Favila urges early conclusion of RP-Japan economic partnership

Trade and Industry Secretary Peter B. Favila is urging newly-appointed Japanese Minister of Economy, Trade and Industry (METI) Toshihiro Nikai to work on concluding its Economic Partnership Agreement with the Philippines as well as with its other ASEAN partners.

Favila and Nikai met at the ASEAN Economic Ministers Meeting (AEM) and the ASEAN Summit last week in Kuala Lumpur, Malaysia.

Favila urged his Japanese counterpart to quickly conclude its bilateral and regional Free Trade Agreements (FTAs) currently on the table.

Favila noted that like Japanese Minister Nikai, he too is still new in the job being a private sector banker before his appointment as Secretary of the Philippine Department of Trade and Industry in July this year.

"Like Minister Nikai, I am likewise evaluating the progress of both the bilateral Japan-Philippines Economic Partnership Agreement (JPEPA) and the regional ASEAN-Japan Comprehensive Economic Partnership (AJCEP)," Favila said.

Favila reckons that since these engagements began in 2002, there has been significant progress although both deals have lately encountered rough patches.

Rough patches, however, Favila assured, are natural even in private business deals especially upon approaching the home stretch.

"These rough patches, however, can be conquered," Favila said.

Favila revealed that issues on Rules of Origin (ROO) appear to be the rough patch on the AJCEP negotiations, while the automotive issue is delaying the JPEPA.

Favila attributed the rough patches to negotiator fatigue so he suggested a short break from the negotiating table and return when all parties are ready with their give-and-take packages.

On the other hand, Favila disclosed, Japanese Minister Nikai felt all parties should mind the time and proposed staying engaged.

Favila readily agreed with the need to "stick to future conference schedules."

"We know that Japan is just being prudent in studying the matter so carefully. Nevertheless, we should not over-analyze these things. And so at the AEM-METI consultations on Dec. 9, I encouraged all the Ministers to just do it," Favila said.

Favila also urged Japan to look closely at the other FTAs of ASEAN.

Favila suggested that the models of the other ASEAN FTAs should not be dismissed too hastily, and that the AJCEP might pick up from these models some applicable paradigms and lessons about what to adopt and what to avoid.

On the bilateral JPEPA, Favila reassured Minister Nikai that the Philippines had sent its negotiating team to Tokyo last month, guided by the latest instructions of the leaders of the two countries to wrap up the deal that they had already agreed in principle at the ASEAN Summit in Vientiane in 2004.

"I explained to His Excellency Minister Nikai that, given such instructions from President Arroyo, I had sent DTI Senior Undersecretary Thomas Aquino to convey the Philippines’ final, maximum positions," Favila said.

"In the automotive sector for example, these positions were also based on the interests of Japan investors in the Philippines," he said.