Years of government protection, regulation and promotion through high tariffs, local content scheme and import restrictions have made the Philippine automotive industry one of the most protected, consequently leading to its inability, as a whole, to compete on a global basis. With the adoption of the CEPT scheme meant to reduce tariffs in the ASEAN region to hasten intra-ASEAN trade, will the local automotive industry be able to survive? This Policy Notes stresses that the industry will have to evolve further if it is to compete and survive.
