The Politics of the Anti-Dumping Law of the Philippines

Abstract

As a member of the World Trade Organization (WTO) and signatory to the General Agreement on Tariffs and Trade-Uruguay Round (GATT-UR) Agreement, the Philippines has become a member of the international trade regime. The economic regime promotes the unhampered flow of goods and impels the country to open its economy to foreign goods. This scenario poses a risk to the local industry as foreign competitors, in their quest to penetrate and capture markets, can engage in dumping. To mitigate the risk inherent in the situation, the GATT-WTO regime encouraged countries to legislate an anti-dumping law. The rationale of the law is to establish a system of international trading where the playing field is even or level for all players. The anti-dumping law gives a country the right to adopt an adequate response to protect itself against unfair trade practices of other countries. This paper is about the evolution of the anti-dumping law in the Philippines, specifically the enactment of Republic Act (R.A.) 7843, and the transition to R.A. 8752. It concludes with the following observation on the policymaking experience: first, the enactment shows the satisfying nature and the protective tendency of the lawmakers; second, the enactment reveals the increasing influence and relevance of international organizations and regimes in domestic policymaking; and lastly, the evolution of the policy illustrates the dynamics of interagency competition vis-a-vis policy change.