AN ASSESSMENT OF TRADE AND INDUSTRIAL POLICY, 1986-1988

Abstract

This paper attempts to assess the state of trade and
\nindustrial policy and analyze the reforms which have been
\nimplemented during the first three years of the Aquino
\nAdministration. Specifically, the study covers the period from
\n1986 to 1988. AS such, _he major policies in the area of Trade
\nand Industry, with focus on the important policy reforms, are
\nidentified. These are then evaluated with respect to:
\n(a) how consistent they are to stated objectives and, when
\nrelevant, other national objectives, and
\n(b) their impact - qualitative and, when feasible,
\nquantitative - on certain important economic variables.
\nThe paper is divided into four sections to cover the four
\nmain policy areas in Trade and Industry. The first section
\nreviews and assesses the trade policy situation, presenting and
\nevaluating the reforms undertaken in tariff poli:cy and import
\nliberalization program. It also examines some proposed policy
\nchanges, adopted or otherwise, to gauge the: liMely policy
\ndirection the government would take. Their COnsistency With
\nstated and other national objectives is discussed. The second
\nsection deals with the exchange rate policy and its impact on
\ntrade and industry. The third section evaluates the 1987 Omnibus
\nInvestment Code (OIC), particularly with respect to its impact on
\nfactor prices and incentives to exports. Finally, the fourth
\nsection describes and analyzes the major export promotion schemes
\naside from the export incentives provided in the 1987 01C under
\nthe Board of Investment (BOI).