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Publication Detail
ISPPS WP 2003-08: Impact of Trade Policies on Philippine Pesticide Prices

This paper analyzes the overall impact of the economic and trade variables on pesticide prices. Comparative trend analysis was done between 1990-1995 (pre-General Agreement on Tariffs and Trade [GATT] years) and 1996-2000 (post-GATT years and the period when most of the trade liberalization policies were implemented). Changes in importation and supply, sales, marketing channels and flow, and cost structure in the marketing of pesticides were likewise discussed. The reduction in tariffs on pesticide products in the post-GATT years has, in general, led to higher importation of pesticide products and higher sales, implying higher pesticide use in the farms. The other reasons for the increasing trends could be the increasing pest infestation and/or more intensive use of agriculture chemicals for the purpose of producing good-quality crop. Prices of pesticides were generally affected by factors such as taxation, tariffs, exchange rates, marketing costs, and mark-up by pesticide handlers. Other related factors are competition among pesticide handlers, the size of market, the demand for the product, and the level of technical and marketing support. There were increasing trends in nominal retail prices of insecticides for the Philippines as well as in the regions. But, as expected, real retail prices exhibited a declining trend with trade liberalization.

UPLB Center for Strategic Planning and Policy Studies
Authors Keywords
Chupungco, Agnes R.; trade liberalization; General Agreement on Tariff and Trade; trade policies;
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