The problem in context

Agriculture is a major contributor to the Philippines economy, accounting for 21.5% of its gross domestic product (GDP), generating exports valued at over US$1.5 billion, and providing one third of all employment, or 11 million jobs. Its contribution increases when ‘all economic activities related to agro-processing and supply of non-farm agricultural inputs are included, (as) the agricultural sector broadly defined accounts for about two-thirds of the labour force and 40% of GDP’. The strategic importance of this sector makes it compelling for the government to enact a stakeholder-based process that will fully and effectively render legitimacy not only to its domestic economic policies but to its international economic commitments as well, such as to the WTO.

In 1995 the Philippines acceded to the WTO in the belief that its membership of the rules-based body would bring about economic benefits, primarily to the rural sector, through increased efficiency of industries required by exposure to global competition. Jobs were promised and new industries were expected to emerge.

With the implementation of the WTO Uruguay Round commitments in 1995 came also the increasing realization, especially by the agriculture stakeholders, that the promised gains were not forthcoming. The liberalization implied by the commitments was perceived as too fast and beyond the country's capacity to comply, and so found poor general acceptance. Serious accusations were made about the government's lack of consultation with the affected sectors, and blame directed towards government negotiators whom stakeholders felt were not only vastly uninformed about the situation in the field, but were also regarded as ‘blind’ advocates of rapid liberalization and therefore insensitive to their needs.