RP keen on trade deal with Japan

The Philippines is still keen on moving "full steam ahead" on the proposed Philippine-Japan Economic Partnership Agreement (JPEPA) despite Japan’s refusal to budge from its hardline stance, insisting on maintaining a tariff wall to shield its sensitive farm products.

Trade and Industry Secretary Cesar V. Purisima said yesterday that "President Arroyo has expressed her desire for a speedy conclusion of the JPEPA negotiations."

The two parties have just concluded the last phase of the proposed JPEPA. Under the agreement, duty-free trade between the two markets will be implemented for 10 years. The next round of discussions will resume next month.

"The Philippines is committed to move this economic partnership agreement forward, mindful of the concerns of various economic stakeholders whose interest the negotiators have an obligation to take into account on the whole," Purisima said.

Assistant Agriculture Secretary Segfredo R. Serrano, however, said that while the Philippines is embracing open trade in agriculture with Japan, the latter is still opposing tariff-free importation of rice, sugar, pineapple, poultry products and other agricultural commodities from the Philippines.

Currently, Japan charges a hefty 400 percent tariff on rice imports and a 200-percent tariff on sugar imports to protect its own farmers from the influx of imports.

Tariff Commissioner George Manzano said that currently, 72 percent of Philippine exports shipped to Japan are duty free, while 60 percent of Japanese products are brought to the Philippines at zero tariff.

He said the Philippines wants the remaining 28 percent of Philippine exports to Japan enter the market at zero tariff.

"Japan is a bigger market than the Philippines. If we could tap that market with our products, that will be our advantage," he added.

Tariff Commission Chairman Edgardo B. Abon urged Filipino exporters to maximize their competitive edge and sensitivities with regards to the proposed bilateral free trade with Japan.

The Philippines wants Japan to scrap tariffs on agricultural products such as sugar, bananas, papaya, okra, eggplant, and tuna.

The JPEPA also includes services, investment rules, business environment and competition policy.

In 2003, top farm exports of the Philippines to Japan were fresh banana, which amounted to $170 million; frozen shrimp and prawn, $53 million; pineapple, $28 million; coconut oil, $22 million; and mango, $16 million.