Parity Amendment

The "Parity Amendment" was a controversial provision within the Bell Trade Act of 1946. This act established the economic terms for the Philippines' independence from the United States, which officially occurred on July 4, 1946. The amendment required a change to the Philippine constitution, granting U.S. citizens equal rights with Filipinos in the exploitation of natural resources and the operation of public utilities. Many Filipinos opposed this, as it tied their nation's economy closely to the U.S. and benefited certain Filipino elites. The U.S. made the payment of $800 million in war damage claims contingent on the ratification of the Bell Act and its Parity Amendment. This act was later replaced by the more favorable Laurel-Langley Agreement in 1956.1