APULI, Quinni M. BSA-2A Editoril Writing on Trade Liberalization “ A Substantial Key Towards Progress” Does real economic growth and progress, especially during the mishaps brought by the pandemic means we need to accept risks of trade liberalization? Does the proposed free trade will assure our country’s transition from serious contraction and worse recession into a progressive phase? Frankly, Philippines belong to poorest countries, stable economy doesn’t exist in our vocabulary. The checklists we only have are high unemployment rate, huge debts, indecisive government, and immense poverty. Accordingly, as the pandemic strikes, the measures taken to slow down the spread of the disease such as prolonged lockdowns and controlled operations paralyzed our economy even more resulting to higher unemployed Filipinos, trillions of debts, and bankruptcy of several businesses. It also disrupted certain industries such as tourism and exportation of goods and services. With this given situation, it is pretty obvious that we hardly need to draw back what our country lost. Truly, free liberalization is one of the ways to revive our economy. But is it worth the risk? If we let imports free their way onto our country, does this will assure economic progress or otherwise? Trade liberalization is defined as reduction or withdrawal of restrictions such as tariffs, quotas, and licensing rules to freely exchange goods between nations. The World Trade Organization (WTO), a global international institution that deals with the rules of trade among countries shared an agreement namely “WTO-plus” and “WTO-extra”, which the former aims to lower trade barriers at the borders and where the latter addresses behind the border concerns and issues. Both agreements aims to build partnership of nations covering issues on investment, trade, technologies, intellectual rights, e-commerce and the like. Moreover, the World Bank has signed a joint agreement with the International Monetary Fund (IMF) and with WTO to deepen cooperation in trade-related issues. These agreements will surely attract foreign investors to capitalized on different countries. Proven by history in recent decades, both developed and developing countries have reduced trade restrictions, opened their economies, and improved connections to world trade networks triggered quick integration of nations to world market. Rapid growth of global economy was evidently noticeable with world trade growth of 6% per year. Emerging countries were seen to expand their exports faster than leading developed countries. They took full advantage of the opportunities that trade liberalization has set forth to at least have an economic increased even an inch. Trade liberalization results into lower consumer prices because imports then will be subject to lower fees. Domestic firms will lead to cheaper production and greater efficiency. Hence, this proves that trade liberalization is substantial key in overall economic progress. Truly, opening countries’ economies to global market has been an engine in enabling several developing nations to build the same competitive level or even dominance among other nations in terms of manufacturing their products. It creates jobs, reduces poverty, and increases economic opportunity. World bank even tagged developing countries as “new globalizers” as the number of people in poverty has reduced by 14% between 1993 and 1998. Trade liberalization if executed properly may not only benefit developing countries but as well as developed nations around the world.
