The Philippine Trade Act
The
Philippine Trade Act, more commonly known as the Bell Trade Act, was
passed by the United States Congress in 1946. The Philippines economy
had been devastated by World War II and their economy was in debt.
The Bell Trade Act was the gift of independence of the Republic of
the Philippines from United States rule, but with a numerous amount
of strings attached. This act also tied the Philippines economy to
that of the U.S. Although the act was frowned upon by the majority of
the Filipinos, both the Philippine government and the United States
government agreed to it.
The
Philippine Trade Act was controversial in many ways. The United
States promised a payment of $800,000,000 as an incentive to sign the
agreement to the act. The act set quotas on Philippine exports to the
United States. The Philippines currency, the peso, was set at a fixed
rate to the U.S. dollar. Also, provided after 8 years of free trade
between the two countries, there would be the application of tariffs
for the next 20 years. The United States citizens were granted equal
rights with Filipinos in the operations of public utilities and the
exploitation of natural resources in the Philippines in what was
known as the Parity Amendment. The Philippine Trade Act also
prohibited the manufacturing or selling any products that could
compete with U.S. made-products. Today, Philippine historians see the
Bell Trade Act as the ignoring of their national sovereignty. The above pictures are of the American and Filipino flags and the American dollar and Filipino peso.
The
Philippine Trade Act was controversial in many ways. The United
States promised a payment of $800,000,000 as an incentive to sign the
agreement to the act. The act set quotas on Philippine exports to the
United States. The Philippines currency, the peso, was set at a fixed
rate to the U.S. dollar. Also, provided after 8 years of free trade
between the two countries, there would be the application of tariffs
for the next 20 years. The United States citizens were granted equal
rights with Filipinos in the operations of public utilities and the
exploitation of natural resources in the Philippines in what was
known as the Parity Amendment. The Philippine Trade Act also
prohibited the manufacturing or selling any products that could
compete with U.S. made-products. Today, Philippine historians see the
Bell Trade Act as the ignoring of their national sovereignty. The above pictures are of the American and Filipino flags and the American dollar and Filipino peso.