RP prefers free trade with Japan over China

The Philippines is more amenable to a free trade agreement with Japan than with China, Trade and Industry Secretary Manuel Roxas II disclosed yesterday.

"A free trade agreement with Japan will be more advantageous to the Philippines, " Roxas said.

According to Roxas, Japan does not have a strong agriculture sector that would compete with that of the Philippines.

"A free trade agreement with Japan will be more complementary since Japan buys a lot of fruits and fish from the Philippines, while the Philippines already buys a lot of manufactured electronic products from Japan," he said.

A free trade agreement with Japan, Roxas said, "will be more beneficial, with less complications."

Earlier, Roxas expressed reservations about entering into a free trade agreement with China.

Through DTI assistant secretary Antonio Buencamino, Roxas conveyed the Philippines’ concern about expanding the ASEAN Free Trade Agreement (AFTA) to include China during the senior economic officials meeting in Thailand.

Roxas, said his instruction to Buencamino is to relay the Philippines’ desire for a study to be made on the impact of a possible free trade agreement with China.

"The Philippines’ decision on a free trade agreement with China would depend on the study," he said.

Roxas noted that there are several sectors in which the Philippines directly competes with China. These include the agriculture and basic manufacturing sectors.

China has been trying to entice the Association of South East Asian Nations (ASEAN ) to be included in a free trade zone.

China assured ASEAN that it is willing to lower its own tariff to allow ASEAN-member countries easy access to its market.

China’s market is considered the biggest in the world.

On the other hand, China’s production is also considered the most cost effective with its cheap labor and ample natural resources.

As it is, China-made goods are offering stiff competition to locally produced goods.