The Department of Trade and Industry started consultation with stakeholders in Cebu for the Japan-Philippines Economic Partnership Agreement (JPEPA) yesterday.
After the agreement was implemented in 2008, foreign direct investments from Japan in the Philippines surged from only 8.8 percent share in FDI before 2008 to 56.3 percent in 2009 and stabilized at 27 percent, said Ramon Vicente T. Kabigting, DTI assistant secretary for industry development and trade policy group.
The balance of trade favors the Philippines, he said.
“Total imports from Japan is at US$6.7 billion while total imports from the Philippines is at US$7.8 billion which leaves us a huge surplus of over a billion dollars,” Kabigting said.
Japan is the biggest export market and import source of the Philippines today.
The Philippines exports natural or cultured pearls, metals, mineral and chemical products.
The country imports machinery and appliances, vehicles, aircraft, vessels, related transport equipment, base metals and articles of base metals and products of chemicals or allied industries.
“We have reason to believe that the FTA we have with Japan has contributed a lot to these positive results in our trading relationship with them now,” said Kabigting.
Under Article 161 of the JPEPA, “The Parties shall undertake a general review of the Agreement and its implementation and operation in 2011 and every five (5) years thereafter, unless otherwise agreed by both Parties.”
The agreement came under heavy criticism in the past because of the reduced entry of Filipino nurses to work in Japan which is part of the agreement.
“There have been many complaints but we see it more as something that will only need improvement of implementation. The review of the JPEPA this year presents an opportunity for Cebu and other areas in the Philippines to raise their concerns on the Agreement and its implementation and operation,” Kabigting said.
Cebu exporters, importers, customs brokers, freight forwarders, business support groups, members of the academe, and other stakeholders attended the consultation.
JPEPA is the most comprehensive bilateral economic agreement of the Philippines with another country. It covers trade in goods, services, customs procedures, investments, intellectual property, mutual recognition, movement of natural persons and improvement of the business environment, among others.
It was signed in Helsinki, Finland by former president Gloria Macapagal-Arroyo and then Prime Minister Junichiro Koizumi on Sept. 9, 2006. It was ratified by the Philippine Senate on Oct. 8, 2008, and implemented on Dec. 11 of that year. /Reporter Aileen
Garcia-Yap