Japan- Philippines Economic Partnership Agreement(Kasunduang Pangkabuhayan ng Hapon at Pilipinas)

Definition and facts of JPEPA

An economic partnership agreement concerning bilateral investment and free trade agreement between Japan and the Philippines

It was signed in Helsinki, Finland on September 9,2006

Signed by Philippines: President Gloria Macapagal Arroyo and Prime Minister Junichiro Koizumi

The first bilateral trade treaty which the Philippines has entered since the Parity Right Agreement of 1946 with the United States

This treaty consists of 16 chapters and 165 Articles with 8 Annexes.

Ratified by the Senate of the Philippines on 2008

Three key pillars of JPEPA

Liberalization Facilitation Cooperation

Advantages of JPEPA

JPEPA is market opening together with cooperation- representing a new age of free trade area (FTA), includes smooth movement of people, capital, and information and areas like investment and trade facilitation, as well as cooperation in Science and Technology, Human resource development, small and medium enterprises and the environment

Potential gains and opportunities- Philippine exports, Japan’s foreign direct investment and development assistance

Market Openings in goods- Removal of tariffs of both parties will make it easier for imports and exports to happen.

Market access in Services- Not just in goods, Japan and Philippines will be more accessible in Services.

Improving the agreement and the Dispute Settlement Mechanism- Creation of subcommittees.

Provides special exceptions for environmental protection

Disadvantages and issues of JPEPA

Environmentalists claim that it violates certain laws such as:

People’s right to health (Article II, Section 15)

Right to a balanced and healthful ecology (Article II, Section 16)

Toxic Substance and Hazardous and Nuclear Waste Act of 1990 (RA 6969)

An act to safeguard the health of the People and maintain the dignity of the nation by declaring it a national policy to prohibit the commercial importation of textile articles commonly known as Used clothing and rags (RA 4653)

The Basel Convention on the control of Transboundary Movements of Hazardous Wates and their Disposal

Disadvantages and issues of JPEPA

Some Japanese groups mobilized to stop the deal for many reasons including:

Overlook the real and potential abuse of Filipino workers in Japan, limited jobs, must learn Japanese, undergo exams and etc.

Japan might gain access to and be able to overfish in Philippine waters, running the livelihoods of small fisherfolk

Increased banana and pineapple exports to Japan would go to corporations like Dole and Del Monte and not to small businesses or landless farmers

Unconstitutional, The Philippine constitution does not allow Japanese to own land, operate schools and practice certain professions in the Philippines

Huge imbalances- Japanese excluded almost 200 tariff lines from the agreement, the Philippines only 6.

Gives explicit legal ground for Japan to dump toxic wastes in the Philippines

Article 1 (Objectives)

Promote transparency in government procurement

Increase investment opportunities and strengthen and protection for investments and its activities in Japan and the Philippines

Facilitate the mutual recognition of the results of conformity assessment procedures for products or processes

To liberalize and facilitate trade in goods and services between Japan and the Philippines

Article 1 (Objectives)

Create effective procedures for the implementation and operation of this Agreement and for thee resolution of disputes

Promote transparency in the implementation of laws and regulations respecting matters covered by this Agreement

Establish a framework for further bilateral cooperation and improvement of business environment

Promote competition by addressing anti-competitive activities and cooperate in the field of competition

Enhance protection of intellectual property and strengthen cooperation in the field thereof to promote trade and investment between Japan and the Philippines