Philippines Seeks Reduction of Agricultural Subsidies by Developed Nations

Strategic Insights -

The Philippines is calling for developed nations, particularly the United States and European Union, to reduce their agricultural subsidies to create a level playing field for developing countries to compete in international trade. According to Trade and Industry Secretary Peter B. Favila, the reduction of subsidies and protection in the agricultural sector of developed countries would allow the Philippines to increase its exports and improve its trade and balance of payments positions.

Key Takeaways:

  • The Philippines is seeking a reduction in agricultural subsidies by developed nations to enhance its competitive advantage in international trade.
  • Trade and Industry Secretary Peter B. Favila stated that developing countries like the Philippines are less competitive against developed countries due to protection and subsidies in the agricultural sector.
  • Favila emphasized that the removal of subsidies and protection would allow the Philippines to compete in a level playing field, increasing its exports and improving its trade and balance of payments positions.
  • The Philippines, along with other developing economies, is pushing for the reduction of agricultural export subsidies by developed countries to ensure a successful conclusion of the upcoming World Trade Organization (WTO) meeting in Hong Kong.
  • Developing countries have refused to sign a trade liberalization agreement unless developed countries reduce their protection of agriculture sectors.
  • Trade ministers from various countries, including the Philippines, have made commitments to make deeper cuts in agricultural export subsidies.

Statistics:

  • The Philippines is seeking a reduction in agricultural subsidies by developed nations to enhance its competitive advantage.
  • The country hopes to increase its exports and improve its trade and balance of payments positions through the reduction of subsidies and protection.
  • Developing countries account for a significant portion of the world's agricultural production, but are limited by subsidies and protection in developed countries.
  • The World Trade Organization (WTO) meeting in Hong Kong is scheduled to take place on December 18.
  • The Philippines and other developing countries are seeking an acceleration of the reduction of agricultural subsidies by developed countries.

Sources:

  • Trade and Industry Secretary Peter B. Favila, cited in "Philippines Seeks Reduction of Subsidies, Trade Protection", Asia Pulse, November 22.