Trade dept pursues lobby for Jpepa anew
Katrina Mennen A. Valdez
Manila Times
AMID opposition at the Senate, the Department of Trade and Industry on Monday resumed its lobby for the passage of the Japan-Philippines Economic Partnership Agreement (Jpepa), with senior trade officials briefing members of the press on the benefits of ratifying the accord.
In a briefing, Senior Trade Undersecretary Thomas G. Aquino said the Jpepa will lock-in duty-free market access in Japan for $6.5-billion worth of Philippine exports, while an additional $720 million of produce will be secured duty-free. Moreover, $86-million worth of exports will enjoy gradual tariff elimination, the trade official said.
Aquino said this means that more than 80 percent of the Philippine shipments to Japan, in terms of both tariff lines and value, stand to gain zero duty entry to that East Asian market as soon as the accord is signed. Another 17 percent in terms of value will enjoy gradual tariff elimination, he said, adding, “Less than 1 percent of RP exports to Japan are excluded.”
“Japan has opened its sensitive products to the Philippines with gradual tariff reduction,” the trade official further said.
Sensitive products pertain to agricultural goods.
For its part, Japan stands to gain duty-free access to the local market for 66 percent of its products immediately upon implementation of the Jpepa.
Possible local products that risk increased Japanese competition include sockets, woven fabrics of synthetic staple fibers, oil-petrol filter, medicaments, powder coating among others.
Trade Undersecretary Elmer C. Hernandez said the Philippines is also set to enjoy a dramatic increase in foreign direct investments (FDI) from Japan.
Based on the projected FDIs and employment rise, the country is set to benefit from P365 billion in fresh money, and 211,147 in additional job opportunities until 2010, the trade official said.
Potential recipients of investments are agricultural products and allied services, chemical-based consumer products, chemicals, textiles and leather, electronics and telecoms, engineering products and information technology services.
“But first, Japan will have to complete its due diligence. Then these sectors will be poured in with investments,” Hernandez said.
Japanese businessmen accounted for P27.0 billion in investment pledges made in the Philippines for the first eight months of the year.
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