The Fuhua Co. MOUs proposed lease of one million hectares of land will effectively disenfranchise farmers and farmworkers working these lands; on the unlikely possibility that there are no such farmers / farmworkers present in these areas, it still behooves CARP implementers to distribute the lands to farmers and farmworkers that were not accommodated in the respective landholdings (due to land availability limitations) or to qualified ARBs who were unduly dislocated from their areas or because of undue land conversions, CARP exemption, or CLOA/ EP cancellations.A summary of RP-PRC deals on agriculture can be found on Newsbreak.
Given that 1/3 of our total labour force are still employed in agriculture sector, and there aren't industries to absorb their displacement, their choices aren't very many.
Tariff reduction cause agriculture output to contract while industry and services output expand...Both industry and service sector appears to benefit from resource reallocation as a result of tariff reduction. The former absorbs unskilled laborer (production worker previously working in agriculture) displaced in agriculture. While the latter experience an increase in return to capital.So, what are farmers left to do other than take up arms and join insurgents? Twiddle their thumbs? Train to be call centre agents? Oh, hang on, lets export all 13,000,000 of them! But then, who's going to grow our food?
However, the absorption capacity of the manufacturing sector to accommodate workers displaced in agriculture has been minimal. This is because of the inherent manufacturing production structure in the country, which utilizes minimal value added. Thus, in spite of the increase in proportion of household income coming from unskilled production wages, limited increase in income level has been gained. The impact of this is troublesome for rural households trying to move out of agriculture. The rigid labor absorption capacity of manufacturing may generate poverty ramifications especially for rural households who are only endowed with unskilled production skills.
The ASEAN-China Free Trade Area will kick into full gear in two years. Here's an article assessing the opportunities and costs of the ACFTA. Its not freely downloadable, but I have it. If you're interested, leave your address and I can email it to you.
ASEAN should not focus in competing with China on the basis of costs, but should focus on improving product and service quality, efficiency and reliability. They should try to move up to higher-value products and develop their own specialities and niches by improving the skills of their human resources and level of technology.
ASEAN countries should look for ways of complementing with China, rather than competing with China. There are areas where China has a comparative disadvantage, particularly in agricultural products, intermediate capital goods, mineral products and services.
To get a preferential entry for these particular products and services in the Chinese market under the ASEAN-China FTA should help the ASEAN countries to compete with other more advanced countries which have been supplying these goods and services in China. However, the ASEAN countries at the same time must ‘set their houses in order’ to have the ability to respond to the preferential access-induced economic opportunities in the Chinese market
I don't see why we can't just grow food on our own terms and then export to China. Will someone explain this to me?!? Oh, wait I know. Because agricultural revolution has yet to happen in this country.
Hala sige. Matira matibay.
On Global Food Fights