actively liberalizing trade and investment since the 1980s/90s –IMF-WB impositions, WTO agreements… Arguably the most liberalized country in Southeast Asia… and also one of its poorest performing

(2) FTAs impose policies that have already severely damaged the economy Trade doubled as percentage of GDP : –52% (1980)  105% (2005) Foreign investment quadrupled as percentage of GDP: –4% (1980)  14% (2005) YET: Record sustained joblessness : –Unemplt 8% (1980)  ~11% ( ) –12 million Filipinos looking for work/additional work (2006)  OFW export De-industrialization and shrinking manufacturing –Share in GDP: 26% (1980)  23%(2005) –Share in employment (11%  9%) Falling food production per capita, rising agricultural trade deficits

JPEPA is unequal, defeatist and destructive 1.Grossly unequal –Backward Philippines gives up much more than advanced Japan –Philippines’ deal worse than negotiated by Malaysia and Indonesia Protected trade products Protected investment sectors Japan239 items16 sectors Philippines2 items5 sectors Malaysia (2005)38 items17+ sectors (plus Bumiputera policy) Indonesia (2007)835 items40+ sectors

JPEPA is unequal, defeatist and destructive 2.Defeatist –Surrenders Philippine policy sovereignty, prevents support for Filipino producers National Treatment, Most-Favored-Nation (MFN) Treatment, prohibition of “performance requirements” on investments –Unprecedented protection for Japanese investors. “Investment” = FDI, portfolio investment + intellectual property, contractual rights, tax breaks (“taxation as expropriation”) –Note: JPEPA includes “Singapore Issues” already rejected at WTO for being anti-developmental

JPEPA is unequal, defeatist and destructive 3.Destructive –JPEPA drastically restricts the Philippines’ policy options: precedent-setting vis-à-vis Japan and sets a dangerous benchmark for other FTAs Note: Handful of FTAs makes WTO virtually redundant, where Japan + EU + US + Greater China + ASEAN = ~90% of country’s intl trade and investment –Job losses in auto/auto parts assembly and iron/steel sectors, fisheries… toxic waste imports… commodification of nurses/careworkers… –+ Millions of jobs that will never be created because of stifled domestic development

NO Deal! stands for democratic governance, economic sovereignty and building the national economy NO Deal! supports economic relations based on equality and mutual benefit NO Deal! rejects all unequal trade agreements which further undermine our already devastated economy –JPEPA, EU-ASEAN, RP-US, RP- China…

Maraming salamat!