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  • Slajd: 1
  • Hello class, In our previous lesson, I assigned you to share your thoughts on how free trade affects the daily life of Filipino citizens.
  • This trade will bring great benefits. It shows that the FTA has a positive and significant direct effect on industry growth and labor productivity.
  • The good thing about free trade is that it encourages competition,which consequentlyincreases our country's efficiency. In addition, products and servicesbecome of better quality at a lower cost.
  • With this, it stimulates economic growth, provides access to foreign technology, promotes diversification, fosters specialization, promotes cultural exchanges, and contributes to poverty alleviation.
  • FTA is favorable to our country, especially in the agricultural sector, The FTA opens doors to improve market access for agricultural products such as bananas, pineapples and various fruits.
  • Slajd: 2
  • Now class, what are your thoughts about the negative effects of free trade?
  • Despite all the benefits brought about by free trade, there are also some corresponding disadvantages or negative effects to us, such as threat to intellectual property, unhealthy working conditions, and less tax revenue.
  • Another negative thing about the FTA would be trade diversion, and maybe there will be unfair competition dumping too. It may cause over-reliance on foreign countries as well.
  • If FTAs are not set up within the right framework of policies, they diminish rather than enhance economic welfare.
  • Slajd: 3
  • Can anyone give some examples of free trade?
  • Within the scope of the FTA, two countries have committed to making substantial tariff concessions. For example, South Korea will remove tariffs on approximately 94.8% of Philippine products, while the Philippines will reciprocate by abolishing tariffs on about 96.5% of South Korean products.
  • Another example of free trade is the Philippines exporting coconut oil to another nation without facing tariffs or trade barriers. In addition to being a significant and growingeconomy, the Philippines also has major reserves of critical raw materials, including nickel, copper, and chromite, which are vital for the manufacture of green technologies. Therefore, the Philippines is an important partner in the green transition.
  • For example, in the area of trade in goods, FTA abolishes all customs duties on industrial products as of the entry into force of the agreement, whereas the Philippines will gradually lower or abolish its duties on the vast majority of such products.
  • Slajd: 0
  • In addition, free trade can produce many negative effects, in particular deplorable working conditions, job losses, economic damage to some countries, and environmental damage globally.
  • For instance, the Philippines exports fruits to the US through an FTA. allowing minimal tariffs for farmers. This makes their products more competitive and accessible to American consumers. In return, the US can export goods like machinery or technology to the Philippines under similar conditions, promoting economic growth and international cooperation.
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