JPEPA delay holding back Japanese investments in RP

The Philippines is losing millions of dollars in potential Japanese investments, the Japanese Chamber of Commerce in the Philippines said.

“The country (Philippines) is losing opportunities. The companies are holding off investment decisions until the ratification of JPEPA (Japan Philippines Economic Partnership Agreement),” Japanese Chamber president Toshifumi Inami said in an interview. 

Inami said there may be some businesses who initially thought of infusing money in the Philippines but decided to go into other ASEAN countries which have already signed their respective economic partnership agreements (EPA) with Japan.

According to Inami, the country should work on signing the JPEPA “at a faster time.” 

Inami said he could not comment on whether or not the JPEPA will be ratified within the year but said he hopes it will be passed within 2010.

However, he cleared that they understand the need for the legislators to discuss the bilateral agreement exhaustively.

“We are disappointed that it hasn’t been ratified but we also know that it is important to deeply discuss the terms of the agreement,” Inami explained.

Meanwhile, the Department of Trade and Industry (DTI) said it will involve lawmakers in the negotiations for the next EPA with another country in order to avoid another incident like the JPEPA.

The JPEPA, which has been approved by the Japanese government, has been pending before the Senate as lawmakers questioned the constitutionality of the agreement.

Trade Secretary Peter B.Favila warned that failure to sign the JPEPA will be bad for the image of the country as a good investment destination.

“Non-ratification telegraphs our unwillingness to engage in cooperative ventures with a long-time trade and investment partner,” Favila explained.

Brunei, Indonesia, Malaysia, Singapore and Thailand have economic agreements with Japan while the rest are now about to finalize similar agreements.

“The waiting time for the ratification has also put on hold major Japanese projects that are intended for the Philippines ,” he added.