PJEPA review to be completed this year

MANILA, Philippines — The government hopes to complete the ongoing review of the Philippines-Japan Economic Partnership Agreement (PJEPA) this year as it targets greater access for agricultural products. 

“Hopefully, that (PJEPA review) we can finish this year. This year is the target for that,” Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo told reporters. 

He said there have been three rounds of negotiations for the review of the PJEPA so far, with the latest round held earlier this month. 

With the review of the bilateral trade agreement, he said the Philippines would seek improved market access for agricultural products, particularly specialized rice. 

Rodolfo said the Philippines prefers to be given a small quota for specialized rice to be allowed to enter Japan at a lower tariff. 

Based on the negotiations held so far, he said the Japanese government is open to discuss the matter, but has also conveyed it might be difficult to give the concession. 

He said Japan, meanwhile, is seeking lower tariffs for automobiles. 

At present, vehicles with a displacement of 3,000 cc imported from Japan have a 20 percent tariff. 

Signed in 2006 by then president Gloria Macapagal-Arroyo and former Japan prime minister Junichiro Koizumi, PJEPA is the Philippines’ first bilateral free trade agreement (FTA). 

Under the
PJEPA, which came into force in 2008, the deal would be subject to review by both parties. 

Rodolfo said the review would help improve terms of the FTA given developments that have taken place since the PJEPA took effect.

As other trade agreements are being entered into by the regions, he said preferences of both the Philippines and Japan under the PJEPA are being eroded. 

“Our engagement with (Japan) currently now is through the ASEAN (Association of Southeast Asian Nations) – Japan (FTA) and PJEPA and prospectively, RCEP (Regional Comprehensive Economic Partnership) that is being negotiated, but we accord primary importance to the bilateral FTA as this provides the best mechanism to zero in on maximizing benefits on both sides,” Rodolfo said.