NATIONALISM AMIDST GLOBALIZATION*

Marilyn C. Bachiller**

ABSTRACT

Leaders always romanticized love of country and the need to stand up to take care of his own and
the need to be a patriot first and foremost, it provoked a country’s NATIONALISM. While financial
managers set international trade as the hard fast rule in economic affairs. That the world is one big
marketplace and GLOBALIZATION is where we should belong. It is inevitable and should be the norm.
While there are perceived problems on both views, nothing is more observed for its flaws than that of the
widely implemented world trading practices. These clashing views come into life specially this upcoming
US Presidential Elections where, President Trump banners “America First” and the other party claims
destruction of foreign relations. We will try to gauge on whether or not nationalism can still exist in a
globalist driven economy.

I. INTRODUCTION

Ease of travel and fast paced communication made the world smaller than ever. Business is done
from one side of the world to the most remote part of the planet. International trade has become inevitable
and indispensable. Business management is easier now than ever before due to the ever growing
efficiency of the internet. The internet itself has created its international economy and has spawned its
own cryptocurrency.

But, just as new horizons dawn, old practices enter dusk. Many are sceptic towards a full blown
globalization. Some countries feel that they will be left out or would be at the losing end of the bargain.
This concern has been largely ignored due to the apparent success of the international trade, until a
businessman from the United States started trumpeting to bring trade back home. President Donald
Trump in 2016, ran on the platform that Americans have lost many jobs, industries closing and
manufacturing shipped overseas. He promised to bring it all back. Unexpectedly, he defeated Hillary
Clinton who, hours before the election, has a 96% projection of winning the election. President Trump
defied projections and won overwhelming electoral votes. He again shocked the international community
when he actually did try to bring the industries back. He launched his famous trade war against America’s
top trading partners, most notable of these countries is China. There is data to suggest that his plans
“might” be working, in the three years President Trump is in office, the Stock Market grew 56 percent,
manufacturing rose by 3.6 percent, creating 487,000 manufacturing jobs and unemployment is almost 5

**
Cite as Nationalism amidst globalization, an unpublished essay for midterm examination purposes
****
2nd year Juris Doctor student at the Universidad de Manila College of Law
percent, the lowest in 50 years. 1 Many critics say that these gains are short term and that they fear that it
will lead to a global recession. This earned President Trump the label as the Anti-Globalist, while people
on grass root endearingly called him a Nationalist.

On the other side of the world, the famous BREXIT happened. The United Kingdom (UK) has
become concerned over the increasingly intrusive agenda of the European Union (EU). Sovereignty is the
platform from which BREXIT convinced the people to vote in favour of getting out of the EU. They fear
that they have little to no power over their own natural resources and trading, hence the need to be more
of a Nationalist. Father Bernas aptly observed, that it is affecting the sovereignty of states and their
capacity to give force to national policy objectives. 2

II. OPPOSING POLICIES

There are two opposing policies that are always at play within each country, especially during an
election year. Some politicians advocate “buy local”, “our own”, “country first” and President Trump’s
famous “Make America Great Again” and “America First”. On the other hand, most politicians strongly
advocate stronger international trade with the whole world.

A. GLOBALIZATION

Globalization is the development of an increasingly integrated global economy, marked

especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets. 3
Globalization is the outcome of world and international trade. Globalization, in essence, is the status that
the world has achieved by increasingly doing business and exchanging products, goods, supply and raw
materials, this includes labour and people coming together and integrating as one big organization.

Trade started as private enterprises way back in ancient times, exemplified by the “Balangay”
route, to the famous silk road. As the modern era arrives, many national resources are traded like gold,
steel and fossil fuels. Governments started to make an active role in trade negotiations. These negotiations
and agreements among countries became prevalent until countries not part of the negotiating table started
to be left out and wanted to be in. Hence, the popularity of the international trade became apparent. More
countries joined and opened their trade into the world market. These world economies started to enter
international agreement, treaties and organizations such as the International Trade Organization (ITO)
later on the World Trade Organization (WTO); The General Agreement on Tariff and Trade and other
regional groups and associations.
1
https://www.foxbusiness.com/markets/trump-economy-three-years-in

2
Bernas SJ, Introduction to Public International Law, Page 340 (2009).
3
Merriam-Webster Dictionary
 Soon, some problems and concerns arose out of these international trade agreements. Many small
countries felt that there are inherent disadvantages to international trade agreements towards small and
developing countries. In the Philippines, some groups challenged the approval of the Philippine Senate
over the ratification by the President of the Philippines of the World Trade Organization agreement,
arguing undue disadvantage of the Philippines as a small country. The Philippine Supreme Court allayed
this perceived fear when it decided the case of TAÑADA VS. ANGARA 4, it states that the WTO has a
protection mechanism favouring weak and developing countries.

