MANILA, Philippines – Plastic manufacturers are likely to see growth in their business because of the entry of Japanese printer manufacturers into country.
In a statement, the Department of Trade and Industry (DTI) said plastic manufacturers noted during the recent technical consultation on the Japan-Philippines Economic Partnership Agreement (JPEPA) that Japanese printer manufacturers would need raw materials for packaging, therefore presenting opportunities for the plastic industry.
“The prospects for business for the plastic manufacturers and packaging materials suppliers are looking up,” Vicente Co, a member of the Philippine Plastics Industry Association said.
Plastic manufacturers said there was a need to explore other product tariff lines under the agreement because the industry is not limited to supplying packaging products but may also diversify its product mix.
According to the Nomura Research Institute, big ticket investments which entered and expanded in the country last year amounted to $1.049 billion. These include investments from printer companies like Canon, Brother, and Epson.
While opportunities have been cited for the plastic manufacturing business, during the technical consultation, concerns on safeguards needed for domestic industries, such as chemical, steel and auto industry were also raised.
The technical consultation for the JPEPA was organized by the DTI as part of its One Country, One Voice Program, to enable stakeholders to participate in trade policy formulation.
The JPEPA, which came into effect in 2008, aims to facilitate and promote free trans-border flow of goods, persons, services and capital between the Philippines and Japan, as well as strengthen existing economic relations of the two countries.
A general review of the bilateral agreement is scheduled every five years, starting last year.
The DTI said that based on preliminary studies, Japanese investments into the Philippines have risen since the JPEPA took effect.
Approved Japanese investments to the country reached P70.737 billion in 2009 and P58 billion in 2010, higher than the P38 billion worth of investments approved in 2007.
Last year, Japan was the leading investor in the Philippines, accounting for 30.2 percent of total foreign investments registered with the Board of Investments and Philippine Economic Zone Authority.