ROXAS: JPEPA TARIFF GAINS MERELY ENABLERS, NOT END IN ITSELF
DETAILS OF BENEFITS VS. LOSSES IN TRADE IN GOODS STARTING TO SHOW

After deliberations today on the Japan-Philippines Economic Partnership Agreement (JPEPA), Senator Mar Roxas stressed that whatever tariff concessions the Philippine government gained for exports are merely enablers, which will only become actual gains and not merely theoretical ones, depending on how the government plans to support these export sectors.

Roxas, who is Chairman of the Senate Trade Committee and co-chair of the Senate deliberations on the JPEPA, said that the details of trade concessions in the landmark bilateral trade agreement are starting to show, albeit only now after seven hearings conducted by the Senate Committees on Foreign Relations and on Trade.

"Mas maganda ang kanilang mga sagot ngayon, hindi na masyadong mahahaba at puro motherhood statement. Nagkakaroon na ngayon ng mas specific na sagot, actual dollars at mga aktwal na sektor na maaapektuhan ng JPEPA," he added, referring to how the government panel answered the senators' exacting queries.

The senator, a former Trade secretary who currently served the country's lead negotiator in the World Trade Organizations (WTO)-Doha Round, stressed that it is important to ensure the Philippine's standing in JPEPA, as the landmark bilateral treaty will certainly be used as a starting point in future trade negotiations.

"Ang treaty na ito ang kauna-unahang bilateral trade treaty natin sa labas ng WTO na siyang magbibigay ng baseline sa lahat ng ating mga future negotiations. Kaya mahalagang-mahalaga na inaalagaan natin ang interes natin dito sa JPEPA, dahil ito yung gagamiting batayan sa lahat ng negosasyon," he stressed.

Roxas pointed out that the lowering of duties on exports per se do not have much bearing, because a significant portion of Philippine trade with Japan are already subject to zero duties, whether under the Most-Favored-Nation (MFN) system of the WTO or the General System of Preferences (GSP) of Japan.

"Yung pagbaba ng taripa ay hindi masyadong malaking benepisyo dahilan sa napakalaking trade natin sa Japan ay nasa zero percent tariff na. Ang lumilitaw na benepisyo ay maaaring mas makapag-plano o mas makapag-invest nang mas mahabaan ang mga kompanya dahil naka-pako na talaga sa 'zero' ang mga taripa," he said.

Roxas said of 9,329 tariff lines under the Japan's tariff system, the Philippines only exports in 1,835 tariff lines or less than 20%. This represents $7 billion worth of exports of the Philippines to Japan in 2005.

Of this portion currently with trade, Philippine exports in 1,229 tariff lines (67%) worth P5.8 billion (or 83% of the value of exports to Japan) are already enjoying zero duties. A large portion of this ($4.8 billion) is in electronics exports, already an established industry in the Philippines in terms of investments even prior to JPEPA.

On the rest, Roxas stressed that turning these theoretical gains into real benefits in terms of additional exports, investments and employment will depend on the government's plan to support these sectors.

"Makikita lamang natin kung advantage ang mga ito kung may plano talaga ang Department of Trade and Industry at ang Department of Agriculture na pagsamantalahan itong pagiging zero ng mga tariff na ito," he said.

Of existing exports, only $1.19 billion (17%) of exports or 606 tariff lines will gain from tariff concessions, in the form of immediate or gradual elimination of duties on various goods, including garments, housewares and furnitures, and agricultural goods such as bananas and pineapples.

Roxas said increased trade with Japan will only be realized if the government has a concrete and specific plan targeted to aid these sectors address their limitations.

In the balance of 7,490 tariff lines from the total tariff lines, the Philippines does not currently have exports to Japan, but is given tariff concessions under JPEPA. Of these, duties on 6,028 tariff lines will be eliminated immediately up to five years after JPEPA is ratified; duties on 594 tariff lines will be eliminated after 7 to 15 years; and duties on 868 tariff lines have been given special treatment.

Roxas said what has to be seen are where in these tariff lines will the Philippines be able to trade with Japan and realize gains. For instance, there are no gains in the case of cotton or milk that the Philippines does not produce or produce in insufficient quantities, even if concessions were granted in these products.

Two more hearings will be held--pegged tentatively on December 13 and 14 - to thresh-out other issues such as trade in agricultural goods and investments.