Japan nixes ban on imports of used cars, appliances in proposed trade pact with RP

Japan is refusing to include a provision in the Japan-Philippines Economic Partnership Agreement (JPEPA) that would limit the influx of used Japanese vehicles and used appliances to the Philippines.

According to sources involved in the negotiations, the Philippines wants the inclusion of a provision limiting the entry of used vehicles and appliances.

However, Japanese negotiators had argued that such transactions are considered private and should therefore not be included in a government to government agreement.

The issue has become contentious and is now among the obstacles to be hurdled in successfully concluding the JPEPA.

The continued differences between Japan and the Philippines is delaying the JPEPA which most now believe may be concluded only next year.

Philippine authorities are worried about the continued proliferation of used automobiles and appliances.

Used automobiles are threatening the Philippines’ local automotive manufacturing industry and is also considered a safety and environmental hazard.

Likewise, used appliances, especially refrigerators and airconditioners which use dangerous CFC gases and require specialized disposal because of possible environmental hazard, are of concern to Philippine negotiators.

 Aside from the solid waste provision, other contentious issues are the automotive sector, movement of natural persons and trade in goods.

The Philippines has also decided to toughen its stand and seek better terms from Japan following the announcement of a similar partnership agreement between Japan and Thailand.

Thailand was able to maintain tariff protection for its automobiles, while the Philippines was about to agree to reduce tariffs to zero over a four-year period.

Philippine Chief negotiator Senior Trade Undersecretary Thomas Aquino has assured that following the Japan-Thailand deal, the Philippines would make sure that it gets similar terms.