With these fears and concerns placed forward by this small economies, many key principles were
put in place, such as 1) AGREED TARIFF LEVELS; 2) THE MOST FAVORED PRINCIPLE; 3)
PRINCIPLE OF NATIONAL TREATMENT and 4) PRINCIPLE OF TARIFFICATION. 5

With these key principles, INTERNATIONAL ECONOMIC LAW was born for the purpose of
regulation and dispute resolution among states.

B. NATIONALISM

We will discuss nationalism in its protectionism aspect. Nationalism in general is the idea that
nations should promote their own interest, taking control of its sovereignty over its natural resources and
products. It instils pride over its culture, history and political ideology. Pride of belonging to a prosperous
nation devoid of external control and influence.

Protectionism on the other hand is the economic policy that exudes nationalism. It is a system of
restricting imports from other countries through methods such as tariffs on imported goods, import
quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield
the producers, businesses, and workers of the import-competing sector in the country from foreign
competitors. However, they also reduce trade and adversely affect consumers in general (by raising the
cost of imported goods), and harm the producers and workers in export sectors, both in the country
implementing protectionist policies and in the countries protected against. 6

C. CONFLICT

The taunted benefits of Globalization are the distribution of world wealth to developing countries.
It enables citizens of countries to lift them out of poverty while good variety of products become available
4
Tanada v. Angara, GR. No. 118295, May 2, 1997
5
Bernas SJ, Introduction to Public International Law, Page 336 (2009).
6
https://en.wikipedia.org/wiki/Protectionism
for consumers and at the same time reducing the price, because of reduced cost of production. Costs are
reduced due to the ease of distribution of raw materials and available cheap labor.

So efficient in fact, that there are surplus in production and this surplus production is dumped to
the international market with extremely lowered price. This dumped cheap products therefore compete
with the locally produced products.

While production was efficiently outsourced, patents and intellectual property was handed to
countries who now had access to its technology and innovation, oftentimes improving on it to compete
with the original innovators.

Local producers and businesses often find themselves competing with these products resulting in
lost income and ultimately reduced local employment. Not long ago, here in the Philippines, we faced
problems regarding the low prices of “Palay” due to the rice tariffication law and improved farming
practices, that ironically was researched by local Filipino university researchers. But, proponents are here
to pacify this fear and countries have agreed, through regional associations, to impose certain checks such
as the “Anti-dumping Agreement”. dumping is not prohibited unless it causes or threatens to cause
material injury to a domestic industry in the importing country 7. This of course raises questions, the WTO
Agreement if read conversely, dumping is allowed generally until you can prove material injury. More so,
the international community also created the World Intellectual Property Organization (WIPO) and the
Patent Cooperation Treaty (PCT). PCT is in essence a receiving station for patent application with the
concept of protecting inventions. But just like other treaties, it has no weight on individual countries. A
PCT application does not itself result in the grant of a patent, since there is no such thing as an
"international patent", and the grant of patent is a prerogative of each national or regional authority. 8

Just like any other treaties, these two “fixes” of these international trade problems are hard to
enforce, it relies heavily on the trust and goodwill of a party state to play by the rule. Usually local laws
hinder implementation. Treaties and international agreements are subject to acts of congress that they may
pass for its enforcement, modification or repeal. 9 Especially if a treaty or agreement is not self-executory,
local legislation is still needed for it to take effect. 10

7
Van den Bossche, Peter (2005). The Law and Policy of the World Trade Organization. Cambridge, UK:
Cambridge University Press. p. 42. ISBN 978-0-511-12392-4. Dumping, i.e. bringing a product onto the market of
another country at a price less than the normal value of that product is condemned but not prohibited in WTO law.
Wikipedia derived
8
Oxonica Energy Ltd v Neuftec Ltd (2008) EWHC 2127 (Pat), item 45. Wikipedia derived.
9
Head Money Cases Edye V. Robertson, 112 US 580, cited Bernas SJ, Introduction to Public International Law,
Page 66 (2009).
10
Whitney v. Robertson 124 US 190, Bernas SJ, Introduction to Public International Law, Page 68 (2009).
 What if despite the fixes (through international agreements 11), founded on a fragile base, someone
or some entity does not want to play by the rules? Is Nationalism the best course of action?

For many years, many countries including first world countries felt they are not getting the full
worth of this globalization. Power is placed on who controls the market, sometimes these international
agreements have become tools for forceful bargain and intrusions in national affairs. Just recently, the
Philippines are threatened by the European Union for revoking tariff privileges over Philippine products
entering the European Union. China, in the past years, refused entry of Philippine pineapples and
bananas, due to territorial conflicts at the West Philippine Sea.

