Filtered By: Money
Money

Japan-RP trade pact to top Palace agenda for 14th Congress


The ratification of the Japan-Philippines Economic Partnership Agreement (JPEPA) had to take a back seat to the anti-terror law passed recently after long debates in Congress, but President Gloria Macapagal Arroyo assured in a roundtable discussion in the Palace Friday that the pact would be among her top priorities for the next Congress. Mrs. Arroyo and former Japanese Prime Minister Junichiro Koizumi signed JPEPA at the sidelines of the Asia-Europe Meeting in Helsinki, Finland in September last year. About two months later, she transmitted the document to the Senate for ratification. While Japan’s Diet has ratified the pact, similar action by the Philippine Senate has floundered on criticisms it opened the Philippines to waste products from Japan since these were accorded zero tariff treatment under the deal. Once enforced, the JPEPA assures zero duties for almost 95% of Philippine exports to Japan. The deal also requires the elimination of tariffs by both Japan and the Philippines on almost all industrial goods within 10 years from the date of implementation. Likewise, the trade deal enhances access of select Filipino service providers to the Japanese market with a guarantee of non-discriminatory treatment. But this also means applying Filipino professionals — starting with nurses, who are expected to be the first to benefit under this pact — will have to satisfy standard Japanese regulatory restrictions like language and professional licensure requirements. "When Prime Minister [Shinzo] Abe came [in December] he ratified it before he came...as a gift to the Filipino people. Of course, I am sure he was expecting the same thing from us, but we [had] to prioritize the anti-terror law," Mrs. Arroyo explained. She promised to certify its ratification as urgent when the new 14th Congress resumes on July 30. Alarm was raised over the zero-tariff provision on waste materials such as sewage sludge, clinical waste, ash and residues considered as tradeable and importable goods. Philippine trade officials explained that inclusion of these materials was standard for such deals, since free trade deals have to cover at least 95% of tradeable goods of both contracting parties. Philippine and Japanese officials have moved to assure the public that international and national laws are in place to ensure that both countries will not be made dumping ground of these materials. "What happened was that there was this controversy uncalled for about supposed importation of toxic materials which is not provided for. So, that slowed down [the ratification]," Mrs. Arroyo said. — J. L. Cagoco/BusinessWorld

LOADING CONTENT