Phl to complete review of trade pact with Japan

MANILA, Philippines - The Philippines is aiming to complete the review of its bilateral trade agreement with Japan next year, a trade official said.

“We aim to conclude the general review of the PJEPA (Philippines - Japan Economic Partnership Agreement) next year,” Trade undersecretary Adrian Cristobal Jr. told reporters.

He noted that during the Association of Southeast Asian Nations - Japan Summit held earlier this month, both the Philippines and Japan have stated that the PJEPA is high on their priority.

“Both sides believe this is a vital tool to boost further the trade and economic relations of both countries,” he said.

Trade assistant secretary Ceferino Rodolfo said earlier that as part of the review, the Philippines will be pushing for greater access of agricultural products as well as improved terms for entry of natural persons to Japan.

The PJEPA took effect in 2008 to strengthen the economic relations of the Philippines and Japan.

It covers free flow of trade in goods, services, persons and capital.

Since the PJEPA came into effect, trade between the two countries have grown by more than five times.

Japan is the biggest market for Philippine exports, with outbound merchandise shipments amounting to $9.88 billion in 2012.

In terms of imports, Japan is the Philippines’ third biggest source, with purchases valued at $6.45 billion in 2012.

Investments being made into the Philippines from Japan have also been rising since the bilateral agreement came into force.

From P16 billion in 2008, investments to the Philippines from Japan jumped to P69 billion last year.

Japan is among the top sources of foreign investments in the Philippines.

Last year, it accounted for the second biggest share or 23.9 percent of total foreign investments approved by the Philippines’ investment promotion agencies.

Total foreign investments approved by the investment promotion agencies reached P289.1 billion last year.