Many countries are avoiding to discuss the bull inside the china shop for fear of stirring conflicts,
but, China’s rise as the world’s driving market both in production and consumption, has installed itself as
the power holder of international trade. No one is talking about China’s status as a “developing country”,
China has maintained this status and reaped benefits and other special treatments given to other small and
true developing countries.

One country, or should I say one person called this matter out. President Trump called this
“cheating” and used it as his platform to “Make America Great Again”. He immediately imposed
protectionism policies, specifically targeting China. He imposed tariffs on Chinese goods, banned certain

China National Machinery and Equipment Corp. v. Santamaria, 665 SCRA 189, 2012 (Treaties and Executive
11

Agreements
 North Sea Continental Shelf Cases, ICJ Reports, 20 February 1969
 Nicaragua v. United States, ICJ Reports, 1986
 Right of Passage over Indian Territory, ICJ Reports, 1960
 United Kingdom v. France, Anglo-French Continental Shelf Case, 1979
 Qatar v Bahrain, ICJ Rep 1994 112 (Treaties)
 Philip Morris, Inc. v. Court of Appeals, 224 SCRA 576, 1993 (International and National Law)
 Air France v. Saks, 470 US 392
 United Kingdom v. Iceland, ICJ REP 1973 3
 Ethopia v. South Africa, Namibia Case, ICJ REP 1961 16
 Hungary v. Slovakia, 37 ILM 162 (1998)
 Germany v. Poland, Charzow Factory Case, 1928 PCIJ Ser. A, No. 17
 Belgium v. Spain, Barcelona Tracton, Light and Power Company Case, ICJ Reports, 1970
 Prosecutor v. Tadic, ILJ, 2 October 1995
 Medellin v. Texas, 552 U.S. 491 (2008)
 Edye v. Robertson, 112 U.S., 580, 1884 (Head Money Cases)
 Great Britain v. Costa Rica, 1923 (The Tinoco Arbitration)
 Upright v. Mercury Business Machines Co., Appellate Div., 13 A.D. 2d 36, 213 N.Y.S. 2d 417
 Commissioner of Customs v. Eastern Sea Trading, 3 SCRA 351, 1961 (Executive Agreements)
 Reparations for Injuries Suffered in the Service of the UN, ICJ Reports, 1949
 Greece v. Britain, Mavrommatis Case, PCIJ, Ser. A, No. 2, 1924
 Manila Prince Hotel v. GSIS, 267 SCRA 408, 1997 (Economic Discrimination Against Foreigners)
 Akbayan v. Aquino, 558 SCRA 468, 2008 (JIPEPA, Economic Agreements)
products claiming national security threats and banned Chinese researchers and students accused of
stealing trade secrets. The effect is somewhat favourable, as stated earlier, numbers of key economic
figures from manufacturing and employment went up. Gross Domestic Product went up from the slow
and steady 2% of the Obama era. Critics of President Trump opined that this is just temporary and it will
plunge the world into a global recession. They further argued that he is alienating the United States from
his allies, which it did, Germany and Korea is increasingly annoyed by his trade war. This America First
policy of President Trump is popular to his base, numbers do not lie anyway.

President Trump’s anti globalist stance, was followed by another populist leader like Boris
Johnson of the UK. UK controversially broke away from the EU following more nationalistic approach
on national economy.

This experiment towards nationalism by two of the world’s powerhouses is interesting to watch,
whether it will show how nationalism fares amidst globalization is still up for debate. Time is needed to
see whether we can still revert to a more nationalistic policies and more one on one trading partnership.
As of now, these two examples are premature and young to call a success and we cannot yet see any
future effects. President Trump is up for re-election this November, if he wins we can definitely see how
we deal with international trade in the future. I see two outcomes after the US elections, first, China and
other countries could change and play within the rules, OR second, emboldened them when protectionism
fails. For now, the apparent positive thing about this stand of President Trump is to expose the problems
in international trade that we have been ignoring for a long time.

In my opinion, there should be a balance within the two, we are, after all, citizens of a country
and at the same time an inhabitant of the world. While we can always rely on our own, we are,
nevertheless, used to products and supply not found internally. Let’s face it, when we embrace the world
our economy has been intertwined with the world’s economy, we rise and fall on external forces. All we
have to do is to pray for a better deal, while strengthening our internal economic system. International
trade is a revolutionary idea, but international economic laws should be executed fairly and firmly.

THIRD PARTY REVIEW FOR MINI JOURNAL OF MARILYN C. BACHILLER

CRITERIA RATE
Introduction 4
Development of Main Ideas 5
Organization and Formatting 4
Grammar and Spelling 4
1 – needs improvement
2 – fair
3 – satisfactory
4 – very satisfactory
5 – excellent

Accomplished by:

Ms. Loveli Joan M Asuncion

2nd year Juris Doctor