Bell Trade Act
Encyclopedia
The Bell Trade Act of 1946, also known as the Philippine Trade Act was an act passed by the United States Congress
specifying the economic conditions governing the independence of the Philippines
from the United States
.
The United States Congress offered $800 million for post World War II
rebuilding funds if the Bell Trade Act was ratified by Philippine legislature, which duly approved the measure on July 2, two days before independence from the United States of America.
The Bell Trade Act linked the Philippine economy
to the United States economy
in several ways:
Filipino nationalists denounced the Bell Trade Act. Even the reliably pro-American Philippine President
Sergio Osmena
called it a "curtailment of Philippine sovereignty, virtual nullification of Philippine independence." In 1955, nine years after passage of the Bell Trade Act, a revised United States-Philippine Trade Agreement (the Laurel-Langley Agreement) was negotiated to replace it. This treaty abolished the United States
authority to control the exchange rate of the peso, made parity privileges reciprocal, extended the sugar quota, and extended the time period for the reduction of other quotas and for the progressive application of tariffs on Philippine goods exported to the United States.
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
specifying the economic conditions governing the independence of the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
The United States Congress offered $800 million for post World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
rebuilding funds if the Bell Trade Act was ratified by Philippine legislature, which duly approved the measure on July 2, two days before independence from the United States of America.
The Bell Trade Act linked the Philippine economy
Economy of the Philippines
The Economy of the Philippines is the 43rd largest in the world, according to the World Bank with an estimated 2010 gross domestic product of $200 billion, it is estimated that by 2015, the ranking of the Philippines would go up to the 18th and by the year 2050 it will land on the 14th...
to the United States economy
Economy of the United States
The economy of the United States is the world's largest national economy. Its nominal GDP was estimated to be nearly $14.5 trillion in 2010, approximately a quarter of nominal global GDP. The European Union has a larger collective economy, but is not a single nation...
in several ways:
- A system of preferential tariffs was established, undermining control over imports and exports by the Philippine government;
- The Philippine currency, the pesoPhilippine pesoThe peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
, was pegged to the US dollar; - The Philippine government was obligated not to place restrictions on currency transfers from the Philippines to the United States;
- U.S. citizens and corporations were granted equal access with Philippine citizens to Philippine minerals, forests and other natural resources, despite provisions in the Philippine constitution to the contrary which the act required to be amended.
Filipino nationalists denounced the Bell Trade Act. Even the reliably pro-American Philippine President
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...
Sergio Osmena
Sergio Osmeña
Sergio Osmeña y Suico was a Filipino politician who served as the 4th President of the Philippines from 1944 to 1946. He was Vice President under Manuel L. Quezon, and rose to the presidency upon Quezon's death in 1944, being the oldest Philippine president to hold office at age 65...
called it a "curtailment of Philippine sovereignty, virtual nullification of Philippine independence." In 1955, nine years after passage of the Bell Trade Act, a revised United States-Philippine Trade Agreement (the Laurel-Langley Agreement) was negotiated to replace it. This treaty abolished the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
authority to control the exchange rate of the peso, made parity privileges reciprocal, extended the sugar quota, and extended the time period for the reduction of other quotas and for the progressive application of tariffs on Philippine goods exported to the United States.