Policy Issue
Philippine participation in international trade is based on the assumption that FTAs significantly impact economic growth. By expanding market access, encouraging specialization, facilitating technology transfer, attracting foreign investment, and promoting diversification, trade enhances productivity, creates employment opportunities, and improves Filipino people's overall standard of living (Salcedo, 2023).
Moreover, the Philippine economy has grown significantly in the last six years, averaging more than six percent (6%). However, despite this economic expansion, employment growth has consistently lagged behind gross domestic product (GDP) growth and labor force participation rate has also remained sluggish. Recent international trade negotiations and agreements attended by the Philippines impose the inclusion of labor provisions in draft texts of the agreements and negotiations. In contrast, some studies indicated that trade agreements with labor provisions often have greater (positive) effects on total bilateral trade flows than trade agreements without these provisions. There is no framework yet for sound labor provisions during the negotiation rounds of the Philippine Trade and Labor Negotiators