Maximize EXPORTS and investment potential of JPEPA -- Angara

Senator Edgardo Angara in a hearing today urged the government to prepare various assistances to help industries maximize market access and opportunities that the Japan Philippines Economic Partnership Agreement (JPEPA) will open up.

"These measures that the government must provide to maximize the market access opportunities resulting from the JPEPA should be doable, enforceable and binding," said Senator Angara.

According to the senator, these measures "are an integral part of the ratification process of JPEPA."

The senator noted that the permanent zero tariffs provided by JPEPA could spur investment expansions in the country, particularly in the electronics and automobile industry and even in non-electronics industries such as minerals, food production, consumer wares, and agricultural products.

"Because JPEPA will make Php5.7 billion worth of our exports to Japan permanently at zero tariff, the market access of these products will be predictable; thus leaving more room for planning, investment expansion and growth," said Senator Angara.

A majority of these exports will come from the electronics industry, worth Php5 billion. The remaining Php700 million will come from non-electronics industries such as minerals, food production, consumer wares, and agricultural products.

Undersecretary Elmer Hernandez of the Board of Investments of the Department of Trade and industry estimates that for every US$ 1 direct investment in the country, US$3 will be generated.

"For instance, JPEPA could spur an additional Php7 billion a year worth of Japanese investments in the electronics industry for the next three years. This is apart from the annual Php30 billion investments that the Philippines receives in the same industry," said Senator Angara.

According to Ambassador Domingo Siazon, the JPEPA would assimilate the country in an integrated electronics-automobile hub, along with the ASEAN 6, China and Korea . This opens ups investments not only from Japan , but from Singapore and Korea as well.

In the non electronics industry, Senator Angara pointed out in particular the need for technical assistance in food processing, particularly in terms of phytosanitary requirements.

" Japan 's phytosanitary requirements in processed foods may be a barrier to trade for us, but perhaps we can ask the Japanese government to provide technical assistance to our Small and Medium scale Entrepreneurs (SMEs) that they may comply with it," said Senator Angara.

Senator Angara also urges the government to provide mitigating safety nets for sectors that would be adversely affected by the JPEPA