PJEPA benefits studied

The Philippines is assessing how it can further benefit from the Philippines-Japan economic partnership agreement two years after the country’s first bilateral pact came into force.

Adrian S. Cristobal Jr., undersecretary of the Department of Trade and Industry, said the department has formed an inter-agency team which would take part in the ongoing review of the gains from the agreement.

Initially, statistics show favorable results to the Philippines in terms of both trade and investments for certain sectors but the country is not so lucky on labor front.

Cistobal said the Department of Labor and Employment is exploring ways to address the low passing rate of Filipino nurses and of caregivers in Japan. Only one Filipino has passed the stringent requirements of Japan, particularly in language.

While informal channels are being maximized for this, the 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.”

The DTI said despite Japan’s economic situation, several Philippine export products attained high growth rates with the implementation of the treaty.

Examples were semiconductors (126 percent), apparel and clothing accessories (110.13 percent) and ceramic products (107.41 percent).

Data from the Board of Investments, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority and Clark Development Corp. show a marked growth in Japanese foreign direct investments to the Philippines to P70 billion in 2009 from P16 billion in 2008 specifically in areas in construction, finance, real estate, manufacturing, and transportation.

“A detailed review is already being conducted to assess how the agreement can further improve and expand our trade and investment relationship with Japan. We are involving both the public and private stakeholders in assessing the preliminary impact of the PJEPA on trade and investments as well as on movement of natural persons,” Cristobal said.

Cristobal also noted that as the global market evolves and matures, the review is essential in ensuring that the treaty 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 PJEPA is what both countries envisioned it to be.”

“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.

The PJEPA, entered into force December 2008, is the most comprehensive bilateral economic agreement the Philippines has entered into with another country covering trade in goods and services, investments, and cooperation. –Malaya