DTI sets consultation on PHL-Japan economic pact

CEBU, Philippines - The Department of Trade and Industry (DTI-7) is spearheading another round of consultation on the Philippine-Japan Economic Partnership Agreement (PJEPA) on November 24 at Cebu Parklane International Hotel.

Exporters, importers, custom brokers, freight forwarders, support groups, academe and other stakeholders are urged to participate in the consultation as they will be given opportunity to raise concerns on the agreement and its implementation and operation.

Dubbed as the “One Country, One Voice: Philippines—PJEPA”, the consultation is pursuant to Article 161 (General Review) of the PJEPA, which states that “the parties shall undertake a general review of the agreement and its implementation and operation in 2011 and every five (5) years thereafter, unless otherwise agreed by both parties.”

The review of the PJEPA this year present an opportunity for Cebu and other areas in the Philippines to raise their concerns on the agreement.

Forged in 2008, the PJEPA is the first and most comprehensive bilateral economic agreement of the Philippines with another country. It covers Trade in Goods, Services, Customs Procedures, Investments, Intellectual Property, Mutual Recognition, Movement of Natural Persons, Improvement of the Business Environment, among others.

The consultation is also expected to discuss different perspective on the implement of the PJEPA with the government, academe, civil society, and business sector.

The One Country, One Voice (OCOV) is a core program of the DTI and it aims to enable stakeholders to participate actively in trade policymaking.

It also seeks to engage stakeholders before and after entering trade agreements; enable negotiators to respond to issues with due consideration of the Philippine position based on studies and research; and enhance coordination among government agencies.

Earlier, DTI expressed optimism that trade to Japan will start to normalize within the last quarter of this year, as the negative effects of the Japan disaster in March showed positive improvement in the third quarter.

DTI undersecretary Adrian Cristobal Jr. said electronics companies with operations near the epicenter of the quake where buildings and equipment were damaged started to restore full shipments by early September, coinciding with the peak season for electronics and semi-conductor sales during the quarter.

Japan has long been one of the Philippines’ top trading partners, particularly for semiconductors and electronics, which account for more than half of the country’s merchandise exports.

According to data from the National Statistics Office, merchandise export receipts hit $4.09 billion in June, a 10.19 percent decline from the US$4.56 billion registered in the same month a year ago.

Of this total, 54 percent came from electronics exports, which slowed by 23.89 percent in June due to the triple disasters in Japan and overall soft demand.

The DTI, citing the latest projections made by the Semiconductor and Electronics Industries of the Philippines Inc., sees electronics exports slipping by 5 percent this year, from an initial forecast of an eight to 12 percent growth.

In the first half of this year, record show that the Philippine exports to Japan grew by 11.3 percent in the first half to close to US$4.2 billion, from US$3.7 billion in the same period last year.

The impact of the March 11 earthquake was more felt by Japan, which shipped 3.5 percent less goods to the Philippines during the same period, to $5.1 billion from the previous year’s $5.3 billion, according to data from the Japan External Trade Organization.

Despite the drop in Japan’s exports to the country in the first six months, it still managed to post a trade surplus of $942.5 million. (FREEMAN)