September 6, 1955, the Laurel-Langley Agreement was Approved by both the American and Philippine Governments
Negotiations between Senator Jose P. Laurel and James M. Langey started in December, 1954. Upon the conclusion of the said negotiation, the Laurel-Langley Agreement was signed and approved by both the American and Philippine governments on September 6, 1955, during the Magsaysay administration.
It was a revised US-Filipino trade agreement replacing the outdated Bell Trade Act. Die to the provisions of the Bell Trade Act, which tied the Philippine economy to the United States economy, it became unpopular.
The Laurel-Langley Agreement, gave the Philippines a preferential trade system with the United States and other countries. Among its provisions were the right to impose quotas on non-quota articles and the right to impose export taxes.
The agreement abolished the US authority to control the exchange rate of the Filipino peso. It also extended the sugar quota, the time period for the reduction of other quotas, made parity privileges reciprocal and help reduce tariffs on Philippine goods that were exported to the US at that time.
The Laurel-Langley Agreement took effect on January 1, 1956 and expired in 1974.