GMA seeks Senate okay for JPEPA

Malacañang has sent the Japan-Philippines Economic Partnership Agreement or JPEPA to the Senate for ratification, with the secretary of finance saying he was putting his head on the line for the controversial treaty.

President Arroyo is standing four-square behind the pact, the country’s first bilateral trade accord since the 1946 Parity Agreement with the United States.

Ignoring the displeasure of some senators over the pact’s questionable provisions on the dumping of toxic and hazardous wastes, the President submitted JPEPA in full for Senate ratification before she flew to Hanoi, Vietnam for the 14th Asia-Pacific Economic Cooperation Summit.

JPEPA lists toxic and hazardous wastes as among the items covered by the agreement’s free trade regime.

"The JPEPA envisages that 95 percent of Philippine exports to Japan will face zero duties beginning day one resulting (in) immediate positive impact on farmers, fishermen and food processors and bringing immediate and long-term benefits for industries," Mrs. Arroyo said in her transmittal letter dated Nov. 16.

Press Secretary Ignacio Bunye said Mrs. Arroyo forwarded the JPEPA in full despite the environmental concerns raised by various groups. Officials stressed the concerns were unfounded because the Philippines and Japan were signatories to the Basel Convention banning the export of toxic and hazardous materials. They said the government could not possibly allow the country to become a dumping ground of wastes from other territories.

In Hanoi, Trade Secretary Peter Favila said he is willing to have his head chopped off if JPEPA turns out to be harmful to the Philippines. "Cut off my head if it (advantage) doesn’t happen. And to those criticizing it, they should do so (cut their heads) if their claims are proven to be false," Favila told reporters.

Mrs. Arroyo said under JPEPA, both parties "shall eliminate the tariffs on almost all industrial goods within 10 years from the date of entry into force" of the agreement.

"The JPEPA enhances Philippine service providers’ access to the Japanese market and guarantees non-discriminatory treatment, with limited exceptions," she said.

"The JPEPA also establishes a formal arrangement for the acceptance of Philippine nurses and caregivers into Japan," Mrs. Arroyo said.

Favila said there were "encouraging signs" from Sen. Manuel Roxas II that the Senate would quickly ratify JPEPA. He did not elaborate. He also said he had received assurances from Japanese Trade Minister Akira Amira of the Japanese parliament’s swift and favorable action on JPEPA.

"We saw that familiar FTAs (free trade agreements) have led to the significant contribution to the GDP (gross domestic product) of the countries that have them with Japan and there’s no reason why it should not happen in our case especially if we have the enabling environment," Favila said. Countries with FTAs with Japan are Malaysia and Singapore, he said.

Concurring with JPEPA ratification are the Department of Trade and Industry, Bureau of Customs, the National Economic and Development Authority, the Department of Labor and Employment, Intellectual Property Office, Department of Budget and Management, Tariff Commission and the Department of Justice.

Mrs. Arroyo and former Japanese Prime Minister Junichiro Koizumi signed JPEPA in Helsinki, Finland last Sept. 9, on the sidelines of the Asia-Europe Meeting. Despite the environmental concerns raised by some groups, the trade deal was generally welcomed by local businessmen belonging to the Philippine Chamber of Commerce and Industry.

JPEPA is the Philippines’ first bilateral trade accord since the 1946 Parity Agreement with the United States.

Japan is the Philippines’ No. 1 trading partner in Asia and No. 2 in the world. It is also one of the biggest providers of official development assistance to the Philippines.