Disadvantages Of Free Trade In The Philippines

Although all of these benefits are clearly gained from free trade, there are still possible downsides to this notion. To exhibit fairness in the discussion, the authors will now present to you the disadvantages that arise from the implementation of free trade.
Firstly, low quality goods can be exported to other countries. Capino (2013), states that the government of the Philippines is not doing anything substantial to make the Philippines ready for an ASEAN free trade regime. There is continuing news about rice smuggling, sugar, vegetables, and other agricultural products are the clearest indication that we are not ready for free trade. The exports in the Philippines include fancy varieties like black rice and organic mountain rice and the

The environment has a huge impact in producing goods. Countries cannot restrict imports except in very limited cases such as protection of the health and safety of their own citizens.
Secondly, implementing free trade would require the abolition of trade restrictions, thus, puts the protection of local goods at risk. Investopedia (2015) defined that tariffs, in relation with trade restrictions, keep the domestic goods intact. It denotes imports that could lose the value of the goods manufactured locally. Tariff acts similarly to sales tax, with it the declared price of the domestic goods could be accounted for cheaper than of the imported goods. Tariff protects the establishment of the domestic good, without it the goods would be at risk regarding the foreign competition. This conveys that keeping trade restriction for the foundation of goods is necessary. Tariffs maintain the build-up that stands with the local goods for stability.
Moreover, regarding the issuance and free trade certification, it is claimed to result in conformity towards risk. Most of the business companies see free trade as a product

Consequently, the product of the governing market in certainty is unto fluctuation.
Lastly, economies who participate in free trade may become largely dependent on more flourishing economies compared to theirs. Based on the remarks of Yeh (2014), if Taiwan invests too much in China, it will result to a risk in terms of trade and investment. Currently,
China has been showing signs of decelerating trend in investment which has a negative effect on its investors and trade relations. Additionally, the constantly changing laws in China that clearly undermines the interests of foreign investors will lead to the demise of Taiwan’s economy. Too much dependence on China will not be beneficial to Taiwan seeing as the decelerating trend in investment is slowing down the said country.
The Chinese economy has become more enthusiastic in trading with the United States of America. In line with the sudden collapse/decreasing number of orders from 27 European countries, China has no choice but to rely on the U.S for the sustenance of its trading industry
(Chang, 2012). Due to the decreasing order of goods from other countries, China has no choice but to export most of its goods to the U.S which thus makes them dependent on the economy of