Auto workers fear JPEPA

Automotive industry workers have expressed concern that they might lose their jobs with the lowering of tariffs starting next year under the Japan-Philippines Economic Partnership Agreement.

The tariff for completely built-up units with engine displacements higher than 3 liters, currently at 30 percent, would go down to zero by January 2010 under JPEPA, unless the importing country negotiates for a rate freeze until January 2013.

“If we no longer have the 30-percent tariff cover for vechile imports for engines with displacements of 3-liters and above, people might shift preference for bigger cars instead of locally-assembled vehicles such as Innova and Vios, since the imported bigger vehicles would turn out to be cheaper given the zero tariffs,” said Angel Dimalanta, president of the Automotive Industry Workers’ Alliance, wo is also president of Toyota Philippines’ labor union for supervisors.

The local auto industry employs 500,000 workers, including direct and indirect jobs.

Dimalanta cited that once duties of Toyota Hi-Ace imports from Japan fell to zero percent, the vehicle would be at least 20 percent cheaper than the local retail price of P1.1 million. –Elaine Ramos, Alanguilan, Manila Standard Today