To aid RP amid global financial crisis
ANGARA CITES BENEFITS OF REGIONAL
INTEGRATION AND COOPERATION

Senator Edgardo J. Angara today said suggested that the Philippines should look into the benefits of strengthening regional integration and cooperation, as the West is still trying to recover from the devastation of the worst financial crisis since the Great Depression.

"Regional integration has economic benefits, including more intensive trade and investment relations. This is particularly helpful if we consider the failure of multilateralism in promoting genuine, fair trade. Integration also enhances competitiveness and efficiency, and encourages the emergence of new technology and innovation," said Angara who chairs the Senate Committee on Finance.

He added, "The World Bank saw fresh enthusiasm in the area of formal economic trade agreements within East Asia over the past few years. Historically, Asia has been strongest proponent of multilateral trade liberalization and it is only now that we are seeing a more regionalist attitude."

Angara shared that the National Economic Development Authority (NEDA) reported recently that Philippine exports contracted for a sixth straight month in March. This, he said, demonstrates just how badly the economic recession is bearing down on our trade performance. Some $2.9 billion worth of goods were shipped out for the month, a huge setback from $4.2 billion in 2008.

He added, however, that some seers are hoping that we have already seen the worst and that exports are slowly picking up.

Shipments of electronics products, which comprise more than half of the country's exports, were up 20% compared to the previous months. While still down 33.9% from last year's figures for the same month, it was a definite improvement from the 40% decline recorded last December.

The senator said that this could signal that the recession is easing. But he added that we can never be too cautious, especially since exports provide a vital lifeline for the country.

About a week ago, the ten ASEAN countries plus China, Japan and South Korea agreed set up a $120-billion emergency currency pool to boost liquidity and help the region overcome the global crisis.

This signals greater interest in strengthening cooperation and forming an economic community within the region, Angara said.

He suggested that as the West is still trying to recover from the devastation of the worst financial crisis since the Great Depression, it might be time to look towards our closer vicinity.

"The Philippines must take advantage of the changing pattern of trade within Asia. Regional integration, as a complement to global trade, becomes even more important now if we are to survive the financial crisis. The Philippines, for its own national interest, must vigorously seek to secure its markets by forging regional and bilateral trade agreements with its neighboring trade partners," added Angara.