RP, Japan trade deal to draw in $300M in two years, says Dee

The Japan-Philippines Economic Partnership Agreement (JPEPA) will bring in $296.44 million in additional investments and create 150,000 new jobs in two years, a top business official said.

In a press statement, Ambassador Donald Dee said this is just one of the reasons the Senate must ratify the treaty. He said the country cannot afford to lose the golden opportunity to maintain economic growth and bring down unemployment.

Dee, the special envoy for international trade negotiations, said the country’s four major industries can expect a 20 percent growth in exports to Japan when the treaty is implemented. These industries are automotive, semi-conductors, electronics and garments.

He urged the Senate to clarify the Constitutional concerns, if there are any, with the Japanese government. He said renegotiation of the treaty, as some sectors suggested, is not be an option at this stage.

Information provided by the Bureau of Trade Export Promotion show the four sectors’ average annual growth of exports to Japan is at 10.44 percent, registered over a five-year period, from 2001 to 2005.

He said the additional investments, apart from their direct impact on the four sectors, will result in the expansion of various upstream industries. He estimated the expansion to be worth $750 million.

In making the projection, Dee cited a study made by Universal Access to Competitiveness and Trade (U-ACT), a non-profit, non-stock private think-thank that provides research support to various trade and industry groups.

Earlier, Sergio Ortiz-Luiz Jr., president of the Philippine Exporters Confederation, said the four sectors contribute 50 percent of the government’s annual gross domestic product (GDP). Any new investment, he added, will have an immediate impact on the country’s overall growth.