The primary objective of this paper is to analyze the desirability and viability of the Philippines entering into bilateral trade arrangements. It looks into the probable factors behind the growing tendency toward bilateralism in Asia. It also describes the distinguishing characteristics of Asian bilateralism. A discussion on the cost of non-participation is first addressed in the section on whether to join or not to join an FTA. Should the Philippines decide on entering an FTA, the paper considers the incentives for joining, the rules governing FTAs, the scope and dimension of the proposed FTA, and criteria that will guide the selection of candidate partners. The paper also looks into a number of prospective countries that the Philippines could partner with. Some policy considerations and recommendations for future study are also suggested.
