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Arroyo urges Senate to ratify Japan economic free trade deal

By Sherwin C. Olaes

04/15/2008

Apparently irked over the dillydallying by the Senate to ratify the controversial Japan Philippines Economic Partnership Agreement (Jpepa), President Arroyo again yesterday urged the legislative body to hasten the approval of the bill.

In her opening statements before meeting with officials and guests of Yazaki-Torres Manufacturing Inc. at the wiring harness producers’ manufacturing plant in Calamba City, Laguna, Mrs. Arroyo underscored the importance of implementing the Jpepa, calling on members of the Senate to immediately ratify the bill when Congress convenes next week.

The President made the call in her opening statement saying: “We hope the Senate will ratify the Jpepa when Congress convenes next week.”

Mrs. Arroyo pointed out that among the benefits in ratifying the Jpepa would be an increase in revenue for the government, agricultural, and the nursing and care-giving sector, that will also benefit from the deal.

“Studies estimate the Jpepa benefits between P6.5 to P110 billion for the government due to an improved investment climate with projected direct investments from Japan amounting to P365 billion plus more than 200,000 jobs compared to cost around P4 billion that will come from tariff reductions,” Mrs. Arroyo said.

“The studies also show an overall positive impact on poverty reduction,” she added.

“Tariff on our farm goods will also fall to zero which is seen to boost the export of Philippine agricultural products, add to that the high wage hiring of our nurses and caregivers,” Mrs. Arroyo said.

Mrs. Arroyo also allayed fears that with the Jpepa in force, the Philippines may be turned into a dumping ground for toxic wastes coming from Japan. “About the environmental issue, the fear that we will be the dumping ground for Japanese toxic wastes: Their importation is banned by international as well as national fiat. In any case, during my last visit to Japan, Japan signed a side letter making that clear,” the President explained.

Under the Jpepa, sufficient provisions that will protect the environment and prevent any illegal trade in toxic waste are specified. It does not contain any provision explicitly allowing trade or liberalized entry of regulated or banned products in both countries.

The President also pointed out that the Philippines could be left out of enjoying the benefits of the trade agreement with Japan since our neighboring countries like Malaysia, Singapore, Indonesia and Brunei already have working agreements with Japan and are “moving in front of us.”

“The Philippines was the first country after Singapore with which Japan pursued the idea of an economic partnership agreement. But Japan has entered into the same kind of agreement since then with Malaysia, Thailand, Indonesia and Brunei and here we are at the starting point with everybody moving in front of us,” she said.

“The Jpepa is worth it. We cannot afford not to ratify it because with everyone but us are already on board. So we hope the Senate will ratify the JPEPA when Congress convenes next week,” she added.