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The Impact of Trade Liberalization and Economic Integration on the Logistics Industry: Maritime Transport and Freight Forwarders

Author

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  • Llanto, Gilberto M.
  • Navarro, Adoracion M.

Abstract

The ASEAN Economic Community Blueprint targets an ASEAN single market in 2015. This is an ambitious reform agenda that seeks to ensure the free flow of services, investment, and skilled labor along with the free flow of goods and the freer flow of capital in the ASEAN region. For logistics services, the target is to be achieved by 2013. Liberalization and deregulation efforts in the Philippine maritime transport industry are already heading into the direction of greater participation in ASEAN economic integration even though the AEC measures have not yet been formally sanctioned by all members.This paper examines the current status of the logistics industry in the Philippines and finds out how the opening of the economy to global markets through trade and service liberalization, and now ASEAN economic integration whose culmination is the ASEAN Economic Community in 2015, impacts on the structure, conduct, and performance of the logistics industry. The industry is responding to the changes in a positive way notwithstanding its characterization as a concentrated industry dominated by a few domestic firms. Firms have become more innovative in offering quality service to consumers such as better passenger accommodation, improved ticketing system, and availability of fast-craft ferries.Freight forwarders, at least those surveyed for this study, equip themselves with information on how to adjust to a more liberalized and integrated environment. They are aware of the changes to be brought about by the AEC measures when they are fully implemented and they also have a good idea of the challenges they will face when they decide to locate in an ASEAN member country, e.g., differences in commercial practices, legal systems, and contracting procedures. The way forward involves continuing the market-oriented reforms especially liberalization of trade in services, while ensuring a healthy balancing of domestic industry interests with the requirements of economic regional integration.

Suggested Citation

  • Llanto, Gilberto M. & Navarro, Adoracion M., 2012. "The Impact of Trade Liberalization and Economic Integration on the Logistics Industry: Maritime Transport and Freight Forwarders," Discussion Papers DP 2012-19, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2012-19
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    References listed on IDEAS

    as
    1. Gilberto M. Llanto & Enrico L. Basilio & Leilanie Basilio, 2005. "Competition Policy and Regulation in Ports and Shipping," Development Economics Working Papers 22648, East Asian Bureau of Economic Research.
    2. Llanto, Gilberto M. & Basilio, Leilanie Q. & Basilio, Enrico L., 2005. "Competition Policy and Regulation in Ports and Shipping," Discussion Papers DP 2005-02, Philippine Institute for Development Studies.
    3. repec:phd:pjdevt:pjd_2003_vol__xxx_no__1-b is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Llanto, Gilberto M., 2012. "Progress in Ratification and Implementation of ASEAN Protocols and Agreements in the Philippine Transport Sector," Discussion Papers DP 2012-20, Philippine Institute for Development Studies.
    2. Bo-Rui Yan & Qian-Li Dong & Qian Li & Fahim UI Amin & Jia-Ni Wu, 2021. "A Study on the Coupling and Coordination between Logistics Industry and Economy in the Background of High-Quality Development," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    3. Llanto, Gilberto M. & Navarro, Adoracion M. & Detros, Keith C. & Ortiz, Ma. Kristina P., 2013. "Toward Informed Regulatory Conversations and Improved Regulatory Regime in the Philippines: Logistics Sector and Trade Facilitation," Discussion Papers DP 2013-47, Philippine Institute for Development Studies.
    4. World Bank Group, 2014. "Policy Options for Liberalizing Philippine Maritime Cabotage Restrictions," World Bank Publications - Reports 24801, The World Bank Group.

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