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THE
Japan-Philippines Economic Partnership Agreement (Jpepa)
will bring in more foreign investors other than the
Japanese to the country, as it will show to the world
that
Manila
is really capable of implementing transparent rules for
business that will enhance trade and investment
facilitation, Trade Secretary Peter Favila said.
“The
Jpepa will provide the framework under which trade
between the two countries will flourish. There will be
stability, which will push foreign investors other than
Japan to also increase their existing investments,” Favila
said in a statement.
With
this, he said the government is confident that with the
ratification of Jpepa, the increased flow of business
locators to the Philippines will be a certainty.
From
Japanese businessmen alone, Favila said a P300-billion
surge in foreign direct investments within the first
four years of the agreement’s implementation is
expected.
Nonratification of the deal, however, will surely
dissuade foreign investors to come in, he said.
This is
because the Jpepa—being the first bilateral trade
agreement to be concluded by the
Philippines—is
being viewed by the foreign-investment community as a
measuring stick on how the country treats its long-time
partner, he said.
“Nonratification telegraphs our unwillingness to engage
in cooperative ventures with a long-time trade and
investment partner,” Favila said.
Transparent rules for doing business and enhanced
facilitation measures are key components of the Jpepa
other than the tariff-reduction scheme.
Favila
said the waiting time for the ratification has already
put on hold major Japanese projects intended for the
Philippines.
This, he
said, is saddening considering that other countries
belonging to the Association of Southeast Asian Nations
have already forged or are hammering out economic
agreements with Japan to enhance their trade
competitiveness.
Brunei,
Indonesia, Malaysia, Singapore and Thailand have
economic agreements with Japan while the rest are now
about to finalize similar agreements.
On the
export side, Favila said 95 percent of the country’s
agricultural shipments to Japan would be zero right
after Jpepa takes effect.
Agricultural products make up a sizable portion of the
close to $8 billion worth of yearly exports to
Japan.
The
labor sector is anticipating the opening up of the
restricted Japanese labor market under the Jpepa, with
Japan committing to accept Filipino nurses and
caregivers, engineers, accountants, legal experts and
business management practitioners.
The flow
of official development assistance (ODA) from Japan is
also expected to dramatically rise, Favila said.
Right
now, Japan is the country’s largest source of foreign
direct investment and ODA. It is also the country’s
second biggest trading partner. |
