Crizaldo N. Mempin Jr.

Basic Economics with Taxation and Agrarian Reform

BS Chemistry IV-I Maam Leonora Signey

WHAT DO YOU THINK ARE THE ECONOMIC IMPLICATIONS OF EACH

DECISION SET BY INTERNATIONAL ARBITRATION TRIBUNAL?
Last year, despite the escalation of the territorial dispute over the West Philippine
Sea, there was no solid evidence showing that the territorial claims among China and
Philippines were significantly affecting their economies since China remained one of the
biggest trading partners of the Philippines. However, with accordance to the decision of
the arbitration case in the tribunal court recently, it has deeply affected both countries
economically. Personally, I think that the effect of each verdict will eventually affect the
Philippines economic growth crucially. Whatever the decisions might be, it would
always have its pros and cons.
According to the ruling of the permanent court of arbitration in the West
Philippine Sea, there was no legal basis for China to claim historic rights to resources
within the sea areas falling within the nine-dash line. For this reason, we could say that
the West Philippine Sea and the islands that lay beneath it are ours. These islands have
different natural resources and therefore, these might help our country to produce more
products and occupations for the Philippines and Filipinos.
Another key point that the tribunal next considered is that China had violated the
Philippines sovereign rights in its exclusive economic zone by interfering with
Philippine fishing and petroleum exploration, constructing artificial islands and failing to
prevent Chinese fishermen from fishing in the zone. If these violations of rights would
make an end, we could continuously explore petroleum resources and we could enhance
these natural resources to make power plants of our own, and then we don't have to
import daily commodities from neighboring countries. Apart from less import from other
countries, we could also export more products that we used to if the natural resources
from the islands are put in good hands.
Also, Chinese authorities were aware that Chinese have harvested endangered sea
turtles, coral, and giant clams on a substantial scale in the West Philippine Sea using
methods that inflict severe damage on the coral reef environment and had not fulfilled
their obligations to stop such activities. If the court favors us in the territorial claim, the
marine resources would increase and therefore, fishermen would also catch more fishes
and the occupation for fisheries would be better.
The pros of the decisions that would favor us are very useful and helpful for the
growing economy but it is not only the pros that are weighed together with the decision
of the court. We all know that China has been one of the countries that make most of the
total investments in the Philippines. Everywhere we look, we could always see an
establishment that is owned or managed by a Chinese. Most of the investors and suppliers
come from China. So, what are the cons of the decision of the tribunal court? Well, for
one, if the dispute between China and Philippines about territorial claims arises, the
relationship between both countries would never be the same and the economic growth
will surely decrease, for Chinese investors might take the dispute personally and might
pull out future or current investments. Another is most products that we use are from
China. If the conflict arises, some products from China might become expensive and it
might be a problem for the Philippines to find an alternative for these products. Also, for
our OFWs living in China, they might face hostility and tightening of visa requirements
and therefore will result to conflict in employment. It will surely affect the economy if
the relationship between both countries is crucially damaged.
As for me, now that we have the better bargaining power, still the best course of
action we can do is to negotiate China. This is the best and most peaceful way we can end
these economic conflicts we are facing right now.