JPEPA implementation seen to benefit electronics sector

The Department of Trade and Industry (DTI) said the local electronics sector will greatly benefit if the bilateral agreement between the Philippines and Japan is implemented.

In a statement, the DTI said the ratification of the Japan-Philippines Economic Partnership Agreement (JPEPA) is expected to bring positive developments and growth to the electronics industry, which has been, for over a decade, the primary driver of Philippine exports.

A study by the Universal Access to Competitiveness and Trade (U-act) anticipates an additional export value of up to $1.26 billion in the semiconductor sector once the agreement is implemented.

Meanwhile, exporters said they will lose $2 billion annually while the semiconductor industry will miss out on $150 million investments annually if the country does not ratify JPEPA.

Sergio R. Ortiz-Luis Jr. president of Philippine Exporters Confederation (Philexport) said exporters stand to lose $2 billion from overseas sales in Japan if the JPEPA is not signed.

“We (exporters) will suffer if the JPEPA is not ratified because 14 percent of our exporters go to Japan,” Ortiz-Luis explained. He said the products that will suffer greatly are electronics and agricultural products.

Without JPEPA, Ortiz-Luis said Japan can impose higher duties on products from the Philippines when compared to other countries with an economic partnership agreement with (EPA) Japan.

The country’s fellow ASEAN member nations like Malaysia, Singapore and Indonesia have signed their own EPAs with Japan. Thailand, on the other, hand is scheduled to sign with Japan next month.

Meanwhile, Ernesto B. Santiago, president of the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) warned the country will lose $150 million per year in additional investments.

“If the Philippines is not part of the bilateral, we will not be in the radar screens of these companies and we will not be an investment destination,” Santiago said.

According to him, more than 200 of the 900 electronic firms located in the country are Japanese owned. In fact, four of the top electronic firms have presence in the country. These are NEC, Hitachi, Fujitsu and Toshiba.