Press statement of Senator Loren Legarda

While agriculture is recognized as the most vital industry to fight hunger and poverty, it is also the sector with the highest level of trade distortions. After we have suffered P18.4 billion in agriculture damage from Ondoy and Pepeng, we cannot afford to lose out further in our agriculture sector because of trade imbalance.

The ASEAN Trade in Goods Agreement (ATIGA) seeks to eliminate tariffs and non-tariff barriers for trade among ASEAN nations. ATIGA was endorsed by the AFTA Council in August 2008, and signed by its parties during the ASEAN Summit in February 2009.

ATIGA is an improvement of the ASEAN Free Trade Agreement-Common Effective Preferential Tariff (AFTA-CEPT), signed by all ASEAN countries in 1993, which reduces tariffs on all intra-ASEAN trade in manufactured goods, processed agricultural products and capital goods. Unprocessed agricultural products were initially excluded. Until now, several agricultural products deemed "sensitive" are not included in AFTA's coverage.

The ATIGA should not come into full force without the ratification of the Senate, and that it should follow the constitution and the country's laws.

Before the Philippines concedes to this agreement, wider consultations should be done. With the Philippines being a primarily agricultural country, the sector contributes a fifth of our total GDP, providing jobs and support to tens of thousands of families, and almost one half of our labor force. It is a sector that must be protected because the livelihood of thousands of Filipino farmers depend on it.

The Philippines is set to lose P100 from noncompetitive products if it concedes to ATIGA. Before negotiating a trade policy position, public hearings should be made so that the people could voice out their concerns over a pending trade agreement.

We live today in an open trade regime where quality products at competitive prices are required to sell in the market. The farming sector needs safety nets to cushion it from the onslaught of liberalized trade in the agriculture sector.

Contrary to WTO principles, advanced countries give their farmers huge subsidies, which developing countries cannot afford, thus creating an unfair playing field. Huge domestic support and export subsidies provided by developed countries to their farmers render developing countries' farm products uncompetitive.

Agriculture in developed countries is a big, integrated business. In addition, they are awash with subsidies from government. Developing countries like the Philippines simply cannot afford to provide its farmers the same subsidies that developed countries grant them. As a result of unfair trade, developing countries are inherent losers.

The ATIGA will have an across-the-board impact on trade in agriculture if it is signed without first applying the necessary safety nets.