GMA back from Japan, bares forging of partnership pact

President Arroyo returned yesterday from her working visit to Japan, where she secured a firm commitment from Prime Minister Junichiro Koizumi to increase bilateral trade and investment through the Economic Partnership Agreement (EPA).

A joint working group, led by Trade and Industry Secretary Mar Roxas and Japanese Minister of Economy, Trade and Industry Takeo Hiranuma, will be studying the EPA and make a draft ready by the time Mrs. Arroyo returns to Japan in November for a second visit this year.

"We will be working out a poverty alleviation proposal for Japan to fund," the President said upon her arrival. It will be similar to a program Japan is already funding in Afghanistan and Pakistan, she added.

Mrs. Arroyo’s visit to Japan was aimed at boosting Japanese investment in the Philippines and strengthening bilateral economic ties. At the end of her visit, the President said such ties are "secure, vibrant and infused with confidence." Japan is the largest source of official aid to the Philippines.

The EPA creation is designed to facilitate Prime Minister Koizumi’s desire to integrate the East Asian economies, an idea Mrs. Arroyo supports.

"The Philippines and Japan are deeply immersed in the vision of Asian economic integration," she told reporters at the airport.

"Both countries are committed to studying the possibility of forging a bilateral Economic Partnership Agreement that will spell out the framework to hasten the process of economic integration," Mrs. Arroyo added.

The President’s visit coincided with Koizumi’s announcement that the Japanese economy was out of the dumps and now headed toward recovery.

"The re-emergence of Japan from recession is important because Japan continues to be the economic powerhouse of the region," Mrs. Arroyo said. "The Japanese economy accounts for 60 percent of the region’s gross domestic products. It has the largest capital in the region and it has the sharpest edge in technology even today."

The visit is considered fruitful because the President received confirmation from many Japanese businessmen that they intend to invest in the Philippines further. Honda Motor Co., for example, said it will invest P770 million in its Philippine plant.

Other companies reassured Mrs. Arroyo that more investment is underway. In turn, she reassured them of the sound investment environment and her administration’s determination to improve economic and political stability.

During the visit, Mrs. Arroyo was informed by Japanese businessmen that highly skilled Filipino seamen can now take qualifying test for managerial positions with Japanese shipping companies. – Marichu Villanueva