Deliberating a Philippine-US Free Trade Agreement : Issues, Challenges and Prospects

As a result of changing conditions in the world market and increasing global competition, trade and integration arrangements have become a part of economic and development strategies of countries. Bilateral economic partnerships or Free Trade Agreements are seen as an option in creating a stable economy and in creating an environment attractive for investment. However, while there are benefits to gain from an FTA, it should be recognized that FTAs are not a panacea to cure the sluggish economy. It is a strategy that should be carefully crafted, negotiated and implemented. It comes with both benefits and costs. The question then is how to make an FTA work for the country. This paper integrates the findings of the studies which explore the various issues concerning the potential Free Trade Agreement between the Philippines and the United States. It examines the gains, the challenges as well as the opportunities for the Philippines in entering into a bilateral economic partnership with the United States.