Gov’t forms body to assess Jpepa

The government has formed an inter-agency body to review the impact of the Japan-Philippines Economic Partnership Agreement (Jpepa) on the local economy.

Undersecretary for International Trade Adrian Crtistobal said the body will be made up of officials of the Bureau of Customs, National Economic Development Authority (Neda), Department of Foreign Affairs (DFA) and the Philippine Overseas Employment Administration (Poea).

Jpepa came into effect in December 2008 and was considered as the most comprehensive bilateral economic agreement the Philippines had entered into with another country thus far.

“A detailed review is already being conducted to assess how the Agreement can further improve and expand our trade and investment relationship with Japan,” Cristobal said.

Cristobal said trade groups will also be consulted on the impact of the agreement on trade and investments as well as on movement of natural persons.

The agency has also set a series of preliminary meetings with inter-agency members and consultation talks with private sector stakeholders this week.

“We want to strengthen the consultative process by which we review our trade agreements by involving our key partners from government, academe, and the private sector,” he explained.

To date, indicative statistics provide favorable positive results of Jpepa to the Philippines.

Despite Japan’s economic situation, several Philippine export products attained high growth rates with the implementation of Jpepa. Examples were semiconductors (126 percent); apparel and clothing accessories (110.13 percent); and ceramic products (107.41 percent).

Also notable is Japan’s increased investment performance in the Philippines after the Jpepa took effect in 2008 Data from the Board of Investments (BoI), Philippine Economic Zone Authority (Peza), Subic Bay Metropolitan Authority (SBMA), and Clark Development Corp. (CDC) showed a marked growth in Japanese foreign direct investments to the Philippines from P16 billion in 2008 to P70 billion in 2009 specifically in areas in construction, finance, real estate, manufacturing, and transportation.

Cristobal also noted that as the global market evolves and matures, the review is essential in ensuring that the Jpepa maintains its significance and value to both countries. “We are laying down our cards on the table and while nothing is conclusive yet, we are using the consultation meetings to ensure that the implementation of the Jpepa is what both countries envisioned it to be.”

But he also added that agencies including the Department of Labor and Employment (DoLE) are also exploring ways to address the low passing rate of Filipino nurses (and of caregivers) in Japan. While informal channels are already being maximized for this, the ongoing Jpepa review this year will be the first formal opportunity to officially discuss the concern on nurses. “We are aware of this and it is one of the major issues that we will seek to address in the review process.”

“FTAs also challenge us to constantly innovate and explore ways in becoming more competitive based on the current global environment, while providing us with insights to better improve our skills and benchmarks in trade negotiations,” added Cristobal. –Ayen Infante, Daily Tribune