PH to seek better trade terms with Japan

The Philippines will seek zero duties and the scrapping of quotas for certain agricultural products, including bananas and pineapples, in the upcoming first general review of the Philippine Japan Economic Partnership Agreement (Pjepa).

In an interview, Trade Assistant Secretary Ceferino S. Rodolfo said the trade department’s focus now was more on increased access for agricultural products to Japan, as the Philippines was already breaching the quotas set under the bilateral economic partnership.

Rodolfo explained that under the Pjepa, some of the country’s agricultural exports to Japan were already enjoying preferential rates. However, since the demand for local produce has seen significant increases over the past years, the export volumes have risen and are starting to breach the prescribed quotas.

The government will also seek to add other categories for the movement of natural persons between Japan and the Philippines as the existing agreement covers only only nurses and caregivers. The target was to add teachers and engineers.

According to Rodolfo, the Philippines hopes to start the first review of the Pjepa in January or February this year. There are ongoing discussions on scopes of the agreement in preparation for the review, which was supposed to have been conducted five years after the Pjepa was signed, or in 2011.

“We hope to conclude the review before the term of this administration ends,” Rodolfo added.

Trade Secretary Gregory L. Domingo earlier said the government expected Japan to lobby for more provisions for the export of their goods and services to the Philippines, particularly in the areas of banking, insurance, consultancy and information technology. Industrial goods, particularly in the automotive and steel sectors, will likely be included in the review.

The Pjepa was signed on Sept. 9, 2006 in Helsinki, Finland by former President Gloria Macapagal-Arroyo and former Japanese Prime Minister Junichiro Koizumi. It was ratified by the Philippine Senate in 2008.

The Pjepa aims to liberalize and facilitate trade in goods and services between the two countries; increase investment opportunities; enhance protection of intellectual property; promote transparency in government procurement, and establish a framework for further bilateral cooperation and improvement of the Philippine business environment.