Loren calls for review of JPEPA

Sen. Loren Legarda called for a clarification of the terms of the Japan-Philippines Economic Partnership Agreement (JPEPA), particularly on the possibility of increasing the gross domestic product (GDP) of the country.

Legarda, the newly appointed chairman of the Senate economic affairs committee, said she would lead a panel to look into the details of the JPEPA agreement in relation to the country’s product exports and services and its possible impact on local employment.

“We want to find out which sectors of the economy – which industries – are expected to benefit from the agreement, and yield the extra value of goods and services,” Legarda said.

Legarda said she wants to ascertain if the country will have greater advantage over tuna exports compared to other countries, or if JPEPA would relax regulations in the assembling of Japan-made cars in the country or result in less restrictions in the exchange of products and services between the two countries.

“We also want to ascertain as to what this will translate into, in terms of jobs creation, versus possible employment destruction, presumably as a result of the freer entry here of Japanese merchandise,” Legarda said.

In terms of the export of services, Legarda said she would look into the terms of the agreement if Filipino professionals would be allowed right of entry to Japan’s lucrative health care labor market.

Apart from the issues over possible waste dumping by Japan, Legarda stressed JPEPA must supply the right answers before the Senate ratifies the treaty.

“What will happen to our auto manufacturing industry, which is now dominated by Japanese firms? Will they ultimately find it cheaper to just bring in finished cars, and eventually stop assembling units here, at the expense of local jobs? These are some of the questions we want answered,” she said.

Legarda noted a study by the National Economic Development Authority (NEDA) which revealed that JPEPA would kick in a 2- to 2.5-percentage point increase in the GDP, or a P168-billion increase.

The projected GDP this year is P6.712 trillion, of which 2- to 2.5-percentage points are equal to P134 billion to P168 billion.

NEDA said the JPEPA provisions would enable the Philippines “to capture a bigger slice of the Japanese market.”

Aside from raising cross-border flow of investments and services, NEDA said the agreement would also protect intellectual property rights, control anti-competitive activities and improve the business environment.

The accord also covers cooperation in fields of mutual interest, including human resources development, financial services, information and communications technology, energy and environment, science and technology, trade and investment promotion, among others.

President Arroyo earlier this week urged the Senate to ratify the JPEPA, which she and Japanese Prime Minister Junichiro Koizumi signed on Sept. 9, 2006 in Helsinki, Finland.