Japan-RP trade pact under WTO review

The controversial free trade pact between the Philippines and Japan is currently being reviewed by the World Trade Organization (WTO) to ensure the agreement’s transparency, the Department of Foreign Affairs yesterday said.

The review of the Japan Philippines Economic Partnership Agreement (Jpepa) was considered by the WTO’s Committee on Regional Trade Agreements (CRTA) chaired by Ambassador Alfredo Suescum of Panama last June 15 in Geneva, Switzerland.

Aside from the Jpepa, the CRTA also considered the free trade agreement between Australia and Chile.

The CRTA was established by the WTO General Council to examine individual regional trade agreements (RTAs). The review process is governed by the Transparency Mechanism for Regional Trade

Agreements adopted on Dec. 14, 2006 establishing on a provisional basis a new transparency mechanism for all RTAs.

Trade Undersecretary Thomas Aquino, who chairs the Inter-agency Technical Committee on WTO Matters and the lead negotiator for the Jpepa, headed the Philippine delegation. Those who joined him were officials from the National Economic Development Authority, Board of Investments, Bureau of International Trade Relations, Department of Agriculture, Tariff Commission, Department of Justice and Bureau of Customs, as well as officers of the Philippine Mission to the WTO led by Ambassador Manuel Teehankee.

The Japanese delegation was headed by Deputy Permanent Representative Kuni Sato of the Japanese Mission to the WTO who stated at the meeting that “the conclusion of the EPA with a country like the Philippines, which is one of the core countries of Asean, would create a positive and demonstrative impact on other economies, particularly those in East Asia, and help further develop and enhance the comprehensive economic partnership within the region as a whole.”

In response, Aquino said “Japan and the Philippines have a positive and forward-looking economic partnership, and that Japan is the Philippines’ largest trading partner within East Asia Region and has sustained its position as the Philippines second largest global trading partner.”

According to Aquino, the Jpepa underwent fine scrutiny from WTO members, which contributed to the better understanding of the agreement’s objectives and specific provisions by the world trading bloc.

He said Japan and the Philippines both prepared joint written replies as well as responded to questions from the floor.

A year after its implementation, the Philippines and Japan have expressed “general satisfaction” over the achievements of the free trade agreement between the two countries.

Jpepa, which aims to promote a freer trans-border flow of goods, persons, services and capital between the two countries, entered into force on Dec. 11, 2008.

Amid opposition from lawmakers and militant groups due to alleged “unconstitutional” provisions in the accord, Jpepa was signed on Sept. 9, 2006 by President Arroyo and former Japanese Prime Minister Junichiro Koizumi at the sidelines of the Asia-Europe Meeting in Helsinki, Finland, but was only approved by the Philippine Senate two years later.

The agreement with the Philippines is Japan’s ninth FTA following similar pacts with Singapore, Indonesia, Brunei, Thailand, Malaysia, Mexico, Chile and a comprehensive trade agreement with the 10-member Association of Southeast Asian Nations (Asean).

Aside from trade, Jpepa also seeks to promote partnership in intellectual property, competition policy, improvement of business environment and bilateral cooperation in fields as human resources development, information and communications technology and small and medium enterprises.

Japan is the Philippines’ major trade and development partners. It remains the Philippines’ top export market and second largest trade market, with total bilateral trade amounting to $14.2 billion.

It is also one of the top sources of investment and tourist arrivals in the country, next to the United States. –Michaela P. del Callar, Daily Tribune