Proceedings of the first Independence congress : held in the city of Manila, Philippine islands, February 22-26, 1930 / Published under the direction of Dean maximo M. Kalaw, executive secretary, University of the Philippines.

ECONOMIC SECTION

89

to our people, we should see to it that its abolition is effected
gradually, if such an arrangement can be secured. A period
of ten years may be fixed within which the present tariff
arrangement may be abolished. After the first two years, we
can shift to a preferential tariff arrangement with the United
States instead of free trade. We can begin by imposing 20
per cent of the ordinary duties on imports upon American
goods coming here, the United States also taxing our imports
to her with 20 per cent of her prevailing rates of duty on
similar goods coming from other countries. Then after four
years, an increase to 40 per cent can be made, after six years to
60 per cent, after eight years to 80 per cent, and after ten
years the full rates will be applied by each country upon the
products of the other. This would give us time to readjust
ourselves to the new situation and the process would be less
disturbing to our economic system.
Such a plan could be worked out right now, whether we
get our independence immediately or later. It would work
more ideally and effectively, however, if our status as an independent country be at once fixed and definitely settled, for
everybody knows that the present uncertainty in our future
political status is a serious deterrent to our economic progress.
To adopt such a tariff plan as I have indicated as a proviso
in the grant of Philippine independence by the United States
would be in line with the policy generally followed by nations
in effecting changes in their tariff relations. It has become
the usual practice to effect such changes in a gradual manner,
in order to prevent undue disturbances in the trade of the
countries concerned. It was this same principle and practice
which partly explains the insertion of the tariff stipulation in
the Treaty of Paris whereby Spain ceded the Philippines to the
United States which gave to Spanish goods entering the Philippines during a period of ten years after the signing of the
treaty the same privileges that would be given to imports of
the Islands from the United States.
Pending the grant of independence and while we wait for
the establishment of a more permanent tariff system or the
gradual abolition of the free trade as just outlined, it is highly