Good or bad, Jpepa is up to us

In these times of uncertainty, free trade bilateral agreements such as the Japan-Philippines Economic Partnership Agreement or JPEPA could be positive.

Had the deal not been signed or rejected, the country would have put itself at a disadvantage, and most likely lose out to its neighbors such as Thailand, Indonesia and Vietnam which are offering very competitive terms to lure Japanese investments.

We will be, by default, falling out of the investment radar of Japan which is actively pursing free trade agreements with all member countries of the Association of Southeast Asian Nations or ASEAN.

It would certainly be good for the Philippines to have an alternative market other than its major trading partner, the US, whose financial system is triggering the landslide and wholesale collapse of the global economy.

Now that JPEPA has finally been ratified by the Senate after years of endless debate, what exactly does this mean for us?

Let me enumerate first the benefits that have been promised us by our lawmakers.

Level playing field for exporters

First, our exporters of house wares, fresh and processed foods, metal manufactures, fashion accessories, forest products, garments, marine products, and electronics should immediately stand to benefit from the immediate and full elimination of tariffs.

Had we rejected JPEPA, export to Japan of the above products would definitely have been uncompetitive given the fact that our neighboring countries would not be taxed for the entry of their shipments.

With this part of the playing field leveled, it is up to our government to provide the necessary support and incentives to make our local products better and cheaper than competing countries and more acceptable to the Japanese market.

Tariff on other agricultural products such as shrimps and prawns, octopus and anchovies, other fruits and vegetables, carpets and other textile floor coverings, roasted coffee, footwear, bovine leather, and chemicals will be also be gradually phased out, which again should be good for us.

This should be an opportunity for government and the private sector to work together to strengthen our local industries’ export capability, boost the number of new jobs created and bring in more dollar earnings.

Clear advantage for services sector

Under JPEPA, there should also be more job opportunities for our professionals, highly-skilled workers, nurses and caregivers in Japan. With its ageing population, Japan now faces an acute shortage of manpower. To demonstrate the severity of this problem, Japan has been fielding even their senior citizens to man their highway toll booths.

The number of people that we will be able to send to Japan, however, will depend on how well we will be able to train our workers to learn to speak Nihongo.

Should we be able to successfully access the Japanese employment market, this is most welcome at this critical time when there are fears that a large part of our more than four million overseas Filipino workers in the US would have to be repatriated within the next few years because of a global recession.

Concerns raised

On the other hand, there are legitimate concerns raised by environment advocates, specifically about the supposedly easier entry of toxic wastes and used right-hand drive vehicles to our shore because of the reduction of tariffs.

One other claim is that JPEPA will give Japanese investors access to full ownership of our lands, the unhampered exploration and development of our minerals and other resources, unrestricted access in the management of public utilities and mass media, and equal privilege in the exploitation of domestic territorial waters.

Our lawmakers who had signed for the passage of the treaty are quick to assure that JPEPA does not automatically repeal, rescind or subsume the application of these safeguards, but only contains general provisions that commit to a review or negotiation.

Thus, the possibility of such abuses will largely depend on our continued vigilance and resoluteness to not let existing laws be revised or tampered with.

Making JPEPA work for us

As in any economic deal, JPEPA’s benefits to the Philippines will only come if the proper infrastructure and services support will be set up. At this point, it is all the more important that the P18.8-billion JPEPA Competitiveness and Safety Fund be released within the next five years.

We should be vigilant to make sure that the money will really enhance the competitiveness of local industries and not suffer the sad fate of the Agricultural Competitiveness Enhancement Fund that was set up when the Philippine signed up for world free trade. The intended sector beneficiary did not fully realize the promised benefits.

To really sustain gains from JPEPA, clearly-spelled out rules need to be enforced and safeguards in place to make sure that we do not end up getting the raw end of the deal.

It would also be a good idea for JPEPA to be reviewed periodically by an independent agency to determine if the country is getting its fair share of the treaty’s supposedly benefits.

During the critical phase of delineating the implementing rules and regulations, Representative Lorenzo Tanada III, the Congressional vice chair of the special committee on globalization, pointed out that to guarantee our interests, those crafting the rules should be able to dissect and make reservations for all sectors with regard to national treatment on research and development, equity considerations, land transactions and fisheries.

If the time comes that JPEPA fails, we can blame no one but us. Not just government, not just business, not just civil society, but all of us. In the same light, if JPEPA will prove to be beneficial to our country and countrymen, it had been because we all put in a hand to make it work.

Collegiate Champions League update

The “Wild Card” phase of the SMART-PLDT-KFC 2008 Philippine Collegiate Championship games is ongoing at the Makati Coliseum. The games are open to the public in line with Champion League’s objective of encouraging students’ to rally for their alma mater and to broaden the exposure of teams other than those from the more hyped leagues.

The Philippine Collegiate Champions League (PCCL) National Tournament Director, Coach Joe Lipa, announced that the eight teams invited to the “Wild Card” phase for Metro Manila teams will compete for four remaining slots to the zonal championship. The teams are: UST Growling Tigers, Lyceum of the Philippines Pirates, St. Francis of Assisi Doves, Emilio Aguinaldo College Generals, STI College Olympians, St. Claire College Saints, De Ocampo and Las Pinas College.

For more details about the biggest collegiate basketball event for the year presented by SMART, PLDT, FilOil Flying V and KFC visit the official website, www.CollegiateChampionsLeague.net.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.