Philippines, Japan start JPEPA review

Philippine and Japanese officials opened on Friday their second yearly review of a wide-ranging bilateral economic cooperation pact, to make sure that commitments are met next year. Heads of both delegations said in their opening statements that parties have been generally faithful in liberalizing the trade in goods and services under the Japan-Philippines Economic Partnership Agreement (JPEPA). But both hinted, without elaborating, that there was a need to improve enforcement in some areas. "[It has been] a little over a year since JPEPA entered into force and has been one of the driving forces of... economic cooperation," Trade Undersecretary Thomas G. Aquino, who co-chairs the agreement's joint committee, said in his opening remarks. JPEPA provides that such a joint committee must review each year the progress of implementing the agreement. The pact, which came into effect in December 2008, eliminates or reduces tariffs on 95 percent of merchandise and also eases the flow of investments and foreign labor. A round of tariff cuts, to be implemented in a span of 10 years, is due next year. The agenda of the closed-door meeting on Friday was not made available to the press. But, earlier, a meeting of the subcommittee on the Improvement of the Business Environment had recommended the Philippines improve its transportation and customs infrastructure to facilitate implementation of the agreement. The Philippines had also manifested with Japan its interest to negotiate tariffs on automotive parts and used vehicles. Aquino said both parties have generally "adhered" to their commitments, so far, citing the "smooth" movement of natural persons as an example. In his own remarks addressing both the Philippine and Japanese delegations, Foreign Affairs Undersecretary Edsel T. Custodio similarly noted that that "the Chapter on the Movement of Natural Persons was...smoothly implemented." Specifically, he noted that 313 Filipino nurses and caregivers went to Japan between May and September this year under the JPEPA framework "to undergo training and practice their skills while benefiting from non-discriminatory treatment." Still, Aquino noted that there have been "inevitable occassional differences," without elaborating. Custodio also acknowledged that, "as with any trade agreement, the implementation of the JPEPA will require adjustments and constant open lines of communication and consultations." Japanese Ambassador International Economic Affairs Shigeru Nakamura similarly hinted at gaps in implementation. "We have achieved our commitments, but some areas have been left...and we would like to discuss matters," Nakamura said in his opening statement. "We would like to make utmost use of this committee to [review implementation]." — Jessica Anne D. Hermosa, BusinessWorld