Japan-Philippines Economic Partnership Agreement
by Daniel Orin Levi Alatraca
Brief Background
The Japan-Philippines Economic
Partnership Agreement (JPEPA) is an economic partnership agreement concerning
bilateral investment and free trade agreement between Japan and the
Philippines. It was signed by former Japanese Prime Minister Junichiro Koizumi
and former Filipino President Gloria Macapagal-Arroyo in Helsinki, Finland on
September 9, 2006.
JPEPA is a comprehensive
bilateral trade and investment agreement between Japan and the Philippines
aimed at increasing trade and investment opportunities between the two
economies. It is the first bilateral free trade agreement (FTA) for the
Philippines after 50 years. Other than the Philippines, Japan signed Free Trade
Agreements with other economies (Singapore, Mexico, Malaysia, Indonesia,
Thailand, and Brunei) and is on various phases of FTA negotiations with three
other economies (South Korea, Vietnam, and India).
Trade and
Investment with Japan
Japan is the second largest trading partner of the Philippines next
to the US. The leading Philippine exports to Japan consist of electronic
products, woodcraft furniture, and ignition wiring sets, fresh bananas, and
iron ores. Our exports to Japan are asparagus, bananas, papayas, nata de coco,
mangoes, chicken, shrimps and prawns, and yellowfin tuna. The leading
Philippine imports from Japan consist of electronic products, industrial
machinery and equipment, transport equipment, iron and steel and electrical
machinery.
Japan is the Philippines’ largest source of foreign direct
investments (FDI) in 2005, but slipped to third place behind the United States
and Korea in 2006. Under JPEPA, the Philippines and Japan agreed to accord
national treatment and most-favored-nation treatment to investors of each
Party. This basically means that Japanese investors in the Philippines would be
accorded the same privileges and rights as Filipino investors in economic
sectors where they are allowed and vice-versa. Furthermore, Filipino nationals
would be allowed to practice their profession in Japan subject to certain
conditions. The list of professions included are: legal services, accounting
and taxation services, architectural and engineering services, computer-related
services, advertising and management consulting services, translation and
interpretation services, services incidental to agriculture, Audio-visual
services, higher education services, tourism and travel services, entertainment
services (theatre, live bands), and maritime transport services.
Issues
One of the main concerns
regarding JPEPA is the possibility of having Japan export their waste products
and hazardous materials to the Philippines. Such products are included in
Article 29 of the agreement, which defines "originating goods”. Under
Article 18 of the agreement, both Japan and the Philippines shall either
"reduce or eliminate its customs duties," "eliminate other
duties or charges of any kind imposed on or in connection with the importation,"
and take part in "improving market access conditions" for originating
goods. JPEPA’s stipulations on the trade of goods and services also set tariff
lines between the two countries. The agreement provisions also eases the market
access of Philippine products to Japan, boasting that semi-conductors and
electronics industry, automotive parts, furniture, and garments industry will
benefit the most with the ratification of the agreement. Environmentalists also
cry foul over this provision, stating that various laws are bound to be
violated if the agreement pushes through.
Aside from local laws, one international treaty is also said to be a
direct contradiction to the JPEPA. The Basel Convention on the Control of
Transboundary Movements of Hazardous Wastes and their Disposal was ratified in
1989 by 133 countries and is currently adopted by 170 countries, including
Japan and the Philippines. It is the most comprehensive global environmental
treaty on hazardous and other wastes, addressing cleaner production, hazardous
waste minimization and controls on the movement of these wastes.
References:
Agreement Between the Republic of the
Philippines and Japan for an Economic Partnership. Full text of the
Japan-Philippines Economic Partnership Agreement. The Daily PCIJ. Accessed on
15 April 2008. Retrieved from http://en.wikipilipinas.org/index.php/Japan-Philippines_Economic_Partnership_Agreement_(JPEPA).
24 August, 2015
Alecks P. Pabico
(25 October 2006) JPEPA to encourage trade in hazardous and toxic waste. The
Daily PCIJ. Accessed on 16 April 2008. Retrieved from http://en.wikipilipinas.org/index.php/Japan-Philippines_Economic_Partnership_Agreement_(JPEPA).
24 August, 2015
https://philforeignpolicy.wordpress.com/issues/
This is a good read. -ANFC
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