JPEPA benefits Phl businesses - executives

MANILA, Philippines - A local coffee exporter continued to receive sales orders from Japanese firms resulting from reduced import tariffs introduced in the Japan-Philippines economic partnership agreement (JPEPA).

Frank Young, president of Cordillera Coffee, said tariff rates particularly for decaffeinated roasted coffee have been reduced from 10 percent under the Generalized System of Preferences (GSP) in 2007 to only 6.3 percent under JPEPA this year.

He said import tariffs will be further brought down to zero percent come April 2015.

 “More Japanese firms were willing to buy our products because of the lower tariffs,” Young said during the recent outbound mission to Osaka and Tokyo where his company participated.

He added that they have also established contacts with a number of companies there and have set up presence in Japan for Kape Musang and Arabica coffee, both green beans and roasted.

Ramon Vicente Kabigting, assistant secretary of the Department of Trade and Industry’s International Trade Group, said already almost 81 percent of Philippine exports may now enter Japan duty-free due to JPEPA.

Apart from JPEPA, Kabigting said Philippine business would also benefit from another economic partnership agreement entered by the country in July this year with Japan under the ambit of the Association of Southeast Asian Nations (ASEAN).

“They are complementary agreements offering options to traders,” he said.

Kabigting explained that the ASEAN-Japan EPA essentially has the same Philippine tariff commitments as in JPEPA. But it has longer tariff elimination schedules for some products as compared to the latter.

“Manufacturing inputs from other ASEAN countries and Japan are considered originating‚ and may be used to increase the likelihood of passing the ROO (rules of origin) and qualifying for AJEPA,” he said.

Kabigting said the Japanese market offers huge business opportunities.

In 2008, Japan had a consumer base of 128 million. It was the world’s fourth largest importer of goods that year, with purchases amounting to $551 billion.